40% of people making 500K/year are living paycheck to paycheck

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pay check to pay check literally means there are no savings - no retirement - and no money at the end of the pay period.

So many here just do not understand.

Wrong , pay check to pay check means the way the life is setup you spend everything going into your bank account each pay check. .

Yes. But it has to genuinely mean that. You have to be risk of over drafting. That’s paycheck to paycheck. The day before pay day is stressful. That’s paycheck to paycheck.

+1. If you can pull from savings or sell stock to cover the gap, you aren’t paycheck to paycheck, you’re just overextended or diverting too much to savings/investments. It’s not the same thing. When I was growing up, sometimes we had to drive over to the electric company’s office in person before 5pm to make a payment because we were a couple months behind and if we didn’t our power was being cut the next day. THAT’s paycheck to paycheck.

Wrong if you have to pull from savings you will fall behind on retirement. The under 200k people don't have to save and the govt takes care of them fully

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pay check to pay check literally means there are no savings - no retirement - and no money at the end of the pay period.

So many here just do not understand.

Wrong , pay check to pay check means the way the life is setup you spend everything going into your bank account each pay check. .

Yes. But it has to genuinely mean that. You have to be risk of over drafting. That’s paycheck to paycheck. The day before pay day is stressful. That’s paycheck to paycheck.

+1. If you can pull from savings or sell stock to cover the gap, you aren’t paycheck to paycheck, you’re just overextended or diverting too much to savings/investments. It’s not the same thing. When I was growing up, sometimes we had to drive over to the electric company’s office in person before 5pm to make a payment because we were a couple months behind and if we didn’t our power was being cut the next day. THAT’s paycheck to paycheck.

Wrong if you have to pull from savings you will fall behind on retirement. The under 200k people don't have to save and the govt takes care of them fully

The people who live paycheck to paycheck have no retirement and their SS is small because their income is small and they are probably desperate and have to pull it as soon as they are eligible.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pay check to pay check literally means there are no savings - no retirement - and no money at the end of the pay period.

So many here just do not understand.

Wrong , pay check to pay check means the way the life is setup you spend everything going into your bank account each pay check. .

Yes. But it has to genuinely mean that. You have to be risk of over drafting. That’s paycheck to paycheck. The day before pay day is stressful. That’s paycheck to paycheck.

+1. If you can pull from savings or sell stock to cover the gap, you aren’t paycheck to paycheck, you’re just overextended or diverting too much to savings/investments. It’s not the same thing. When I was growing up, sometimes we had to drive over to the electric company’s office in person before 5pm to make a payment because we were a couple months behind and if we didn’t our power was being cut the next day. THAT’s paycheck to paycheck.

Wrong if you have to pull from savings you will fall behind on retirement. The under 200k people don't have to save and the govt takes care of them fully

The people who live paycheck to paycheck have no retirement and their SS is small because their income is small and they are probably desperate and have to pull it as soon as they are eligible.

In the year 2025 I am gonna call be on this , this doesn't happen they have some type of govt subsidizing thing or break

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've seen enough of those "we make $500k but money feels tight" articles to know that most people don't actually know what paycheck to paycheck means

In this case they mean after maxing out all their retirement accounts and setting aside automated brokerage investments, paying private school tuition, paying the mortgage on heir huge house, and setting aside cash for their next big vacation and reno, they feel like they don't have enough left over to spring for guac.

Exactly, we make like 800k and still shop at Aldies because we need to save so much and pay for private college tuition, etc. It's not a glamorous life, everything thinks it is.

Same here.
We make 2.6M and live paycheck to paycheck. We still shop at the dollar store. It’s not a glamorous life. Our yacht and our two vacation homes are expensive to maintain.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pay check to pay check literally means there are no savings - no retirement - and no money at the end of the pay period.

So many here just do not understand.

Wrong , pay check to pay check means the way the life is setup you spend everything going into your bank account each pay check. .

Yes. But it has to genuinely mean that. You have to be risk of over drafting. That’s paycheck to paycheck. The day before pay day is stressful. That’s paycheck to paycheck.

+1. If you can pull from savings or sell stock to cover the gap, you aren’t paycheck to paycheck, you’re just overextended or diverting too much to savings/investments. It’s not the same thing. When I was growing up, sometimes we had to drive over to the electric company’s office in person before 5pm to make a payment because we were a couple months behind and if we didn’t our power was being cut the next day. THAT’s paycheck to paycheck.

Wrong if you have to pull from savings you will fall behind on retirement. The under 200k people don't have to save and the govt takes care of them fully

WTF are you smoking? The government doesn't take care of anyone fully, and certainly not people with an income of $200k. The federal poverty limit for a family of 4 is $33k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've seen enough of those "we make $500k but money feels tight" articles to know that most people don't actually know what paycheck to paycheck means

In this case they mean after maxing out all their retirement accounts and setting aside automated brokerage investments, paying private school tuition, paying the mortgage on heir huge house, and setting aside cash for their next big vacation and reno, they feel like they don't have enough left over to spring for guac.

Exactly, we make like 800k and still shop at Aldies because we need to save so much and pay for private college tuition, etc. It's not a glamorous life, everything thinks it is.

Same here.
We make 2.6M and live paycheck to paycheck. We still shop at the dollar store. It’s not a glamorous life. Our yacht and our two vacation homes are expensive to maintain.

Yacht staff always have their hand out for something. It's discusting.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Pay check to pay check literally means there are no savings - no retirement - and no money at the end of the pay period.

So many here just do not understand.

Wrong , pay check to pay check means the way the life is setup you spend everything going into your bank account each pay check. .

Pp is right. There is no savings or retirement. If you don't get paid, basic bills like rent and groceries don't get paid.

[Anonymous]

Living paycheck to paycheck means that every dollar of every paycheck goes to pay your living expenses: food, shelter, utilities, transportation. If you can save for a rainy day or a vacation or college or retirement, you are not living paycheck to paycheck.

A survey like the one OP posted is absolutely meaningless because obviously many of the participants have no idea what the question they are answering means. If the surveyors really wanted to know the answer to this question, they should have asked it differently. E.g., are you able to save for retirement and college? How many people making $500k do you really think would say no to that question?

My HHI is $330k and I for one am really tired of well-well-off people (like me) who complain about how little money they have. Honestly, shut up. If you can't figure out how to live a comfortable life making this kind of money (or more), you must not be very bright.

[Anonymous]

Anonymous wrote:Living paycheck to paycheck means that every dollar of every paycheck goes to pay your living expenses: food, shelter, utilities, transportation. If you can save for a rainy day or a vacation or college or retirement, you are not living paycheck to paycheck.

A survey like the one OP posted is absolutely meaningless because obviously many of the participants have no idea what the question they are answering means. If the surveyors really wanted to know the answer to this question, they should have asked it differently. E.g., are you able to save for retirement and college? How many people making $500k do you really think would say no to that question?

My HHI is $330k and I for one am really tired of well-well-off people (like me) who complain about how little money they have. Honestly, shut up. If you can't figure out how to live a comfortable life making this kind of money (or more), you must not be very bright.

*well-off
Typing on my terrible phone, sorry for typos.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've seen enough of those "we make $500k but money feels tight" articles to know that most people don't actually know what paycheck to paycheck means

In this case they mean after maxing out all their retirement accounts and setting aside automated brokerage investments, paying private school tuition, paying the mortgage on heir huge house, and setting aside cash for their next big vacation and reno, they feel like they don't have enough left over to spring for guac.

Exactly, we make like 800k and still shop at Aldies because we need to save so much and pay for private college tuition, etc. It's not a glamorous life, everything thinks it is.

Same here.
We make 2.6M and live paycheck to paycheck. We still shop at the dollar store. It’s not a glamorous life. Our yacht and our two vacation homes are expensive to maintain.

I think this is a joke, but if not this would be an example of someone who's not very bright.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is how we get communist regimes sending out the "elite" into the fields for re-education. I'm wealthy. Those people are giving wealthy people a bad name. They need to be re-educated.

Is that your worry? That you’ll be given a bad name?

It’s not hard to believe that people start to need every dollar of their paycheck going to monthly expenses. They overextended themselves with a $2 million dollar house and top of the line everything.

If any of their "monthly epenses" include any kind of savings: retirement, 401K contributions, 529, scontributions,-- they are not living paycheck to paycheck. Words have meaning. People can certainly lock themselves into high levels of spending that are difficult to reverse, but that's not the same thing

I thought that would be understood when I wrote that every dollar went to monthly expenses but I should have wrote “and they do not save a dime, no retirement, no 529, no basic savings. Maybe they assume they will be able to do that later. But they took out the largest mortgage allowed, they leased two top of the line cars, they put vacations on the charge cards and pretty soon they can barely make the monthly payments.

[Anonymous]

Anonymous wrote:In the $100k to $300k it feels like paycheck to paycheck because they are putting lots in savings so it’s not really available for daily use. There is still real budgeting going on. This is the range where they know not to depend on social security, don’t expect to get lots in aide for college, healthcare cost share is higher, and taxes are higher. So while yes they can afford some nicer things they are still budgeting, still conscious of the higher price of goods, and yet being looked at as if they are really rich.

? at 300K if you are living paycheck to paycheck, you are doing something wrong.

When we made $160K, we were able to save for retirement and college.

When we made $300K we were able to do above, save even more and go on international vacations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pay check to pay check literally means there are no savings - no retirement - and no money at the end of the pay period.

So many here just do not understand.

Wrong , pay check to pay check means the way the life is setup you spend everything going into your bank account each pay check. .

Yes. But it has to genuinely mean that. You have to be risk of over drafting. That’s paycheck to paycheck. The day before pay day is stressful. That’s paycheck to paycheck.

+1. If you can pull from savings or sell stock to cover the gap, you aren’t paycheck to paycheck, you’re just overextended or diverting too much to savings/investments. It’s not the same thing. When I was growing up, sometimes we had to drive over to the electric company’s office in person before 5pm to make a payment because we were a couple months behind and if we didn’t our power was being cut the next day. THAT’s paycheck to paycheck.

Wrong if you have to pull from savings you will fall behind on retirement. The under 200k people don't have to save and the govt takes care of them fully

Np. Savings and retirement are two separate things. Retirement is in my 401k and savings are in a vanguard account.

[Anonymous]

How is that even possible? We make $400K a year and save around $130K, separate from retirement savings, every year. Granted, we use public school, so maybe that is a factor. But still.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've seen enough of those "we make $500k but money feels tight" articles to know that most people don't actually know what paycheck to paycheck means

In this case they mean after maxing out all their retirement accounts and setting aside automated brokerage investments, paying private school tuition, paying the mortgage on heir huge house, and setting aside cash for their next big vacation and reno, they feel like they don't have enough left over to spring for guac.

Exactly, we make like 800k and still shop at Aldies because we need to save so much and pay for private college tuition, etc. It's not a glamorous life, everything thinks it is.

Same here.
We make 2.6M and live paycheck to paycheck. We still shop at the dollar store. It’s not a glamorous life. Our yacht and our two vacation homes are expensive to maintain.

I think this is a joke, but if not this would be an example of someone who's not very bright.

Was doing work at a yacht sales shop recently and the owner told me that a number of people who buy yachts can’t swim. One buyer fell off the dock into the water and had to be rescued. LOL