Even High Earners Struggle to Save
August 10, 2015 | Your Finances
Living paycheck to paycheck isn’t just a problem for those at the bottom of the pay scale.
In fact, a new SunTrust survey reveals that nearly one in three households earning at least $75,000 a year feel they can barely make ends meet.
Even more shocking: As many as one in four Americans raking in six figures also fess up to living paycheck to paycheck.
So why are even well-to-do Americans struggling to sock away at the end of the month?
In the survey, 68% of all overspenders designated dining out too much as the factor most contributing to their lack of savings, while 37% named shopping as their biggest budget-buster.
In other words: these high-earners have been hit by lifestyle inflation, or the phenomenon where as you earn more, you simply spend more—instead of ramping up savings or getting ahead on goals.
In fact, a third of participants in the survey admitted that they lack financial discipline—and said it’s holding them back from reaching key money goals.
Unfortunately, that lack of progress showed through in the survey: just 37% of high-earners ages 45 to 54 said they feel financially ready for retirement.
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