I make $100K a year; how come I still can't get ahead? A six-figure salary may not be enough for the American dream anymore — here are 3 ways to stop living paycheck to paycheck

As of March, about 60% of all U.S. consumers were living paycheck to paycheck. The survey found that even high-income Americans weren't immune to budget crunches, with 48% of those making over $100,000 also living the paycheck-to-paycheck lifestyle as of February.

As for the younger generations, the survey found that 73% of millennials were still living for their paychecks. Gen Z wasn't far behind, with their share rising to 66% in the latest PYMNTS report. How did they end up there? Millennials said supporting dependent family members and paying down debt were the main reasons they were living paycheck to paycheck, while one-third of Gen Z blamed non-essential spending.

Here’s why the American dream feels more like a reverie for younger generations — and what you can do to claw back some of your buying power without having to negotiate for a raise.

Unlike their parents

Both Gen Z and millennials grew up with baby boomer parents who most likely had it all going for them: the car, the family, the house and the salary that allowed them to live a stable and affordable lifestyle.

In 1980, American families had a median income of around $76,000 in today’s currency, according to the Census Bureau. Three decades on, that average has actually dropped to about $71,000 as of 2021.

That means not only are millennials and Gen Z paid less than their parents (on a constant currency basis), but due to stubbornly high inflation their salaries no longer stretch as far.

And then consider the student debt many young people are already carrying when they’re only just starting their careers. While millennials and Gen Z may be the most educated generations yet, that pricey degree doesn’t pay the same dividends when everyone you’re competing for jobs with has one too.

Even if they manage to climb the corporate ladder and lock down a fair salary, younger generations are then beleaguered by rising child care expenses and home prices.

So what are we to do? Amidst inflation, rising interest rates and static salaries, here’s how you can make that salary work for you.

Make a budget

The first thing every home needs is a budget. It's important to then stick to that budget.

Start off by tallying your essential monthly expenses like your mortgage or rent, insurance, food and utilities. Compare what you have left over in your budget with what you actually spend. If you need to trim some fat, break up your expenses into two categories: "must have" like coffee and "nice to have" like alcohol (or maybe that’s coffee for you, personally.)

Part of your budget should also include putting cash aside to pay down debt. If you’re paying interest on credit cards or student loans, that’s cash being thrown away. So the sooner you pay it down, the better.

Learn to save on fun

A little bit of research also goes a long way when it comes to saving on purchases.

It doesn’t have to be a pain — there are so many apps out there that can help you save money by browsing around for deals. Think of renting a home instead of a hotel room, or maybe a cheap airline ticket when you need to travel.

And these days, there are sites and apps that can help you find coupons for event tickets, salons looking for new clients or even a whole closet of high-end secondhand clothes.