Americans Earning Less Than $75,000 Are Financially Struggling, ‘Pre-Spending’ More Than Half Their Paycheck

A new survey reveals that many Americans are financially stretched even before their paycheck hits their account.

Conducted by Talker Research on behalf of EarnIn, the survey polled 2,000 employed Americans earning less than $75,000 per year, shedding light on spending habits, overdue bills, and financial stress.

The survey found that 51% of paychecks are “pre-spent” before payday, with bills and necessities prioritized, and 43% of a paycheck is spent within the first three days after being received.

Essentials like food, housing, and utilities eat up 64% of earnings, leaving little for savings or discretionary spending. More than half (56%) of respondents save less than 10% of their paycheck, while 23% cannot recall the last time they saved 20% of their income.

Many Americans strategically allocate funds before payday due to high living costs (44%) and inconsistent bill due dates (31%), and 38% cite overdue bills as a reason for pre-spending.

When paychecks arrive, large expenses like rent or mortgage (56%) take priority, followed by necessities such as food and medication (51%) and utility bills (38%).

Despite the 50/30/20 budget rule — which recommends allocating 50% of income to needs, 30% to wants, and 20% to savings — most people struggle to meet these guidelines. On average, respondents dedicate only 16% to wants and 16% to savings, well below the recommended amount.

Nearly 80% of respondents report living on a tight budget before payday, with 62% struggling to afford groceries; 30% struggling to pay bills, and 16% unable to afford medications or loan payments. To make ends meet, many turn to side hustles (39%), family support (31%), or credit cards (28%), while 14% report having no backup options at all.

Access to earned wages ahead of payday could reduce financial stress for many Americans. If they received their paycheck up to two days earlier, 34% could pay bills on time; 29% would feel less stressed about finances; 19% could pay rent on time; and 15% would put more into savings.

Despite these needs, only 5% of respondents can access their paycheck early through their bank, and only 4% can rely on their employer for advance pay. Yet, the survey found that most Americans stay with their bank for an average of nine years, with 57% citing comfort as their reason for staying rather than tangible financial benefits.

“Results found that only 5% of respondents can turn to their bank to transfer their paycheck early, while even fewer (4%) can turn to their employer for early pay,” said an EarnIn spokesperson. “In todays world, employees shouldnt have to wait days to access the money theyve already earned. People deserve financial solutions that provide faster access to their pay — regardless of where they bank — so they can manage their money on their own terms, not their banks schedule.”

As financial challenges continue, early paycheck access could be a crucial tool for improving economic security for millions of Americans.