Living Paycheck To Paychecks

A new survey finds that more than two-thirds of workers at small businesses are living paycheck to paycheck – it’s not a wage issue, and it’s taking a toll at work.

The report, by SmartDollar and its parent company Ramsey Solutions, claims that 68% of people who work at small businesses (defined as companies with fewer than 200 employees) are living paycheck to paycheck. Nor is it an issue limited to low wage earners: The survey found that half of workers earning $100,000 or more struggle to make ends meet. Most of those living paycheck to paycheck couldn’t cover a $1,000 emergency without going deeper into debt.

The report claims that three out of five small-business workers who live paycheck to paycheck also said paying off their consumer

debt was their most important financial goal, though only 29% report confidence they can do so within the next two years. By contrast, 72% of the group who never live paycheck to paycheck feel confident or very confident they’ll be debt-free in the same time period.
This on-the-edge lifestyle often leads to higher levels of payroll advances and garnishments, as well as more distractions at work and higher absenteeism, according to the report. Indeed, 56% of workers who reported living this way also said they often feel high stress or overwhelming stress.
Very few employees (15%) who said they live paycheck to paycheck also said they were confident about their ability to retire when they want. On the other hand, nearly three times that number (42%) who never find themselves scraping by reported feeling either confident or very confident about their retirement.
More than a third (35%) of American workers said their employers were their most common source for such information, tied with parents. And a high majority (87%) of workers said they would be comfortable getting help from their employer in regards to retirement education – a willingness that holds true regardless of age or income level.