LOUISVILLE, Ky. (WAVE) – It’s a serious situation that many Americans find themselves in: living paycheck-to-paycheck, regularly spending nearly all they earn on necessities to survive, leaving little to nothing left over for savings or emergencies.
“When people start going into debt, they’re less likely to budget,” Don Silvestri said.
Silvestri, President of Debt.com, found their annual survey results a bit distressing for 2025. For eight years, Debt.com has examined the budgeting and spending habits of Americans.
“I think people try to cover at the least the most important things first and then push back the others for when the next pay check comes along,” Silvestri said.
The latest survey from Debt.com reveals 69% of Americans are living paycheck to paycheck, the highest in four years and up from 60% last year. Budgeting also took a dive from 90% of Americans creating a plan to track their expected income and estimated expenditures to 86%. It’s the first time since 2018 that budget habits have declined.
“That’s unfortunately the wrong decision,” Silvestri said.
Silvestri understands financial times are tough.
“Expenses has gone up, and maybe salaries and other things haven’,t but I think inflation, everything that goes along with it, is definitely putting pressure on the American consumer,” he explained.
Some of the consumers who responded to the Debt.com survey felt they didn’t make enough to budget or it just took too much time.
“It is the only way to really understand where you’re spending your money and how to make it better,” Silvestri said.
When you don’t have a lot of money, budgeting is even more critical, and thankfully, in today’s digital age, budgeting can be much quicker and much easier.
“Nowadays, it’s so very easy because everything is digital, and the banking can be on your phone,” Silvestri said. “There’s tools out there that can help you keep it simple.”
Debt.com has a free online budget calculator, apps and more. There are also free budget apps like GoodBudget, Empower, EveryDollar and then there’s always pen and paper. Your bank may even have an app to help you budget.
“It still comes back to the budget and living within your means and understanding what those expenses are and providing for the needs and eliminating some of the wants that may not be necessary,” Silvestri said.
In just about every Make Ends Meet, you hear the advice ‘create a budget.’ Start there. It’s one of the most important pieces of financial advice you will ever hear. Cut expenses. Increase income. Maybe get a side hustle for a little extra money if you can, and try not to take on more debt.
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