Reply to Over half of Millennials earning 250K or more a year lives paycheck to paycheck

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[quote=Anonymous][quote=Anonymous]This is not the same as lower-income people living paycheck to paycheck.  These people are reporting having no money left at the end of the pay period after paying mortgages, paying their CC bill in full, and saving for retirement.

"Living paycheck-to-paycheck doesn’t necessarily mean hardship, and LendingClub makes the distinction between those can pay their bills easily and those who can’t. Only a fraction of high earners -- roughly one in ten -- reported issues covering all their household expenses in April, according to the survey."

You are correct that it dovetails neatly with the DCUM "I feel so poor after I purposely spend all my money on expensive bills I chose to take on and also save more than most people make in a year" posts.[/quote]

This, thank you. We have a family of 3 on 130k (in DC) and we don't live "paycheck to paycheck" but, yeah, pretty much all of our income is spoken for the moment it comes in because we designate money for retirement, cash savings, and 529. However I still don't think of us as paycheck to paycheck because (1) we have a ton of savings so if something went wrong we'd be okay -- in addition to retirement and other investments, we have about 80k in a combo of emergency funds and short term investments; and (2) we get cash infusions in the form of tax refunds (we own so it's substantial) and the occasional other windfall (like we randomly got 10k when my DH's dad died and his mom was redistributing her savings). A lot of those cash infusions go straight to retirement/savings as well, but it also enables us to do things like buy a piece of furniture without dipping into savings, or go on a vacation.

So yeah, not paycheck to paycheck. I actually did live that way for several years when I was young. Making minimum wage with no sick or vacation leave (so taking time off meant losing income), zero family support, and no savings built up. It was precarious and I'm grateful I only did it for a few years before I borrowed money for grad school and got on a more financially stable path. People who do that with kids and into middle age with health issues, or supporting/caring for older family members -- it's a totally different deal.[/quote]

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