The catchy hip-hop phrase “raise the roof” used to be all about dancing and fun. 😎 Nowadays, we’re literally raising money for a new roof. Think twice before you drive by our kids’ lemonade stand! 🍋🏚️
Over the last several years, prices went up, paychecks tried their best, and inflation won almost everywhere…except in a handful of places. 💸 Results of a recent study spill all the tea! 🫖
Here’s Five Fast Facts on how higher living costs impact American paychecks:
- 😤 Inflation Frustration - The study compared wage growth in all 50 states with inflation from 2020 to 2024. Average pay rose 18% to about $75,600, but prices jumped roughly 21%. After adjusting for inflation, the typical American actually lost about 2.6% in buying power.
- 🏘️ Home Sweet Home - Where you live matters a lot. Workers in 41 states lost buying power, while people in just nine states managed to come out ahead. As the study put it, higher pay on paper didn’t always mean a better quality of life. Many Americans earned more, but could afford less.
- 💰 Getting Ahead - After factoring in both wage growth and local inflation, workers in these states actually gained purchasing power: Idaho: +3.1%, Florida: +2.6%, Washington: +2.3%, Montana: +2.3%, Wyoming: +1.8%, South Carolina: +1.5%, North Carolina: +0.9%, Tennessee: +0.9%, and Maine: +0.5%.
- 📉 Falling Behind - Workers in every other state lost purchasing power, but people in these five states saw the biggest gap between rising pay and higher costs: New Jersey: –7.0%, Rhode Island: –6.9%, Maryland: –5.4%, Massachusetts: –5.3%, and New York: –5.3%.
- 🛒 Cost Crunch - So where did the extra moolah go? Higher costs for things like housing, groceries, energy, insurance, and other everyday essentials gobbled up those bigger paychecks.
🔥Bottom line: It really stinks to have your hard-earned pay bump go straight to bills. Not cool, bro. Even those who live within their means are riding the struggle bus. Fingers crossed we get some sweet relief. If you’re looking to make even more money this year, you might need a new job. Head to this article for the latest stats on feeling stuck in your current gig.
Did you get a raise this year?
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