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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We live "paycheck to paycheck", meaning that we "spend" all that we get in for the most part. Most people do budget that way. But our "spending" isn't just spending. It includes, like a PP said, putting $ in 401ks, college funds, and mortgage payment for our house (in which we have a decent amount of equity.

This is very different than someone who has no cushion or ability to get $$ if they need it.[/quote]

Same.  We have a default budget that results in us almost running out of money between pay periods.  DH is a spender and he's always going to spend what's in his or our checking account, so we use the "pay yourself first" approach and money goes directly from paychecks to 401k, 529 plan and brokerage account, then what's left over goes to checking and inevitably gets spent.   [/quote]

We do the same. The checking account has a 5k cushion, but we spend down to around 5k every month. Paychecks go straight to 401k, brokerage, and 529s [/quote]

$5k in your bank account is not "almost running out of money."

I'm really curious how this study was conducted, because I think the more interesting issue here is how people define and perceive themselves and their finances. People see clearly using the same terminology to define wildly different situations.

[/quote]

Yes, this is hilarious. A 5k cushion is amazing! You just have 5k you can leave in your checking account and not worry about earning any money off of, just in case? You're steady.

Back when I was working but broke, I regularly played the "how can I arrange my bills so that I don't get an overdraft fee before payday" game. That's what it is to live paycheck to paycheck. You're always like a $5 debit card charge away from getting hit with $150 in overdraft fees because you forgot your cell phone bill get's paid on the 12th, not the 15th.[/quote]

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