Facing the facts: Erratic financial circumstances are widening the gap
50% Gas
19% Beef
17.8% Rent
4.7% Wages
North Americans have experienced an unprecedented economic upheaval over the past two years – record unemployment, supply chain bottlenecks, labor shortages, and record levels of inflation. Here are some of the facts: As of February 2022, the average family is spending about $276 more each month on household expenses compared to 2018 and 2019. 1 More than 61% of Americans reported they now are living paycheck to paycheck. 2 Gas prices skyrocketed 50%, putting a strain on the cost of commuting to work and forcing families to travel less. 3 Beef prices jumped 19%, ballooning grocery budgets and forcing families to make more affordable meals with less expensive meats like pork and chicken. 3 Rent spiked a whopping 17.8% between January 2021 and January 2022. The median rent price as of January 2022 was $1,312. 4 While prices rose, so did wages. But not at a similar rate. Even with a 4.7% annual increase in wages to an average of $31 an hour, most workers still received a 2.4% pay cut in 2021 because of inflation. Wage increases in only the bottom 25% of earners narrowly outpaced inflation by 2.3%–3.0%. 3 It’s no surprise then that a new Bankrate survey reported that many Americans have less money in their savings accounts today than they did two years ago. Only 17% of Americans have more money in their accounts today, while 34% have less. Another 42% were able to maintain the same level of savings. 5 But overall, 51% of Americans have less than three months’ worth of income saved in an emergency fund. 25% reported having no emergency fund at all, up from 21% in 2020. Millennials are more heavily affected –57% reporting they couldn’t cover three months’ worth of expenses. Gen Xers are not far behind with 49% unable to cover three months of expenses. 5 To feel financially secure, Americans reported that they would need to make about $122,000 annually –more than double the average national salary. 1
$276
Rising costs are everywhere! Like a river threatening to flood, increased expenses for some of the most basic family needs are eroding and spilling over the banks of household budgets everywhere. Thousands are coming to Melaleuca – building bridges of supplemental income to take them safely over the raging and unpredictable waters of the economy.
SECURE
1 Ariel Zilber, “Inflation Costs the Average US Household $276 More a Month, Study Says,” New York Post , February 10, 2022. 2 Jessica Dickler, “Despite Rising Wages, 61% of Americans Are Still Living Paycheck to Paycheck, Report Finds,” CNBC, February 17, 2022. 3 Greg Iacurci, “Despite Higher Wages, Inflation Gave the Average Worker a 2.4% Pay Cut Last Year,” CNBC, January 12, 2022. 4 Chris Salviati et al., “Apartment List National Rent Report,” Apartment List, January 27, 2022. 5 Sarah Foster, “Survey: More than Half of Americans Couldn’t Cover Three Months of Expenses with Emergency Savings,” Bankrate, July 21, 2021.
These results are not typical.
12 JULY / AUGUST / SEPTEMBER | EU.MELALEUCA.COM
JULY / AUGUST / SEPTEMBER | EU.MELALEUCA.COM 13
Made with FlippingBook - professional solution for displaying marketing and sales documents online