Do you start spending your paycheck before it actually lands in your bank account? According to a new survey, 59% of Americans do, pre-planning what they’ll pay first while waiting to get paid.
The poll of 2-thousand employed Americans who make less than $75-thousand a year looks at where their salaries go and reveals the ‘anatomy” of the average American paycheck:
- The average person mentally pre-spends more than half (51%) of their paycheck before they get it.
- Overdue bills are a top reason for that, as only 40% of respondents don’t have any overdue bills, while 55% have between one and four that are overdue in any given month.
- Big bills, like rent or a mortgage (56%) are most likely to be the first things paid, followed by necessities like food and medications (51%), smaller bills, like electric and water (38%) and finally, those overdue bills (29%).
- The average American spends about 43% of their paycheck within three days of getting paid, in addition to the 51% that’s pre-spent.
- Nearly two-thirds (64%) of the average respondent’s paycheck goes towards “needs,” including food, bills and housing. Only 16% ends up in savings, while another 16% gets spent on “wants” or something fun.
- The majority of those polled live on a tight budget in the days leading up to payday, only 20% don’t run out of money before getting paid again.
- Those that do struggle to buy groceries (62%), pay bills (30%) and buy medications (16%).
- While 39% rely on a side hustle to make extra money, others turn to family (31%) or credit cards (28%), and 14% admit they don’t have options when they need more funds.
Source: Talker