Half of six-figure earners live paycheck to paycheck

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

I've often wondered the same. I technically live paycheck to paycheck, because all my money is predetermined--every penny has a destination. However, I have a decent savings I can pull from if needed and could survive off of it for several months if needed.

Aren’t you glad DCUM taught you something today? 😉

[Anonymous]

I am a maxed out GS-15 living paycheck to paycheck and in credit card debt. Divorce from a narcissistic and abusive husband and the out-of-pocket legal and educational expenses related to a special needs child (10 years) have drained the savings that I spent my 20s and first half of my 30s carefully building up. It will take me years to recover and start contributing to TSP and 529s again and pay down credit card debt, and that will be just in time to send my other child to college and I should be building up a special needs trust, as my younger DC will never be independent. If you told me that this is where I would be 15 years ago, I would never have believed it.

[Anonymous]

Divorced, earn $165k. Only have a mortgage, no other debt, and bought the house long ago so I save a lot in retirement accounts and beyond. Not having kids and (this was not by choice) and never having school loans, helps tremendously.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

I've often wondered the same. I technically live paycheck to paycheck, because all my money is predetermined--every penny has a destination. However, I have a decent savings I can pull from if needed and could survive off of it for several months if needed.

That is the definition of not living paycheck to paycheck. I don’t understand why this needs to be explained.

[Anonymous]

Anonymous wrote:I am a maxed out GS-15 living paycheck to paycheck and in credit card debt. Divorce from a narcissistic and abusive husband and the out-of-pocket legal and educational expenses related to a special needs child (10 years) have drained the savings that I spent my 20s and first half of my 30s carefully building up. It will take me years to recover and start contributing to TSP and 529s again and pay down credit card debt, and that will be just in time to send my other child to college and I should be building up a special needs trust, as my younger DC will never be independent. If you told me that this is where I would be 15 years ago, I would never have believed it.

I get you and I am sending you SN mom warm thoughts tonight. Life is something else.

[Anonymous]

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

You ideally should have a 3-6 month emergency fund, so that you "could skip a paycheck without going in the red". Might be beneficial to direct a portion of your other savings towards building one

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

You ideally should have a 3-6 month emergency fund, so that you "could skip a paycheck without going in the red". Might be beneficial to direct a portion of your other savings towards building one

I'd assume PPs like this consider "withdrawal from my own savings" to be "going in the red." I'm sure they're fine.

[Anonymous]

Most six figure earners live in high cost of living areas and probably prioritize expensive homes in high achieving school districts.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

I've often wondered the same. I technically live paycheck to paycheck, because all my money is predetermined--every penny has a destination. However, I have a decent savings I can pull from if needed and could survive off of it for several months if needed.

That is the definition of not living paycheck to paycheck. I don’t understand why this needs to be explained.

+1, I really don’t understand why people do not understand that. The PP is exactly NOT living paycheck to paycheck if you can survive several months with one.

Public service announcement, work towards having 12 to 18 months of necessary expenses saved as it could take that long to get a new job. Necessary expenses are food, shelter, utilities maybe healthcare if you have health issues. It does NOT include Netflix, Amazon, the latest iPhone, dance and karate for the kids, gym membership, stocks and bonds, gambling, drugs and alcohol. However if you want to include those in the amount you save in your emergency fund, that just means you have to save a larger amount, so good for you.

[Anonymous]

We make seven figures and live paycheck to paycheck.

Things are expensive. And I buy a lot of things. We also drink a lot, mostly expensive wine, go to nice restaurants, pay for private school. Million bucks ain’t what it used to be.

We do have retirement accounts, other savings, etc. But in my mind having to dip into those or draw on a HELOC for monthly expenses means you are paycheck to paycheck.

[Anonymous]

Anonymous wrote:We make seven figures and live paycheck to paycheck.

Things are expensive. And I buy a lot of things. We also drink a lot, mostly expensive wine, go to nice restaurants, pay for private school. Million bucks ain’t what it used to be.

We do have retirement accounts, other savings, etc. But in my mind having to dip into those or draw on a HELOC for monthly expenses means you are paycheck to paycheck.

🤦🏼‍♀️

[Anonymous]

Anonymous wrote:We make seven figures and live paycheck to paycheck.

Things are expensive. And I buy a lot of things. We also drink a lot, mostly expensive wine, go to nice restaurants, pay for private school. Million bucks ain’t what it used to be.

We do have retirement accounts, other savings, etc. But in my mind having to dip into those or draw on a HELOC for monthly expenses means you are paycheck to paycheck.

Omg

[Anonymous]

Anonymous wrote:We make seven figures and live paycheck to paycheck.

Things are expensive. And I buy a lot of things. We also drink a lot, mostly expensive wine, go to nice restaurants, pay for private school. Million bucks ain’t what it used to be.

We do have retirement accounts, other savings, etc. But in my mind having to dip into those or draw on a HELOC for monthly expenses means you are paycheck to paycheck.

You are the definition of tone-deaf, pp.

[Anonymous]

So I think it’s clear that if there’s this much debate, a crappy click bait article certainly did not spend the time to lay out some agreed upon definition of ‘paycheck to paycheck’ in its ‘survey’. It’s very likely that the respondents in that ‘survey’ ranged from divorcees with tons of CC debt to millionaires who drink expensive wine, all of whom ‘think’ they live paycheck to paycheck

[Anonymous]

Anonymous wrote:

Anonymous wrote:We make seven figures and live paycheck to paycheck.

Things are expensive. And I buy a lot of things. We also drink a lot, mostly expensive wine, go to nice restaurants, pay for private school. Million bucks ain’t what it used to be.

We do have retirement accounts, other savings, etc. But in my mind having to dip into those or draw on a HELOC for monthly expenses means you are paycheck to paycheck.

You are the definition of tone-deaf, pp.

I read it as sarcasm.