Paycheck To Paycheck
Millions of Americans find themselves trapped in a paycheck-to-paycheck cycle.
By Flynard Miller, as a part of his ‘On the Rise with Fly’ series
In the cafeteria of a Chicago-area United States Postal Service outpost sits Nikki, a mail carrier.
Her half-hour breaks from the grind are a two-sided coin: On one side, she gets a break from her eight-and-a-half hour shift. But on the other, time doesn’t move fast enough until she can clock out.
She glances at the clock on the wall, which seems stuck in place. “Is it broken?” she wonders. Each passing minute seems slower than the rest.
"Man, won't 11:30 get here already?" she says aloud.
Like many workers living paycheck to paycheck in the United States, Nikki is tired of the 40-plus-hour work weeks. Most days, she can’t wait to get home from the minute she clocks in.
According to a 2023 survey conducted by Payroll.org, 78% of Americans live paycheck to paycheck—over three-quarters of the nation's population struggle to save money or invest in their dreams after paying down their expenses and debt. Five days of work, eight hours a day, two days off, only to repeat it again the next week.
With inflation on the rise, the cost of living has skyrocketed, making every paycheck worth less.
Soaring gas prices, food in the local grocery aisles, and everyday household products cost more and more—it's no wonder many Americans now live paycheck to paycheck.
This has created a form of financial slavery, where people work a full-time job and spend every penny of their paycheck, unable to save money or buy things that are enjoyable to them. And it’s taking a toll not just on our checkbooks but also on our health and well-being.
Janice, a 60-year-old home care worker from Chicago (and also my mother-in-law), suffers from anxiety about managing her finances and not making enough to make a difference. Once she gets her paycheck, "she doesn't see it,” she says—the money is gone as soon as it comes in, to bills, debts, and basic living costs. Janice believes that in order to get by in today’s world, every household needs to have two incomes.
Even those who aren’t living paycheck to paycheck are dealing with the fallout of financial slavery.
More people are calling off work, taking advantage of paid sick leave, and using vacation time to relieve some of the pressures and stress of having to slave to pay the bills.
Ethan Watters, who wrote the book Crazy Like Us: The Globalization of the American Psyche, highlights that financial instability can lead to a range of mental health issues, from constant worrying and sleeplessness to more severe symptoms like rapid heartbeat and difficulty breathing. These findings are consistent with broader research indicating that economic worries significantly impact mental health, contributing to anxiety, depression, and other stress-related conditions.
The stress of worrying about financial stability is detrimental to our nation's well-being. We shouldn't have to work tirelessly to make ends meet, trapped in a perpetual cycle of effort and exhaustion.
While critics argue that overconsumption, poor financial planning, and a lack of financial literacy are reasons people live paycheck to paycheck, this perspective overlooks systemic issues.
Many individuals face stagnant wages, high living costs, and limited access to affordable essentials like healthcare and education. What is often labeled as overconsumption includes these necessary expenses, which, as I mentioned, have risen significantly.
Furthermore, the lack of financial stability is compounded by broader economic inequality and insufficient social safety nets, which play a more significant role in perpetuating financial insecurity than individual spending habits alone.
We can’t fix some of these larger systems blocking us from achieving financial freedom, but there is hope for Nikki, Janice, and the three-quarters of Americans living paycheck to paycheck. Below are some ways friends and families of incarcerated individuals can cope better and overcome financial slavery.
Create a Budget: Track your income and expenses to identify where to cut costs. MyMoney.gov offers resources on budgeting, saving, and managing debt.
Build an Emergency Fund: Start small by saving a portion of each paycheck to create a safety net for unexpected expenses. America Saves, managed by the nonprofit Consumer Federation of America, offers strategies for households to create an emergency fund.
Reduce Debt: To reduce overall financial strain, focus on paying down high-interest debts first. The Federal Trade Commission (FTC) offers advice on reducing debt and avoiding scams.
Increase Income: Look for side gigs, freelance work, or additional shifts to boost your earnings. CareerOneStop, from the U.S. Department of Labor, provides information on increasing income through job training, educational programs, and more.
Automate Savings: Set up automatic transfers to your savings account to ensure consistent savings. Most banks can do this, and strategies vary depending on your financial situation.
Seek Financial Advice: Consult with a financial advisor to develop a personalized plan for financial stability. The National Foundation for Credit Counseling (NFCC) offers free or low-cost financial advice.
