More Americans are living paycheck to paycheck

SALINAS, Calif. (KION-TV) -- The increase in the cost of living is having more households live paycheck to paycheck, especially with rising inflation and gas prices.

At the beginning of 2022, it was recorded that 64% of Americans are struggling to make ends meet.

This was a three percent rise from December of 2021.

Although wages have gone up, it still isn't keeping up with bills and necessities for many people.

“What benefit does that minimum wage increase really provided, given the cost of everything has gone up and more recently the cost of transportation or gas to and from work," said John Castaneda, Financial Advisor.

Recently, prices for groceries and gas have been increasing a substantial amount within people's budgets.

Many people are making cuts where they can, whether it's going out to eat less or sticking to store-brand goods instead of name brands.

"We don't buy name brand ever. We've stuck to getting store brand. I think it's actually the same thing," said Sophia Pescador, Salinas shopper.

Some people said that their living costs eat up so much of their funding that they can't enjoy their money.

“You kind of work to pay bills, you don’t really get to go out for yourself anymore," said Rosalia Tovar a Salinas shopper.

Even prices for meat can make a person think twice about putting it in their shopping carts.

“My friend text messaged the group earlier this morning, and was like, 'We're gonna start eating vegetarian meals twice a week because meat is so expensive and I was actually starting to think about doing the same thing," said Pescador.

Reasons to adjust your finances vary from person to person and not every money-saving tip works for all people.

“Write down what our expenses are, what we think they are, and be honest. Because when we categorize what’s going out, we could maybe better understand what our wants versus our needs are. That could help visualize and may encourage change," said Castaneda.

According to the financial company Personal Capital, In some places such as popular cities, making six figures is now considered low income.

It's more crucial than ever for the average person to figure out a spending balance that works for them while also being cost-efficient.