About 41% of American workers earning between $300,001 and $500,000—and 40% of those making over $500,000—say they’re living paycheck to paycheck, according to a new report from Goldman Sachs. 

Perhaps surprisingly, those reeling in smaller salaries are faring a bit better: only around 16% of those earning $200,001 and $300,000 are struggling to make ends meet. 

And those on the bottom end of the spectrum are struggling more than middle earners, but still less than top earners: comparatively, 25% of employees making $100,001 to $200,000 and 36% bringing in $50,001 to $100,000 are living paycheck to paycheck. 

Meanwhile, about 57% of U.S. workers earning less than $50,000 report they’re barely getting by on their salaries. 

‘Lifestyle creep’ and why $500,000 earners are struggling

At face value, it makes no sense why top-earners are in the same sticky financial situation as their lower-income peers—but the study finds this paradox highlights the “impact of lifestyle creep, the phenomenon of luxuries becoming necessities to certain income cohorts.” Six-figure workers reeling in half a million-dollar salaries are struggling to keep up with the joneses. 

“Financial strain is not confined to low-income workers,” the study reveals. “A meaningful share of higher earners also report living paycheck to paycheck or making only limited progress toward long-term financial goals, underscoring that elevated expenses, debt burdens, and lifestyle inflation can erode savings capacity across the income spectrum.”

It’s no secret that prices have been going up. The cost of the most basic necessities, like a carton of a dozen large eggs, currently sits at $3.60—hitting a high of $6.22 this March—compared to $1.40 before the pandemic. 

And when it comes to even bigger life purchases, like buying a home, costs are soaring. The median price of buying a home in the U.S. was $413,500 in August, and in the pre-pandemic era of January 2020, it was just $328,900. These soaring expenses have created a new cohort of ultra-rich “forever renters”—with the number of U.S. millionaires who rent tripling between 2023 and 2019, according to a report from RentCafe. Now, one in 11 millionaires enjoying seven-figure fortunes are choosing to rent over buying homes at unsustainable prices. 

However, these skyrocketing living costs don’t mean that top earners are willing to cut back on all their luxuries. They’re still driving expensive cars, renting out massive apartments, and splurging on designer clothes to keep up appearances. It’s a country-wide phenomenon; about 40% of Americans have overspent to impress someone else. The issue has been dubbed “lifestyle creep.”

What America’s top earners are holding back on buying 

While many American top-earners are still balling out on Lamborghinis, popping bottles of Dom Pérignon, and swiping their credit cards on Louis Vuitton bags, they may be cutting back on life essentials behind the scenes to make up for their lavish lifestyles. 

According to a report from Clarify Capital, six-figure earners are flying economy, turning to discount grocery chains to hunt for better deals, getting thrifty with buying clothes, and scaling back on subscriptions.

Looking beyond daily life expenses, high earners are also delaying major life purchases. About 47% are setting back their dream vacations and travel, 31% are stalling on home renovations, 26% are delaying buying or leasing a new car, and 17% are pushing back buying a new house. They’re even pushing back tying the knot and walking down the aisle, as 6% of six-figure workers are delaying getting married. 

“In today’s economy, income alone doesn’t guarantee financial peace of mind,” the Clarify Capital report said. “High earners are feeling squeezed by inflation, stressed by social pressure, and more mindful about what it really means to be well-off.”