Time recently posted that nearly half of Americans live paycheck-to-paycheck. Their summary:
Too many of us are living paycheck to paycheck. The CFED calls these folks “liquid asset poor,” and its report finds that 44% of Americans are living with less than $5,887 in savings for a family of four.
A few thoughts on this:
- I'm not sure how they got "living paycheck-to-paycheck" from "44% of Americans are living with less than $5,887 in savings for a family of four" but that looks like the leap they made.
- If it is actually 44% living paycheck-to-paycheck, that's better than I thought it was. The book The Difference: How Anyone Can Prosper in Even The Toughest Times by Jean Chatzky lists 54% of people as living paycheck-to-paychecks plus another 15% actually spending more each month than they bring in. Details can be seen on my post titled The Difference Between the Wealthy and Everyone Else.
- My personal opinion is that at least 50% of people are living paycheck-to-paycheck, but I have nothing to back that up other than my own gut feeling.
What's your take? Anyone want to venture a guess how many Americans are living on their most recent paycheck (based on those you know)?