No More Living Paycheck To Paycheck

Because most Americans are living paycheck to paycheck and most report that they wouldn’t be able to cover an unexpected expense of even $400, some employers are providing the benefit of advanced payments.

Robert Reich for The Guardian explains that, “Almost 80% of Americans say they live from paycheck to paycheck, many not knowing how big their next one will be,” a statistic coming from a report by CareerBuilder.

Reich’s article also makes the important point that “the typical American worker now earns around $44,500 a year, not much more than what the typical worker earned 40 years ago, adjusted for inflation.”

The evidence is that a vast majority of the economy’s growth has gone to few at the top of large companies. He goes on to explain two prominent factors contributing to the huge power divide between business owners and laborers: the increased difficulty of joining unions and the increased formation of oligopolies and monopolies.

Some employers are providing a helpful benefit to hard-working Americans who have to deal with unforeseen and unavoidable costs, like health or weather emergencies. The perk is called “financial wellness” and allows people access to cash on-demand. It would come from their own future paychecks, so it’s not considered a loan. Walmart is one major company that offers this service nationwide.