For Some Americans, Living Paycheck to Paycheck is Now a Luxury

Living paycheck-to-paycheck used to mean that someone was struggling, but for many Americans, it’s now a goal. Thanks to the combination of wage stagnation, inflation, and a housing affordability crisis, being able to pay for rent, utilities, food, and other bills has become a luxury.

In a recent survey of 2,000 American workers who earn a hourly wage, 39% of respondents thought living from paycheck to paycheck would be an improvement from their current finances.The survey was completed by Talker Research, a market research firm.

For those struggling to make it from one paycheck to the next—a steady job, side hustles, and low costs—can help make ends meet. Here are some tips for financial survival.

Changes in Housing, Wages, and Inflation Cause Financial Strain

Post-pandemic inflation might seem like an issue from the past, but it is still very much present. Consumers spent 23% more on groceries in June 2025 than they did in 2020, and almost 4% more than in 2023.

Housing is more expensive, too. Almost half of renters in the country are considered rent burdened, which means they spend more than 30% of their income on rent. That leaves less room for savings and emergencies.

Despite these increases, wages have not kept up. From 1970 to 2019, wages for lower-income earners grew only by 3% after adjusting for inflation. For middle-income earners, it was only slightly better at 13.7%. Compare this to the top 1% of earners who saw their wages grow by 160% in the same period.

“I believe when so many full-time earners struggle, even while budgeting carefully, it underscores systemic pressures like wage stagnation, inflation, and the social pressure to ‘keep up,'” said Kevin Kautzmann, a certified financial planner (CFP) at EBNY Financial.

How to Make Your Income Stretch Further

Rebuild Your Budget

Create a zero-based budget where every dollar spent is recorded, even if it’s $2 spent on a pack of gum. List all expenses: food, utilities, rent, entertainment, etc. Track recurring expenses and what you can get rid of—like Netflix, the bagel you buy from a local bodega twice a week, and so on.

Additionally, see where you can find more affordable options—like a cheaper phone plan or fewer meals out. Tracking your expenses can show where you’re needlessly spending money.

“When clients feel overwhelmed by debt or instability, I often start helping a client conduct an ‘expense triage,'” said Kautzmann. “We do this by identifying discretionary cuts that don’t derail quality of life and ensuring essentials like housing, utilities, and groceries are covered.”

And once you have your expenses covered, you’ll need to tackle debts.

“We will suggest a debt snowball strategy: make minimum payments across all balances, then apply any additional funds toward the smallest debt first,” said Kautzmann. “That early psychological victory of the smallest loan can create powerful momentum. Even a simple, rough budget written on paper can move someone from chaos to clarity, helping them regain a sense of control.”

Prepare for Income Swings

If your income is not consistent and fluctuates from month to month, create a minimum income plan: a budget with the lowest amount of money that would cover all necessities.

In months where you have more income, set the extra earnings aside in an emergency fund if you don’t already have one. That way, in lean months, you aren’t struggling to make ends meet.

Add Additional Income Streams

If you’re facing economic precarity, consider looking for additional jobs or side hustles—having multiple streams of income can improve your financial security.

Unfortunately, having a side hustle is now seen as an economic necessity, as more than one-third of hourly workers in the Talker Research survey said they needed more than one job just to get by.

“In today’s environment of high inflation and climbing housing costs, [budgeting and emergency funds] alone aren’t always sufficient,” says Kautzmann. “For clients who are already disciplined but still struggling, I redirect attention to optimizing income, minimizing taxes, and exploring additional revenue streams or side ventures.”

Explore gig platforms, like Fiverr, Upwork, and TaskRabbit, for additional work that matches your skills. While some of these platforms can be competitive, you can build up work over time with consistency.

Additionally, you can join local Facebook groups that need people for projects that match your skills: think jobs like tutoring, proofreading, or food and grocery delivery.

Use Community and Employer Resources

There are plenty of organizations that help those in need, covering basics such as rent assistance, bill payments, food programs, and financial advice. For example, the Internal Revenue Service’s VITA grant program helps individuals prepare taxes.

Some employers also offer benefits that many people don’t know about or take advantage of. These might include financial assistance, transit coverage, mental health resources, or the ability to receive wages early through platforms like DailyPay and EarnIn.

“I guide clients who are public servants towards programs like Public Service Loan Forgiveness, and for veterans, benefits such as VA home loans and the GI Bill for education,” said Kautzmann.

Improve Your Professional Skills

Building skills is a strong way to improve your professional profile. While you don’t have to go back to school, there are many courses available online, such as through Coursera and LinkedIn Learning, where you can pick up advanced skills and certificates, making you qualified for higher-paying jobs.

The Bottom Line

A housing crunch, stagnant wages, and inflation have made life more expensive, making it harder to pay bills and meet expenses.

The new reality requires a new approach to financial health, including strategies such as improved budgeting, multiple income streams, and reliance on community assistance. With careful planning and time, you can slowly build yourself up to financial strength.

“I encourage clients to define financial success inwardly, emphasizing stability, personal values, and measurable progress,” said Kautzmann. “Financial health today is less about chasing someone else’s highlight reel, and more about designing a sustainable path that works for you, one small step at a time.”