I make 6 figures, but just barely. DH passed away last year, so now I'm paying for health insurance and socking away the max (including over 50 catch up) in my 401(k). The money that I bring home every month is only $200 more than my mortgage -- and I bought my house 20 years ago, so my mortgage payment is less than what I would pay to rent a comparable home. My child at home gets SSA, and DH had life insurance and a robust 401(k), so we're fine, but the point is -- a low 6-figure income is not much once you factor in health insurance and retirement savings.

We make $400+ combined and spend or allocate everything in our checking account monthly. If we have a few thousand left, it's applied to the mortgage or transferred to savings. We travel a lot so a few months a year, it's all spent on airfare & hotels. That said, we wouldn't want to go more than 6 months without our income since we have a mortgage and private school tuition.

Over 20 years teaching and just hit 100k in the last couple years. Pair that with a divorce and voila! I’m not exactly paycheck to paycheck in the way that i grew up but my salary on its own isn’t luxurious.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

No, paycheck to paycheck means that is all you have to live on. Obviously no savings.

Does the report define it as this? I think most people just consider their checking account when they think paycheck to paycheck. So if you save a lot and have you paychecks going to retirement and rainy day funds and taxable brokerages, then yes you rely on each paycheck to refill the coffers a bit. I can see that as a reason pr apple making 200k as the report actually says, claim to be paycheck to paycheck

This is why I'm skeptical of "paycheck to paycheck" talk on DCUM. It doesn't mean "every dollar is accountable for in my multiple investment accounts and I use a zero-balanxe budgeting system." It's the opposite of building wealth, not what happens with the leftovers after investing.

I was raised by much old depression era parents and I have to say I’m a little appalled by how people spend money. We make a lot more than that but I don’t feel like o can comfortably afford a lot of the luxury items that people making a lot less than me are buying, as far as vacations, clothes, purses and shoes, Botox, manicures, etc .

Anonymous wrote:This is a bullshit, irresponsible story about a clickbait survey. They barely define “paycheck to paycheck” but it includes people with more than $15k of savings. It includes “people who pay their monthly bills but have little left over” but it does not say if that includes your 401k contribution, your Equinox membership, etc. It’s not real research, it’s just marketing. Shame on CNBC for running it like a new story.
https://www.pymnts.com/wp-content/uploads/2021/06/PYMNTS-Reality-Check-Paycheck-to-Paycheck-June-2021.pdf

This. And most stories like this are the same.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

No, paycheck to paycheck means that is all you have to live on. Obviously no savings.

Does the report define it as this? I think most people just consider their checking account when they think paycheck to paycheck. So if you save a lot and have you paychecks going to retirement and rainy day funds and taxable brokerages, then yes you rely on each paycheck to refill the coffers a bit. I can see that as a reason pr apple making 200k as the report actually says, claim to be paycheck to paycheck

That is always what it meant. Smh

Too bad you are wrong. SMH LOL ROFL

This is a bullshit, irresponsible story about a clickbait survey. They barely define “paycheck to paycheck” but it includes people with more than $15k of savings. It includes “people who pay their monthly bills but have little left over” but it does not say if that includes your 401k contribution, your Equinox membership, etc. It’s not real research, it’s just marketing. Shame on CNBC for running it like a new story.
https://www.pymnts.com/wp-content/uploads/2021/06/PYMNTS-Reality-Check-Paycheck-to-Paycheck-June-2021.pdf

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

No, paycheck to paycheck means that is all you have to live on. Obviously no savings.

Does the report define it as this? I think most people just consider their checking account when they think paycheck to paycheck. So if you save a lot and have you paychecks going to retirement and rainy day funds and taxable brokerages, then yes you rely on each paycheck to refill the coffers a bit. I can see that as a reason pr apple making 200k as the report actually says, claim to be paycheck to paycheck

That is always what it meant. Smh

Anonymous wrote:

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

No, paycheck to paycheck means that is all you have to live on. Obviously no savings.

Does the report define it as this? I think most people just consider their checking account when they think paycheck to paycheck. So if you save a lot and have you paychecks going to retirement and rainy day funds and taxable brokerages, then yes you rely on each paycheck to refill the coffers a bit. I can see that as a reason pr apple making 200k as the report actually says, claim to be paycheck to paycheck

Anonymous wrote:I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

No, paycheck to paycheck means that is all you have to live on. Obviously no savings.

I’ve never completely understand what paycheck to paycheck means. Does it mean I can’t skip a paycheck without going in the red? Then yes. But I also put money into a TSP and 529 each month (before I ever see it), so it’s not like I’m not saving. I make $176k.

Nope. We make mid $100s. 2 kids. No car payments.

6 figures isn't a lot depending on the first digit.

Most 6 figure earners probably make in the $100s. Subtract out taxes, insurance, car payments, typical rent/mortgages costing $2-3k, and 15% to IRA and yeah, your take home pay is small. That's not even counting kids yet.

$100k is the new $50k.

https://www.cnbc.com/2022/10/24/more-americans-live-paycheck-to-paycheck-as-inflation-outpaces-income.html

Are you one of them? If so, why?