Even High-Income Americans Are Stressed About Their Finances

Cutting Back

Americans have felt the pressure of rapid cost of living increases in the past few years, and even wealthier workers are getting caught up.

Americans earning six figures are feeling increasingly concerned about their ability to make ends meet, according to a survey from the Federal Reserve Bank of Philadelphia .

That’s why even wealthier Americans are cutting back on discretionary spending, including eating out and entertainment, or opt for cheaper store brands when grocery shopping. But over the long-term, this has repercussions for the overall economy.

Financial Stress

The survey found that nearly a third (30.8%) of those earning between $100,000 and $149,000 per year are concerned about their finances in the short term (the next 0-6 months). This is up from 21.3% just one year ago, indicating that the cost of living increase is really starting to bite.

Similarly, about a third (32.5%) of Americans earning more than $150,000 per year feel financially stressed, up from 21.7% a year ago. A major point of stress for more affluent workers includes the fear of losing a job and being unable to maintain their existing lifestyle. Even so, many Americans still feel optimistic about the future of their finances. According to the Fed’s data, over 40% of respondents making $150,000 or more expect their income to increase next year.

Back to the Budget

Let’s be clear, if Americans struggle to make ends meet, that’s a problem, and it doesn’t matter if they bring home a high or low income in the meantime.

Over the past years, as inflation soared and costs went up, many lower-income households felt these effects more intensely, while more higher-income households were able to absorb these price shocks. But perhaps, the inflation chickens are coming home to roost now. If more households cut their spending, it could eventually hamper America’s economic growth engine, which feeds off consumer spending.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

Communication of SoFi Wealth LLC an SEC Registered Investment Advisor

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

SOSS24070201