Wealthy Americans are cutting back expenses as they feel financial pinch
A recent report reveals how Americans, who are making six-figure salaries, are extremely worried about making ends meet. The survey finds that consumers who were previously considered wealthy are now struggling to buy essentials, via CNN.
A large number of wealthier Americans is trying to cut back on their expenditure and opting to stay home as much as possible to save money. The findings are reflective of the high inflation and the soaring borrowing costs that continue to create financial pressure on Americans.
According to the survey, nearly 30.8% of consumers making between $100,000 and $149,999 a year are concerned about making ends meet in the coming six months, as per the Philly Fed Survey. The metric is higher than the earlier number, which was 21.3%. Similarly, 32.5% of those earning $150,000 or more indicated that they were worried about paying the bills.
The survey also showed how the richer families were struggling more than the 23% of those making $70,000 to $99,999, according to the survey. About one in three (34.9%) said they are concerned about making ends meet, up from 28.7% a year earlier, as per CNN Business.
Furthermore, younger Americans are more likely to be feeling financial pressure than older. More than 40% of those between the ages of 18 and 35 years old said that they were concerned about making ends meet as compared to people who were above 65 years old.
The survey also found that 32.3% of those making $100,000 to $149,999 are worried about paying their bills in the next 7 to 12 months, which is up from 26.5% a year ago. There was an even bigger increase among those making at least $150,000, and 33% saying they are concerned, up from 19.8% a year ago, as per the survey.
The increase in the numbers is large and significant and may be on the rise in the coming years, as per the report.
On the bright side, the growing share of wealthier consumers expects higher incomes this year, which includes 40.8% of those making $150,000. Consumers also felt optimistic for the years ahead. Moreover, it was also seen that consumers indicate 43.1% of consumers indicate they are cutting on things like entertainment as well as essentials like medical care, food, and more. Other steps include taking additional jobs, borrowing more, and also taking money out of retirement savings before maturity.
Another poll conducted by Monmouth University’s Polling Institute found that 46% of Americans surveyed said they are struggling to remain where they are financially.
"Even with a declining inflation rate, prices continue to be much higher than they were four years ago," said Patrick Murray, director of the Monmouth University Polling Institute. "That’s the metric that has really mattered to many Americans over the past two years. Economic concerns may not be the top motivating factor for all voters but it defines the contours of this year’s election."