Even high-income Americans struggle to make ends meet.

A majority of Americans, including those in higher income brackets, struggle to make ends meet and often live paycheck to paycheck.

So what’s going on?

Experts often cite lifestyle inflation, or the tendency to gradually spend more as income rises, as a contributing factor.

Sabrina Romanoff, a clinical psychologist, stated that people often hold benchmarks in their minds, believing that reaching a certain position, promotion, or age would enable them to live the life they desire or deserve to have certain things. However, once they achieve these benchmarks, they may become overindulgent or reckless, leading to a trade-off between enjoying their present happiness and planning for their future.

Women are more likely to live paycheck to paycheck than men.

While some Americans may choose to overspend, many are unable to do so due to stagnant incomes and rising living expenses.

Saprina Allen, a budgeting coach with over 100,000 TikTok followers, disagrees with the notion that people save until they feel they deserve to spend more. According to her, most individuals cannot handle a tire blowout or put it on credit when they don't have $1,000 in the bank.

Allen breaks down lifestyle inflation into two buckets.

She explained that "lifestyle inflation" refers to purchasing expensive items such as luxury cars and other high-end items.

She stated that the second container is focused on "essential items that, if you're living paycheck to paycheck, you're likely to miss out on." These could include necessary goods or services, such as dental care or regular car maintenance.

I wasn't concerned about oil changes at one point in my life," Allen stated. "I prioritize keeping my tires on my car, ensuring it runs smoothly, and paying for registration. An oil change was not a priority for me.

Having to live paycheck to paycheck increases the likelihood of accruing high-interest credit card debt. Nearly half of Americans, 46%, admitted to carrying a balance on their credit card due to an unexpected expense, according to a September 2022 CreditCards.com survey. Financial experts suggest maintaining an emergency fund with around three to six months' worth of living expenses to avoid falling into this trap.

Romanoff stated that the objective is to achieve equilibrium. This entails savoring life while not being overly fixated on the future or the present. In essence, it's about having your cake and eating it too - enjoying the present moment while also saving some for the future.

The video above explains why Americans are having difficulty keeping their money.