A new survey reveals that the average American has mentally spent over half of their paycheck before it arrives, particularly among those earning less than $75,000 annually.
The survey of 2,000 employed Americans found that 59% pre-plan their expenses while waiting for their paycheck, leading to 51% of funds being allocated in advance.
Key factors include mismatched living costs (44%) and inconsistent due dates (31%).
Many prioritize overdue bills, with 40% reporting no overdue payments and 55% having one to four overdue bills monthly.
Typically, large bills like rent (56%), necessities (51%), and smaller bills (38%) are paid first.
Additionally, respondents spend about 43% of their paycheck within the first three days after receiving it.
The survey also examined the 50/30/20 budgeting rule, which suggests allocating 50% for needs, 30% for wants, and 20% for savings.
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