A CareerBuilder survey of American workers in May and June found that 61 percent of respondents say they are “just getting by.” The increase in the number of Americans who find themselves living paycheck to paycheck is up more than 10 percent from last year, and almost 20 percent from 2007. Surprisingly, 30 percent of those respondents have an annual salary of $100,000 or more.
Federal Reserve Chairman Ben Bernanke recently announced that the recession is “likely over,” but it’s clear that many Americans are still struggling to make ends meet. The survey from CareerBuilder is a sobering reminder that financial hardships can hit any household unexpectedly—no matter their income.
Especially during a time when flagging economic conditions have proven to be detrimental for many, there’s a lot to be said for living within your means—probably the most effective way to avoid situations where you are hard-pressed for cash. A portion of respondents noted that they have had to stop saving money. While not everybody has the luxury of putting a good portion of their paycheck into savings, it’s never too late to start an emergency fund (no matter how small) that you can build with an eye to the future.
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[...] Econ4U, we often talk about “living within your means.” But to figure out what that really means for your household, you may have to ignore commonly [...]