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Post by happymom on Aug 22, 2014 1:40:32 GMT
If you put money in savings then you are not "living paycheck to paycheck". I agree. My nephew graduated from college and lives with us. He should have a healthy savings account after 11 months. Dh is pissed that he needed a payment plan for his 600 hospital bill. he has enough money coming in and very few REAL expenses ( yes we know because Dh helped him set up payments)
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amom23
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Jun 27, 2014 12:39:18 GMT
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Post by amom23 on Aug 22, 2014 1:43:35 GMT
To me, living paycheck to paycheck means having zero to little savings, barely having enough to pay the essentials like food, utilities, and mortgage or rent.
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Post by megop on Aug 22, 2014 2:00:45 GMT
I think there is the hard definition as so many have shared, and then the "cash flow" mindset. I live paycheck to paycheck in mindset, because I plan where dollars go. The mindset is good, the hard definition is well, definitely HARD to live by/with.
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freebird
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Post by freebird on Aug 22, 2014 2:04:59 GMT
I think the key word in that statement is "living". If you miss a paycheck and it can severely change the way you LIVE, (no home, no food, no medicine) then you're living paycheck to paycheck.
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Post by papercrafteradvocate on Aug 22, 2014 2:26:47 GMT
Living paycheck to paycheck-means to me, that if that paycheck were to disappear, you would be on the streets, no food, no means of support.
A person making $100 a week can live paycheck to paycheck, so can a person who makes $5,000 a week. It is all relevant to your necessary expenses.
If a person making the $5,000 a week lives an expensive lifestyle, with no savings, no fall back, they could be out on the streets just as quickly as anyone else making a lot less. A person in that high bracket might have a much higher house payment, higher utilities, taxes, etc.
Now, living within your means is a whole 'nother question! LOL Could I live on $100 a week--not where I currently live, so things would change for us. Could I live on $5,000 a week? Gloriously if I were to stay where I am right now, but if I decided to upgrade, a lot of things would shift! We are in a position similar to that right now, we own our home have been here many years, are looking at homes right now that are double what we paid for our home years ago. Square footage is more, but not even close to doubled, lot sizes are just slightly larger. We make as a couple less than what we did back then, however we have no debt now, so the expenses that we had and no longer do are not in the equation any longer and won't be, so we can afford a bigger house payment than before on less of an income. It's all relevant to necessary expenses. (I hope that makes sense!)
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Post by melanell on Aug 22, 2014 2:59:20 GMT
To me "paycheck to paycheck" means that if you missed even one check, you'd be in serious trouble. That there is no money being saved because there is never enough each week to begin with, so saving anything becomes nearly impossible.
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StephDRebel
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Jul 5, 2014 1:53:49 GMT
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Post by StephDRebel on Aug 22, 2014 3:05:24 GMT
My neighbors who looked at their 8 year old tonight and said 'i'm sorry, you can't get ice cream with the boys tonight, we don't get paid until tomorrow' are living paycheck to paycheck.
(Yes, he got ice cream, a BIG one. My boys remember what it's like to be in that spot and take care of that little one <3 )
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cycworker
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Post by cycworker on Aug 22, 2014 3:31:31 GMT
@stephdrebel - you, my dear, are raising those boys right!
Steph's exactly right. That's what it means. I am almost there this month, but not quite. There were 5 weeks between disability cheques instead of 4 this month and something unexpected came up, so it's tight.
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Post by peasful1 on Aug 22, 2014 5:29:59 GMT
to me it means no savings, no liquid assets. It means you're likely robbing Peter to pay Paul. falling behind on one bill to play catch up with another. It means you don't have fun money and your budget is so tight with no wiggle room because every single penny is accounted for to keep afloat with the fundamentals and something like an unexpected home repair would not, and could not, be attended to and a serious medical emergency would devastate you.
You are most assuredly *not* living paycheque to paycheque.
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Post by melanell on Aug 22, 2014 17:13:12 GMT
I will say that sometimes I hear people claim to be living "paycheck to paycheck" or "just getting by", but they are using those terms differently than I would. In those cases they are indeed spending their entire paycheck each week, but they are definitely not spending it only on bills or necessities, or even just the occasional small treat. They are simply choosing to spend every dime because it's nice and fun to spend money. To me that's a whole different thing, and I feel for those who are truly living "paycheck to paycheck" when someone eating out every other night and waiting in line to replace their electronic gadgets every time there is a new version comes out opts to use that same phrase. I feel like it's kind of a slap in the face of those truly struggling. You know, I might say things are "tight" for us sometimes, but that's our doing. We look at our budget and decide to go ahead with this sport or activity or lessons for the kids, and then if 3 unexpected things pop up in the same week, I say it's a "tight" week. And that's because I won't hit savings unless I absolutely have to. Especially in the summer I sometimes tell the kids "It's free family fun only for the next few days.". That means I'm not taking money out of saving just so you can keep hitting the movies, Chuck E. Cheese, mini-golf, etc. The money left for this week is for food, gas, etc. Not for your endless entertainment. But I wouldn't say we're "living paycheck to paycheck" because we have savings and I wouldn't say "we're just getting by", because we could do without several things that would free up extra cash if we wanted to do so.
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Post by mrsscrapdiva on Aug 22, 2014 17:25:27 GMT
You are in no way, shape or form living paycheck to paycheck. As soon as you mentioned savings and 401k...
Paycheck to paycheck is when you make exactly or less than your bills and everyday expenses. So the day before payday or sooner you are broke. Sometimes broke after your bills are paid and there is no savings or anything else to fall back on. There is no money to invest or put away for a rainy day or for any addition bills like car repairs or medical emergencies. Ever hear the saying robbing peter to pay paul? A lot of times when someone is in a paycheck to paycheck situation, you need to borrow money to make it stretch to the next payday and then you are short that money the next time you get paid.
I lived like this when I was single and lived on my own. Scrapping up change to take the bus to work - fun times.
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Post by Scrapbrat on Aug 22, 2014 17:35:10 GMT
It means you use up your entire paycheck on living expenses before the next one arrives, with nothing available to save.
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Deleted
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Post by Deleted on Aug 22, 2014 17:39:35 GMT
Living without a cushion...no emergency fund, no emergency credit card...when a week or two of a missed paycheck would be devastating your financial world.
A friend of mine is a single mother working two jobs and going to college. She sells plasma regularly when things spring up that she can't pay for out of her impossibly tight budget. *That* is less than "paycheck to paycheck" to me.
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Post by kristalina on Aug 22, 2014 17:53:06 GMT
As Ginacivey said - I believe it literally means that at the end of a pay-period, the money has run out. It means if you miss a paycheck, you're screwed. You have no buffer.
It means to barely make ends meet. When you are living paycheck to paycheck, you have money for the bare necessities - rent or mtg, food, utilities and other necessities. Nothing more.
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Post by cannmom on Aug 22, 2014 17:53:24 GMT
When I was young and newly married I worked at several low- paying jobs. I worked with people who definitely lived paycheck to paycheck. They talked about not being able to take their children places because they could not afford the gas. This was a real eye-opener to me. I had been a privileged, sheltered young woman and had not a clue. It's a hard life to live and I feel for anyone struggling that way.
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tracylynn
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Post by tracylynn on Aug 22, 2014 17:56:05 GMT
IMO, you are not living paycheck to paycheck.
Living paycheck to paycheck, to me, means you are spending all monies to simply live. No extras, no savings ... etc.
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