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.

I've often wondered the same. I technically live paycheck to paycheck, because all my money is predetermined--every penny has a destination. However, I have a decent savings I can pull from if needed and could survive off of it for several months if needed.

Anonymous wrote:

Anonymous wrote: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 .

A lot more than 6 figures, meaning 7 figures every month? And you can’t buy bags or go on vacations? Ridiculous.

You mean year, I hope.

100K before taxes isn’t always a lot of money especially if kids are in the picture. We lived like that for a bit, actually, not because of extravagance but because of preschool and student loans.

But obviously a lot of people overspend and they should stop that.

You people are so out of touch. Living pay check to paycheck means you have no money saved. You literally only have cash when you get paid and then spend all of it. So if your furnace breaks you are screwed. You would probably pay it on a credit card and then rack up debt.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most people are trying to keep up with others or show off rather than truly enjoy their lives.

+1 Exactly this. Acceptance into higher socioeconomic classes demands buying and showing off trendy/expensive items like homes, cars, clothing, and jewelry.

Really? The wealthiest people I know don’t have anything to prove and don’t try to show off. They have nice jewelry and antiques because those things tend to accumulate over generations. Some live in big houses but not all. They tend to have multiple homes, but they aren’t ostentatious about it. Homes also tend to accumulate and people leave them to descendants. We own ours, inherited another from spouse’s family and will inherit two more from my parents.

DP.. and these people you describe probably aren't the ones living paycheck to paycheck. The ^PP was describing people who live paycheck to paycheck.

Good god, so many people don't understand what "paycheck to paycheck" means.

Anonymous wrote:So if I pay all my bills on time, set aside money for retirement, have no credit card debt, no car loans, no student loans and have the same amount in my checking account week after week, am I living "paycheck to paycheck"?

No. That would be not saving for retirement, and having the number in checking approach zero toward payday.

So if I pay all my bills on time, set aside money for retirement, have no credit card debt, no car loans, no student loans and have the same amount in my checking account week after week, am I living "paycheck to paycheck"?

This was, sadly, my SIL and her STBX’s situation. They made $150k but with two young children in daycare, a mortgage on a townhouse due to reset to a higher rate, and old cars, they actually were borrowing from credit cards to pay for necessities since their paychecks immediately left their accounts within days of deposit. They ended up in bankruptcy with $200k in debt and still living paycheck to paycheck afterwards.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:In theory we do and it isn't a bad thing. First you pay yourself first, retirement accounts and savings are funded first-college was funded when kids were growing up.

Then you pay your bills etc. If we have any left over it goes to savings. Makes no sense to have extra money sitting in a checking account not making you money.

so yes, we live pay check to pay check

Sweeping excess cash out of checking into a higher-earning account doesn’t mean you are living “paycheck to paycheck”.

Exactly, this not living paycheck to paycheck. If you rely on the very next paycheck to pay your rent/mortgage, utilities, groceries then you are living paycheck to paycheck. If missing your very next paycheck means you will not be able to pay those bills, you are living paycheck to paycheck. If your next paycheck DOES NOT arrive and you can still pay the mortgage, groceries, utilities (whether it comes from your savings or checking account it does not matter), You are not living paycheck to paycheck.

If your next paycheck doesn’t arrive and you have to use a credit card or borrow $ from your Mom to pay rent, groceries etc…..that is living paycheck to paycheck. Be grateful that this is not your life situation and stop pretending poverty because all of your check is accounted for in your multiple savings and investing vehicles each month.

I make $170+ and am not living paycheck to paycheck. Thanks to the example of spendthrift immigrant parents, I am as saver and could go years without one as I live under my means, but still enjoy travel, nice car etc. Thank you God, Mom and Dad!

+1. Thank you for explaining this clearly to the obviously clueless DCUMers.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:In theory we do and it isn't a bad thing. First you pay yourself first, retirement accounts and savings are funded first-college was funded when kids were growing up.

Then you pay your bills etc. If we have any left over it goes to savings. Makes no sense to have extra money sitting in a checking account not making you money.

so yes, we live pay check to pay check

Sweeping excess cash out of checking into a higher-earning account doesn’t mean you are living “paycheck to paycheck”.

The number of people who don’t understand that the living piece of this equation means covering basic necessities (food, shelter) is mind boggling. Typical out of touch DCUM.

Yes, it’s sad.

Anonymous wrote:

Anonymous wrote:Most people are trying to keep up with others or show off rather than truly enjoy their lives.

+1 Exactly this. Acceptance into higher socioeconomic classes demands buying and showing off trendy/expensive items like homes, cars, clothing, and jewelry.

Really? The wealthiest people I know don’t have anything to prove and don’t try to show off. They have nice jewelry and antiques because those things tend to accumulate over generations. Some live in big houses but not all. They tend to have multiple homes, but they aren’t ostentatious about it. Homes also tend to accumulate and people leave them to descendants. We own ours, inherited another from spouse’s family and will inherit two more from my parents.

Anonymous wrote: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 .

A lot more than 6 figures, meaning 7 figures every month? And you can’t buy bags or go on vacations? Ridiculous.

Anonymous wrote:

Anonymous wrote:In theory we do and it isn't a bad thing. First you pay yourself first, retirement accounts and savings are funded first-college was funded when kids were growing up.

Then you pay your bills etc. If we have any left over it goes to savings. Makes no sense to have extra money sitting in a checking account not making you money.

so yes, we live pay check to pay check

Sweeping excess cash out of checking into a higher-earning account doesn’t mean you are living “paycheck to paycheck”.

Exactly, this not living paycheck to paycheck. If you rely on the very next paycheck to pay your rent/mortgage, utilities, groceries then you are living paycheck to paycheck. If missing your very next paycheck means you will not be able to pay those bills, you are living paycheck to paycheck. If your next paycheck DOES NOT arrive and you can still pay the mortgage, groceries, utilities (whether it comes from your savings or checking account it does not matter), You are not living paycheck to paycheck.

If your next paycheck doesn’t arrive and you have to use a credit card or borrow $ from your Mom to pay rent, groceries etc…..that is living paycheck to paycheck. Be grateful that this is not your life situation and stop pretending poverty because all of your check is accounted for in your multiple savings and investing vehicles each month.

I make $170+ and am not living paycheck to paycheck. Thanks to the example of spendthrift immigrant parents, I am as saver and could go years without one as I live under my means, but still enjoy travel, nice car etc. Thank you God, Mom and Dad!

Anonymous wrote:In theory we do and it isn't a bad thing. First you pay yourself first, retirement accounts and savings are funded first-college was funded when kids were growing up.

Then you pay your bills etc. If we have any left over it goes to savings. Makes no sense to have extra money sitting in a checking account not making you money.

so yes, we live pay check to pay check

....no. that's not at all what that means. Paycheck to paycheck means you don't have a cushion of savings to rely on if you have unexpected expenses.

Anonymous wrote:

Anonymous wrote:In theory we do and it isn't a bad thing. First you pay yourself first, retirement accounts and savings are funded first-college was funded when kids were growing up.

Then you pay your bills etc. If we have any left over it goes to savings. Makes no sense to have extra money sitting in a checking account not making you money.

so yes, we live pay check to pay check

Sweeping excess cash out of checking into a higher-earning account doesn’t mean you are living “paycheck to paycheck”.

The number of people who don’t understand that the living piece of this equation means covering basic necessities (food, shelter) is mind boggling. Typical out of touch DCUM.