Nearly Half Of Hourly Workers Say Living Paycheck To Paycheck Would Be An Improvement To Their Finances
The fact that there are people who want to live paycheck to paycheck signifies just how bad the economy is right now.
Andrey_Popov | Shutterstock These days, it seems like there’s no ideal financial situation to be in — unless, of course, you’re a billionaire. Almost everyone is struggling for one reason or another, and it seems like there is never enough money to go around.
Workers paid hourly have been hit particularly hard by the current economic state. Now, they are saying that they would be in a better place financially if they had the chance to live paycheck-to-paycheck like most salaried workers.
A survey found that hourly workers would prefer to live paycheck to paycheck.
Living paycheck to paycheck is not glamorous, and many people who have adopted this lifestyle out of necessity would say that they are having a hard time financially. Hourly workers can’t relate, though. They would actually love to be stuck living paycheck-to-paycheck with a more substantial amount of money deposited in their bank accounts once or twice a month.
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The survey, which was commissioned by DailyPay and conducted by Talker Research, included 1,000 retail workers who are paid hourly and 1,000 separate Gen Z workers who are paid hourly. 39% reported that they thought living paycheck to paycheck would be better than their current circumstances.
The statistics for hourly workers were fairly abysmal. Forty-four percent admitted to putting their bank account into overdraft in the last month. Another 38% said they had less than $1,000 in the bank. Nineteen percent have been forced to take out a loan at some point during the last year.
Many, 34% to be exact, have taken on second jobs or side hustles so they have multiple streams of income coming in that they can rely on. Still, this is not enough for most participants to actually make ends meet. Several commented that they had to sell belongings for extra cash. Twenty-eight percent depended on financial help from their family or friends.
On-demand pay would make some of these problems disappear.
DailyPay commissioned this survey because they are an on-demand pay provider. In other words, if a company uses its payment methods, employees can choose to be paid whenever they wish instead of waiting for the next pay period. Interestingly, 50% of hourly workers said they had little access to their pay between paychecks, and 78% thought on-demand pay would make their lives easier.
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Certified financial planner and author Cary Carbonaro stated, “For workers living paycheck to paycheck, many of whom are hourly employees, being paid weekly or even daily is preferable to other types of pay. For many hourly workers, their top priority is simply meeting their short-term needs, like buying groceries and paying rent, which is where on-demand pay can help.”
On-demand pay calls the ethics of waiting for a paycheck into question. After all, if you’re doing the work, then that’s your money. Why shouldn’t you be able to access it as soon as you earn it? Thirty-one percent of respondents felt that having access to on-demand pay would lead to greater financial security for them, and 30% thought they would be able to enjoy their lives more easily.
A concerning number of Americans live paycheck to paycheck.
A survey from MarketWatch Guides found that 57% of Americans are currently living paycheck to paycheck. Although it may seem preferable for hourly workers, it’s not a great situation to be in. Most Americans would like to get out of the cycle of living paycheck to paycheck rather than into it.
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The fact that so many hourly workers wish they could live paycheck to paycheck instead of dealing with the meager amount of money that is deposited into their accounts signifies just how dire the economy is. If paycheck to paycheck is the new goal, there’s a problem.
Then again, of course there is a problem with the economy. People are working for every last cent they can possibly make and trying to access that money as quickly as possible. The world has come to revolve around money, and these developments are concerning.
Mary-Faith Martinez is a writer with a bachelor’s degree in English and Journalism who covers news, psychology, lifestyle, and human interest topics.
