Paycheck-to-Paycheck Mindset

[Ima saver]

I know a young man who lives pay check to paycheck. He runs a framing crew and pays himself exactly what my husband earns an hour now. He does not have a dime in savings, rents and owns nothing but an old truck.He thinks we are rich. What he doesn't realize is, we have the exact same income but we choose to save part of our income every week. He is 30 now and really needs to grow up and manage his money.

[bjl584]

My friend lives paycheck to paycheck. He is completely consumed with his income at his job. Everything is about how much he earns, how much of a raise he can get, etc. I think that may be part of the problem. Too many of us are caught up with the notion that high income equals being rich which equals a high status lifestyle. Not very many people think in terms of savings, investimg, compound interest, living frugal. Those things are boring and there are real no tangible results or instant gratification to living below one's means.

[wnlbutterfly]

I had to re-post, I just did the taxes for my cousin that is 24 yrs old, MFJ, 2 kids (but they are caring for his brother, mother recently passed). They are getting back $5500, big surprise for them. And she says "YES...that will go right into savings!" I told her I was surprised (because I usually hear...gonna go buy...). I know her brother, just a few years older is a big Dave Ramsey fan and working hard on the baby steps.

I am just so proud of this younger generation of our family that is really making good financial progress. Hope we can keep that going.

[red92s]

Honest confession here: I live paycheck-to-paycheck. I mail off my rent check before there is money in the account to cover it, knowing my direct deposit will show up from my employer. At the end of a pay cycle, I'm typically running a balance of under $100 in my primary checking account (sometimes under $50). I have Ramen Noodles in the cupboard just in case things get really lean one month. I don't really have a "buffer" at all.

BUT, my situation is due to contributing aggressively to savings, not overspending or spending every last dollar I have. I know how much money I need on hand to necessary bills and expenses to make it to the next pay cycle, and funnel the rest towards the emergency fund or other savings goals. There is very little discretionary spending.

After the EF is completely funded or slightly over-funded, I'll probably build a checking buffer for a month or two, then attack the secondary savings goals.

It stresses ME out living that way, at the end of the month worrying about how to make it the last few days . . .and I'm not in nearly as dire straits as most people would be. I can't imagine doing it without knowing there is an emergency fund to fall back on!

[wnlbutterfly]

We used to always be in the red before payday, and I knew that if I wrote a check at WM on Thursday, it wouldn't clear the bank until after the paycheck. Not anymore since they do the EBT now. I knew that was coming. It's only been maybe the last 6 months that we haven't been "broke" right before payday.

Peanut butter, eggs, and pancake mix.....three things that if you are broke, come in handy. My mom always said if you had eggs in the house, then you have a meal.