Living Paycheck to Paycheck (salary, cost, compare, economic)

[Yeledaf]

I just came across this headline on cnn.com's website.

The phrase is used to denote economic hardship, but it made me ask myself: how many people don't live paycheck to paycheck? It occurred to me that a lot of them must work at CNN...

Thoughts? Don't we all live 'from paycheck to paycheck'? Haven't we pretty much always done so?

Am I missing something? Again?

[HappyTexan]

I get 2 paychecks a month. I live off one and bank the other.
But then again, I've always lived below my means and as my salary increased over the years my tastes did not.

[Artful-Thang]

Originally Posted by Yeledaf

I just came across this headline on cnn.com's website.

The phrase is used to denote economic hardship, but it made me ask myself: how many people don't live paycheck to paycheck? It occurred to me that a lot of them must work at CNN...

Thoughts? Don't we all live 'from paycheck to paycheck'? Haven't we pretty much always done so?

Am I missing something? Again?

I think you're supposed to try to have at least 6 months to a year of living expenses in your savings account for emergency needs. For things like loosing a job. Then you're supposed to try for a bit more that you can invest in something that will give you a bit more return for things like unexpected medical expenses.

I have _maybe_ a year's worth of living expenses. I have a tiny bit of that in a 4 month certificate of deposit. I don't have enough to really invest in anything more, but I certainly feel lucky. I also feel really lucky that I bought my condo when prices were low (for Southern California...high for other parts of the country). I refused to be steered towards an adjustable rate mortgage even though I was encouraged to do so, and I also refused to purchase a house at the top of what the realtor thought I could afford. No thanks, I don't really like living on the edge of what I can afford.

I still don't feel completely safe, but at least if I get laid off (a real possibility) I have a little while to find a job.

If you don't have much savings, don't panic. Just try to save a little bit more (if possible...I know its really hard!)

Oh, and that's living _expenses_. Not spending that's "discretionary", like luxury goods etc.

[Visvaldis]

Many years ago I lived from check to check. From a chain of various situations I was forced to be more aware of how I spend my money. Since those times I've learned how to live very frugally, and the best part is; without suffering! When my checks are high I maintain my frugal lifestyle and bank the surplus. Three years ago, after an awful 11 months working for the postal service, I nearly tripled my savings account.
I've learned how to live with a very small amount of money...I've never had credit cards, own no TV (so, no cable, dish, etc), my phone is an ordinary landline, no cell phone (yikes!), I drive a 4 cylinder, 5 speed car, I hardly go out to eat, I'm very (very!) selective about movies to see, I try to always be aware of grocery prices in different stores, owning tools I always take apart things when defective to see if I can repair them before discarding, when going to stores I buy only what I need and will often compare prices before buying.

[Lets agree to disagree]

Originally Posted by Visvaldis

Many years ago I lived from check to check. From a chain of various situations I was forced to be more aware of how I spend my money. Since those times I've learned how to live very frugally, and the best part is; without suffering! When my checks are high I maintain my frugal lifestyle and bank the surplus. Three years ago, after an awful 11 months working for the postal service, I nearly tripled my savings account.
I've learned how to live with a very small amount of money...I've never had credit cards, own no TV (so, no cable, dish, etc), my phone is an ordinary landline, no cell phone (yikes!), I drive a 4 cylinder, 5 speed car, I hardly go out to eat, I'm very (very!) selective about movies to see, I try to always be aware of grocery prices in different stores, owning tools I always take apart things when defective to see if I can repair them before discarding, when going to stores I buy only what I need and will often compare prices before buying.

I rather live paycheck to paycheck than have no cable, internet or drive the car I have. You just have to live within your means. I have a percentage of my money going to my retirement plans, and a another chunk into my savings account for direct access in case of an emergency or big expense. Now, I do not have CC anymore..(ok..2, but I don;t use them). My motto, which has worked for me is: If I don't have the cash to pay for it, I'm not buying it. Now for cars and houses, we get loans. But for that 50 inch LCD tv or that new bedroom set..I have to have the cash - no credit. Credit is a trap that steals money from people everyday. High interest, late fees for payments made on time, a fee for this and that. A $20 purchase can cost you $150 by the time you pay it off. No...I like the $130 right in my piggy bank thank you.

[KantLockeMeIn]

Originally Posted by Yeledaf

I just came across this headline on cnn.com's website.

The phrase is used to denote economic hardship, but it made me ask myself: how many people don't live paycheck to paycheck? It occurred to me that a lot of them must work at CNN...

Thoughts? Don't we all live 'from paycheck to paycheck'? Haven't we pretty much always done so?

Am I missing something? Again?

I used to... and then I started listening to Dave Ramsey. Learning to budget, avoid debt, and saving for an emergency fund as well as long term savings completely changed our lives. While I can't say that losing my job or my wife losing hers wouldn't be of a negative impact to our family, since we have no debt and have an emergency fund, it wouldn't be the end of the world while one of us found another job.

But there are some people who choose to be consumers beyond their means. People who invest in depreciating assets (brand new cars), purchase an iPhone @ $500 with a 3 year contract @ $80/month, and get that widescreen TV using the BestBuy card when they can't really afford it. They're definitely living paycheck to paycheck.

[sanspeur]

Originally Posted by Yeledaf

I just came across this headline on cnn.com's website.

The phrase is used to denote economic hardship, but it made me ask myself: how many people don't live paycheck to paycheck? It occurred to me that a lot of them must work at CNN...

Thoughts? Don't we all live 'from paycheck to paycheck'? Haven't we pretty much always done so?

Am I missing something? Again?

The only people I know that live paycheck to paycheck are either teens or in their early twenties...I did it too way back when, but it is too costly to live that way. A financial emergency can put you in a hole that is hard to dig out of...Interest on credit can really hurt.

[GregW]

I am certain that the heirs of all you folks that have have incomes large enough to bank 50% will certainly appreciate your frugality.

[Yeledaf]

I appreciate everyone's input. I think I may misunderstand the term "paycheck to paycheck."

[shipm8]

The only people I know that live paycheck to paycheck are either teens or in their early twenties...

Really? You must be one of the fortunate few...