Fewer Americans Living Paycheck-to-Paycheck

Hey there, money savers! It’s high time we take a fresh look at your financial health. No more living paycheck-to-paycheck or being stressed out about those unexpected expenses. We’re all about making your money work smarter and not harder.

Remember those bumpy times when almost 61% of us had to survive from paycheck to paycheck (source: LendingClub report)? We’ve all been there, and it’s no picnic. Thankfully, that figure slipped to 57% in May this year, giving us some much-needed breathing space.

And breathe we did! Our buying power got a much-needed boost last month, thanks to the easing inflation. For the first time in two years, we felt our dollars stretching a bit more. No more pinching pennies just to cover the basics. We’ve also dodged a bullet with the consumer price index dropping to 4% in May, after a record high of 9.1% in June 2022. Sounds like a little victory, doesn’t it?

But let’s face it, the past year of crazy-high costs hasn’t been a walk in the park. Many of us felt the pinch and had to dip into savings, max out credit cards, or even take personal loans to cover our day-to-day expenses. And with credit card interest rates at an all-time high of over 20%, that’s not a path we want to tread.

What’s more, our latest survey by LendingTree found that 73% of us said higher prices have affected our ability to cover monthly expenses, including cell phone bills, utilities, auto insurance, and even internet service. Feels all too familiar, doesn’t it?

It’s clear we need to have a healthy buffer of savings for those rainy days. But here’s a little secret: most Americans are uncomfortable with their emergency fund levels. Believe it or not, fewer than half of us have enough emergency savings to cover at least three months of expenses, and about 22% don’t have any at all.

That’s where we come in! It’s recommended to aim for six months’ worth of expenses set aside in risk-free securities or cash. Some advise putting at least 10% of your income a month in an after-tax brokerage account or a high-yield savings account, a surefire way to boost your financial confidence and reduce stress.

But don’t worry, you’re not in this alone. Wellthi is here to hold your hand and guide you towards achieving these financial goals. Together with your friends, we’ll help you build that emergency fund, manage your monthly expenses, and gradually escape the paycheck-to-paycheck lifestyle. So, ready to get on the road to financial wellness? With Wellthi, you can! Let’s do this, together.