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NEW YORK (MainStreet) -- Americans are showing signs of strength when it comes to their finances, a new study said.

According to the American Payroll Association, two-thirds of employees live paycheck to paycheck, a 1% drop from last year and 4% lower than three years ago.

The study asked over 27,000 respondents how they would fare should their paycheck face a delay for seven days.

The inability to save amounts to two simple factors: too much spending or insufficient income.

There's no magic to saving money. You either have to spend less or earn more. Consumers have been grappling with higher prices at the grocery store and in other areas of their budget, while wage growth has been unimpressive since the recession, making living paycheck to paycheck unavoidable for many.

"We continue to see a very positive trend for America's workers and their families," said Dan Maddux, executive director of the American Payroll Association. "Since 2011, we've seen a steady decline in the number of people who would struggle to pay their bills if their paycheck were delayed for a week."

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