What percent of people you know do you think are in debt/paycheck to paycheck?

[Anonymous]

I don't think that many people I know personally are paycheck to paycheck but I do wonder about what a few people do w their money. Not bc it's my business but just bc I don't get their comments sometimes and it's not my place to ask. One is a 45-ish yr old single woman who was in biglaw for all of 3 yrs who STILL talks about the cut she took to go to the govt. I simply don't understand how the govt salary isn't enough esp since she doesn't seem extravagant - regular town home and car. But she went to law school at age 35, got a few grad degrees before that and had low-ish paying jobs, and bought the house after age 40. So I wonder if there's CC debt or school debt or just a general angst to play catch up on retirement and mortgage - while her peers who started at age 25 have longer investment horizons.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are paycheck to paycheck (or paycheck-less) for about four to five months out of the year. A two teacher household. Five advanced degrees between us (none in education) as we are both career changers. Two kids in college (my DD, my fiancé's stepson). Decade old non-luxury cars. No extravagances beyond cable, smart phones, and my covering the small gap between my younger DD's private school tuition and her generous FA package. From July to mid-November, we either have no income or it's paycheck to paycheck. Yesterday was the first paycheck that I've received since last May that wasn't already spoken for (June paychecks pay August expenses). I know someone will chime in to let me know how well compensated teachers are (snort) and how my fiancé & I can both get part-time jobs after school (When would we grade or have family time with the ES age kid?) I'm not asking for sympathy. I'm answering OP's question. Many teachers I know live paycheck to paycheck. Some sacrifice family time and get second or even third jobs. I did that for years and ruined my health. We're poorer, but happier.

You reduce your expenses, get a second job (even tutoring a few kids), work summers or take a year round pay check...and youngest does not need to go to private school if you cannot afford the small gap. Or, you both are divorced, what about child support?

The Fiancées kid is in college, no child support. If this is dad, he's probably paying it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:50/50 but no one will admit it.

Then how do you know? I don't know my friends' and relatives' financial position and they don't know ours. I also know that some people get to write off their auto leases as a business expense.

I have eyes. I know about where everyone works. I know what freebies they get. I know about what they make from the internet. I doubt the military lets anyone write off a luxury car.

As for family ? If you pay attention, struggles slip out. No one calls to chit chat anymore. They ALL need something. KWIM ?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are paycheck to paycheck (or paycheck-less) for about four to five months out of the year. A two teacher household. Five advanced degrees between us (none in education) as we are both career changers. Two kids in college (my DD, my fiancé's stepson). Decade old non-luxury cars. No extravagances beyond cable, smart phones, and my covering the small gap between my younger DD's private school tuition and her generous FA package. From July to mid-November, we either have no income or it's paycheck to paycheck. Yesterday was the first paycheck that I've received since last May that wasn't already spoken for (June paychecks pay August expenses). I know someone will chime in to let me know how well compensated teachers are (snort) and how my fiancé & I can both get part-time jobs after school (When would we grade or have family time with the ES age kid?) I'm not asking for sympathy. I'm answering OP's question. Many teachers I know live paycheck to paycheck. Some sacrifice family time and get second or even third jobs. I did that for years and ruined my health. We're poorer, but happier.

You reduce your expenses, get a second job (even tutoring a few kids), work summers or take a year round pay check...and youngest does not need to go to private school if you cannot afford the small gap. Or, you both are divorced, what about child support?

Your reading comprehension sucks, PP.

[Anonymous]

I don't know most of our friends' financial circumstances. Three of our friends/family members are always broke. All three make terrible financial decisions (think luxury "must have" items are a necessity such as $20 shampoo, $50 face cream, $40 beach towel, trip to Europe while defaulting on student loans, etc.). I was never paycheck to paycheck--even while I was waitressing and paying my own way through college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are paycheck to paycheck (or paycheck-less) for about four to five months out of the year. A two teacher household. Five advanced degrees between us (none in education) as we are both career changers. Two kids in college (my DD, my fiancé's stepson). Decade old non-luxury cars. No extravagances beyond cable, smart phones, and my covering the small gap between my younger DD's private school tuition and her generous FA package. From July to mid-November, we either have no income or it's paycheck to paycheck. Yesterday was the first paycheck that I've received since last May that wasn't already spoken for (June paychecks pay August expenses). I know someone will chime in to let me know how well compensated teachers are (snort) and how my fiancé & I can both get part-time jobs after school (When would we grade or have family time with the ES age kid?) I'm not asking for sympathy. I'm answering OP's question. Many teachers I know live paycheck to paycheck. Some sacrifice family time and get second or even third jobs. I did that for years and ruined my health. We're poorer, but happier.

You reduce your expenses, get a second job (even tutoring a few kids), work summers or take a year round pay check...and youngest does not need to go to private school if you cannot afford the small gap. Or, you both are divorced, what about child support?

Your reading comprehension sucks, PP.

No it doesn't. She is justifying why it is ok and it makes no sense. Why comment about teachers underpaid (which they are not in most cases) and others when they are not willing to put in any effort, including working summers.

[Anonymous]

Anonymous wrote:I don't think that many people I know personally are paycheck to paycheck but I do wonder about what a few people do w their money. Not bc it's my business but just bc I don't get their comments sometimes and it's not my place to ask. One is a 45-ish yr old single woman who was in biglaw for all of 3 yrs who STILL talks about the cut she took to go to the govt. I simply don't understand how the govt salary isn't enough esp since she doesn't seem extravagant - regular town home and car. But she went to law school at age 35, got a few grad degrees before that and had low-ish paying jobs, and bought the house after age 40. So I wonder if there's CC debt or school debt or just a general angst to play catch up on retirement and mortgage - while her peers who started at age 25 have longer investment horizons.

The bolded could easily be $200+K in student loans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are paycheck to paycheck (or paycheck-less) for about four to five months out of the year. A two teacher household. Five advanced degrees between us (none in education) as we are both career changers. Two kids in college (my DD, my fiancé's stepson). Decade old non-luxury cars. No extravagances beyond cable, smart phones, and my covering the small gap between my younger DD's private school tuition and her generous FA package. From July to mid-November, we either have no income or it's paycheck to paycheck. Yesterday was the first paycheck that I've received since last May that wasn't already spoken for (June paychecks pay August expenses). I know someone will chime in to let me know how well compensated teachers are (snort) and how my fiancé & I can both get part-time jobs after school (When would we grade or have family time with the ES age kid?) I'm not asking for sympathy. I'm answering OP's question. Many teachers I know live paycheck to paycheck. Some sacrifice family time and get second or even third jobs. I did that for years and ruined my health. We're poorer, but happier.

You reduce your expenses, get a second job (even tutoring a few kids), work summers or take a year round pay check...and youngest does not need to go to private school if you cannot afford the small gap. Or, you both are divorced, what about child support?

Your reading comprehension sucks, PP.

No it doesn't. She is justifying why it is ok and it makes no sense. Why comment about teachers underpaid (which they are not in most cases) and others when they are not willing to put in any effort, including working summers.

Private school is a luxury, not a right. Cry me a river. How many weeks off are you getting a year? I work most of the year, so shocking thing is I'm
paid better.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are paycheck to paycheck (or paycheck-less) for about four to five months out of the year. A two teacher household. Five advanced degrees between us (none in education) as we are both career changers. Two kids in college (my DD, my fiancé's stepson). Decade old non-luxury cars. No extravagances beyond cable, smart phones, and my covering the small gap between my younger DD's private school tuition and her generous FA package. From July to mid-November, we either have no income or it's paycheck to paycheck. Yesterday was the first paycheck that I've received since last May that wasn't already spoken for (June paychecks pay August expenses). I know someone will chime in to let me know how well compensated teachers are (snort) and how my fiancé & I can both get part-time jobs after school (When would we grade or have family time with the ES age kid?) I'm not asking for sympathy. I'm answering OP's question. Many teachers I know live paycheck to paycheck. Some sacrifice family time and get second or even third jobs. I did that for years and ruined my health. We're poorer, but happier.

You reduce your expenses, get a second job (even tutoring a few kids), work summers or take a year round pay check...and youngest does not need to go to private school if you cannot afford the small gap. Or, you both are divorced, what about child support?

Your reading comprehension sucks, PP.

No it doesn't. She is justifying why it is ok and it makes no sense. Why comment about teachers underpaid (which they are not in most cases) and others when they are not willing to put in any effort, including working summers.

Private school is a luxury, not a right. Cry me a river. How many weeks off are you getting a year? I work most of the year, so shocking thing is I'm
paid better.

But that PP is not asking for sympathy, just answering the question. It sounds like that PP plans but all paycheck are spoken for. Probably happier than many.

[Anonymous]

Anonymous wrote:

Anonymous wrote: I actually think A LOT of people lease cars, have home equity lines, credit card debt, etc. to live the lives they lead.

A net worth of $1M puts you in the top 10% of Americans in terms of wealth. An income of just $160k puts you in the top 10% of earners. So, very few Americans have the financial ability to buy a $800k house, own a BMW and a Range Rover, and send their child to a $60k/year college or $40k/year elite private school. Too much personal debt is a real financial problem for most Americans.

However, debt can also be a smart way to manage your money. There is a difference between consumption and capital expenditures and living beyond your means. I have a margin account with my brokerage and I use it a lot to juice equity returns and preserve balance with the hedges in my portfolio. My house is 100 years old and it will last another 100 years. There's no reason not to have a mortgage and spread out the cost of the house over its useful life. A mortgage provides a tax shield and financial leverage in an up market to increase my ROI. The six figure home equity line of credit we have is solely to manage our quarterly tax payments and the balance hits zero on April 15th every year. I use a charge card for about $15k in expenses every month. I get the convenience of not writing checks, a bunch of reward points, plus a $15k float without paying any interest. Our nicer car is leased - we run the expense through my spouse's firm, so it is paid by pre-tax rather than after tax dollars. None of these uses of debt are frivolous. They cut my taxes and don't reduce my net worth. And they all increase my liquidity with minimal additional cost or risk.

"My house is 100 years old and it will last another 100 years."

Bull shit, you're gonna have tons of maintenance on that, better buy new

[Anonymous]

I recently found this out about a few friends/coworkers. I work in the admin side of my office. The paychecks from our company were delayed by 2 days because of a clerical error and I was surprised by who was emailing me frantic because they needed their check - that day.

[Anonymous]

I work with a woman who is divorced and has three children. She is in her 40's and trying to finish school. She has asked me for money on occasion so I know she is living paycheck to paycheck. I am sure she is not the only one struggling. Our pay is not high. So this is something I'm pretty sure I know about.

[Anonymous]

Anonymous wrote:I recently found this out about a few friends/coworkers. I work in the admin side of my office. The paychecks from our company were delayed by 2 days because of a clerical error and I was surprised by who was emailing me frantic because they needed their check - that day.

I've noticed it in these kinds if transitional situations too - the last fed shutdown; when coworkers get new jobs and literally start the day after leaving the old job etc. When asked - why don't you take a week off between jobs, often the response is - oh no, in already going to be delayed by one pay period at the new place, I can't. I always find it interesting as these people are attorneys in the private sector who certainly should be able to go 1-2 pay periods without huge issues.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I recently found this out about a few friends/coworkers. I work in the admin side of my office. The paychecks from our company were delayed by 2 days because of a clerical error and I was surprised by who was emailing me frantic because they needed their check - that day.

I've noticed it in these kinds if transitional situations too - the last fed shutdown; when coworkers get new jobs and literally start the day after leaving the old job etc. When asked - why don't you take a week off between jobs, often the response is - oh no, in already going to be delayed by one pay period at the new place, I can't. I always find it interesting as these people are attorneys in the private sector who certainly should be able to go 1-2 pay periods without huge issues.

You don't know people's situation. We bring in 20k/mo. Our "burn rate" is 9k. 10k of our pay goes directly into a credit union where I physically have to walk into the branch in order to pull or transfer money this leaves us with only 1k in months cushion for suprises.

I too would be pestering payroll for my check.

On thr outside people might wonder what we are doing with our money, but in reality we are much better off than most.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I recently found this out about a few friends/coworkers. I work in the admin side of my office. The paychecks from our company were delayed by 2 days because of a clerical error and I was surprised by who was emailing me frantic because they needed their check - that day.

I've noticed it in these kinds if transitional situations too - the last fed shutdown; when coworkers get new jobs and literally start the day after leaving the old job etc. When asked - why don't you take a week off between jobs, often the response is - oh no, in already going to be delayed by one pay period at the new place, I can't. I always find it interesting as these people are attorneys in the private sector who certainly should be able to go 1-2 pay periods without huge issues.

You don't know people's situation. We bring in 20k/mo. Our "burn rate" is 9k. 10k of our pay goes directly into a credit union where I physically have to walk into the branch in order to pull or transfer money this leaves us with only 1k in months cushion for suprises.

I too would be pestering payroll for my check.

On thr outside people might wonder what we are doing with our money, but in reality we are much better off than most.

Also, Feds can't have a break in service between transfers.