Living paycheck to paycheck gets harder

[disneysteve]

And while we certainly don't live paycheck to paycheck, there is something wonderful about payday that makes me want to have a little splurge (lunch out, a magazine, fresh raspberries at the supermarket?). I'm not alone, am I?

Payday is really a non-event for us. My wife's check is direct-deposited. I get a paper check but often don't deposit it for several days after receiving it until it is convenient to get to the ATM. I won't go out of my way or make a special trip to put it in. My checking account doesn't pay interest so it doesn't matter when I deposit it.

[jIM_Ohio]

Linky



This makes me appreciative that we have a site like this to lift each other up in cyber-financial accountability! This quote is humorous in a pitiful sort of way; people can't even understand that if they wouldn't splurge at the beginning of their paychecks they wouldn't have to penny-pinch at the end. Maybe that should be the first babystep for the financially ignorant. So goes our society today....

My first job out of college paid my 39k salary once per month. I don't care how well you budget, getting paid once per month means their is little left that 31st day, until some savings is set aside each month... that takes a few years to build up though.

[mariogreymist]

Although I know food is relatively inexpensive in the US, I do think prices have crept up quite a bit in the past year. I'm looking harder for specials, but
it's more of a task than it used to be.

And while we certainly don't live paycheck to paycheck, there is something wonderful about payday that makes me want to have a little splurge (lunch out, a magazine, fresh raspberries at the supermarket?). I'm not alone, am I?

I allow myself to eat out for lunch at the local teriyaki place. The $9 tab is about 10x my normal lunch expense.

[Diolla]

I always had trouble with this paycheck to paycheck thing. I don't consider myself living paycheck to paycheck but on payday (my check is direct deposited) I pay all the bills for the following 2 weeks, withdraw cash for my day to day expenses and then send all but a small ($50) buffer to my savings.

Since about 50% of my paycheck goes into savings/investments I don't think of it as paycheck to paycheck it is just that when the money comes in that's when I tell it where to go. I don't let it sit around in my checking. The checking account is just a vehicle for getting it where it needs to go.

[disneysteve]

I don't consider myself living paycheck to paycheck

Since about 50% of my paycheck goes into savings/investments I don't think of it as paycheck to paycheck

That is definitely not paycheck to paycheck. My understanding of paycheck to paycheck is folks who spend (not save) their entire take-home pay between the time they get it and the time their next paycheck arrives.

[DebbieL]

I only get paid once a month (today is my payday – next one will be Nov. 30). I really find it makes no difference whatsoever. As long as you don’t spend every dime you make it shouldn’t matter whether you are paid once, twice or four times a month. It works out the same in the end. I do pay all bills around the time I get paid, because most things are due at the end of month/beginning of next month, etc.

[Koppur]

OK, but here is the thing...for those of us who DO live paycheck t paycheck, it's not always because we spend money on wants or frivolous items. I get paid twice a month. When my check comes, I pay bills due between that date and my next paycheck. Then buy groceries, set aside $ for gas in the car and my meds each month. And that is pretty much it. I'm lucky if I have $50 left over, and I need that as a buffer in case something comes up I need. It sucks. My bills are just the normal ones: electricity, heat, phone, etc. Oh, and the best part?? I don't make enough to cover rent. Yup, Mom helps out with that. I don't have enough to pay my student loans, they are on deferal. No car payment, thank godess, that got paid off last year. But seriously, we dn't have $90 cable bills or internet or anything like that. We don't have a newspaper subscription, netflix subscription, magazine subscriptions, NOTHING like that.

So, my question is, when you've cut down already, and you still can't afford all your bills, and you, literally, are living in the cheapest apt you can find, what do you do?

Besides getting a raise/finding a higher paying jobe (cuz that is so easy) or moving far away (cuz we live in an expensive living state), what do you do? How do you get from paycheck to paycheck living without having a big enough paycheck to living comfortabley???

[disneysteve]

So, my question is, when you've cut down already, and you still can't afford all your bills, and you, literally, are living in the cheapest apt you can find, what do you do?

Bottom line is there are only 2 possible answers. One is to decrease spending. How many people share your apartment and split the rent? If you can't afford the place you have, you might need to consider either bringing in another person to share expenses, moving to a bigger place with more people or moving back home if that is an option.

The second option is to earn more. I know many people who work 2 or 3 jobs in order to pay the bills. They have a 9-5 job, then waitress or bartend or do something else at night and weekends. I know one guy who does valet parking at a local hospital and makes about $30/hour, mostly cash. I know another guy who mows lawns on weekends. People walk dogs, house sit for people on vacation, all kinds of creative ways to raise funds. You need to think outside the box and be willing to bust your butt to make ends meet. Ask your landlord if there is any work you could do around the building that would defray your rent charge.

If all of that fails, moving might be necessary. Some parts of the country are just very expensive. But if you have no savings, moving is often out of the question.

Have fun in Vegas, by the way. Great town, though not as cheap as it used to be. At least you've been able to save up for that trip (a want) so your situation isn't all that bad.

[DebbieL]

Disneysteve,
Someone who can't pay rent without parental help is going on a vacation to Vegas? I didn't see that part. Seems odd to me.

[Koppur]

Debbie...Vegas was a x-mas gift to me and my BF so we could visit his family for thanksgiving...things aren't always what they seem.

[jIM_Ohio]

OK, but here is the thing...for those of us who DO live paycheck t paycheck, it's not always because we spend money on wants or frivolous items. I get paid twice a month. When my check comes, I pay bills due between that date and my next paycheck. Then buy groceries, set aside $ for gas in the car and my meds each month. And that is pretty much it. I'm lucky if I have $50 left over, and I need that as a buffer in case something comes up I need. It sucks. My bills are just the normal ones: electricity, heat, phone, etc. Oh, and the best part?? I don't make enough to cover rent. Yup, Mom helps out with that. I don't have enough to pay my student loans, they are on deferal. No car payment, thank godess, that got paid off last year. But seriously, we dn't have $90 cable bills or internet or anything like that. We don't have a newspaper subscription, netflix subscription, magazine subscriptions, NOTHING like that.

So, my question is, when you've cut down already, and you still can't afford all your bills, and you, literally, are living in the cheapest apt you can find, what do you do?

Besides getting a raise/finding a higher paying jobe (cuz that is so easy) or moving far away (cuz we live in an expensive living state), what do you do? How do you get from paycheck to paycheck living without having a big enough paycheck to living comfortabley???

how big is your tax refund?
what state?
what occupation are you?

[Snodog]

I think there are 2 kinds of people who live paycheck to paycheck. Those who are forced to because they just dont make enough, and those who make plenty but just dont manage it well. The former I can sympathize with, the latter not so much.

[myself]

So, my question is, when you've cut down already, and you still can't afford all your bills, and you, literally, are living in the cheapest apt you can find, what do you do?

Besides getting a raise/finding a higher paying jobe (cuz that is so easy) or moving far away (cuz we live in an expensive living state), what do you do? How do you get from paycheck to paycheck living without having a big enough paycheck to living comfortabley???

While I truly feel your pain (and have been in your shoes at one point in my life ... but in my case mostly because of bad financial decisions). Perhaps the best thing is to move out of the state. Or at least to a less expensive portion of the state and commute farther. And if commuting farther isn't an option, perhaps moving back in with mom (since she's already paying some of your rent).

As an example, my wife and I live in the most expensive property tax state NJ (and supposedly the highest auto insurance too). I drive about 40 minutes - one way (or about 30 miles) to work every day. And I use the NJ turnpike for most of the driving (which adds additional $3/day or so for my commuting costs). However, our taxes would be at least 50% higher if we lived up near where I work. And in case you're wondering our current property taxes are about $7,200/yr, so that means they'd be over $10,000/yr if we lived closer to where I work.

Keep in mind that a change of location is often what someone needs to get back on their feet.

[Pitman]

Speaking from experience, living check to check was one of the most difficult times of my life. I had $0 in my savings, and everytime I got my check I either was spending foolishly (sneakers, and clothes I didn't need) or I was paying off my high ass credit card bills that I had from again spending foolishly.

But that was the past, and now I'm glad to say that I've learned a system where I will never have to live check to check again. God willing I'll be debt free in about a year.

[couponclipper]

Teaching 18+ good saving habits

Recently, my husband and I helped our 18 year old son open a checking and savings account through a Credit Union which seems to have better rates and better service than some regular banks. But, now we want to also show him what percentages of his money should go where and to stick to it.

What percentages do the pro's on here recommend for each of these categories?:

1. Everyday cash
2. Emergency cash
3. Savings

This is for a teenager living at home, mind you. Emergency cash to him might be different than for us, right now - but what do you think likely would constitute an emergency for him and how to explain it? Perhaps car related expenses (brakes, etc). And, then savings. What amount into savings and also, where should he start spreading the savings around (CDs money markets etc - or is there a better way/idea).

Also, I'd like to get him into an investment club with teens his own age. Do you know of any in the PA area. We live in Collegeville. Thanks! Couponclipper