In September, 41% of U.S. adults lived paycheck to paycheck while managing their bills, while 25% struggled to cover them. Data from a survey of 2,487 adults shows that consumers living paycheck to paycheck and paying bills on time purchased from an average of 1.9 discretionary categories over the past year, compared to 1.6 for those struggling and 2.5 for those not living paycheck to paycheck.
Consumers who manage bills while living paycheck to paycheck classified an average of 10.5 out of 22 categories as discretionary, whereas those not living paycheck to paycheck identified 10.1. Among those making discretionary purchases, 40% of both groups living paycheck to paycheck rated at least one category as a notable or major monthly expense, compared to 34% for those not living paycheck to paycheck.
Subscription habits reveal significant differences in spending priorities. Among consumers who view subscriptions as optional, 57% of those living paycheck to paycheck and paying bills would cut them first. This figure is 18 percentage points higher than for those not living paycheck to paycheck. Across all financial groups, 49% to 54% of consumers cited wanting an item more than needing it as the primary reason for cutting discretionary spending.
Despite varying attitudes toward subscriptions, mortgage and homeownership costs remain the top priority for protection. Approximately 27% of consumers who live paycheck to paycheck while keeping up with bills identified these housing costs as the expense they would protect the longest, a sentiment shared by those not living paycheck to paycheck.
