Paycheck to paycheck

[rennigade]

The economic and monetary policy of our Federal government and the Federal Reserve bank encourages over consumption so not all blame falls on individuals.

Let me guess...you're one of those people that when a mass shooting happens you blame the guns, violent video games or violent lyrics to songs. lol

I wonder how long it will be before drunk drivers start blaming it on alcohol after they hit and kill someone? Heck they may even want to blame it on their own vehicle. May as well...jump on the bandwagon.

[FLA]

I don't think disneysteve came off as judgmental. This was a resounding theme no matter what nursing environment I worked in, the "Oh Thank God it's payday so I can do xy or z!" sentiment. And similar statements, for instance telling the woman who sold Avon not to cash the check until next week. The people who cannot even afford their $15 Avon order this week or the check will bounce worried me. We all made roughly the same and among the professional staff, all were married except me and one other single mom and 2 single people. There were the bunch who didn't really understand the 403b, that it was now our sole form of retirement from our employer and they didn't even put in enough to get the match. I'm assuming they were relying on spouse's retirement but why would you leave that money on the table, especially if you are someone living paycheck to paycheck? How will you live when you are old and your paycheck is now just SS because you couldn't afford the 403B?

It amazes me the differences in how people handle the exact same amount of money. And this is what scares me: when our employer announced they were no longer contributing to our defined benefit pensions that were meager to begin with, instead of being upset, you could hear crickets except for me and one other person who was alarmed by this. Then a social worker, of all people, someone one would think be a little savvy to benefits since they help patients with stuff like that, raised her hand, stood up and thanked the head of HR for having this pension, she never know she had it and she thought we all should be thankful. I admit I stared at her like I had just seen a unicorn, it was that bad. She obviously had no clue that had you worked there 20 yrs as I had, that pension was worth 30k or less than $200 a month in retirement. So if you weren't already saving in the 403B and had been counting on this, boy were you screwed for never opening the statements.

There is no reason to be so financially ignorant that you do not even know you have a pension until you no longer do. That scares me, as does the whole concept of planning to let your spouse take care of it, plan to live on his pension because someday he might not be there and you'll be fighting over the scraps. I'm a hope for the best but plan for the worse type and that has served me well.

If I said, "not today, not in my budget," I really meant, I just don't feel like having lunch with you, not I truly cannot spare $10 on lunch this week, lol.

[disneysteve]

the "Oh Thank God it's payday so I can do xy or z!" sentiment.

I've probably told this story before but my wife used to work in retail. On payday, numerous people would zip out the door at lunchtime to cash their checks so that they had money to eat lunch that day. These very same people went out to eat every single day, bought sodas from the break room vending machine every day, and every Monday talked about what clubs they went to over the weekend or where they shopped and what they bought. Meanwhile, my wife brown bagged her lunch, brought a can of soda from home, and contributed well to the company retirement plan. They all made similar incomes. Most were broke.

It isn't because of low wages or government policies. It's because of instant gratification, laziness, and a lack of thought or caring about the future.

[FLA]

It isn't because of low wages or government policies. It's because of instant gratification, laziness, and a lack of thought or caring about the future.

Ironically, you can still be fairly lazy and pull off having a shot at a decent financial future. It does not take tons of research to pick 4 Index Funds so you are covering the market so to speak, figure out you allocation, your risk tolerance, etc and fill in some forms, hand them to HR and you're done. Or do Target Date funds, even lazier and easier. Sit back and enjoy delayed gratification instead as your portfolio grows. It can become addictive to keep trying to cut back on splurges so you can raise the percent you are investing. You can even just check it once a year and re-balance as necessary, you can set it to rebalance automatically.

If I, with zero finance knowledge at 22, could read a book and figure this stuff out, anyone can. And if you start at 22 and do not stop, you can maybe end up ok at 45 if you become disabled. I would be ready to take the bridge right now if I did not have my retirement accounts as a safety net. And I didn't live a spartan life. Our townhouse was nice and decorated pretty, I had decent cars, we took vacations, all done as inexpensively as possible but not to the point that we did not enjoy life. We ate out, probably way too much. We didn't live on rice and beans and re-use ziplock bags. Looking back, I wish I had been more frugal and saved even more, honestly, I failed to plan for a long term disability. But I did enough, with great hope, to get by without losing all my assets or even any.

I don't understand why the paycheck to paycheck people are not freaking out, how can you get to be 45 or 50 and you haven't thought about this stuff yet? It's just such a different mindset.

[disneysteve]

Ironically, you can still be fairly lazy and pull off having a shot at a decent financial future.

It's just such a different mindset.

When I said laziness, I was referring to the folks who can't be bothered to pack their own lunch, cook a meal from scratch, do even a tiny bit of comparison shopping, etc. Then there's instant gratification. I can't order this online for 30% less. I won't have it for 3 days. I'll pay full price so I can have it right now (even though I don't even need it in the first place).

The mindset is really what I struggle to comprehend. Believe me, I understand and sympathize with those who truly don't earn enough. Many of my patients are barely subsisting. Some are homeless or functionally homeless (they don't have their own place and just bounce from friend to friend to family member). I'm not talking about those folks. I'm talking about folks making good incomes who don't seem to have a dollar to spare. It is a different mindset that I suppose I'll never understand. And I agree with you. I have no idea what is going to happen to all of these people when they can't work anymore.

[pflyers85]

Let me guess...you're one of those people that when a mass shooting happens you blame the guns, violent video games or violent lyrics to songs. lol

I wonder how long it will be before drunk drivers start blaming it on alcohol after they hit and kill someone? Heck they may even want to blame it on their own vehicle. May as well...jump on the bandwagon.

You couldn't be further off the mark about me. I'm actually a very pro gun libertarian. I own 5 guns myself (3 handguns, 1 rifle, and 1 shotgun) and I am a member of the NRA and Gun Owners of America.

[amastewa93]

Prior to graduating college, I was paycheck-to-paycheck because I was living on my own, paying for school and only making $9/hr. in a city where housing alone was pretty expensive. Though this isn't the case with these women, there are a ton of people in the country living paycheck-to-paycheck because of the situations they are in.

[disneysteve]

Prior to graduating college, I was paycheck-to-paycheck because I was living on my own, paying for school and only making $9/hr. in a city where housing alone was pretty expensive. Though this isn't the case with these women, there are a ton of people in the country living paycheck-to-paycheck because of the situations they are in.

Certainly there are folks really scraping to get by (though there are arguments to be made there, too). But that isn't the majority. I've also seen the stats that somewhere around 70% of people live paycheck to paycheck and would be in trouble in their next paycheck was delayed for some reason. Surely 70% of the population isn't living that way because of their situation but rather because of their behavior.

[Jluke]

I too am shocked at the whole living paycheck to paycheck reality for most people; but I do understand that a lot of it is behavioral while some of it may simply come down to the fact that someone doesn't really make a lot of money.

At my current company (15 years now) I started with a weekly paycheck for the first 4 years.

In a new role, I was paid on a monthly basis during years 5 through 12.

Then the last 2-3 years I've been paid every other Friday. when the company switched to this format the company's credit union actually had a special on personal loans so that people could survive during the transition.


Lately I am tricking myself into living paycheck to paycheck. I am stretching my dollars to the point of discomfort, but all of my money is going to increased 401k contributions, managing "good" debt, and the everyday living expenses. I try to forget that I have a sizeable EF.

But on the point of this thread, it is a reality for most. Imagine how boring the world would be if everyone was really good at managing their money and living within their means. It could cause a huge disruption in the socio-economic classes if low wage earners realized that they too could save a few dollars here and there.

[disneysteve]

Then the last 2-3 years I've been paid every other Friday. when the company switched to this format the company's credit union actually had a special on personal loans so that people could survive during the transition.

Sad but not surprising. Most people (70% or so) would not be able to meet their obligations if they missed one paycheck.

Imagine how boring the world would be if everyone was really good at managing their money and living within their means. It could cause a huge disruption in the socio-economic classes if low wage earners realized that they too could save a few dollars here and there.

Why would that be boring? And I don't buy the argument that the economy would suddenly collapse if people started being more responsible with their money. Some areas might see a decline but over time I think it would balance out.

[Jluke]

Why would that be boring? And I don't buy the argument that the economy would suddenly collapse if people started being more responsible with their money. Some areas might see a decline but over time I think it would balance out.

I was thinking boring on a personal level - no more thrills from the chance a bill wouldn't be paid on time, etc. add some sarcasm to that too.

Economy might run better if people managed their money more responsibly.

[FLA]

When I said laziness, I was referring to the folks who can't be bothered to pack their own lunch, cook a meal from scratch, do even a tiny bit of comparison shopping, etc.

I knew what you meant, I was just pointing out you can be the laziest person on the planet with every whim catered to,but should be able to drudge up enough desire for wealth to fill out a few forms. Especially if they want their current lifestyle in retirement.

[Nika]

I need advice, my husband just got paid but it is $500 less then what he usually makes cuz he had to take two days off for the birth of r son. We still have to pay the car payment, utilities, medical bill and day care this month plus food (we r down to nothing) I have been paying extra the last few months on utilities so r utility bill wouldn't be as high this month since I had a feeling my husband would have to take off but I didn't realize his pay would be so little so I'm scared it won't be enough. We have some in savings but I would rather save that just in case. I'm really not sure what my options r. We still have to buy formula too.

Just taken today from another group. That group is supposed to be nothing but supportive, so I can't post my honest opinion regarding this madness.

I planned for years prior to deciding to get pregnant with each child. Calculating potential time off for each of us, working on strategies to maximize it, figuring costs of all the little details like increased health insurance payments and extra life insurance, etc... not to mention child care. And it seems that most people out there just have kids without a second thought. They are in desperate situations and having additional children. I mean, unless this is one of those "I did not know I was pregnant until the baby popped out" situations, like that TLC show, she had to know that baby was coming. I just think she is insanely irresponsible, but that of course would be an unpopular thing to post on a group made up of mostly people like her.

[disneysteve]

Nika, that's an interesting example but really isn't all that bad.

"I had a feeling my husband would have to take off"
Really? You weren't sure if your husband was going to miss work when your child was born?

"We have some in savings but I would rather save that just in case."
Just in case of what? Isn't this exactly why you have that savings?

At least in this case, they do have some money put aside and they were doing a little advance planning by prepaying the utility bill. This shows at least a reasonable degree of personal responsibility.

[FLA]

I am not talking about the couple posted, more in general

it's a slippery slope because are we saying that perhaps the lowest paid amongst us, who were raised in poverty, did not have a snowball's chance in hell of getting to college (that's a myth when people say anyone who works hard enough can get a college education. There are just so many scholarships and grants and financial aid resources, they are not infinite. And some people just aren't cut out for college to begin with) and the school was so poor, there were no trade programs, are we saying these people should not have children? Two people working their butts off at minimum wage jobs? We are always going to have people in this country who are working hard full time or more, but cannot afford to do what the rest of us on here can do, save for the future. Are we washing our hands of them, no children for you or if you were stupid enough to have them, we're not gonna help?

it is very hard to raise yourself and your spouse out of poverty. The book Nickel and Dimed is a good read on how hard it really is.