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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]We make 500 K but the outgoing cash is due to our own decisions. We have two kids going to college and we're paying 100% plus their lodging.  That alone is huge. And of course the taxes are a bit more than $120,000 a year for Federa, state, county, and city.[/quote]

Do you have nothing in savings at all of any kind, for retirement or other accounts?  That is what living paycheck to paycheck means.[/quote]

Exactly!  Paycheck to paycheck is literally not having any savings or investments (retirement, EF, or otherwise) and using your entire paycheck to pay the actual bills.

However, I do know people with high incomes who don't save much and actually do spend most of their income each month.  and no EF.  They don't need to be living like that, as they have the $$ to save, have an EF and be prepared for what life throws at you.  But they choose not to.  And while they might be saving for retirement, they are not saving much (for their income).  They are instead living above their means.

But I get that plenty of regular earners actually are "paycheck to paycheck".  It's hard not to be when you only make $45-50K[/quote]

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