It's hard to believe this figure is accurate. But it is:
Inflation in big cities is crushing residents right now, but it's even worse in rural America, a new study found.
"Rural households are more vulnerable to inflation," a report from Iowa State University shows. "In 2020, rural household post-tax incomes stood at $58,012. About 82% of rural incomes went towards expenses, leaving $10,661 in discretionary income for savings and unanticipated expenses."
However, by 2022 expenses rose by 18.5% overall. Earnings were not able to keep pace with inflation, rising by only 6.1%. The net effect cut rural discretionary incomes by -49.1% between June 2020 and June 2022, reducing the cushion to only $5,426. Expenses now consume 91% of rural take-home pay," the report said.
Got that? More than 90 cents of every dollar in rural America is going toward rent, groceries, medical care, gasoline—all the necessities, basically. The average rural American now has less than $5,500 per year for discretionary and/or emergency funding—about $450 per month.
If you're suffering in rural America, keep your head up—and save every penny you can get your hands on.
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