You don’t need us to tell you that the cost of living crisis is very real, and very impactful on the quality of our lives. Inflation has grown from its usual rate of 1 to 3% to 7% in 2021 and 6.5% in 2022 — and it’s not only affecting our purchasing power, but what’s in our savings accounts, too.
In today’s climate, 60% of Americans are living paycheck to paycheck, meaning there’s very little room to save for emergencies, future goals, and fun little treats every once in a while, and many people — especially women — are at $0.
Refinery29 heard from 12 women who spoke about their lack of savings, how they got there, and what they’re doing to move forward.
Alex, 29
Occupation: Senior Manager, Marketing
Salary: $120,000/year
What are the reasons behind the amount in your savings account?
Credit card debt, bachelorettes, weddings, traveling home to Australia (once every two years), eating out once a week, drinking at bars once a week.
Have your savings always looked this way? If so, why? And if not, why not?
Yes! I have never in my life had savings
How has the financial climate of 2023 impacted you?
Extremely. I used to think $120,000 was an insanely high salary and, one day, if I earned that amount I would finally feel a sense of freedom. While I am not struggling as much as I did when I first moved to New York City six years ago making $50,000… it doesn’t feel all that different. I’m 29 and there is no way I would be able to not have a roommate in this climate.
Would you say you have a good relationship with money?
Absolutely not. My outlook is: travel lots, have fun, say yes as often as you can. I have had a lot of fun, but now I am panicking, for the first time ever, about my future and about my ability to live a certain lifestyle. I find myself saying no to things for the first time ever.
What are the next steps for you, money wise?
Trying desperately to pay off $8,000 in credit card debt. Since I got my first credit card 10 years ago I have never known what it’s like to be debt free or have savings. I think a lot of the reason is because a big part of me doesn’t think I actually deserve to know what that feels like, and I’m far too comfortable living in the chaos. The connection between self-love and money is extremely apparent to me, so I also need to begin to heal that relationship with myself. I try to remind myself daily that I am deserving of financial freedom!
Melissa, 33
Occupation: Scheduling coordinator
Salary: $37,000/year
What are the reasons behind the amount in your savings account?
Low salary. How am I supposed to? I can’t even afford to have a savings account.
Have your savings always looked this way? If so, why? And if not, why not?
I’ve been a single mother since I was 21. All of my money has somewhere to go.
How has the financial climate of 2023 impacted you?
I spend every morning on my way to work looking for new jobs and finding nothing.
Would you say you have a good relationship with money?
I don’t think I’ve ever made enough money to have a good relationship.
What are the next steps for you, money wise?
I’m trying my best to make it.
Jade, 22
Occupation: Fashion reseller
Salary: $6,000/year
What are the reasons behind the amount in your savings account?
Low salary, self-employed, trying to furnish my apartment slowly… It’s miserable. I can’t take any higher-paying jobs because I’m homebound due to my disability.
I have a partner who makes more money than I do (about $40,000/year). His job covers a lot of our living expenses but I’m still expected to help out with bills from time to time, which is really difficult for me. My checking account basically never has three digits in it. I’m also getting the maximum payout possible from SNAP / EBT in my state, so that helps a lot with groceries.
Have your savings always looked this way? If so, why? And if not, why not?
No. My savings looked great in 2020 after the stimulus checks hit. But life comes at you fast and there’s no point in having savings if you can’t keep feeding into it, because, emergency after emergency, it’ll be gone in a flash.
How has the financial climate of 2023 impacted you?
Everything costs so much money. I can barely afford throw pillows for my couch — $40 for inserts and covers combined!
Would you say you have a good relationship with money?
No.
What are the next steps for you, money wise?
I don’t know. I really don’t. Everything seems so hopeless. I don’t even make enough for the Affordable Care Act.
I couldn’t drive for the longest time due to disability, but my state just expanded Medicaid! So my hopes are that one day I have enough in my savings to get a used car and pay for insurance. I don’t think I’ll ever make enough to pull it off, honestly. I don’t know if I can keep doing this in the long term, but if I can’t, I don’t know what other alternatives I have.
Bushra, 31
Occupation: Freelance writer
Salary: $0
What are the reasons behind the amount in your savings account?
I didn’t earn money in last four to five years. I got married while I was studying and was subsequently blessed with [a baby] in a year. I continued studies for a year, and then expensive day care compelled me to raise my child all alone without any financial compensation. So, now he has started school and I have started freelancing.
Have your savings always looked this way? If so, why? And if not, why not?
I had good savings before marriage. Even my family members would borrow from me.
How has the financial climate of 2023 impacted you?
No.
Would you say you have a good relationship with money?
No.
What are the next steps for you, money wise?
I just started freelance content writing a month ago. I hope I will be able to make considerable money in the next three to four months.
Julia, 24
Occupation: Social media producer
Salary: $40,000/year
What are the reasons behind the amount in your savings account?
Low salary, student loan payments, rent and utilities, inflation.
Have your savings always looked this way? If so, why? And if not, why not?
No. I have been very good with money my whole life, but with the start of student loan payments my savings have sunk.
How has the financial climate of 2023 impacted you?
With little pay and no raise in my current role on top of paying student loans and rent payments I have had a very difficult time setting aside any money to save.
Would you say you have a good relationship with money?
Yes I do.
What are the next steps for you, money wise?
To save money while still paying off my student loans.
Whitney, 27
Occupation: Analyst
Salary: $78,000/year
What are the reasons behind the amount in your savings account?
In the span of a year, my monthly costs have doubled from about $1,200 to $2,400. That coupled with the fact that I need a little treat here and there to keep going, and you have the perfect recipe for a zero balance in savings.
Have your savings always looked this way? If so, why? And if not, why not?
Since I graduated in 2018, this has been an ongoing issue.
How has the financial climate of 2023 impacted you?
Essentially any increase I’ve made in pay goes directly to inflation, so even though I’m making more than I thought I would at this age, I’m more broke than ever.
Would you say you have a good relationship with money?
Hahaha nope, and I probably never will.
What are the next steps for you, money wise?
Downsizing and moving away from friends and the city that I love.
Mariangely, 24
Occupation: Food & beverage
Salary: $17/hour
What are the reasons behind the amount in your savings account?
After finishing an internship in Florida, I decided to move here permanently. My apartment, purchasing a car, insurance, and hospital bills made my bank account so low.
Have your savings always looked this way? If so, why? And if not, why not?
No, even while studying in college I had a good amount of money. I was living with my parents while doing my bachelors and I was using their car.
How has the financial climate of 2023 impacted you?
A lot. Groceries are expensive and even the housing market is increasing a lot.
Would you say you have a good relationship with money?
Yes. Now it is impossible, while paying all the bills and trying to have money to go to the movies, get that book, or have takeout food.
What are the next steps for you, money wise?
I’m trying to save weekly so I have money for rent and paying my car.
Staci, 25
Occupation: Digital Marketing Account Manager
Salary: $68,200/year
What are the reasons behind the amount in your savings account?
My salary is not enough to cover rent and general cost of living (food, pet care, gas, etc) where I live.
Have your savings always looked this way? If so, why? And if not, why not?
No! My savings did not look this way until I moved out on my own and found out that my salary was far from enough to support me.
How has the financial climate of 2023 impacted you?
Rent, food, gas, and pet care costs have skyrocketed. A bag of dog food has gone up $30 over the past couple years, groceries are more expensive, and it is difficult to find anywhere to live that is both safe and affordable.
Would you say you have a good relationship with money?
No, I feel I was never properly taught how to manage my relationship with money and now being thrown in the deep end of a poor economy with so many prices skyrocketing has done very little to help me.
What are the next steps for you, money wise?
Lowering overall living costs, lowering rent and large purchases. Reducing any want purchases down to needs. Reduce holiday travel to save money.
Debadrita, 23
Occupation: Journalist
Salary: $39,983
What are the reasons behind the amount in your savings account?
I have just started out in my career and, like most journalists, don’t get paid much. I am an international student and have to save up to apply for a work visa next year which is an expensive process. Between paying rent, buying food, and keeping some money for my visa, I end up having no savings, living the paycheck-to-paycheck lifestyle.
Have your savings always looked this way? If so, why? And if not, why not?
No. I used to work for a London-based company as an undergrad and then full-time while living in India. The conversion rates were great and helped me make a lot of money (comparatively to what I am making now). I also stayed at home with my parents and in a city like Kolkata, which is inexpensive. Although I contributed to household expenses, I was able to save more than 80% of my income.
How has the financial climate of 2023 impacted you?
I graduated in May from Columbia Journalism School. Living in New York City was hard enough and I was unemployed for a bit following graduation, which caused a dent in my savings. Now, living in Buffalo is expensive as well (less than NYC though) with rent going up, high utility bills, and overall inflation. It is getting difficult for me to plan anything big (like purchasing a car, which is essential) because I am caught between choosing to eat, stay in the U.S., and making other essential purchases.
Would you say you have a good relationship with money?
I do. I tend to spend less and save more.
What are the next steps for you, money wise?
I might take up some side gigs if time permits and save all of those extra earnings. If not, I will continue this lifestyle until I get my visa sorted and then save whatever additional income I get. My father is a financial planner, and I am seeking advice actively to understand how I can further minimize my expenses (like moving to a smaller apartment with roommates).
Lexi, 30
Occupation: Freelance journalist
Salary: ~$60,000/year
What are the reasons behind the amount in your savings account?
I opened and maxed out a bunch of credit cards when I was young and dumb in college, which tanked my credit and set me up for a lot of debt after graduating. While I’ve paid a good chunk of that debt off since then, I’ve had several career transitions in the past few years that resulted in more debt due to salary differences. These career changes included big relocations that cost me more than I was able to afford — leading to even more debt. Now that I’m a few years into the career path I’ll likely follow forever, I had just started aggressively reshaping my financial situation in early 2023… until I was laid off from my first big media job. I was unemployed for four months this year, which put me completely back to square one and left me with zero opportunity to save. I’m just now reaching a place where I’m not behind on bills anymore and can start saving going forward.
Have your savings always looked this way? If so, why? And if not, why not?
Honestly for the most part, yes. I have Bipolar II disorder as well as ADHD, and through therapy I’ve realized that impulsive spending and financial disorganization are two big symptoms that come from those. Aside from my mental illness, I think growing up in a strict household where my parents largely controlled my every move led me to kind of adopt an “I can do whatever I want” attitude once I hit college, because I could finally make my own financial decisions. That led to me spending like crazy and opening too many credit accounts.
How has the financial climate of 2023 impacted you?
Inflation and journalism layoffs really got me this year. I had such a difficult time finding a full-time job after being laid off that it set me behind in a tremendous way.
Would you say you have a good relationship with money?
Not really, but it’s something I’m very actively working on. Over the past year I’ve done a lot to pay off debt, raise my credit score, and improve my financial situation overall (despite the period of time when I wasn’t able to do much because of unemployment).
What are the next steps for you, money wise?
Definitely contributing to my savings account every single month, continuing to pay off debt, and probably refinancing my car loan. That payment is insane.
Jessica, 22
Occupation: Development assistant at a university
Salary: $57,000/year
What are the reasons behind the amount in your savings account?
Low salary, high rent, and a COVID-era shopping problem: I was sent home from college during COVID-19 and immediately started trying to fill the void in my soul by shopping. I also got my first credit card around this time which contributed heavily. Now, I’ve been graduated and living on my own in San Diego for a little over two years and spending half my check on rent every month while desperately trying to get rid of my credit card debt.
Have your savings always looked this way? If so, why? And if not, why not?
Nope! I’ve been working since I was 16 and until going to college I was decent about saving. Obviously it was easier back then because I was living at home with no expenses, but it really started to change when I went to college in an expensive city (San Diego) and wanted to buy cute dorm things and new clothes for my fun new college life. It was fine at first but went downhill very fast when I was sent home for COVID-19.
How has the financial climate of 2023 impacted you?
It’s rough out here. I don’t make enough money at my job for an apartment in the city I live in, despite the fact that I live with a roommate. I’ve been applying to tons of jobs all year (partially because of the money and partially because my job has the most toxic environment I’ve ever been in and my mental health is abysmal) and can’t seem to get an interview anywhere because of how competitive the job market is here. Even without my debt I’d probably barely be afloat.
Would you say you have a good relationship with money?
I do not have a good relationship with money. It runs my life, and I’m floundering, trying to get it together. It’s completely my fault, but it’s a very helpless feeling when you’re in a situation like this.
What are the next steps for you, money wise?
At this point, I’m thinking selling feet pics is a legitimate option. That, or perhaps a sugar daddy?
Teona, 26
Occupation: Freelance writer and content creator
Salary: $18,000/year
What are the reasons behind the amount in your savings account?
Low income, inability to work more than a set amount of hours due to disability, lack of job opportunities as the world moved “back to normal,” high cost of bills, and several emergencies.
Have your savings always looked this way? If so, why? And if not, why not?
Yes, but I at least used to have a little bit of money in my savings at various points. That was back when my rent wasn’t as expensive and I could use my Social Security Disability Insurance (SSDI) to cover rent and other bills. Now my SSDI covers only my rent and I’m left to cover all of my other bills on little to no income.
How has the financial climate of 2023 impacted you?
There’s significantly less work. I’ve had my lights shut off on me once as well as received a 30-day notice from my apartment complex because multiple late bills took all of my rent money one month. The market feels dried up and since I can’t work an in-person job due to my immunocompromised health and my inability to mask my neurodivergence after three years at home, I rely on remote work, which there’s little to none that properly pays now.
Would you say you have a good relationship with money?
Not at all.
What are the next steps for you, money wise?
I’m hoping I can find a better job or more writing opportunities so I can pay off bills and debts. I don’t see being able to have anything in my savings as a part of my near future without a major increase in income that offsets the cost of bills and debt.
Teresa, 28
Occupation: Cocktail bar maintenance / prep lead
Salary: $1,300/month
What are the reasons behind the amount in your savings account?
I currently have about $2,400 in debt. I live with roommates, but I still support my dad who is low income and disabled. I pay a portion of bills here and a portion of my dad’s bills. My low salary makes it impossible to keep anything in a savings account and live comfortably.
Have your savings always looked this way? If so, why? And if not, why not?
Yes. There’s always a medical emergency with my dog, my dad needs financial support, my roommates can’t cover their expenses, or I end up splurging on things I shouldn’t.
How has the financial climate of 2023 impacted you?
Inflation is affecting every aspect of day-to-day living.
Would you say you have a good relationship with money?
No. My financial literacy is literally poor. I wish that they taught the importance of money management in high school. Pre-K even.
What are the next steps for you, money wise?
Try to make better decisions next month by putting a couple hundred away here and there. But with the holidays… it’s unlikely I’ll be able to save anything. So maybe next year.
Paydon, 29
Occupation: Data specialist
Salary: $30,000/year
What are the reasons behind the amount in your savings account?
Last summer I cancelled all of my credit cards, and I have been working hard to try and pay down credit card debt accumulated from when I was laid off during the pandemic. I’ve gotten two out of three paid off now, but it will most likely be another two years before I can pay off the final one. My healthcare costs have also increased significantly this year. Any time I’ve managed to start saving a little while also paying off debt, I’ve been hit with big unexpected expenses like needing to replace my car battery last month ($200.84) or vet bills for my dog (last one was $498).
Have your savings always looked this way? If so, why? And if not, why not?
No. Prior to 2020 I usually had anywhere from $1,000 to $2,000 in savings.
How has the financial climate of 2023 impacted you?
I’ve had to really limit my spending on things that are not necessities. I’m no longer able to afford going out with friends to dinner or even the movies. My social life has become nonexistent and most of my free time has been dedicated to trying to find a better paying job.
Would you say you have a good relationship with money?
Compared to my friends and coworkers my same age, I feel that I have a good relationship with money. I try really hard to not spend above my means, and am pretty good at not making impulse purchases.
What are the next steps for you, money wise?
Continue to pay down credit card debt, land a better paying job, and work on having a savings built up again.
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