Even Americans who earn six figures are feeling the pressure as rising costs of living force those in higher income brackets to cut expenses and look for ways to stretch their dollars, according to a new report. Poll from Harris Poll.
The results reveal a surprising sense of economic anxiety, with 64% of six-figure income earners saying their income is not a benchmark for success but merely the bare minimum to stay afloat.
“Our data shows that even high-income earners feel financial anxiety — living with the illusion of wealth while privately dealing with credit card debt and survival strategies,” Libby Rodney, chief strategy and futures officer at Harris Poll, said in a statement.
In fact, those making $200,000 or more resorted to financial tactics often associated with less affluent consumers. For example, 64% said they used rewards points to pay for essentials, 50% used “buy now, pay later” plans for purchases under $100, and 46% relied on credit cards to make ends meet.
The Harris Poll report also revealed how these high-income earners avoid expenses: 49% skipped a social event so they didn’t have to split a check, 48% pretended an app like Venmo or Zelle didn’t work to evade payment, and 45% stopped Medicare because of the cost.
As is the case with most Americans, those with six-figure incomes also report that groceries and other household essentials along with housing and medical costs are the top expenses draining their income.
In another sign of how overwhelmed high-income earners are feeling, they are also looking for additional ways to earn extra money or save money, according to the Harris Poll.
To survive financially, they are currently involved in or considering: side hustles (61%), selling personal items (53%), skipping meals (41%), renting out all or part of their home (41%), and resorting to debt consolidation or bankruptcy (38%).
“The illusion of wealth is exhausting: Many high-income earners say people assume they can afford it all, but behind the image of success lie quiet sacrifices: skipped purchases, delayed plans, and a fragile sense of security,” the report said.
The financial pressures detailed in the survey help explain why discount retailers like Walmart are reporting seeing more higher-income customers shopping at their stores.
Meanwhile, off-year voters sent a resounding message to lawmakers that affordability remains a major concern, even as inflation has eased significantly from its peak in 2022.
If the wealthiest Americans are feeling this much anxiety, it may indicate that the overall economy is on shakier ground, as the top 20% of earners have been driving growth in recent years.
“The data also show that the US economy is largely dependent on the wealthy,” Mark Zandi, Moody’s chief economist, said in September. “As long as they keep spending, the economy should avoid a recession, but if they turn more cautious, for whatever reason, the economy is going to be in big trouble.”
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