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More Consumers Living Paycheck To Paycheck

High prices cut into savings across the board

September 3, 2008
With prices for food and energy rising sharply this year, more consumers are finding it harder to maintain any kind of savings program. A new survey, commissioned by CareerBuilder.com, finds 47 percent of workers say they always or usually live paycheck to paycheck just to make ends meet, up from 43 percent last year.

The difficulties appear to affect most income groups. One-in-five workers with salaries of $100,000 or more report they too live paycheck to paycheck.

The struggle from pay period to pay period makes planning for the future difficult. A quarter of workers say they don't put any money aside for savings each month. Of those who do save, 34 percent of workers set aside less than $100 a month for savings, and 18 percent save $50 or less.

Additionally, a third of workers say they do not participate in any programs such as 401k, IRAs or retirement plans. One in ten workers making more than $100,000 report putting no money into savings each month or participating in a 401k, IRA or comparable retirement plan.

Four-in-ten workers say they would need up to an additional $500 per paycheck to live comfortably. Fourteen percent says they have to work more than one job to keep up with monthly expenses.

"Nearly two-thirds of workers say they have a set budget each pay period, although 19 percent admit to typically going over it," said Rosemary Haefner, vice president of human resources for CareerBuilder.com. "Just like in business, going over a budget can have negative consequences on the bottom line. Workers who are facing challenges in this area may want to reevaluate where their funds are being allocated, so they can identify opportunities to reprioritize, recoup savings and lighten their financial burden."

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