In the face of persistent inflation, a six-figure income doesn't go as far as you might think. According to a Forbes Advisor survey, more than 30 percent of people making $100,000 or more are stuck in a paycheck-to-paycheck cycle, thanks to high monthly bills. Clint Proctor, senior editor of Forbes Advisor's Credit Cards & Travel Rewards joined TheStreet to discuss these findings.
Full video transcript below:
JD DURKIN: Joining us now for a one-on-one interview is Clint Proctor, senior editor at Forbes Advisor. Clint, thank you very much for taking the time. It's great to have your perspective. We're here to talk about this new survey that reveals that 40% of respondents in the US are living paycheck to paycheck. Clint, what does that figure tell you and what's behind that number?
CLIN PROCTOR: Yes very interesting. We found that 34-39% of people who actually make six figures said the same thing, and we were a little surprised. We were surprised. The study produced results that we did not necessarily expect. And one of the things we saw for the first time was that those making six figures specifically said that a lack of budgeting and financial planning was one of the main reasons they felt like they were living paycheck to paycheck. But they also said they were low income and that was one of the reasons. So there's still a perception that even a six-figure income isn't enough to cover the bills in today's environment.
JD DURKIN: Is there a sense that a six-figure salary simply isn't what it once was, given the rising cost and inflation pressure points? Or is it a combination of factors designed specifically for those respondents who are in the six-figure salary range and who still say they sometimes find it a little difficult to make ends meet?
CLIN PROCTOR: Yes, that's a great question. You know, I think overhead is definitely increasing and it's a big contributing factor to this. We saw that among all of our respondents, high monthly bills and those fixed costs were the main reason they gave for feeling like they were living paycheck to paycheck. We're talking rent, mortgage insurance, utilities. Nearly 49% of those who completed this survey said that. And that also applied to those who made six figures. Then we saw that 39% of those earning between $100,000 and $150 said the same, 48.9% of those earning more than $150,000, and then 53% of those earning $200,000 or more. So it actually went up. The percentage increased at each six-figure level. And you know, it makes sense. For those of us just navigating life over the past few years, we've seen home prices and interest rates rise at the same time, which has decimated housing affordability for many of us.
