60% of Millennials Earning Over $100,000 Live Paycheck to Paycheck - "54% of Americans live paycheck to paycheck. And nearly 40% of high earners — those making more than $100,000 annually — said they live that way... Living on constrained budgets may therefore have less to do with income and more to do with expenses... That's partly because of lifestyle choices. Many of these millennials are likely HENRYs — short for high earner, not rich yet. The acronym was invented in 2003, but it has come to characterize a certain group of 30-something six-figure earners who struggle to balance their spending and savings habits. HENRYs typically fall victim to lifestyle creep, when one increases one's standard of living to match a rise in discretionary income. They prefer a comfortable and often expensive lifestyle that leaves them living paycheck to paycheck."
Liberal-Leftist logic: this shows that the system doesn't work for ordinary people and the rich are screwing everyone and/or we need a revolution
Poll results show nearly 50% of high-income earners in Singapore face money issues - "This result was derived from a poll conducted with 1,000 Singaporean respondents aged 25 to 54 with monthly salaries of at least S$6,000 to over S$20,000... It turns out that being rich and wealthy has less to do with how much you earn, but more to do with what you do exactly with the money you have. Elaborating further on the financial issues, the poll revealed that the monthly income of these high-income earners is in fact insufficient to cover their expenses, resulting in them having to dig into their savings just to pay the bills... This is not necessarily because high-income earners splurge on luxurious items during the current recession, but rather about how once they choose to live beyond their means, their expensive lifestyle will come back to haunt them even if they are staying at home and cut all spending except for food and utility bills. For instance, if they have monthly loan repayment for their multimillion-dollar home and a S$500,000 car, they will find it extremely difficult to pay back these loans when their regular income is affected... a third of high-income earners who polled admitted that they cannot control their spending and have poor discipline in money management. The main reason why people end up in debt is not due to investment or business failure but overspending"
Research Statistic on Financial Windfalls and Bankruptcy - "Over the past couple of years several news organizations have attributed a statistic to the National Endowment for Financial Education (NEFE) stating that 70 percent of lottery winners end up bankrupt in just a few years after receiving a large financial windfall. This statistic is not backed by research from NEFE, nor can it be confirmed by the organization. Frequent reporting—without validation from NEFE—has allowed this “stat” to survive online in perpetuity.In 2001, NEFE conducted a think tank of experts from several industries including psychology, financial planning and other fields, to discuss life-changing events and the psychology around them. One topic discussed was the impact of financial windfalls on individuals, where it is believed that a participant stated the 70 percent statistic. This statement was made independently and without verification from NEFE."
The Ticket to Easy Street? The Financial Consequences of Winning the Lottery - "This paper examines whether giving large cash transfers to financially distressed people causes them to avoid bankruptcy. A comparison of Florida Lottery winners who randomly received $50,000 to $150,000 to small winners indicates that such transfers only postpone bankruptcy rather than prevent it, a result inconsistent with the negative shock model of bankruptcy. Furthermore, the large winners who subsequently filed for bankruptcy had similar net assets and unsecured debt as small winners. Thus, our findings suggest that skepticism regarding the long-term impact of cash transfers may be warranted."
Presumably according to Americans who rail against the system which is broke, the lottery winners went broke because they didn't have enough money
Long-Run Effects of Lottery Wealth on Psychological Well-Being - "We surveyed a large sample of Swedish lottery players about their psychological well-being 5–22 years after a major lottery event and analysed the data following pre-registered procedures. Relative to matched controls, large-prize winners experience sustained increases in overall life satisfaction that persist for over a decade and show no evidence of dissipating over time. The estimated treatment effects on happiness and mental health are significantly smaller. Follow-up analyses of domain-specific aspects of life satisfaction implicate financial life satisfaction as an important mediator for the long-run increase in overall life satisfaction."
Does Inequality Cause Financial Distress? Evidence from Lottery Winners and Neighboring Bankruptcies - "We test the hypothesis that income inequality causes financial distress. To identify the effect of income inequality, we examine lottery prizes of random dollar magnitudes in the context of very small neighborhoods (13 households on average). We find that a C$1,000 increase in the lottery prize causes a 2.4% rise in subsequent bankruptcies among the winners’ close neighbors. We also provide evidence of conspicuous consumption as a mechanism for this causal relationship. The size of lottery prizes increases the value of visible assets (houses, cars, motorcycles), but not invisible assets (cash and pensions), appearing on the balance sheets of neighboring bankruptcy filers."
