GREENFIELD, Mass. (WWLP) – An interest-rate website analyzed labor department data and found something a lot of people already knew: most of us live paycheck to paycheck.
A new study finds the average American has a little more than $600 left after paying the bills each month. And that most us are living paycheck to paycheck.
Financial website, interest.com reveals that the median household savings nationwide is zero dollars, leaving nothing for emergency expenses.
Some people told 22News, they’re cutting costs to get the most out of their paycheck. Pat Cassimatis said, “I take my lunch everyday. I don’t go out to eat much. I try to cut back that way. I don’t go out to the movies or a lot of entertainment.”
Greenfield Community College economics professor Thomas Simmons told 22News the price of items has remained stable, but paychecks have gotten smaller. “Households that used to have 2 workers have 1 worker. Even though unemployment is down between 6-7% right now, underemployment is at 30%. That means households are earning less money than they used to.”
Housing wealth, the amount of borrowing power you have because of the value of your house has decreased 30% since 2005.
Professor Simmons told 22News the most significant place you can save money is in electronics. He recommends downgrading your cable package, or switching to a less fancy cell phone to help you save more money.