Are You Living Paycheck to Paycheck?

[naturalwoman]

I'm just wondering how many paychecks are you away from disaster and what is your biggest money fear?

I've been talking to some of my coworkers helping them understand that they do not have to live paycheck to paycheck, but they are so unmotivated that they don't know anything else...they don't believe it's possible without the lottery or an inheritence. How can I encourage them more. I know you can lead a horse to water.....but if you can sit there and tell me how broke and depressed you are and you still eat out 3 times a week and buy things you don't need, then I feel I can offer my advice. Should I keep my mouth shut?

[Broken Arrow]

I think there was a thread on this a short while back, and although I technically live paycheck to paycheck, I do contribute a quarter of my paycheck to my retirement, and have a full emergency fund....

I want to do much better than that though.

I am also finding that I am becoming less and less interested in trying to talk to my friends about it. I don't think they want to hear it, and I don't think I want to continue the hassle of talking to them about it. This isn't my opinion on what I think others should do though. It's just how I feel about it right now.

[naturalwoman]

yes there is, sorry for not looking i did read it.

[creditcardfree]

If you've never commented on it before and you can be tactful, it doesn't hurt to bring the subject up once. Unfortunately, there are some people who will always believe they can't get ahead without outside intervention. I had a neighbor you was always complaining about not having enough money. My thought was always...then do something, anything about it. I knew her for 7 years...always the same complaint.

[boefixepa]

You can have this same debate about a million different topics, money, weight, religion, politics, children, marriage, ect... What it boils down to, on any topic, is a personal desire to make a change. Unless a person wants to...save money, lose weight, ect. they will not do it. You can talk until you are blue in the face, you can try to inspire them, you can show them how much better off they'd be. It will make no difference unless they have the personal desire to make a change and are willing to commit and work for it. It's a skill that is sorely lacking in today's world.

If your friends want to hear, they will listen. If they roll their eyes when you start talking about it, save it for a time when they are ready to listen. If they want advice or support they know where to come.

[Fizgig]

Right now I could go three and a half months without a paycheck or other money. My 2006 goal was to get a four month cushion, and barring any expensive emergencies in the next two months, I'll get there plus some.

Sometimes I worry about the finances of my friends, but I stay out of it unless they bring it up (rarely). I'm not their mommy and it would just alienate them. The one time I was personally affected was with one friend who is a single mom working a pretty low wage job - I'd often happily pay for her meal or cover at clubs because I knew things were tight and I wanted her along. Then she'd talk about her Starbucks mocha habit ($4+ once or twice a day) and I'd just get irritated at paying for her, so I stopped. There were some puppy dog eyes at first because she was used to me footing the bill, but it got normal quickly.

[Marcymox]

well, sort of- I mean I put every extra cent I have into savings each month- I'm building a 6 month emergency fund. so technically right at this moment I'm completely broke- as in ZERO money to spend- but only because I transferred it from checking to savings. I do this after I pay all the bills, buy my gas, get groceries, ect.

now lets say the car breaks down or the washer breaks- I could just take the money our of savings, I wouldn't need a payday loan or have to put it on the credit card. THAT's Truly the real example of living paycheck to paycheck.

But- if a friend calls, and wants to see a movie, go shopping,ect I'll have to put off until payday ( tomorrow) because technically there is no money in my checking account until payday.

[Ima saver]

No, I have never lived that way. I have always had savings. When we moved from florida to the georgia mountains, we lived on our savings for a year. I am sure I could live on my savings for years and years.

[PRICEPLUS]

What is truly amazing to me is the number of people around where I live who live this way. I think it best to live below your means and save! Maybe the rampant consumerism that has engulfed our society will one day cease and people will become more frugal! Just my .02 cents!

[MonkeyMama]

I try not to give up, but I pretty much do give up talking to other people about it. Like you said, they assume you have to be rich not to live paycheck to paycheck. I have been called naive and all sorts of things. I Came from a middle class backgrounds, but my dad made that out of nothing. & my parents expected me to make it on my own. All I know is the people whining and who want it all are not getting there. & I know many people working extra jobs, budgeting, and/or just being creative on how they make and save money. They don't whine and they DO get ahead. Honestly, the more money my friends make, the more behind they are. The lower class is doing better - from the examples I see. Certainly not the "norm" but a strange trend I See. Middle class is sinking hard because they do not see the need to budget or get a second job - but they are spending more than they make. ?? Anyway, I shut my mouth for the most part. I have had people who wanted help come to me for help though, with their budget and such. It is nice to see someone wake up and smell the roses once in a while.

I don't live paycheck to paycheck in the least. & yet I still feel "behind."

Today I could probably survive for a good 9 months if I lost my job. That is on savings alone. BUT the whole thing is the odds of me being out of a job more than a week TODAY are slim. I prepare more for the unknown future. AND if I lost my job, dh and I could both look for a job. That is the nice thing of not relying on 2 incomes - extra insurance I guess in job loss. My near-term goal is to save enough to live on for 2 years.

[Ima saver]

I have had a very close friend, that I have tried to get financial advice for about 30 years. she still thinks I don't know what I am talking about. I know how you feel, after a while you just give up. she has always lived paycheck to paycheck. It wasn't til her husband got a court settlement for an accident, that they had more than $100 in their savings account.

[LuxLiving]

Nope we aren't.

You can't talk to folks about money unless they're ready to hear it! Unless you're really wanting to alienate them!

[dossin1]

No we are not paycheck to paycheck, but our cushion is not as great as it should be. We can only go about 2 months before the roof caves in. At one point we did have about 6 months, but we had a lot of emergency expenses just as our income started decreasing so our savings took a hit.

As far as advising others, I've tried with relatives and like others have said, unless there is motivation, people are not open to changing their lifestyle unless there are dire circumstances.

[Ima saver]

But my friend does ask me for advice, but then argues that I don't know what I am talking about. Before cell phones became popular, they use to have $200-300 a month long distance bills, but could not pay their rent.

[shelbylovesmelby]

Originally Posted by creditcardfree

If you've never commented on it before and you can be tactful, it doesn't hurt to bring the subject up once. Unfortunately, there are some people who will always believe they can't get ahead without outside intervention.

I agree! I had some co workers (before I became a sahm) who just complained to no end about the Power Co was going to cut their service ect ect... & yet when lunch time came they were the first ones to start taking orders for carry out & I was this grump who didn't want to participate & part w/ my money. But yet somehow my bills were current & are now current even on half our income. I think alot of those people are just trying too keep up w/ the Jones' & it's pretty normal.

BTW we are a pay check to pay check family w/ a lil savings on the side to cover if the furnace blows

[rduell]

Originally Posted by shelbylovesmelby

BTW we are a pay check to pay check family w/ a lil savings on the side to cover if the furnace blows

That's us too, though I'm working on getting us in a better position.

We do look at other young families though and wonder how in the world they have what they have and do what they do. It seems there is no end to the money while we're always struggling to get everything paid on time. Gets really depressing.

[disneysteve]

We are not paycheck to paycheck and never have been. I've always lived below my means and built savings. My wife has done the same. Today, we could easily go at least 4-5 years on savings alone, and even longer if we trimmed our spending, which we could certainly do if necessary. We don't live as far below our means as possible - we do like to have some fun. We also have life and disability insurance, so we have additional protection if something happens to either of us.

I think boefixepa is absolutely right. You can't help people who don't want help. I see it every day battling obesity. Patients come in who are upset about their weight, but they walk in drinking a 20 oz. Coke and have a candy bar in their pocket.

[asmom]

If I lost my job today, I could probably live for another 6 months to a year without a paycheck even though my EF is nowhere near fully funded. I too live below my means and with some adjustments, yes I could get by. I also pay my bills one month ahead which gives me a built-in cushion of at least one month before I would feel a pinch. I would like to be in DisneySteve's position however!

[Ima saver]

I remember once training a girl to be a waitress. When they train, they get paid minimum wage and do not get to keep tips, they go to the trainer.(whose tables they are anyway) She complained all week about how badly she needed money to pay the water bill, the phone bill, etc., or they were going to be shut off.
On Friday, I decided to give her all my tips for the week to help her out. But she came in that day, showing us the $75 worth of pictures she had just paid for from a professional photographer. She could pay for pictures, but not her electric and water bills.

I kept my tips!

[disneysteve]

Originally Posted by Ima saver

She complained all week about how badly she needed money to pay the water bill, the phone bill, etc., or they were going to be shut off.

But she came in that day, showing us the $75 worth of pictures she had just paid for from a professional photographer. She could pay for pictures, but not her electric and water bills.

I see things like this all the time.

My wife used to be a retail manager. At lunch on payday, several employees would rush to the bank to cash their checks to get money to afford lunch that day. But they'd come in Monday morning talking about which clubs they went to that weekend or what concert they attended or which movie they saw. And, of course, they went out to eat every single day and bought snacks from the vending machine in the lounge at break time.

I work in a very poor area. Many of our patients say they can't afford their doctor bills or their medications, but these same people seem to have no trouble buying a stack of lottery tickets each day, 1 or 2 packs of cigarettes and a 12-pack of beer.