Are people struggling with cost of living?

Yes, a vast majority of people in countries like the U.S. are struggling with the cost of living, finding it difficult to afford essentials like food, housing, childcare, and healthcare, with many living paycheck-to-paycheck and cutting back on necessities or taking on debt. This struggle stems from wages not keeping pace with rapidly rising prices, especially for groceries, energy, and rent, leading to widespread financial strain across income levels, with working-class families and people of color disproportionately affected.

Are people struggling financially?

Yes, a significant portion of people, across different income levels, are struggling financially due to high costs for essentials like housing, food, and childcare, leading to increased debt, paycheck-to-paycheck living, and widespread financial anxiety, despite some appearances of spending. Data from late 2025 and early 2026 shows many middle-class families can't afford basics, lower-income households are falling further behind, and a majority of Americans feel financially vulnerable or stressed about their future, with inflation and debt being major drivers.
 

Is there a cost of living crisis in the US?

Yes, the U.S. is widely described as being in a significant cost-of-living or affordability crisis, with high prices for essentials like housing, food, childcare, and healthcare outpacing wage growth for many, forcing families to live paycheck-to-paycheck and struggle to cover basic needs. This situation is driven by inflation, stagnant real incomes for some, increased debt, and longstanding housing supply issues. 

Can I survive with $1000 a month in the USA?

In the US, surviving on $1000/month is very, very unlikely. Even if you live in the poorest part of the US, that still won't cover rent, groceries, etc.

Is the US becoming unaffordable?

Americans are struggling to afford essentials like food, child care, and housing. And most don't expect their situation to get better: Nearly 4 in 5 Americans believe the economy will not improve in the year ahead.

More people struggling with debt as cost of living grows | 5 News

Is $40,000 a year considered poor?

A $40,000 salary is classified as lower-middle class, which is defined as households that earn between $30,001 and $58,020 a year.

Why can't people afford to live anymore?

In 2023, the bottom 60% of households by income fell well short of the threshold for a minimal quality of life. That's largely because wages have failed to keep up with rising costs, the researchers say. Medical premiums rose 301% from 2001 to 2023, they note, while travel expenses were up 170%. Rent grew by 131%.

What is the $27.39 rule?

The $27.40 rule is a simple way to think about how to save $10,000 in a year. It suggests saving $27.50 of your income daily, which adds up to $10K annually ($27.40 x 365 days = $10,001).

Where am I supposed to live if I can't afford rent?

Explore Government Assistance Programs

Local state and federal programs funded by the U.S. Department of Housing and Urban Development (HUD) provide housing that includes units with rents affordable to low-income tenants and vouchers that help offset rent payments at privately owned housing.

What is the minimum the government says you can live on?

A single person needs to earn £30,500 a year to reach a minimum acceptable standard of living in 2025. A couple with 2 children needs to earn £74,000 a year between them. April 2025 saw an inflation-based increase in benefits of 1.7%, pegged to the CPI rate in September 2024.

Are Americans struggling financially in 2025?

Yes, many Americans struggled financially in 2025 due to rising costs, with surveys indicating nearly half felt their finances worsened, many living paycheck-to-paycheck (around 24-67% depending on definition), and significant portions delaying care or cutting groceries, despite some overall economic growth. Issues like unexpected expenses, difficulty affording necessities (housing, food), and high credit card debt were common, impacting middle-class families and diverse communities significantly, although billionaires saw wealth increase. 

What salary do you need to live comfortably in the USA?

To live comfortably in the U.S., a single adult generally needs around $100,000-$105,000 annually, though this varies significantly by location, with some expensive states like Massachusetts requiring over $120k and cheaper ones like West Virginia needing around $80k; families need considerably more, often over $200k-$280k, depending on the number of children and city. A common benchmark for "comfortable" uses the 50/30/20 rule (50% needs, 30% wants, 20% savings). 

What has Joe Biden done to the economy?

President Biden's economic policies focused on "Bidenomics," aiming for "middle-out, bottom-up" growth through major legislation like the Inflation Reduction Act (IRA) and CHIPS and Science Act, leading to significant job creation, a strong labor market (low unemployment for diverse groups), reshoring of manufacturing, and increased investment in clean energy, though these policies coincided with high initial inflation and rising costs for some goods, contrasting with strong GDP growth and wealth gains for many households. 

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

What is the $27.40 rule?

The $27.40 Rule is a personal finance strategy to save $10,000 in one year by consistently setting aside $27.40 every single day ($27.40 x 365 days = $10,001). It's a simple way to reach a large financial goal by breaking it down into small, manageable daily habits, making saving feel less intimidating and more achievable by cutting small, unnecessary expenses like daily coffees or lunches.
 

Can I afford $1000 rent making $20 an hour?

*“If you're earning $20 an hour, you might be wondering — can I really afford $1,000 rent? 🤔 You're bringing in about $3,200 before taxes, and experts suggest keeping rent near 30% of your income — that's roughly $960. So yes, $1,000 rent is doable… but it's tight with other bills.

Where can you live on $1200 a month?

5 Best Countries Where You Can Live on $1,200 a Month

• Albania. If Mediterranean living without the high price tag is what you're seeking, check out Albania. ...
• Cambodia. Cambodia, located in Southeast Asia, is another country where expats can live on a limited budget. ...
• Peru. ...
• Colombia. ...
• Vietnam.

Can I afford a house making $70,000 a year?

If you earn $70,000 per year, you can typically afford a home priced between $260,000 and $360,000.

What is the $1000 a month rule?

The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.

How much does the average 40 year old have in savings?

By age 40, the average retirement savings for Americans in the 35-44 age bracket is around $141,520, with a median of $45,000, but this varies widely; some sources suggest a target of 1.5x to 2.5x your salary saved by 40, which for a $70k income means saving $105k-$175k, highlighting that averages hide huge differences, with many people having much less than the average. 

How many Americans have $10,000 in savings?

Here's the data: - A 2023 YouGov survey (updated in 2024 analyses) found that about 57% of Americans have less than $10,000 in savings: 27% have under $1,000, 18% have $1,000–$9,999, 12% have $0, and 17% didn't disclose (often a proxy for low/no savings).

What state is #1 in poverty?

Mississippi consistently ranks as the U.S. state with the highest poverty rate, often followed closely by states like Louisiana, New Mexico, West Virginia, and Kentucky, though rankings shift slightly by year and data source (Official vs. Supplemental Poverty Measure). Mississippi struggles with low median incomes, low educational attainment, and high rates of child poverty, making it the poorest state by several metrics, according to World Population Review and other sources.
 

Will living ever become affordable again?

Housing affordability is unlikely to snap back overnight, but the trends suggest progress is possible by the end of the decade. If incomes keep rising and mortgage rates ease modestly, the typical U.S. home could feel more affordable again by 2030.

Which generation has it the hardest financially?

It's complex, but Generation X often struggles with being the "forgotten middle," facing high debt (student, credit card) while being squeezed by supporting Boomers and preparing for Gen Z, feeling less financially secure, while Millennials & Gen Z face unprecedented housing costs and student loan burdens, making wealth building difficult despite potentially higher incomes at certain points. Each generation faces unique hurdles: Boomers dealt with high inflation/interest rates early on, Gen X with recessions/dot-com bust, Millennials with the Great Recession/slow job market, and Gen Z with soaring housing/tech costs.