More American Households Living On The Edge

Nearly two-fifths of American households are living on the edge financially.

According to a report from the Consumer Federation of America and the Consumer Planner Board of Standards, Inc., 38 percent of households live paycheck to paycheck. In 1997, this figure was 31 percent.

The report, which was based on the responses of 1,508 household decision makers, also found that more than half of those surveyed are behind on retirement savings, up from 38 percent 15 years ago.

Living paycheck to paycheck is extremely risky as it leaves little wiggle room for any kind of financial blow, such as the loss of a job. A report from earlier this year found that 43 percent of Americans don't have enough money saved up to weather a financial emergency. In other words, 127.5 million people are one mishap away from joining the ranks of the 46 million Americans living below the poverty line.

Savings are suffering as the number of people making a decent income has declined. A December Census report showed that almost half of Americans -- approximately 146 million -- are now classified as low-income or below the poverty line. That group grew by 4 million since 2009.