Living Paycheck to Paycheck Is Common, Even Among Those Who Make More Than $100,000
Kanebridge News
    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,635,570 (+0.09%)       Melbourne $990,779 (-0.14%)       Brisbane $1,002,534 (+0.89%)       Adelaide $899,189 (+1.63%)       Perth $853,385 (-0.01%)       Hobart $727,599 (-0.08%)       Darwin $665,330 (-2.24%)       Canberra $1,030,329 (+2.00%)       National $1,054,780 (+0.44%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $758,114 (+0.56%)       Melbourne $494,774 (+0.21%)       Brisbane $562,776 (+0.42%)       Adelaide $448,109 (+2.19%)       Perth $451,267 (-0.77%)       Hobart $504,603 (-1.31%)       Darwin $357,621 (+2.79%)       Canberra $496,414 (-0.41%)       National $532,600 (+0.26%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 10,429 (+70)       Melbourne 14,915 (+41)       Brisbane 7,933 (-18)       Adelaide 2,089 (-116)       Perth 5,787 (-101)       Hobart 1,241 (+4)       Darwin 244 (-2)       Canberra 988 (+18)       National 43,626 (-104)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 8,586 (+58)       Melbourne 8,221 (+87)       Brisbane 1,635 (+21)       Adelaide 372 (-9)       Perth 1,517 (-36)       Hobart 198 (-10)       Darwin 404 (-2)       Canberra 1,028 (+31)       National 21,961 (+140)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $820 (+$3)       Melbourne $600 (-$5)       Brisbane $650 ($0)       Adelaide $600 ($0)       Perth $680 ($0)       Hobart $550 ($0)       Darwin $750 ($0)       Canberra $680 (+$10)       National $676 (+$1)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $760 (-$10)       Melbourne $595 (-$5)       Brisbane $640 (-$3)       Adelaide $500 (+$5)       Perth $620 ($0)       Hobart $450 ($0)       Darwin $540 (-$10)       Canberra $550 (-$10)       National $596 (-$5)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,832 (+125)       Melbourne 6,113 (+155)       Brisbane 4,426 (+39)       Adelaide 1,506 (+63)       Perth 2,727 (+138)       Hobart 431 (+13)       Darwin 95 (-3)       Canberra 602 (+6)       National 21,732 (+536)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 10,046 (+377)       Melbourne 6,071 (+301)       Brisbane 2,272 (+28)       Adelaide 373 (+1)       Perth 740 (-4)       Hobart 143 (+14)       Darwin 136 (+6)       Canberra 746 (+30)       National 20,527 (+753)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.61% (↑)        Melbourne 3.15% (↓)       Brisbane 3.37% (↓)       Adelaide 3.47% (↓)     Perth 4.14% (↑)      Hobart 3.93% (↑)      Darwin 5.86% (↑)        Canberra 3.43% (↓)       National 3.33% (↓)            UNIT ANNUAL GROSS YIELDS AND TREND         Sydney 5.21% (↓)       Melbourne 6.25% (↓)       Brisbane 5.91% (↓)       Adelaide 5.80% (↓)     Perth 7.14% (↑)      Hobart 4.64% (↑)        Darwin 7.85% (↓)       Canberra 5.76% (↓)       National 5.81% (↓)            HOUSE RENTAL VACANCY RATES AND TREND       Sydney 0.8% (↑)      Melbourne 0.7% (↑)      Brisbane 0.7% (↑)      Adelaide 0.4% (↑)      Perth 0.4% (↑)      Hobart 0.9% (↑)      Darwin 0.8% (↑)      Canberra 1.0% (↑)      National 0.7% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 0.9% (↑)      Melbourne 1.1% (↑)      Brisbane 1.0% (↑)      Adelaide 0.5% (↑)      Perth 0.5% (↑)      Hobart 1.4% (↑)      Darwin 1.7% (↑)      Canberra 1.4% (↑)      National 1.1% (↑)             AVERAGE DAYS TO SELL HOUSES AND TREND         Sydney 28.9 (↓)     Melbourne 30.3 (↑)        Brisbane 30.8 (↓)       Adelaide 25.4 (↓)     Perth 36.1 (↑)      Hobart 37.8 (↑)      Darwin 35.1 (↑)        Canberra 28.5 (↓)     National 31.6 (↑)             AVERAGE DAYS TO SELL UNITS AND TREND         Sydney 29.6 (↓)       Melbourne 30.2 (↓)     Brisbane 29.6 (↑)        Adelaide 25.4 (↓)     Perth 38.3 (↑)      Hobart 30.1 (↑)        Darwin 46.7 (↓)       Canberra 38.0 (↓)     National 33.5 (↑)            
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Living Paycheck to Paycheck Is Common, Even Among Those Who Make More Than $100,000

By MEGAN LEONHARDT
Mon, Oct 16, 2023 10:51amGrey Clock 3 min

Many Americans are living in financial distress, at least some of the time.

That’s the message of a recent Harris Poll, and it’s bad news for economic growth.

About 65% of working Americans say they frequently live paycheck to paycheck, according to a recent survey of 2,105 U.S. adults conducted by The Harris Poll, asking questions supplied by Barron’s. About 30% of households report that they run out of money at the end of every month, while 35% say they don’t have money left at the end of most months.

While the number of people living on the edge financially has an immediate effect on household well-being, there are also longer term economic costs, including higher debt levels and uneven retirement readiness. Those trends could also dampen overall economic growth.

Unsurprisingly, people earning less tend to struggle more, but even those considered well off are vulnerable to paycheck shocks. About 78% of Americans earning less than $50,000 a year report they live paycheck to paycheck, according to the survey. Yet 51% of Americans who make more than $100,000 a year say they still run out of money.

Living paycheck to paycheck is a fairly “ubiquitous” circumstance, says Fiona Greig, Vanguard’s global head of investor research and policy. That’s because U.S. adults generally tend to need a bigger cash buffer than they anticipate. Additionally, she says, many consumers are facing higher living expenses as inflation erodes their purchasing power.

The latest Harris survey data show a higher percentage of Americans living paycheck to paycheck than the roughly 60% reported in August in the Reality Check: Paycheck-To-Paycheck research series. The difference likely is due to differences in the survey population, and rising energy costs that hit consumers’ budgets in recent weeks. At the end of September, gasoline averaged $3.83 a gallon nationally, two cents more than in August, and seven cents more than a year earlier, according to AAA.

Data from the Reality Check series have oscillated since the Covid pandemic started. About 66% of those surveyed in March 2020 said they were spending down their paychecks. Some 52% of Americans were in such straits in April 2021, shortly after the most generous round of federal stimulus checks went out. The latest share, at 60%, is little-changed from the prior year.

Although generous government stimulus programs boosted consumers’ savings during the Covid pandemic, those outlays have waned. The Federal Bank of San Francisco estimated that Americans accumulated $2.1 trillion in total excess savings during the pandemic. Only about $190 billion remained on consumer balance sheets as of June, the bank estimated.Researchers anticipate the data will show that excess savings were gone completely as of the end of September.

Overall inflation also has taken a toll, leaving Americans with less purchasing power. Although headline inflation, as measured by the Consumer Price Index, has fallen from a high of 9% recorded in June 2022, prices climbed at a 3.7% annual pace in September, well above the Federal Reserve’s desired 2% target.

Even as Americans draw down their savings, they aren’t refilling their coffers. The U.S. personal savings rate—the percentage of disposable personal income to total income—was 3.9% in August, according to the Bureau of Economic Analysis. While that is 0.7 percentage points higher than a year ago during a higher-inflation period, the current rate is well below prepandemic averages.

Diminished savings suggest Americans are relying on more credit now than during the pandemic, and data bear that out. Total U.S. credit-card debt hit a record of $1.03 trillion during the second quarter, according to the Federal Reserve Bank of New York.

A slower rate of savings and a higher level of borrowing have longer term consequences for many Americans. Vanguard’s research indicates that even with the influx of cash during the pandemic, the vast majority of Americans aren’t on track to meet their spending needs in retirement, and that’s after including Social Security income and private savings. The problem is particularly acute for lower-income families.

Social Security benefits replace about 62% of the retirement income that families earning roughly $22,000 a year need once they no longer are working, Vanguard reported. Yet even higher-income Americans rely on Social Security. Families earning about $173,000 a year draw about 18% of their retirement income from Social Security, according to Vanguard.

Social Security is inflation-protected, but cost-of-living adjustments affect the amount of benefits paid, and as a result, impact the program’s projected long-term solvency. Social Security benefits are set to rise 3.2% for 2024, increasing the average monthly payment of $1,790 by $57.

The high percentage of financially vulnerable Americans, whether working or retired, poses broader problems. Consumer spending accounts for about 70% of the U.S. economy. If Americans pull back on their household spending because they need to pay interest on their credit cards or loans, or because they don’t have enough saved to live in retirement, that could impact the nation’s growth.

So far, most Americans have kept up with their debt payments while continuing to spend. Overall delinquencies were largely in check as of the second quarter.

The robust labour market has helped: The U.S. economy added 336,000 jobs in September, well above expectations. Even so, the imbalance between labour demand and supply continues to narrow, Fed Vice Chair Philip Jefferson said in a speech last Monday.

“We’re at kind of a turning point in our economy,” Greig says, noting that this could be an inflection point for consumers.



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A Killer Golf Swing Is a Hot Job Skill Now

Companies are eager to hire strong players who use hybrid work schedules to schmooze clients on the course

By CALLUM BORCHERS
Fri, Jun 14, 2024 5 min

Standout golfers who aren’t quite PGA Tour material now have somewhere else to play professionally: Corporate America.

People who can smash 300-yard drives and sink birdie putts are sought-after hires in finance, consulting, sales and other industries, recruiters say. In the hybrid work era, the business golf outing is back in a big way.

Executive recruiter Shawn Cole says he gets so many requests to find ace golfers that he records candidates’ handicaps, an index based on average number of strokes over par, in the information packets he submits to clients. Golf alone can’t get you a plum job, he says—but not playing could cost you one.

“I know a guy that literally flies around the world in a private jet loaded with French wine, and he golfs and lands hundred-million-dollar deals,” Cole says.

Tee times and networking sessions have long gone hand-in-golf-glove. Despite criticism that doing business on the course undermines diversity, equity and inclusion efforts—and the fact that golf clubs haven’t always been open to women and minorities —people who mix golf and work say the outings are one of the last reprieves from 30-minute calendar blocks

Stars like Tiger Woods and Michelle Wie West helped expand participation in the sport. Still, just 22% of golfers are nonwhite and 26% are women, according to the National Golf Foundation.

To lure more people, clubs have relaxed rules against mobile-phone use on the course, embracing white-collar professionals who want to entertain clients on the links without disconnecting from the office. It’s no longer taboo to check email from your cart or take a quick call at the halfway turn.

With so much other business conducted virtually, shaking hands on the green and schmoozing over clubhouse beers is now seen as making an extra effort, not slacking off.

Americans played a record 531 million rounds last year. Weekday play has nearly doubled since 2019, with much of the action during business hours , according to research by Stanford University economist Nicholas Bloom .

“It would’ve been scandalous in 2019 to be having multiple meetings a week on the golf course,” Bloom says. “In 2024, if you’re producing results, no one’s going to see anything wrong with it.”

A financial adviser at a major Wall Street bank who competes on the amateur circuit told me he completes 90% of his tasks by 10 a.m. because he manages long-term investment plans that change infrequently. The rest of his workday often involves golfing with clients and prospects. He’s a member of a private club with a multiyear waiting list, and people jump at the chance to join him on a course they normally can’t access.

There is an art to bringing in business this way. He never initiates shoptalk, telling his playing partners the round is about having fun and getting to know each other. They can’t resist asking about investment strategies by the back nine, he says.

Work hard, play hard

Matt Parziale golfed professionally on minor-league tours for several years, but when his dream of making the big time ended, he had to get a regular job. He became a firefighter, like his dad.

A few years later he won one of the biggest amateur tournaments in the country, earning spots in the 2018 Masters and U.S. Open, where he tied for first among non-pros.

The brush with celebrity brought introductions to business types that Parziale, 35 years old, says he wouldn’t have met otherwise. One connection led to a job with a large insurance broker. In 2022 he jumped to Deland, Gibson Insurance Associates in Wellesley, Mass., which recognised his golf game as a tool to help win large accounts.

He rescheduled our interview because he was hosting clients at a private club on Cape Cod, and squeezed me in the next morning, before teeing off with a business group in Newport, R.I.

A short time ago, Parziale couldn’t imagine making a living this way. Now he’s the norm in elite amateur golf circles.

“I look around at the guys at the events I play, and they all have these jobs ,” he says.

His boss, Chief Executive Chip Gibson, says Parziale is good at bringing in business because he puts as much effort into building relationships as honing his game. A golf outing is merely an opportunity to build trust that can eventually lead to a deal, and it’s a misconception that people who golf during work hours don’t work hard, he says.

Barry Allison’s single-digit handicap is an asset in his role as a management consultant at Accenture , where he specialises in travel and hospitality. He splits time between Washington, D.C., and The Villages, Fla., a golf mecca that boasts more than 50 courses.

It can be hard to get to know people in distributed work environments, he says. Go golfing and you’ll learn a lot about someone’s temperament—especially after a bad shot.

“If you see a guy snap a club over his knee, you don’t know what he’s going to snap next,” Allison says.

Special access

On a recent afternoon I was a lunch guest at Brae Burn Country Club, a private enclave outside Boston that was the site of U.S. Golf Association championships won by legends like Walter Hagen and Bobby Jones. I parked in the second lot because the first one was full—on a Wednesday.

My host was Cullen Onstott, managing director of the Onstott Group executive search firm and a former collegiate golfer at Fairfield University. He explained one reason companies prize excellent golfers is they can put well-practiced swings on autopilot and devote most of their attention to chitchat.

It’s hard to talk with potential customers about their needs and interests when you’re hunting for errant shots in the woods. It’s also challenging if you show off.

The first hole at Brae Burn is a 318-yard par 4 that slopes down, enabling big hitters like Onstott to reach the putting green in a single stroke. But to stay close to his playing partners and keep the conversation flowing, he sometimes hits a shorter shot.

Having an “in” at an exclusive club can make you a catch. Bo Burch, an executive recruiter in North Carolina, says clubs in his region tend to attract members according to their business sectors. One might be chock-full of real-estate investors while another has potential buyers of industrial manufacturing equipment.

Burch looks for candidates who are members of clubs that align with his clients’ industries, though he stresses that business acumen comes first when filling positions.

Tami McQueen, a former Division I tennis player and current chief marketing officer at Atlanta investment firm BIP Capital, signed up for private golf lessons this year. She had noticed colleagues were wearing polos with course logos and bringing their clubs to work. She wanted in.

McQueen joined business associates on the golf course for the first time in March at the PGA National Resort in Palm Beach Gardens, Fla. She has lowered her handicap to a respectable 26 and says her new skill lends a professional edge.

“To be able to say, ‘I can play with you and we can have those business meetings on the course’ definitely opens a lot more doors,” she says.

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

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Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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