Key points

  • In February, 62% of all American adults were living paycheck to paycheck, up from 60% the previous month, according to a new report from LendingClub.
  • To make ends meet, more people have opted for second jobs, the report also found.
  • It’s also a good time to make some big changes to your spending and saving plan, according to an expert.

It is becoming more and more difficult to keep up with rising prices.

In February, 62% of all American adults were living paycheck to paycheck, up from 60% the previous month, according to a new report from LendingClub.

To make ends meet, more people chose to have an extra second, according to the report.

As pandemic-related benefits wane, “many have turned to supplemental income with extra work or alternative sources of income to improve their financial situation,” said Anuj Nayar, financial health manager at LendingClub.

Nearly half, or 44%, of Americans have second jobs amid inflation, a 13% increase from 2020, according to a separate LendingTree survey. Another report, from FlexJobs, found that 69% of employed professionals have or want a side job.

“What is clear: whatever your income level, having extra income has a huge impact on financial stability and can often be the difference between living without a struggle and living on paycheck and struggling to pay monthly bills. Nayar said.

How to improve your financial image

Instead of or in addition to earning more to help cover monthly expenses in an inflationary environment, try these spending and saving tips from consumer credit expert Andrea Woroch.

1. Update your budget. “It’s likely that inflation has thrown your spending and saving plan out of balance,” he said. Start by reviewing your expenses and negotiating with current providers, or cutting costs where you can, such as increasing your auto or home insurance deductible to lower your monthly premium.

2. Purge unnecessary services. Review every recurring expense and eliminate unnecessary services, such as unused subscriptions or memberships and premium movie channels you never watch, Woroch said.

3. Erase the debt. To keep up with rising prices, more and more Americans are relying on credit cards and going into debt every month, according to multiple reports. If you’re having trouble paying off a balance, upgrade to a 0% balance transfer card, which can offer up to 21 months interest-free.

4. Get your financial profile in order. Transfer your savings to a high-yield online savings account for a better interest rate, and check that your bank doesn’t charge monthly maintenance or service fees for overdrafts or insufficient funds.

5. Change your spending habits. Going forward, a good way to reduce your spending is to avoid impulse buying. Woroch advises shoppers to turn off sale notifications in store apps, unsubscribe from retail newsletters and avoid going to stores like Target just to browse.

LendingClub’s paycheck report is based on a survey of more than 4,000 American adults in February.

This article was originally published in English by Jessica Dicker for our sister network CNBC.com. To learn more about CNBC, enter here.

Categorized in: