In the face of persistent inflation, a six figure income doesn't go as far as you'd think. According to a Forbes Advisor survey, over 30 percent of individuals earning $100,000 or more find themselves trapped in a paycheck-to-paycheck cycle, thanks to high monthly bills. Clint Proctor, Forbes Advisor's Lead Editor, Credit Cards and Travel Rewards joined TheStreet to discuss these findings.
Full Video Transcript Below:
J.D. DURKIN: Joining us now for a one on one interview is Clint Proctor, the lead editor over at Forbes Advisor. Clint, thanks a lot for taking the time. It's great to have your perspective. Here to talk all about this new survey which finds 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?
CLINT PROCTOR: Yeah, very interesting. We found that 34 to 39% of people who are actually making six six figures said that as well and kind of shocked us. It surprised us. The study came back in ways that we didn't necessarily expect. And one of the things that we first saw was that those who were making six figures specifically said that lack of budgeting and financial planning was one of their primary reasons why they felt they were living paycheck to paycheck. But also they actually said that they had a low income was one of the reasons why. So there's still a perception there that even a six figure income isn't enough to be able to cover your bills in today's environment.
J.D. DURKIN: Is it a sense that a six figure salary simply isn't today what it once was, given the rising cost and the pressure points of inflation? Or is it a combination of factors think specifically for those respondents who are in the six figure salary range who still say they still find it a little bit difficult to make ends meet sometimes?
CLINT PROCTOR: Yeah, that's a great question. You know, I do think that fixed expenses are definitely on the rise and is a big contributing factor to this. We saw that among all of our respondents, high monthly bills, those fixed costs were the top reason they gave for why they felt they were living paycheck to paycheck. We're talking rent, mortgage insurance, utilities. Nearly 49% of those who filled out this survey said that. And that also was true of those who were earning six figures. So we saw that 39% of those earning $100,000 to $150 said that, 48.9% of those earning over $150,000 and then 53% of those earning $200k or more. So it actually rose. The percentage went up in every six figure tier. And, you know, it makes sense. For those of us who have just lived life over the past few years, we've seen housing prices, interest rates rise in tandem, which has decimated home affordability for many of us.
