The Blubber

According to a recent PYMNTS Intelligence study, about 67% of Americans now report living paycheck to paycheck. This financial reality cuts across income levels, education backgrounds, and professions, making the biweekly wait for the next paycheck a defining feature of American financial life.

Paycheck-to-Paycheck Struggles Grow as Rising Costs Erode Savings

Living paycheck to paycheck means relying on each new paycheck to cover monthly expenses, with little to no financial cushion. The size of that cushion—or lack thereof—plays a critical role in determining how much consumers can stretch their budgets and how vulnerable they are to unexpected financial emergencies.

That vulnerability may become even more pronounced as economic uncertainty looms. President Donald Trump has not ruled out the possibility of a recession in 2025, and many analysts share the concern.

Rethinking the Paycheck-to-Paycheck Experience

For me, the conversation around paycheck-to-paycheck living shifted about nine years ago.

In May 2016, I came across an Atlantic cover story titled The Secret Shame of Middle Class Americans. Written by Neil Gabler, the article chronicled his personal experience of living paycheck to paycheck—despite a successful writing career and what he described as a “reasonably prosperous” life.

Gabler was not wealthy, but he earned a solid middle-to-upper-middle-class income, lived in Manhattan, and sent his daughters to private school. Yet he admitted that if hit with an unexpected $400 expense, he often had to borrow from friends, family, or even his own grown daughters.

His 6,156-word essay wasn’t a plea for sympathy. It was an exposé of the financial treadmill trapping many middle-class Americans.

Gabler detailed the emotional strain of “financial impotence,” explaining how he worked hard to shield his family from financial instability. His struggles were often tied to the unpredictable nature of his income—lump-sum book advances created tax complications, requiring careful financial planning over years.

On top of that, life threw unexpected financial curveballs. Selling his Manhattan co-op to lower his housing costs took two years, during which he paid double living expenses. Book deals stalled, freelance writing gigs disappeared, and saving money became increasingly difficult. Credit cards provided temporary relief, but revolving debt with high-interest rates only deepened his financial troubles.

Ultimately, Gabler acknowledged that his paycheck-to-paycheck lifestyle was largely a result of his own choices.