Half of Americans Say They Live Paycheck to Paycheck
Americans say the problem isn't their reckless spending — it's that everything costs too much.
Rising prices, high interest rates, and a wobbly economy haven't done much to slow down spending. In fact, Americans' total spending volume has actually increased, climbing 2.5% from a year ago.
From one-click purchases to auto renewals, it's all too easy to keep spending, even when the math doesn't add up. More than half of Americans (59%) admit they've knowingly made a purchase they couldn't afford, according to a Clever Real Estate survey of 1,000 Americans.
For many Americans, the math doesn't matter as much as the payoff, with one-third (33%) saying money buys happiness.
Another third (31%) prioritize short-term gratification over long-term stability, even if that leads to a life of busted budgets, missed bills, and delayed milestones such as homeownership. Fewer than half of overspenders (49%) own a home, compared to 62% of consumers who say they don't overspend.
The fallout from such reckless spending can be serious. Nearly 1 in 5 Americans (18%) say their spending has ruined their life.
1 in 4 Americans Admit They're Overspenders
In a culture built around consumption, Americans are constantly encouraged to buy more. But many struggle to know when enough is enough. More than 1 in 4 Americans (27%) describe themselves as overspenders.
Americans of every generation agree they have an overspending problem, but younger generations seem to have the most trouble controlling their spending. About 49% of Gen Z and 39% of millennials say they're overspenders, compared to just 12% of boomers.
For those who recognize they have an overspending problem, the reasons are fairly clear. More than a third (34%) attribute it to a lack of self-control, but many also say their emotions drive their spending.
About 30% say they overspend because it makes them feel good, and 28% say they buy when they're sad, bored, stressed, or feeling some other emotion.
Knowing why they overspend, however, doesn't make it easier to stop. Nearly two-thirds of overspenders (64%) say they know their purchases are reckless, but they make them anyway.
Even more concerning, about 1 in 7 (15%) admit they've become more reckless with their money over the past year.
About 96% of overspenders have tried to improve their spending habits, but around half still dine out (54%) or buy a cup of coffee (50%) at least once a week — even though it's much cheaper to make food and drinks at home.
It's no wonder 62% of overspenders say they live beyond their means.
Three-fourths of overspenders (73%) feel guilty about their spending, with nearly two-thirds adding that they are ashamed (63%) and embarrassed (66%). But 50% of overspenders still believe their spending habits are better than other people's.
Nearly a Quarter of Americans Have Spent $1,000 on a Single Impulse Purchase
Impulse buying isn't the smartest financial habit, but few people can judge. About 93% of Americans say they've made an impulse purchase at some point.
Many impulse purchases are low-cost treats tossed into the shopping cart in the checkout line, but some split-second decisions come with a hefty price tag. Nearly 1 in 4 Americans (22%) say they've spent $1,000 or more on a single impulse purchase.
Occasional impulse purchases are unlikely to derail Americans' finances, but 51% say they spend spontaneously once a month or more. When impulse spending becomes routine, it can create a real overspending problem for consumers, particularly when it comes to groceries (48%), dining out (39%), and clothing (36%).
Meanwhile, some Americans overspend on products that can negatively affect their personal and financial health. A quarter of Americans (25%) say they overspend on alcohol, cigarettes, and cannabis, and a fifth (20%) say the same about betting, gambling, and lottery tickets — even as 1 in 3 (32%) say they've lost money engaging in those activities.
80% of Americans Have Justified an Impulse Purchase
Although some Americans argue they need everything they buy, 77% admit they've purchased something they've never used, including 1 in 4 (28%) who do so at least once a month.
While some purchases go unused, others never stop costing money. About 1 in 3 Americans (32%) admit to continuing to pay for subscription services they've forgotten they have.
Those forgotten payments add up month over month, draining thousands from consumers' bank accounts on wasted services. In fact, 1 in 5 Americans (20%), including 1 in 3 millennials (30%) and Gen Z (32%), spend at least $100 a month on subscriptions they rarely or never use.
Even as Americans spend money on unnecessary items, many convince themselves the purchase was worth it. About 80% of Americans say they have justified an impulse purchase, with shoppers most commonly defending their action by saying:
- It was on sale (39%)
- I deserve to treat myself (30%)
- I'll use it all the time (20%)
Men Are 40% More Likely Than Women To Say Their Spending Has Ruined Their Life
Popular stereotypes often portray women as the biggest spenders — the ones filling the house with shopping bags and Amazon boxes. But the data suggests men (28%) are just as likely as women (27%) to struggle with overspending.
Men devote significantly more money to nonessential purchases each month, with 33% spending at least $500 on "wants" and 18% spending at least $1,000. Just 19% and 10% of women spend the same, respectively.
What's more, 47% of men have spent $500 or more on a single impulse purchase and 28% have spent $1,000 or more, compared to 30% and 18% of women, respectively.
Although men spend more because they typically earn more, they are also more likely to admit their spending habits are reckless and have resulted in negative consequences:
- Men (34%) are more likely than women (25%) to say their spending holds them back from achieving other life goals.
- Men (33%) are more likely than women (29%) to say they know their purchases are reckless, but they make them anyway.
- Men (30%) are more likely than women (26%) to say a past purchase still haunts them.
- Men (29%) are more likely than women (23%) to say they live beyond their means.
- Men (21%) are more likely than women (15%) to say their spending has ruined their life.
Meanwhile, women are slightly more likely than men to say they stick to a budget (63% vs. 61%) and have become more careful with money in the past year (77% vs 71%), but despite these more cautious financial habits, they still live paycheck to paycheck at higher rates (55% vs. 42%).
More Than Half of Americans Have Knowingly Made a Purchase They Couldn't Afford
All those impulse buys and forgotten charges can add up — especially when over a third of Americans (38%), and half of overspenders (54%), say they don't stick to a budget.
About 1 in 4 Americans (24%) spend at least $500 a month on nonessentials, and 1 in 8 (13%) spend at least $1,000, with the percentage nearly doubling to 23% of overspenders who shell out at least a grand.
While nonessential spending varies by income, many Americans are paying for "wants" at a level they can't sustain. Nearly 1 in 3 Americans (32%) say their lifestyle costs more than they earn, doubling to 62% among overspenders.
Rather than cut back, Americans keep spending. About 59% of Americans have knowingly made a purchase they couldn't afford, with the percentage rising to 87% of overspenders. Even more troubling, 59% of overspenders do this at least once a month, which is double the 30% of all respondents who say the same.
Yet many Americans assume this is normal behavior. Despite the evidence to the contrary, 79% of Americans do not think their spending is reckless.
44% of Americans Have Missed a Bill Because of Their Spending
Even as inflation and interest rates climb higher, it's clear some Americans continue to spend freely on nonessentials.
To maintain their standard of living, consumers often lean heavily on credit cards and financing. Two-thirds of Americans (68%) say they have non-mortgage debt, with more than a quarter (29%) owing at least $10,000.
The outlook is even worse for overspenders, with 86% reporting non-mortgage debt and 45% owing $10,000 or more. A whopping 1 in 8 overspenders (13%) say they owe at least $50,000.
Buying on credit can delay the financial impact of a purchase, but it doesn't eliminate it. Eventually payments are due, and 44% of Americans, including 76% of overspenders, have missed a bill because of overspending on nonessential purchases.
In an economy that often feels difficult or unpredictable, some Americans focus on enjoying the present instead of planning for a future that seems out of reach. In fact, 1 in 3 Americans (31%) say they prioritize short-term gratification over long-term stability.
Even if they received an unexpected $10,000 windfall, more Americans say they'd treat themselves (28%) than pay off non-mortgage debt (21%).
Younger Generations Are More Likely to 'Treat Themselves' Than Pay Off Debt
Young Americans are more likely to carry non-mortgage debt, with about three-fourths of Gen Z (77%) and millennials (75%) saying they owe money, compared to 59% of boomers.
Of those, nearly half of Gen Z (43%) and millennials (47%) owe $10,000 or more, compared to 20% of boomers, with student loans likely contributing to the higher percentages.
A higher debt burden, however, hasn't made young Americans more careful with their money. Approximately 26% of Gen Z and 20% of millennials spend at least $1,000 a month on nonessentials. That's roughly double the 13% of overall respondents and quadruple the 6% of boomers who spend the same.
About 40% of Gen Z and 34% of millennials admit they spend recklessly, compared to just 5% of boomers. But it's easy to justify their spending if it's seen as a path to greater satisfaction. In fact, 56% of Gen Z and 44% of millennials believe money buys happiness.
Enjoying their money now appears to outweigh future financial planning. If they received an unexpected $10,000 to spend, more Gen Z (37%) and millennials (33%) would treat themselves over:
- Investing it (29% Gen Z vs. 32% millennials)
- Paying off non-mortgage debt (25% Gen Z vs. 21% millennials)
- Putting it toward a down payment (21% Gen Z vs. 17% millennials)
- Paying down their mortgage (11% Gen Z vs. 15% millennials)
Although half of millennials (46%) and Gen Z (50%) feel guilty about their spending, more than a third of millennials (36%) and Gen Z (39%) keep spending in the hopes that their finances will improve and it won't matter.
97% of Overspenders Have Regrets About Their Finances
The temporary satisfaction consumers experience when buying something they want usually doesn't last long.
Nearly half of Americans (47%) regret a reckless purchase they've made within the same day, including 1 in 5 (17%) who feel remorse immediately after making the purchase and 1 in 10 (10%) who experience it before they even finish checking out.
Overall, 68% of Americans, including a whopping 97% of overspenders, have regrets about their spending habits.
The most common regret among Americans is spending money they should be saving (26%), but if they received an unexpected $10,000 windfall, nearly half (49%) wouldn't put any of it in savings.
Financial regret is widespread among Americans, but it's not the only emotion they have about their spending habits. Approximately 35% feel guilty, 33% feel ashamed, and 27% would feel embarrassed if someone saw their recent spending.
Additionally, 24% of Americans are afraid to check their bank accounts. For those with the courage to look, the results are often grim. About 61% have lost sleep over their finances, and 46% have cried over their spending habits, with the percentages rising to 83% and 76% of overspenders, respectively.
Half of Americans Have Had to Delay Milestones Because of Their Spending
Americans' freewheeling spending on nonessentials doesn't just deplete their bank accounts today. It also hinders their progress toward bigger life goals. More than half of Americans (51%) say they've had to delay important milestones because of their spending.
Young Americans who have the least financial experience are the most likely to report delays. About 72% of Gen Z and 69% of millennials say they've had to put off other life goals because of their spending, while just 28% of boomers say the same.
That spending is pushing off some of life's biggest priorities. About 19% of Americans have delayed saving for retirement, 13% have delayed medical care, and 10% have delayed buying a home.
Home repairs are one of the most commonly delayed expenses, with 20% of homeowners putting them off, rising to 35% of homeowners who describe themselves as overspenders.
Despite their less-than-ideal financial habits, a majority of consumers are willing to change. About 86% of Americans, including 96% of overspenders, have tried to improve their spending.
More than a third opt for simple strategies, such as going out less (39%) or using a shopping list (36%). But some other frequently used options include:
- Paying off their credit card bill in full each month (25%)
- Creating and sticking to a budget (24%)
- Using cash or debit cards instead of credit cards (24%)
Not all Americans, however, are optimistic that changing their own spending habits would significantly improve their finances when the broader economy is still so challenging.
Nearly half of Americans (49%) say prices are so expensive they wouldn't be well off financially, no matter what they do.
60% of Americans Blame the Economy for Their Financial Struggles
Many Americans recognize their spending isn't financially responsible, with nearly a third (31%) saying they make purchases they know are reckless. Yet the same percentage don't think their spending is to blame for their financial problems. Almost 1 in 3 Americans (31%) say their financial struggles aren't their fault.
About 60% of consumers say their spending habits wouldn't be a problem if costs were more reasonable, and 43% say their spending wouldn't be a problem if they got paid more fairly. That percentage rises to 58% of Gen Z and 57% of millennials, who have typically not seen their wages keep pace with rising prices over their careers.
As stubborn inflation elevates the cost of living, 62% of Americans say they've actually become more careful with their money in the past year, but 69% have had to increase their spending anyway because of rising prices.
Total household expenditures amount to $6,545 per month on average, according to the most recent data from the Bureau of Labor Statistics, but 1 in 10 Americans (10%) say they rack up $10,000 or more in monthly spending on essential and nonessential purchases.
In particular, spending on essential purchases eats up a disproportionate share of Americans' budgets. Financial experts recommend allocating 50% of income for needs, but Americans actually spend 66% on essentials and debt repayments.
That leaves little left over for savings and investments. Americans save just 15% of their income on average, which falls short of the 20% financial guidelines encourage.
Americans also spend an average of 19% of their income on nonessential purchases, which is actually less than the recommended 30%.
Half of Americans Say They Live Paycheck to Paycheck
With necessities becoming increasingly expensive, many Americans are struggling to make ends meet. In fact, 50% of Americans say they live paycheck to paycheck, with the percentage rising to 57% of Gen Z and 62% of millennials.
But of those living paycheck to paycheck, few say it's because they spend recklessly. Americans are more likely to cite:
- Inflation that has made everyday necessities too expensive (53%)
- Income that isn't high enough to cover expenses (41%)
- Housing costs that are too expensive (31%)
Just 1 in 4 say they live paycheck to paycheck because they struggle to stick to a budget (23%), while fewer than 1 in 5 cite overspending on nonessentials (18%) and enjoying life now instead of saving for the future (18%).
As costs continue to climb, Americans aren't optimistic their financial situation will improve. About 74% believe they will still be living paycheck to paycheck a year from now.
Nearly half of Americans (45%) living paycheck to paycheck say their household would need to earn an extra $2,000 a month or more for them to improve their situation, while a quarter (28%) say they would need to earn at least an extra $3,000 a month.
Closing that gap can be particularly difficult for the youngest workers. Not only do they typically spend more, they also earn less on their entry-level salaries. About 58% of Gen Z living paycheck to paycheck say they would need to earn an extra $2,000, while 42% say they would need to earn an extra $3,000.
Homeowners Are More Satisfied With Their Finances
Than Non-Homeowners
Homeownership can be a money pit of unplanned expenses, but it's also one of the best ways to build wealth and financial security.
Those who overspend, however, have more difficulty achieving financial milestones such as homeownership. Fewer than half of overspenders (49%) own a home, compared to 62% of those who say they don't overspend.
For those who do own a home, their financial outlook tends to be more positive. Two-thirds of homeowners (68%) say they're satisfied with their financial situation, compared to fewer than half of non-homeowners (47%).
Those who can afford to purchase a home are more likely to have higher incomes that support discretionary spending. Homeowners actually spend more on their "wants" than non-homeowners, with 30% spending at least $500 a month compared to 18% of non-homeowners.
Homeowners are also more likely to have money left over for savings, with only 30% saying they don't have an emergency fund. That's half the 61% of non-homeowners who say the same.
Still, owning a home is a major financial commitment, and the cost can put pressure on their budgets. About 42% of homeowners live paycheck to paycheck, and although that is still a sizable percentage, it's much less than the 61% of non-homeowners who say the same.
In addition, non-homeowners (39%) are far more likely than homeowners (22%) to point to housing costs as the source of their financial struggles.
While homeowners have the benefits of fixed mortgage payments, non-homeowners often face unpredictable rent hikes, and 34% of non-homeowners who live paycheck to paycheck say they'd need an extra $3,000 a month. Just 22% of homeowners who live paycheck to paycheck say they'd need that much.
Methodology
Clever Real Estate surveyed 1,000 American adults about their spending habits. The survey ran July 8, 2026.
About Clever
Clever Real Estate allows sellers to compare top-rated discount real estate brokers and low-commission real estate agents in their local area. Since 2017, Clever's nationwide agent-matching service has connected more than 250,000 customers with agents and saved consumers more than $250 million on Realtor fees, earning a 5-star Trustpilot rating across 4,400 customer reviews. Clever's library of educational content and data-driven research reaches over 12 million readers annually and has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.
- More than half of Americans (59%) admit they've knowingly made a purchase they couldn't afford.
- More than 1 in 4 Americans (27%) describe themselves as overspenders, including 49% of Gen Z and 39% of millennials. Just 12% of boomers say the same.
- Nearly 1 in 4 Americans (22%) say they've spent $1,000 or more on a single impulse purchase.
- About 1 in 4 Americans (24%) spend at least $500 a month on nonessentials, and 1 in 8 (13%) spend at least $1,000 — with the percentage nearly doubling to 23% of overspenders who shell out at least a grand.
- If Americans received an unexpected $10,000 windfall, nearly half (49%) wouldn't put any of it in savings. What's more, more Americans say they'd treat themselves (28%) than pay off non-mortgage debt (21%).
- 68% of Americans, including a whopping 97% of overspenders, have regrets about their spending habits.
- 35% of Americans feel guilty about their spending, 33% feel ashamed, and 27% would feel embarrassed if someone saw their recent spending.
- More than half of Americans (51%) say they've had to delay important milestones because of their spending.
- Nearly half of Americans (49%) say prices are so expensive that they wouldn't be well off financially no matter what they do.
- Almost 1 in 3 Americans (31%) say their financial struggles aren't their fault.
- 60% of consumers say their spending habits wouldn't be a problem if costs were more reasonable, and 43% say their spending wouldn't be a problem if they got paid more fairly.
- 1 in 10 Americans (10%) say they rack up $10,000 or more in monthly spending on essential and nonessential purchases.
- 50% of Americans say they live paycheck to paycheck.
- More Americans say they live paycheck to paycheck because inflation has made necessities too expensive (53%) than because they overspend on nonessentials (18%).
- 45% of Americans living paycheck to paycheck say their household would need to earn an extra $2,000 a month to break the cycle, while a quarter (28%) say they would need to earn an extra $3,000 a month.
- Fewer than half of overspenders (49%) own a home, compared to 62% of those who say they don't overspend.
- Two-thirds of homeowners (68%) say they're satisfied with their financial situation, compared to about half of non-homeowners (47%).
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FAQs
About 62% of Americans say they use a budget, but the percentage drops to fewer than half (46%) of self-described overspenders.
About 1 in 4 Americans (24%) spend at least $500 a month on nonessentials, and 1 in 8 (13%) spend at least $1,000 — with the percentage nearly doubling to 23% of overspenders who shell out at least a grand.
Half of Americans (50%) say they live paycheck to paycheck, with the percentage rising to 57% of Gen Z and 62% of millennials.