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October 30, 2017


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I live Paycheck to Paycheck. We all do to some aspect. What do others that say they don't live paycheck to paycheck do?(there's a story for you to cover, non millionaire). Anyway, I budget my paychecks out and spend every last dollar on paper before I get the money. I pay bills and put money in savings. I have a rainy day account to pay for things that pop up as well as emergency stuff. You cannot plan and budget everything.

I also think too many people have to have new things when they don't really need it. Probably do to advertising, hype in the media, pressure from friends, etc. Read an article earlier about someone having to have the new iPhone...Why? did their old phone suddenly die, or stop working. New cars are killer to budgets as well. It is nice to have new things, but you have to maintain control.

Also, people believe when they get a raise they deserve something nicer and get a new house or car when they don't really need it, but want it. We have all been victims of this at one time or another.

All over people are in debt and its no wonder when prices keep going up. Wages seem to be stagnant too.

You'd think people would have learned to escape the paycheck to paycheck cycle, especially after going through the recession. The freedom and opportunity we've given ourselves through escaping this cycle have been invaluable to our sense of security and happiness.

@Marty, I don't think you're living paycheck to paycheck if you add to savings with every paycheck. Hopefully you're among the 44% of the 22% who save more than $100 each month (from the CNBC link).

If their definition of debt includes home mortgages, then I don't see the 71% (and 59% of those earning six figures) as surprising, but if it's counting only "revolvers" who pay credit card interest, then this number seems unrealistically high.

The other interesting angle is the effect of income levels on the percentage living paycheck to paycheck. Nearly 1 in 10 making six figures (this is roughly the top quintile of households) lives paycheck to paycheck. So to reach an overall of 78%, the lower four income quintiles (less than six figures) would have 95% living paycheck to paycheck. I would certainly agree that higher income households are more likely to save, but this huge of a difference (90% six figures vs only 5% for all the rest) I doubt.

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