More than half of U.S. adults have been living paycheck to paycheck for over a year — and don’t hold out much hope for financial improvement in the future, according to a new report from Ramsey Solutions.
The report, entitled The State of Personal Finance in America (Q2 2025), reveals that while fewer households are struggling to pay bills (with 43% finding it tough, the lowest percentage in two years), the majority are experiencing paycheck-to-paycheck anxiety.
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A full 52% of the 1,017 U.S. adults who responded to the study report being stuck in survival mode, burdened by high costs, stagnant wages and mounting distrust in government economic policy. Sadly, this figure has barely budged in more than a year. [1]
Paycheck-to-paycheck fatigue
The situation is definitely more dire for some. One in three adults (33%) described themselves as “struggling” or “in crisis” financially.
Generationally, Gen Z appears to be under the most pressure, with 55% struggling to pay bills and 53% having trouble making rent.
Overall, just 25% of U.S. adults surveyed considered themselves better off financially than they were a year ago.
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
This persistent gloom isn’t unique to Ramsey’s findings. A Gallup reports a record-high 53% of Americans believe their finances are deteriorating. [2]
A recent Pew Research Center survey shows that roughly 28% of U.S. adults expect their financial situation to get worse within a year — up from just 16% in 2024. [3]
Likewise, a mid‑2025 TransUnion survey found that 27% of U.S. consumers are pessimistic about their household finances over the next 12 months. [4]
Here are some of the factors contributing to Americans’ financial anxiety.
Tariffs, Inflation and a Confidence Gap
Policy uncertainty is weighing on Americans’ wallets and their outlook. The Ramsey report show that 66% of U.S. adults believe tariffs are hurting their finances, with many blaming rising consumer costs on ongoing trade disputes.
Support for tariffs dropped to 40%, down five points from the previous quarter.
Meanwhile, the study shows that Americans’ concerns about inflation remain high: 61% of the respondents are still extremely or apprehensive about the lasting effects of elevated prices.
The same percentage believe the U.S. economy is heading in the wrong direction, and fewer than half (45%) have confidence that President Donald Trump’s administration can improve it.
Social Security Doubts Add to Unease
Adding to Americans’ financial uncertainty is a growing skepticism about retirement security.
One in three adults (31%) surveyed in the Ramsey study believes Social Security won’t be around by the time they’re 65, a concern shared by nearly half of millennials (45%) and Gen Xers 44%).
What Consumers Can Do Now
For many, all this anxiety reinforces a sense of urgency, but not better habits.
Many survey respondents continue to prioritize status symbols over stability: 42% said they admire people with expensive homes, cars and clothes, even if they’re deep in debt themselves.
Almost 54% admited to making money mistakes they regret. Ramsey Solutions says financial stability starts with changing behaviors.
“Success with money is 80% behavior and 20% head knowledge,” the study authors write.
“You can change your money situation by adjusting the expectations and behavior of the one person we find the most difficult to deal with — the person in the mirror.”
Key steps they advise include:
- Spending less than you earn. Avoid new debt and live within your means to preserve your financial security.
- Building an emergency fund to weather unexpected expenses. In reality, this remains bleak as 59% of Americans can’t cover a $1,000 expense with savings. [5]
- Focusing on long-term goals rather than short-term comparisons. Experts advocate building your fund incrementally — even starting with just $500 — rather than letting an overwhelming target stop you in your tracks.
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[1]. Ramsey The State of Personal Finance in America Q2 2025
[2]. Gallup Americans’ Economic, Financial Expectations Sink in April
[3]. Pew Research Center Growing share of U.S. adults say their personal finances will be worse a year from now
[4]. TransUnion Consumer Pulse Study US Q2 2025
[5]. Forbes Paycheck-to-paycheck nation: 59% of Americans wouldn’t cover a $1,000 expense with savings
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