Americans are losing spending power, say researchers: Most can no longer afford a 'minimal quality of life'

Published: Friday, June 13, 2025 at 4:18 pm

Americans Struggle to Afford Basic Needs, Experts Say

Recent research indicates a growing number of Americans are facing a decline in their purchasing power, making it increasingly difficult to maintain a minimal quality of life. Financial experts are advising individuals to prioritize and strategically manage their major expenses: housing, transportation, and food.

These three categories, often referred to as the "Big Three," are where consumers can potentially find the most significant savings. Strategies for reducing these costs include refinancing mortgages, opting for more fuel-efficient or used vehicles, and implementing meal planning to minimize food waste and takeout expenses.

Experts also suggest exploring less conventional housing solutions. Options like co-housing, tiny homes, accessory dwelling units, and multi-generational living arrangements can help share expenses and build wealth.

Beyond cutting costs, experts emphasize the importance of increasing income. Boosting earnings can significantly improve the ability to pay down debt, build an emergency fund, and invest for the future. This may involve seeking a raise at a current job or exploring new employment opportunities. Data suggests that workers who switch companies often experience a pay increase.

Individuals are encouraged to invest in their skills and knowledge, particularly in emerging technologies like AI. Considering side hustles is another way to supplement income. The advice is to look at both sides of the financial equation, focusing on both spending and income generation, especially for those with young families.

BNN's Perspective:

The challenges facing American consumers are undeniable. While the advice to focus on the "Big Three" and explore income-boosting strategies is sound, the reality is that many families are already stretched thin. Policymakers and businesses need to consider how to address the underlying economic factors contributing to this decline in purchasing power, ensuring that a minimal quality of life remains attainable for all Americans.

Keywords: spending power, financial advice, housing costs, transportation costs, food costs, income, expenses, debt, emergency fund, investment, job market, side hustle, financial goals, cost of living

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