76% of Americans Are Living Paycheck to Paycheck

I wish I could afford to put half my income into savings and investments. I don't make twice my expenses. And no, I am FAR from living high off the hog right now. lol. You sir will have a good retirement fund!

 

Thanks! Honestly it's all about watching your expenses and living WELL within your means, that's part of the reason why I'm buying a 1st gen Tacoma as supposed to a newer more expensive 2nd gen!

 

Agreed.

 

Im right there with you! A coworker of mine just bought a 2012 Taco to beat around on the job with. Thats all well and good for her but my parents cant help me out with $10k, so rather than try to match it Im living within my means and bought an '03 instead (i think the 1st gens look better anyway).

I certainly cant put 50% in savings but Im a little above 25% and doing alright despite paying student loans, rent, insurance, supporting a family and now a car loan as well. It's difficult to save sometimes but it can be done!

 

I think this is the key. Do I have 6 months of my salary in liquid savings? Heck no, if for no other reason than I don't feel like giving my bank that much free money. But, could I live for 6 months on what's in my bank savings right now? Sure. I'd have to downsize, but I can do it.

I do also put 20% into my 401k (with employer matching) and invest another 10% in a Roth IRA, plus some into liquid savings each month.

 

My opinion most people don't live within their means.It amazes me how people rely so heavily on credit or family members to bail them out of a financial tight.My wife and I have paid off our home and don't have car payments.We both put 20%in our 401k plans and put money in savings every month.We have been able to achieve this by the age of 40..My wife is driving an 07 Camry and I have an 03 Tacoma that I plan to drive until the Gen3 comes out.Its a great feeling knowing we can pay cash for a new vehicle if needed!!And yes we have 6 months salary put up.

 

mmm, retirement is knocking at my door.

 

1st Gen's do look better than 2nd gen Tacomas IMO!
You are doing well! keep in mind I don't have kids yet, when they do.. I can kiss my 50% split goodbye

 

Yes.... Yes you can. Mine isnt even asking me for money yet. I cant wait for when that starts ^_^

 

It matters a lot where and how you live. Here, a one bedroom apartment in a decent area is 1300.00 a month. But the same one in KY (back home) would be around 500.00 a month. The housing and rent markets here are so inflated compared to income that there is no way I could go more than 3 months. But in KY I could go many many more months even making a bit less than I do now.

My Dad bought a large plot of land for 30k back in early 2000 in southern KY. You can't even buy a parking space here for that much (they literally sell parking spaces as property here).

 

Oh I get you. I was being a smart ass because I started a new business 2 years ago and my current income is less than $100 per month. Yeah, I am WAY below poverty level technically.

 

I agree that a lot of the people in that 76% probably do it to themselves. Everyone thinks they need their iphone, new car, starbucks, expensive clothes, and to eat out twice a week.

 

And when you drink beer you prefer Dos Equis......

 

It's the little things that add up though. I have not had a raise in 8 years, yet my health care costs have gone up each year anyways, and next year I will have a 2% pay reduction. My wife lost about 12% of her pay over the past two years as well. Meanwhile, food, gas and other expenses (COLA) continue to increase rapidly- we rarely eat out or spend frivolously. We continue to put money into investments and retirement funds, plus college is looming large, so we've been pre-funding that as well. All that, and we are pretty much at zero with our checking and only a few months cushion in our savings. I don't consider us irresponsible, just in need of more adjustments to our spending.

 

no I don't have 6 months worth my income in the bank. but my income varies from year to year. I have a set salary but I also get bonuses. so my spending is based on my set salary and I use my bonus to pay off bills each year. this last year I was able to pay off all my medical bills and all my credit cards. now my only payments are my 2 houses and 2 cars plus one line of credit. my hope is to pay off the line of credit with the next bonus and then put the rest of the money into some kind of investment or my savings so I don't get into the same situation I just got out of. I used to have a good savings but a very bad run of bad luck with medical bills killed that which in turn caused me to rack up some credit card debt. I feel so much better having that behind me. now to get some good savings and or investments and rebuild.

 

I am 23 and married, me and my wife(21) have enough saved to last 6 months to a year right now and we are two months ahead on house payment (which we bought forclosed) and she payed her car off and mine not so much but i make sure to pay extra every month to pay it off faster.. even though i only drive 2 miles in total a day too and from work.. but when its paid off it will still be practically brand new everything was going great untill last month when i had to go too the doctor (which i hate and i am never sick) because i was having problems with my eyes and he informed me that i needed to take all of these test i.e 3 mri's, spinal tap and it seemed like blood work everytime i turned my head which even with health insurance i was hit with about 5 grand in medical bills.. moral of the story i am glad me and my wife live well with in our means and are able to have money set back for those O-shit mements because i now know first hand that it can happen to anyone at any time!! also me and my wife do not make much money (i wont say what we make but it is probably less than most people make by themselves) so that being said it really is about being responsible.. i should have the truck paid off in 2-3 years and the house paid off before im 30 and we have no credit card bills.. if you would have asked me 2 years ago when i turned 21 would i be where im at now.. i would have told you NO! sorry for the rant but i feel like if anyone wants to better their finances and savings they can do it, it really comes down to growing up and being resposible (which i was not untill recently)

 

Did you go to college? That is what keeps me from financial freedom. Without my loan payments around $600-$700/month, I could put my truck payments at >$1K month, leaving a note that lasts only 2 years.

I took on the financial burden of student loans and I am paying them back with pride. Without my schooling, there is no way in hell I would ever make what I make now. For another 6-7 years, I have a burden to carry and kill off bit by bit. If mommy and daddy paid my way, you could bet on the fact my truck would have LOTS more aftermarket parts than just audio.

 

Family of 3 living in the Bay Area on an introductory salary doesn't allow me to have much savings. Once my Fiance is out of school and starts working then things will change, but 1-1.2k per check doesn't go very far.

 

40% of each of my paychecks go straight to savings which I dont touch. The rest goes to rent, bills, food, gas, insurance, etc. After that, it all goes to guns and truck mods. I dont have debt, and I dont have a single credit card apart from my corporate card. I guess I have to live this way since my parents live across the pacific ocean.

 

I make enough to pay the bills, put a little into savings, put 15% of my salary to my 401k and have a few hundred leftover from each paycheck. I saved a lot before I got the Taco and paid cash for that and when I got the Tundra only had to finance $7k so since that's such a small loan I'm paying at least triple the payment to have it paid off in at least half the time the original terms were for.