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Key Takeaways
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The percentage of people living paycheck to paycheck increased 4% from 2024 to 2025, with 67% of Americans struggling financially, a new report said.
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People face challenges paying for higher costs of living caused by tariffs, inflation, an uncertain job market, and unaffordable housing.
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To get away from living paycheck to paycheck, prioritize debt repayment and fund an emergency savings account.
A 2025 financial wellness study that looks at what employees value found that 67% of Americans are living paycheck to paycheck. That’s up from 63% in 2024, according to the PNC Bank Financial Wellness in the Workplace Report. As the cost of living rises, it’s easy to understand why more people are strapped for funds. If you’re one of them, read on for some simple, effective steps that you can take to improve your finances and stop the countdown to your next payday.
Yes, Everything Feels More Expensive Right Now
Several factors are making it harder for Americans to pay off debt and save for the future. These include:
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Persistent inflation: Consumers pay nearly 25% more for groceries in 2025 than they did in 2020.
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High housing costs: The Census Bureau found that the median percentage of homeowners with a mortgage is overburdened. Renters, too, have seen an increase of 3.5% in rental costs over the past year.
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Uncertain job market: Although employee wages are up 3.6% from 2024 to 2025, the unemployment rate in the U.S. was 4.3% in August 2025.
Small Changes, Big Results: Ways to Improve Your Finances
While you might not have much control over the costs of living, you can take steps to make yourself more financially resilient.
Start by creating a realistic budget. You can use free online tools or mobile apps to help with this.
Take a look at all your expenses and income over the past six to 12 months. This will help you understand where your money has actually been going. This will give you an idea of where to start cutting your spending. For example, if you’re short every month, work on cutting out non-essential spending like streaming services or memberships you no longer use.
On the other hand, if you have a little extra money each month, put it toward outstanding debt or in a savings account. It can be hard to fund a savings account when you’re living paycheck to paycheck, so it’s alright to start small.
Consider opening a high-yield savings account that offers you better interest rates and deposit as much as you can comfortably manage, even if it’s only $10 or $20. Try to add a little to the account every time you get paid and you’ll begin to see your savings add up.
Try to increase your income as you cut your spending for an extra savings boost to help you build your savings cushion and/or pay down debt. Even a little extra income can improve your finances. Plus, by having a few income streams, you’ll still have an income source if one job cuts your hours.
Tip
Credit counselors often recommend the snowball method for paying down debt: Make all your minimum payments on time, and throw any extra money you can to the smallest debt you have. Once you pay that off, start paying off the next. Psychologically, paying off these smaller debts can motivate you to stay the course and tackle the bigger ones.
The Bottom Line
While the majority of Americans now live paycheck to paycheck, many still feel optimistic about their finances because they’ve taken control of their spending, saving, and income. With a realistic financial plan, you can cushion your finances against unexpected expenses and eventually live comfortably within your budget.
