What do teachers, tech execs, and millionaires all have in common? According to new research, they’re all stressing about bills. A new Goldman Sachs report finds that even America’s top earners are feeling the financial squeeze.
Around four in 10 workers earning more than $300-thousand a year say they’re living paycheck to paycheck (including people making over half a million a year). In contrast, only about 16% of workers earning between $200-thousand and $300-thousand report struggling, while 57% of those earning under $50-thousand say they’re barely getting by. Rising prices for food, housing, and college tuition have created a cost-of-living crisis that’s hitting every income bracket.
Researchers point to what they call “lifestyle creep,” or the tendency for spending to rise along with income, as a key reason why high earners still feel broke. But it can’t be overlooked that prices have skyrocketed in recent years. A dozen eggs cost $3.60, up from $1.40 before the pandemic, and the median home price has jumped from $328,900 in 2020 to $413,500 in 2025. Home prices are so high that the number of millionaires opting to rent instead of buy has tripled since 2019.
Despite feeling stretched thin, many six-figure earners aren’t giving up their luxuries, they’re just cutting back elsewhere:
- Flying economy instead of first class
- Shopping at discount grocery stores
- Delaying big purchases like homes, vacations, and cars
- Scaling back subscriptions and even postponing weddings
So if you’re just scraping by, take comfort in knowing you’re not alone. Even wealthier Americans are feeling the squeeze from rising costs and having to figure out ways to stay afloat in this economy.
Source: Fortune
Scott's Thoughts:
- Guess “rich people problems” are still problems!
- It is not comforting to know that people with this much money struggle as much as me.
- Do you think it’s really lifestyle or just the new cost of living catching up to everyone?
- If you suddenly made double your salary, what’s the first “upgrade” you think you’d make?