76% of Americans Are Living Paycheck to Paycheck

http://finance.yahoo.com/news/76-americans-living-paycheck-paycheck-045900956.html?l=1

Very interesting stuff. I know that this article is very vauge in a general sense (does not include investments and 401Ks), but It would be interesting to see how many people do live paycheck to paycheck.

 

...I do
The only Mods I can afford are stickers and plastidip

 

Those stats are misleading. I bet more then 50% of those people do it to them selves. I've been in the army for 8 years and as we all know in the army your not rich. I haven't lived pay check to pay check ever, because I'm not retarded with my money.

 

who says you have to be retarded with your money to be in a situation where you are living paycheck to paycheck?
that is misleading

 

This ^^^^

 

76% seems kind of high to me..

 

x2

 

He's saying that 50% of people who do live paycheck to paycheck are doing it to themselves because they're irresponsible with their money. The other 50% live paycheck to paycheck because they don't have any other options.

Honestly, I would tend to agree. I'm not saying people are necessarily knowingly irresponsible with their money but were never taught how to properly manage their money.

 

I blame tacomaworld

 

alright, well, if that's the case, I would agree with that

 

Yeah I'm saying 50% of the 76%. And I see it all the time in the army. So private comes home from AFG with 60k in the bank and blows it in 3 months on strippers and booze. Most Americans get in way to deep with credit cards and other bullshit. So they have to live pay check to pay check just because of bills.

 

I completely agree - all it takes is one accident or slip up to drain a savings account. Your mid-management job could be in jeopardy when the company decides to appeas the stock holders and downsize. It doesn't take much to upset the balance we live by day to day.

Right now, being a college graduate and trying to establish myself/my wife in life, we are close to living paycheck to paycheck. After the student loans are paid, groceries purchased, cars filled, housing paid, unexpected financial burdens dealt with, there is not much left to go around. I don't have cable tv, the newest phone, am not trying to keep up with the Jones' either. It is easy to say "well next month we will try and put some in savings". There is a rainy day fund for when it is needed, but I would love to see more in that jar.

 

qft

 

I didn't click your link, but according to the quoted section they are saying if you don't have enough in the bank to sustain 6 months of job loss you are pay check to paycheck? "76% of americans... Only 24% of those surveyed hade enough for 6 months"

 

Yeah, I agree a lot of people do it to themselves, but you have a bit of an advantage over the general employed populous. You don't have to worry about medical bills, which in the civilian sector is one of the largest consumers of a persons finances. you also are guaranteed 3 meals a day that do not come out of your paycheck, unless the chow hall has started charging for breakfast since I was in. Don't get me wrong, I am not saying you have it easy at all. I have been there so I know it is in the military life. (By the way, thank you for your service) But while you don't bring in a lot of cash, there is a lot of value that you get from being in the military. Heck when I was in I had a huge savings because I never went out partying, and I always ate at the chow hall.

I totally agree with that! I was in a job several years back grossing 100k+ per year. when the housing market crashed and the economy tanked that same job dropped down to less than 40k. Even a MODERATE lifestyle can take a huge hit when income is reduced 60%. We lost almost everything. All the fun stuff the kids were doing, gone. The extra cars, sold. The house? Almost lost it. I have yet to recover from that job hit. It isn't easy.

 

Sorry I misinterpreted
And thank you, so much, for your service!

 

Or just don't. I'd say I am an example of that. My parents are very frugal people..we were able to live in upscale towns as children b/c they saved a lot when my dad was in the Army for a huge down payment on a home and he did a lot of the upkeep himself, so in a way we would trade up every time we moved. They took us to Disney a time or 2 but never did things like that for themselves, and if they did buy an almost new car it was a bare-bones type.

Me? I will starve if that's what it takes to pay bills, but I don't save. If there is something I want I can save for it no problem but not retirement or something. I do have a 401k and put a lot into it, seeing 2 prolonged illnesses with my wife's parents showed me I have to depend on me only when that time comes.

I will say my father goes too far sometimes..he always wanted a riding mower for the huge yard we had and would never do it even though he could afford to. My parents were never the type to dine out a lot, didn't have expensive hobbies or really any at all come to think of it. I still remind him now that they raised the kids and all, now they should be doing for themselves and they can't take it with them.

 

If you calculate my monthly salary and compare it to my bank accounts, then I only have about 3.5-4 months in there. But I would like to say that I could survive for more than 6 months on it because I wouldn't be spending near the money I do now if I wasn't going to work every day. I wouldn't be buying as much gas, I wouldn't be buying breakfast and lunch everyday, and the only real bills that I would have is my truck insurance and credit card.

As far as the 76% goes, I would like to know if people on welfare, disability, and unemployment are lumped into that number. If that is the case, then that is why that number is so high.

 

Good point Southern..I can tell you for sure if it was me there would be no more:

Buying CDs
Going to concerts
Dining out

I would continue my Tuesday night out for my dart league games..however, that costs me around $5 as I don't drink alcohol and eat before I go.

I'd be curious as well but I'm inclined to believe it may not..that is to say, just that the number really is that high of people who are gainfully employed. Student loans in this generation are much more of a burden for one thing..and of course this also probably includes teenagers who work part time. I will confess I have not yet read the article.

 

I spend 50% of my income, the other 50% gets divided for savings and investments.
This guy is great with finance:
http://www.mrmoneymustache.com/