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 .

me, too. My parents were low income, uneducated immigrants. So, I save save save, and am frugal. My spouse grew up more privileged than I did, though not wealthy by any means, so spouse's spending habits reflected that. When we got serious I told my spouse that they needed to save more for retirement. Spouse is happy that they listened cause now we can retire earlyish (still have kids college to pay for).

We have taught our kids to be frugal, too, and budget and spend their money wisely. They obviously have grown up way more privileged than we did but we can still teach them the value of money.

This list is not surprising to me though since so many Americans don't have an emergency $500 savings. My sibling who is not a high earner, even has $500 in emergency savings. We are all save first, and then spend what is left over.

Anonymous wrote:Not sure why people find this hard to believe. Data shows what a lot of you don’t like so you’re disagreeing with it. Typical of Americans

The truth of the matter is middle class and upper middle class people buy a lot of things that are a luxury. Baby boomers lived on a lot less and also had a lower standards of what a middle class life consists of.

and don’t get me started on upper middle class hyper educated people who want to live like the wealthy on a umc income.

Too many upper middle class people conflate themselves with independently wealthy people because they tend to be in the same settings as them.

Anonymous wrote:We’re definitely living paycheck to paycheck, even though our HHI is around $475K. Here’s our monthly budget:

+ $40,000 INCOME
- $3,400 401k
- $1,000 IRA
- $10,500 INCOME TAXES
- $1,200 PROPERTY TAXES
- $400 PERSONAL PROPERTY TAXES
- $4,000 MORTGAGE
- $600 INSURANCE (ALL TYPES)
- $1,500 COLLEGE 529 PLANS
- $500 UTILITIES
- $500 CABLE / CELLULAR
- $2,000 CAR PAYMENT / AUTOMOTIVE
- $1,000 GROCERIES
- $1,500 DINING OUT
- $3,000 TRAVEL
- $2,000 CLOTHING / HOUSEHOLD ITEMS
- $2,500 HOME MAINTENANCE / REPAIR
- $3,500 TAXABLE BROKERAGE
- $900 MISCELLANEOUS

We have less than $1,000 left each month for miscellaneous and unexpected expenses. We only have $2K in our savings account. The situation is pretty serious. Heaven forbid we have to come up with money for unexpected healthcare.

Anonymous wrote:

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.

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.

That is the definition of not living paycheck to paycheck. I don’t understand why this needs to be explained.

Can you give us the definition used in the survey then? Because there seems to pretty wide range of opinions about what it means and if the survey didn't provide a definition to the respondents, the results are going to be pretty meaningless.

I don't have a good definition of what the term means. To me, it implies that you don't have much savings and would have to borrow money if you missed your next paycheck. Our family spends almost everything we earn from our regular biweekly paychecks (other than 401k, HSA, and FSA deductions), but then we get some pretty big annual bonuses that go into savings. We also have a large amount in investments, and that throws off dividends that we re-invest. I don't consider this to be paycheck to paycheck, but I could see how someone might since the regular paychecks are all spent.

Paycheck to paycheck means you have NO savings. It means if you miss a paycheck you can’t pay your bills.

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.

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.

That is the definition of not living paycheck to paycheck. I don’t understand why this needs to be explained.

Can you give us the definition used in the survey then? Because there seems to pretty wide range of opinions about what it means and if the survey didn't provide a definition to the respondents, the results are going to be pretty meaningless.

I don't have a good definition of what the term means. To me, it implies that you don't have much savings and would have to borrow money if you missed your next paycheck. Our family spends almost everything we earn from our regular biweekly paychecks (other than 401k, HSA, and FSA deductions), but then we get some pretty big annual bonuses that go into savings. We also have a large amount in investments, and that throws off dividends that we re-invest. I don't consider this to be paycheck to paycheck, but I could see how someone might since the regular paychecks are all spent.

Anonymous wrote:Not sure why people find this hard to believe. Data shows what a lot of you don’t like so you’re disagreeing with it. Typical of Americans

The truth of the matter is middle class and upper middle class people buy a lot of things that are a luxury. Baby boomers lived on a lot less and also had a lower standards of what a middle class life consists of.

and don’t get me started on upper middle class hyper educated people who want to live like the wealthy on a umc income.

Too many upper middle class people conflate themselves with independently wealthy people because they tend to be in the same settings as them.

Anonymous wrote:I am a maxed out GS-15 living paycheck to paycheck and in credit card debt. Divorce from a narcissistic and abusive husband and the out-of-pocket legal and educational expenses related to a special needs child (10 years) have drained the savings that I spent my 20s and first half of my 30s carefully building up. It will take me years to recover and start contributing to TSP and 529s again and pay down credit card debt, and that will be just in time to send my other child to college and I should be building up a special needs trust, as my younger DC will never be independent. If you told me that this is where I would be 15 years ago, I would never have believed it.

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.

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.

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.

That is the definition of not living paycheck to paycheck. I don’t understand why this needs to be explained.

Anonymous wrote:

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

Anonymous wrote:We make six figures and live paycheck to paycheck - we don't save anything outside of what goes into our 401(k) and $4000/year per kid for 529s. We have a savings cushion from before we had children, but are not saving anything else.