Living Paycheck to Paycheck?

[lillyb]

Most everyone I know live paycheck to paycheck. I didn't know any different growing up, or when grown until I finally woke up last year. Everyone I know spends everything they bring in, and can't think of anyone with any kind of savings. Most people in this area would have major financial difficulties if they missed just one paycheck, that, to me, is living paycheck to paycheck. Friends, tons of family.. no thought to the future at all.

Am in the process right now of saving up what will be about 5 months living expenses in an emergency fund. Finally getting off that paycheck to paycheck train and never wanna be that person that shoves their head in the sand again.

[Elgin526]

Originally Posted by Ima saver

Guess that is why I have always been a country bumpkin! You have to remember I was brought up in the era when you just bought what you could afford.

But at the same time it's getting harder to afford things! We make six figures and can barely afford a fixer-upper in a so-so neighborhood in a town with horible schools. It's not just overspending on stuff a person doesn't really need, the basics of a middle class lifestyle are getting harder to pay for. Overspending IS part of it, no doubt about it, but the cost of living in many areas is getting out of hand too.

[ren]

I believe, no, I know a lot of people live check to check. Now, there's the random stories from friends and coworkers, but the big thing is my claimants. See, the account I work on, the employees are paid biweekly. CA workers' compensation is also paid biweekly, so there should be no problem, right? They know how to budget for a check every other week already. Well, not quite -- we don't match the account's payroll schedule, we start counting from the first day off work, plus 2-3 days for the check to get there.

There have been so many times when I have had claimants call and say things like "But I only got $X in my paycheck and you aren't paying me until next week, how am I supposed to pay my bills?" It's amazing to me, because these are often people making twice or even three times what I make (according to their wage statements) and apparently they don't have a dime put away.

Damned good incentive to save money for a rainy day though. I would be ashamed to call someone who knew how much money I make and admit that I couldn't make this month's rent because my disability check wouldn't be issued for another week.

I don't know about here in Quebec, people living paycheck to paycheck, I've seen a girl my age spending all her check in one shopping spree. The living expense is quite cheap and we could go by pretty good here with less than 40 000$ a year but our tax is crazy. Education is pay here for cegep (college) tuition is free and we only buy books which cost us around 800$/year almost. Maybe in the future, I might see people living paycheck to paycheck. For now, I don't see any.

[abowers]

Originally Posted by Elgin526

But at the same time it's getting harder to afford things! We make six figures and can barely afford a fixer-upper in a so-so neighborhood in a town with horible schools. It's not just overspending on stuff a person doesn't really need, the basics of a middle class lifestyle are getting harder to pay for. Overspending IS part of it, no doubt about it, but the cost of living in many areas is getting out of hand too.

We are making ~$40k/year, combined, as 2 graduate students with a dog, living in an apartment in a very expensive area, saving for a wedding, and paying for a new car, and we are getting by.
I can't wait til we have real income in a couple years. Sometimes I think we won't know what to do with the money, then again, I'm sure we'll adjust our spending... not to mention we'll be at a point where we can buy a house once grad school is over.

[BCHGRL]

I think "living paycheck to paycheck" is a lifestyle that can be defined in different ways. The bottom line is that your whole livelihood is dependent upon the next paycheck. I have lived paycheck to paycheck in the past for two different reasons.

I lived paycheck to paycheck when I was in college. I would say that I lived paycheck-to-paycheck more out of necessity than stupidity.

I lived payday to payday for a few years of my early twenties. I called myself the payday princess. I treated myself like a princess the weekend after I was paid, but I was a pauper by the following week.

I still live paycheck to paycheck. Our budget is based on our bi-weekly paychecks. However, if there were no paycheck, our bills would still be paid and we wouldn't be hungry.

[disneysteve]

Originally Posted by Elgin526

It's not just overspending on stuff a person doesn't really need, the basics of a middle class lifestyle are getting harder to pay for.

I think you are right. Things like electric, gas, property taxes, insurance, etc. are all getting more expensive. But on the other hand, how people define "basics" has changed dramatically. Many people now consider things like cell phones, cable tv, home computers with high speed internet, SUVs etc. to be "basics." Not saying you do any of these personally, but lots of folks do, even though plenty of people do just fine without those luxury items.

The whole issue is complex and has lots of facets to it.

[abowers]

Originally Posted by disneysteve

Many people now consider things like cell phones, cable tv, home computers with high speed internet, SUVs etc. to be "basics." Not saying you do any of these personally, but lots of folks do, even though plenty of people do just fine without those luxury items.

We have cell phones... but they are our only phone (no landline). We have home computers... that we bought 5 years ago when we started college. We have high speed internet, but it comes with the apartment as we're in grad student housing. No SUV for me though, I've got a small little compact car which I love.

These are all things we were able to afford, we aren't living beyond our means for these things, even on a limited income.

[disneysteve]

Originally Posted by abowers

We have cell phones... but they are our only phone (no landline). We have home computers... that we bought 5 years ago when we started college. We have high speed internet, but it comes with the apartment as we're in grad student housing. No SUV for me though, I've got a small little compact car which I love.

These are all things we were able to afford, we aren't living beyond our means for these things, even on a limited income.

I didn't mean to imply people shouldn't have those things. We've got cell phones, basic cable and a computer with high speed access (no SUV though. I've got a 9 year old Camry). The point I was trying to make was regarding the cost of "middle class" lifestyle. Part of the reason that lifestyle is getting more expensive is definitely that some necessities cost more. But another reason is that people consider many more things to be necessities when they really aren't.

[LuxLiving]

disneysteve, where are you? R You okay??? Haven't seen you around in a few days.

[tinapbeana]

Originally Posted by LuxLiving

disneysteve, where are you? R You okay??? Haven't seen you around in a few days.

i was wondering the same thing, but then thought i remembered him saying his family was going on vacation? maybe i'm hallucinating...

[disneysteve]

Originally Posted by LuxLiving

disneysteve, where are you? R You okay??? Haven't seen you around in a few days.

Here I am. Thanks for noticing my absence.

Tina is correct. We left 11/3 for our annual trip to Disney World. Just got back today. I did have internet access during the trip but didn't spend much time online. So all is well, except for having to go back to work tomorrow.