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All the stories in the news about the possible government shut down and the impact on federal government and contractors paychecks has really left an impression on me.
I have read that about fifty percent of Americans live paycheck to paycheck. That is scary, but I always assumed that was mostly young people making less than $25K a year. MOST Federal Government Workers are trained and educated folks making at least middle class incomes. And people over 30 years old have had time to save a rainy day fund and access to credit to use in case of an emergency.
If your paycheck was delayed for 1,2,3 months what would happen to you? Would you go hungry and become homeless?
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
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I could get by for about 6 months in savings (before I would need to sell "things" or tap retirement funds), but it would be very tight. No going out, frills, etc. The public library would become my entertainment.
I've made mistakes and don't have 6 months worth of expenses saved up. I have barely 1 month at this point (but growing rapidly okay!)
I make decent income, but if say I was fired or laid off or my company blew up, I would not be out of work more than 1 month.
I haven't been out of work more than a few weeks since I turned 17, and even that happened only once.
And if I was in transition between jobs, I have ways of making money...side jobs, sell stuff, craigslist.
*edit I have a retirement account too which I don't take into account
Last edited by NARFALICIOUS; 09-27-2013 at 02:12 PM..
I have read that about fifty percent of Americans live paycheck to paycheck. That is scary, but I always assumed that was mostly young people making less than $25K a year. MOST Federal Government Workers are trained and educated folks making at least middle class incomes. And people over 30 years old have had time to save a rainy day fund and access to credit to use in case of an emergency.
In many (most) cases it isn't a lack of income that's at the root of people's problems. It's that people live as if nothing bad is ever going to happen to them and, thus, therefore do not prioritize saving.
Now, I'm sure someone will come on this board and find an example to contradict what I've said....but I still say that in most cases, financial problems are usually a symptom of personal problems or a failure to plan.
All the stories in the news about the possible government shut down and the impact on federal government and contractors paychecks has really left an impression on me.
I have read that about fifty percent of Americans live paycheck to paycheck. That is scary, but I always assumed that was mostly young people making less than $25K a year. MOST Federal Government Workers are trained and educated folks making at least middle class incomes. And people over 30 years old have had time to save a rainy day fund and access to credit to use in case of an emergency.
If your paycheck was delayed for 1,2,3 months what would happen to you? Would you go hungry and become homeless?
Realistically I would be fine but I would be pretty ticked off at having to dip into my emergency funds. I'm lucky enough to be able to save, but it really has taken a lot of time and effort!
Two years ago it would have been a different story. If I'd been hit by a bus and unable to work, I would have had to move back in with my parents since I barely had anything saved. So I really sympathize with people who are living paycheck to paycheck.
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