A new report shows that paycheck-to-paycheck living has become a way of life for many Americans.
According to the 2025 Cash Poor Report from community finance platform SoLo, an increasing number of middle-class Americans — including those with six-figure salaries, college degrees, homeowners and even investors — are feeling the financial strain.
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The survey, which questioned 2,000 adults, found that a significant 58% of Americans are "cash poor," meaning they lack enough liquid cash to cover unplanned expenses. These unexpected costs averaged $1,825 for families living paycheck to paycheck.
The survey also found that one in seven cash-poor Americans makes over $75,000 a year, dispelling the common notion that only low-income households are financially unstable.
"Being cash poor is a way of life for most Americans, this creates vulnerability in being able to manage variable and unplanned expenses," Rodney Williams, president and co-founder of SoLo, said in a statement.
The report highlighted a concerning trend: 7% of cash-poor Americans couldn't cover their unplanned expenses, and only a quarter could rely on savings or credit cards. Over a third of those struggling financially reported having no means to save or invest, further deepening their financial insecurity.
Planned expenses like groceries, gas and housing are essential but leave little room for unplanned costs, which have a significant impact on cash-poor households. On average, families experienced 2.5 unplanned expenses last year, totaling $1,825. These unexpected costs — such as auto repairs, medical bills and utility bills — often create financial disruption. With many Americans lacking sufficient savings or access to credit, covering these expenses can be impossible.
Cash-poor Americans are not exclusively unemployed. According to the survey, 40% of those struggling financially hold full-time jobs, while 13% are retirees. The report highlights that having a paycheck or a retirement fund does not necessarily guarantee financial security. Ongoing health conditions, disabilities, and caregiving responsibilities add to the financial burden for many.
Women are disproportionately affected, comprising 54% of the cash-poor population, and are more likely than men to report financial struggles. African Americans make up 14% of those living paycheck to paycheck.
The survey also revealed that Millennials and Gen X are the most affected, with these two generations representing two-thirds of cash-poor individuals. Student loans, housing affordability, and healthcare costs are key contributors to the financial strain faced by these age groups.
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