Reply to What does living pay check to pay check mean to you?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It means there are no savings and every paycheck goes toward immediate living expenses. If a paycheck doesn't come, then the rent/mortgage doesn't get paid and the groceries run out.[/quote]

almost this.  I would say having only $1K left at the end of the month after all bills are paid. [/quote]

But then you're saving $12,000 a year. $1,000 is more than 62 percent of Americans say they have saved, [ur=http://www.fool.com/retirement/general/2016/03/11/the-average-americans-saving-habits-9-scary-statis.aspxl]total[/url].[/quote]

No honey. That extra $1K at the end of the month does not go "into savings" that eventually turns into $12K after one year. That $1K is what you hang on to till the next paycheck arrives hoping and praying that you don't have an emergency expense come up.

That's not how money and savings works. To build up actual savings, you need to first have an emergency fund.  not a huge one but you need one before you can legitimately say that the $1K per month is part of you building your savings account. [/quote]

It doesn't matter, the point is still that "paycheck to paycheck" doesn't mean you have $1,000 left over after you've paid your bills. If you've got $1,000 kicking around that you might at least be able to throw at an emergency if it comes up, you're better off than most Americans are.[/quote]

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