Brigit has released findings from its inaugural Paycheck to Paycheck Economy Review, based on a survey of non-Brigit users who self-identified as living paycheck to paycheck, supplemented by a survey of similarly identified Brigit users. 

Data gathered reveals that 1 in 4 Americans (non-Brigit users) have less than $100 in savings, highlighting the widespread financial strain many Americans are experiencing. 

But it’s not all doom and gloom. 32% of Gen Z respondents (non-Brigit users) have already started saving for retirement, and 54% have some emergency savings. 

Meanwhile, Brigit's survey data shows Brigit users are taking proactive steps to improve their financial health.

• 60% of Brigit users plan to contribute to their retirement accounts in the next 6-12 months, and 83% are focused on paying down debt. 
• 1 in 3 Brigit users plan to return to school or acquire new skills to boost their earning potential.

"While the average U.S. income is around $60,000, our survey shows that even individuals earning $100,000 are struggling to cover basic expenses," said Hamel Kothari, CTO and co-founder of Brigit. “These findings highlight the pressing need for better access to financial tools and education, enabling Americans to navigate economic challenges and build long-term financial security without the constant stress of living paycheck to paycheck.”

After covering monthly expenses, groceries, and transportation costs, many Americans find themselves running out of cash before the next paycheck, leading to heightened financial stress and uncertainty across households nationwide. In August 2024, 74% of Americans surveyed by WalletHub reported that inflation was undermining their efforts, as rising costs make it increasingly difficult to afford everyday necessities.

Additional key findings from the survey polling non-Brigit users include:

Savings Are a Challenge: 

• 1 in 4 Americans earning under $100,000 have less than $100 in savings.
• 43% of respondents indicated they would struggle to cover an unexpected $500 expense, which would likely lead to financial and emotional distress.
• 62% expressed concerns about having to work until they die, as they worry they won’t have the financial resources to retire.

The survey reveals key demographic differences in financial security across gender and age groups.

Savings Gender Gap: 

• 30% of women have less than $100 in savings compared to 21% of men, exposing a significant gap in financial security. 
• Women are more likely to experience financial distress, with 23% saying an unexpected expense of up to $100 would cause strain, compared to 11% of men. 
• Over 50% (63% of women and 56% of men) lack retirement savings, showing that retirement planning remains a challenge for both genders. 

Savings by Age: 

• While saving is a challenge across the board, 27% of Millennials and 31% of Gen Z report savings of less than $100, while 48% of Baby Boomers have over $1,500.
• However, 32% of Gen Z respondents have already started saving for retirement.
• 54% of Gen Z have emergency savings.

Brigit Users Taking Control of Their Finances:

The supplemental survey of Brigit users reveals they are actively improving their financial health. By focusing on debt reduction, skill development, and long-term planning, Brigit users are making meaningful progress. After surveying over 1,000 Brigit users, the findings show:

• 83% are prioritizing debt repayment.
• 60% plan to contribute to their retirement accounts in the next 6-12 months.
• 1 in 3 intend to return to school or develop new skills to boost their earning potential.
• 1 in 3 have taken on side hustles to earn additional income.

Methodology

The Paycheck to Paycheck Economy Review is based on a survey of non-Brigit users and a supplemental survey of Brigit users, conducted by Brigit with the help of Alchemer, an independent third-party provider. Both surveys targeted individuals earning less than $100,000 annually who consider themselves living paycheck to paycheck. The surveys aimed to gather insights into their financial health and the steps they are taking to improve their economic future.

• Non-Brigit Users Survey: The first survey sampled 750 respondents who were non-Brigit users and self-identified as living paycheck to paycheck. Respondents were between the ages of 18 and 65+ and were selected through a randomized quota-based methodology, ensuring balanced representation by age, gender, and income brackets below $100,000. Quotas were established to reflect the U.S. population distribution for non-Brigit users living paycheck to paycheck. The data collected was analyzed as percentages based on the total number of respondents in each demographic group. This survey was conducted in May 2024.
• Brigit Users Survey: A second survey was conducted with over 1,000 Brigit users who self-identified as living paycheck to paycheck and earning less than $100,000 annually. This survey used a randomized sampling method, allowing for a broad demographic range within Brigit’s user base. This survey was conducted in August 2024.