ECONOMY
This Is Why America Is Living Paycheck To Paycheck
Why most of us are broke and what we can do about it
“Money’s just a thing, and things change.” — Elizabeth Berkley
That sage wisdom from the Showgirls sage feels like a cruel joke when you’re part of the 63% of Americans who can’t afford a $500 emergency.
Living paycheck to paycheck has become the new American Dream — a more feverish nightmare than an upwardly mobile fairytale.
Why is it that in the “land of opportunity,” most of us are constantly teetering on the edge of financial ruin? I’ll tell you why, but first, indulge me in a detour…
Remember that time in 3rd grade when you discovered your love for putting Lunchables pizza seasoning on literally everything? Ok, maybe that was just me. But we’ve all had those weird childhood fixations that made perfect sense at the time.
Well, adulthood is just one big manifestation of society’s collective Lunchables pizza dust phase. We’ve gotten so accustomed to the struggle that living paycheck to paycheck feels…normal. Almost comforting, in a dysfunctional way.
But let’s stop normalizing the unnecessary struggle and call a spade a spade.
The paycheck-to-paycheck cycle is the financial equivalent of hungrily devouring an entire Lunchables pizza in one sitting. Mildly satisfying at the moment, but ultimately leaves you broke, bloated, and regretting all your life choices.
Here’s the cold hard truth: The system is rigged against the working class. It’s an inconvenient truth served up by reality and depressing AF statistics:
- 78% of full-time workers said they live paycheck to paycheck.
- The median household income was $70,784 in 2021…which feels like humble brag money until you realize the median means HALF made less than that.
- Home prices have skyrocketed over 40% in just the last 3 years, putting the American Dream of home ownership further out of reach.
- The student debt crisis has indebted millions, with the average borrower owing over $30,000.
It’s a perfect storm of stagnant wages, inflating costs, and good ole wealth inequality.
The game feels rigged because…well, it kinda is.
Now before you start frantically Googling “cheapest places to live off the grid” and dreaming of that #TinyHouse life, pause for a moment.
Yes, the system is jacked, but that doesn’t mean we’re powerless.
Because scattered among these dreary stats are glimmers of hope — stories of regular folks beating the cycle through a combination of hustle, savvy choices, and supportive community. Like…
- The 33-year-old badass who paid off $92,000 of student loans in just 10 months through draconian budgeting, multiple side hustles, and sheer force of will.
- The couple who transformed their $87,000 of debt into a $300,000+ net worth over 8 years. How? By treating debt repayment like a militant athletic training regimen (and avoiding lifestyle creep like the plague).
- The immigrant family who went from living in a garage to a net worth of over $1 million in just 15 years through small business ownership and savvy real estate investing.
Want to learn the secrets to building your own $1K income stream online? Grab my free ebook “How to Build a New $1K Income Stream Online” to get started.
Sure, these #DebtCrusher stories are extreme. But they prove that upward mobility is still possible if you’re willing to hustle and optimize every penny. Delaying gratification has never been so gratifying!
Now before you quit your job to become a full-time real estate mogul/blogger/TikTok life coach, consider some more pragmatic tips:
- Pay yourself first through automatic transfers to a high-yield savings account. Even just $25 per paycheck adds up over time.
- Cook more meals at home (the $5 Aldi meal prep, etc). Those tasty $15 Poke bowls are the death of wealth.
- Negotiate literally everything — rent, cable bills, interest rates. The average person could save over $1,000/year just by asking.
- Live within your means! Hear me out — it’s a wild concept. That means prioritizing needs over wants, delaying big purchases, and avoiding turning too hard on FOMO.
Yes, the system is jacked, but that doesn’t mean we’re powerless. If you find value in the insights I provide, I’d be grateful if you could buy me a coffee at buymeacoffee.com/kaydee to support my work.
At the end of the day, living paycheck to paycheck is often the path of least resistance. It’s comfortably uncomfortable. But you don’t have to stay stuck.
Every time you choose to save instead of spend, cook instead of UberEats, negotiate instead of accept — that’s you taking a stand. That’s you refusing to be another cog in the paycheck-to-paycheck cycle.
Will it be easy? Hell no.
Embracing the grind and delaying gratification will make you feel like Dahmer at a family reunion. Out of place. Deeply unsettled.
But chip away, day by day, and you slowly loosen the system’s grip. You can’t overthrow the patriarchy with your pitchfork alone. But if enough of us make enough smart, disciplined choices over time…well, who knows? We just might spark the next American Revolution.
So keep hustling, keep negotiating, and keep practicing patience. Little by little, we’ll break this vicious paycheck-to-paycheck cycle and maybe, just maybe, start living a little.
(P.S. But please, for the love of all things holy, stop putting pizza seasoning on everything. That shameful habit dies with our childhoods.)
