A shocking new poll from Fortune is describing a new “illusion of affluence” that is affecting most upper-middle-class Americans.
Nearly half (46%) of Americans earning $200k+ in personal income (top 10% of earners) now rely on credit cards to make ends meet, with (80%) having used credit recently, not for rewards, but because they ran out of cash.
Illusion of Affluence
A good job with a high salary isn’t enough anymore. “Six-figure earners are ‘living the illusion of affluence’ while working side hustles, skipping meals, and pretending Venmo’s not working,” says a new poll from Fortune.
This is affecting commerce in a major way. Dollar Tree reports the majority of new customers earn $100,000+. Walmart’s seeing six-figure earners flooding its pickup lanes and its e-commerce platforms.
The top 10% of earners now account for 49.2% of all consumer spending – a historic high, up from 43% in 2020. But think about what’s actually happening here, reports Libby. “Every brand – from luxury to QSR – is now targeting the same narrow slice of Americans. That’s not market expansion; it’s market compression. These affluent consumers can’t buy everything from everyone. They’ll splurge, yes, but selectively. They’ll choose their battles. And increasingly, they’re choosing Walmart.”
That means that the rich are now struggling, and the poor are struggling even more. Everyone is having to be frugal, and it’s not by choice.
If you are new to the frugal living game, then here are some basic frugal rules to help you get started:
1. Waste Not, Want Not
Food waste is costly. Plan to eat your food in a way that takes advantage of its freshness, prioritizing fresh produce and meat over pantry goods.
2. Shop Your Pantry First
Before you make your grocery list, double-check your pantry: is there anything you can use up before buying another?
3. Never Shop Without a List
Shopping without a list is a recipe for buying a bunch of food you don’t need. It can also cause you to miss something you need for a meal, which might then mean you order in and spend more.
4. Meal Plan/Prep
A meal plan for the week is excellent, and preparing it ahead of time is even better! You’ll save an insane amount of time and money this way.
5. Skip Prepared Food
Prepared food isn’t worth the price most of the time. There are some exceptions (rotisserie chicken comes to mind) because they can save time and money. Still, it’s usually cheaper to make and prep things yourself.
