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A new survey conducted by Talker Research on behalf of EarnIn found that the average American has already mentally spent more than half of their paycheck before it lands in their bank account.
The survey polled 2,000 employed Americans who make less than $75,000 per year and found that the typical American spends about 43% of their paycheck within the first three days after receiving it, in addition to the roughly 51% that’s pre-spent mentally.
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In fact, only 20% of those surveyed don’t run out of money or otherwise have to live on a tight budget in the days leading up to their next check. Worse yet, 56% of respondents said that less than 10% of their pay goes into savings.
If you’re not saving as much as you should be, it may be time for some changes. Here are a few to consider.
Set a realistic budget
According to a Harris Poll, 74% of Americans have a monthly budget. That’s good news. But, 84% of those with a monthly budget tend to exceed it. That’s not so good.
This is why it’s not enough to just have a budget. It needs to be realistic. One of the best ways to create a budget that suits your lifestyle is to track all your spending.
From there, you can decide which things are most important to you based on your values, and which costs you can cut down on.
One area you may want to trim is insurance spending — and many Americans may not realize that shopping around can save hundreds of dollars a year. Comparing prices and plans is even easier with OfficialHomeInsurance.com.
In under 2 minutes, OfficialHomeInsurance.com helps you browse offers tailored to your needs from over 200 reputable insurance companies. Best of all? It’s free.
Simply fill in a bit of information about yourself and you can quickly find the coverage you need — saving you on average $482 a year.
While you’re saving money on home insurance, you may also want to optimize your auto insurance coverage. OfficialCarInsurance.com helps you instantly sort through the best policies from car insurance providers in your area, including trusted names like Progressive, GEICO and Allstate.
With rates as low as $29 per month, you can find coverage that suits your needs and potentially saves you hundreds of dollars per year.
To get started, fill in your information and OfficialCarInsurance.com will provide a list of the top insurers in your area.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Saving on your insurance can free up more funds for your savings — boosting your investing power — or ensure that you can add to your monthly entertainment expenses.
Maintain an emergency fund at all times
The Federal Reserve reports that 37% of Americans do not have the savings to cover a surprise $400 expense. Similarly, in early 2025, a survey by U.S. News & World Report found that 42% of Americans don’t have an emergency fund at all, and that 40% couldn’t cover a $1,000 unexpected expense.
Without emergency savings, you risk falling behind on essential bills and having to resort to debt — possibly high-interest debt — when unplanned expenses arise. It’s important to make room in your monthly budget for emergency fund contributions.
Ideally, your savings should cover three months of essential bills at a bare minimum — though six months is ideal. That way, if you find yourself unemployed, you’ll have funds to tap to cover your expenses instead of having to reach for a credit card.
One way to grow your emergency fund quickly is to open a high-interest savings account. Wealthfront’s cash account is designed for those seeking a reliable and safe high-yield savings plan. With full access to your money at all times, Wealthfront offers fast and free transfers to internal Wealthfront investing accounts, as well as external accounts.
Plus, you can get a $30 bonus when you fund your account with $500 or more. That’s starting your emergency fund on the right foot.
Given that so many Americans mentally spend their paychecks before they arrive, to stay on track, you may want to establish a monthly savings goal and set up an automatic transfer from your checking account to your savings account. That way, the amount you want to save will leave your checking account before you get a chance to touch it.
Steer clear of lifestyle creep
In recent years, inflation has been a challenge for American workers and has monopolized more of their paychecks. But, while you can’t help that living costs have risen even as pay hasn’t kept up pace, you can avoid spending more by pledging to steer clear of lifestyle creep — otherwise known as lifestyle inflation.
It can also pay to be cautious when you get a pay bump. After all, that extra cash in your checking account could tempt you into an ever-escalating lifestyle.
Instead, you could put these new funds into a high-yield savings account. You won’t miss the extra money because you won’t be used to having it to spend.
While waiting for your next raise, you could also squirrel away your spare change to build your nest egg or an emergency fund.
An easy way to get started is with Acorns, an automated diversified ETF investment tool that makes it easy to set aside your cash.
Their platform automates investing and saving to simplify the process of setting aside a little bit every day. Acorns automatically rounds up the price of each of your purchases to the nearest dollar and deposits the difference into a smart investment portfolio.
Even better, Acorns is offering a $20 bonus when you sign up with a recurring contribution.
Finally, rather than take on new expenses every time you get a raise, evaluate your savings and see if you can increase your contributions. Whether it’s a boost to your emergency fund or your 401(k), investing in your future is better than the short-term pleasure of a bunch of one-off expenses.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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