Four in 10 workers earning more than $500,000 a year are living paycheck to paycheck-and 'lifestyle inflation' is keeping them broke | Fortune

"About 41% of American workers earning between $300,001 and $500,000-and 40% of those making over $500,000-say they're living paycheck to paycheck, according to a new report from Goldman Sachs. Perhaps surprisingly, those reeling in smaller salaries are faring a bit better: only around 16% of those earning $200,001 and $300,000 are struggling to make ends meet. And those on the bottom end of the spectrum are struggling more than middle earners, but still less than top earners: comparatively, 25% of employees making $100,001 to $200,000 and 36% bringing in $50,001 to $100,000 are living paycheck to paycheck. Meanwhile, about 57% of U.S. workers earning less than $50,000 report they're barely getting by on their salaries."

"At face value, it makes no sense why top-earners are in the same sticky financial situation as their lower-income peers-but the study finds this paradox highlights the "impact of lifestyle creep, the phenomenon of luxuries becoming necessities to certain income cohorts." Six-figure workers reeling in half a million-dollar salaries are struggling to keep up with the joneses. "Financial strain is not confined to low-income workers," the study reveals. "A meaningful share of higher earners also report living paycheck to paycheck or making only limited progress toward long-term financial goals, underscoring that elevated expenses, debt burdens, and lifestyle inflation can erode savings capacity across the income spectrum.""

About 41% of workers earning $300,001–$500,000 and 40% of workers earning over $500,000 say they are living paycheck to paycheck. Around 16% of those earning $200,001–$300,000 report financial struggle. Twenty-five percent of workers earning $100,001–$200,000 and 36% of those earning $50,001–$100,000 live paycheck to paycheck. Approximately 57% of workers earning less than $50,000 are barely getting by. Lifestyle creep—luxuries becoming necessities—contributes to strain among high earners. Rising prices for essentials like eggs and higher median home prices have increased financial pressure across income levels.

Read at Fortune