Gary North

Nov. 11, 2009

A September 2009 report indicates that six out of ten workers live paycheck to paycheck.

Six-in-ten (61 percent) workers report they always or usually live paycheck to paycheck just to make ends meet, up from 49 percent last year and 43 percent in 2007. This is according to a new nationwide survey of more than 4,400 workers by CareerBuilder. Three-in-ten (30 percent) workers with salaries of $100,000 or more report that they too live paycheck to paycheck, up from 21 percent in 2008.

To meet ends meet, a fifth of them are dipping into their savings.

Some workers are making ends meet by dipping into their long-term savings. More than one-in-five (21 percent) workers say they have reduced their 401(k) contributions or personal savings in the last six months to get by. Looking at workers earning six figures or more, a nearly equal number (23 percent) report that they have also reduced their 401(k) or savings.

One-third have no retirement or savings program.

While some workers are tapping into their long-term accounts, others are having a hard time saving anything at all. More than one-third (36 percent) of workers say they do not participate in any programs such as 401(k), IRAs or retirement plans, up from 31 percent in 2008. In addition, one-third (33 percent) report that they don't put any money aside into their savings each month, up from 25 percent in 2008, while 30 percent set aside $100 or less per month for savings and 16 percent save less than $50.

This is a disaster in the making.

What should you do? Use the tools on this site.

Keep track of spending - Create a spreadsheet to analyze what you spend each month, including the money spent on those inevitable invisible expenses, such as a morning coffee, cab ride or afternoon snack. Once you can see where your money goes, you can clearly see where you can cut back.

Boost your income - One-in-ten workers report taking on a second job in this economy to help make ends meet.* Ask yourself if this is something you can handle on top of your current job and then pursue some viable options. Check out sites like www.sologig.com for contract and freelance opportunities.