CNN poll. Nearly all Americans living paycheck to paycheck.

[Twilight Hue]

According to this article from last June, It begs the question as to whither there really any type of economic "recovery" going on at all for the average schmoo Joe?

Wow: Nearly All Americans Living Paycheck-to-Paycheck - Katie Pavlich

If statistically true, I don't really see any real hope for this and the next generation to achieve enough for a reasonably comfortable lifestyle and retirement.

At present, due to my wifes unemployment, I happen to be among those counted as living paycheck to paycheck with minimal dollars and cents left over to place in savings or other financial vehicle until she can get back to being employed. Whenever that happens.

Just wondering, are you folks in the same boat or worse, and do you agree most Americans live like this nowadays with little or nothing after expenses? What are you doing now to combat this to stay above the economic waterline?

For me, I already notably cut my recreational spending and resorted to a strict written budget come hell or high water. I've recently changed jobs for a company that pays better wages and am keeping my lifestyle consistent as possible whereas I bypass indulgences and similar temptations and just sock whatever I can away for emergencies with a set amount of savings aside that needs to be met and maintained first before even thinking of buying anything frivolous like a new tv or game system that is not necessary for essential life and living needs.

For those in the same or similar boat living paycheck to paycheck, how are you handling things?

 

[Revoltingest]

According to this article from last June, It begs the question as to whither there really any type of economic "recovery" going on at all for the average schmoo Joe?

Wow: Nearly All Americans Living Paycheck-to-Paycheck - Katie Pavlich

If statistically true, I don't really see any real hope for this and the next generation to achieve enough for a reasonably comfortable lifestyle and retirement.

At present, due to my wifes unemployment, I happen to be among those counted as living paycheck to paycheck with minimal dollars and cents left over to place in savings or other financial vehicle until she can get back to being employed. Whenever that happens.

Just wondering, are you folks in the same boat or worse, and do you agree most Americans live like this nowadays with little or nothing after expenses? What are you doing now to combat this to stay above the economic waterline?

For me, I already notably cut my recreational spending and resorted to a strict written budget come hell or high water. I've recently changed jobs for a company that pays better wages and am keeping my lifestyle consistent as possible whereas I bypass indulgences and similar temptations and just sock whatever I can away for emergencies with a set amount of savings aside that needs to be met and maintained first before even thinking of buying anything frivolous like a new tv or game system that is not necessary for essential life and living needs.

For those in the same or similar boat living paycheck to paycheck, how are you handling things?

We don't live paycheck to paycheck, but we do live from crisis recovery to crisis recovery.
It's just a longer cycle....perhaps every 5 years or so.
I'm trying to build up savings too, but it's tough. (I could use more discipline.)

 

[Guitar's Cry]

My wife and I live mostly paycheck to paycheck. But we are definitely living within our means. We do not have internet or cable, and I drive an older car that I myself have to fix up quite a bit.

But overall, we are happy. And I still consider myself successful.

 

[Twilight Hue]

My wife and I live mostly paycheck to paycheck. But we are definitely living within our means. We do not have internet or cable, and I drn older car that I myself have to fix up quite a bit.

But overall, we are happy. And I still consider myself successful.

That sounds close to my situation although this past month we fell behind in bills. Mainly to my casual status with my employer. I feel lucky to have landed a full time job now where I don't have to call in daily to see if there is any work for the day. With the exception of this past month we have been able to make ends meet as well. Thats bout it. Not a whole lot of excess income to sock away.

 

[Revoltingest]

That sounds close to my situation although this past month we fell behind in bills. Mainly to my casual status with my employer. I feel lucky to have landed a full time job now where I don't have to call in daily to see if there is any work for the day. With the exception of this past month we have been able to make ends meet as well. Thats bout it. Not a whole lot of excess income to sock away.

Just remember that when good times return, tis best to remain faithful to your current frugal ways.
So many of us got in trouble when times were easy, but then stopped being so.

 

[Sunstone]

Just goes to show nearly all Americans these days don't work hard enough. Back in my day, if you worked hard enough, you could always save a bit, each paycheck, so you almost always had some savings to fall back on. If folks don't have that today, it's got their own fault. Ain't nothing changed in the economy or anything like that. That something has changed is one of them there liberal Paul Krugman notions. Truth is, you lazy bones just got to get out of bed and work harder!

 

[Revoltingest]

Truth is, you lazy bones just got to get out of bed and work harder!

This is true for me.

 

[Reverend Rick]

If statistically true, I don't really see any real hope for this and the next generation to achieve enough for a reasonably comfortable lifestyle and retirement.

I have to agree. Not only this, but folks who are retiring have no quarentee that their pension fund will remain solvent or that their savings will not be diluted by the printing of money.

Even if you can save, interest rates are a joke and the value of your money will shrink.

Allowing slave wage goods to enter the country has killed most manufacturing jobs.

Even if you do land a good paying job, increasing entitlements and obligations are going to bankrupt our country. We are already bankrupt, but one day, we will not be able to borrow money and interest rates will rise to the point our country will not be able to even pay the interest on the money we have already borrowed.

I see living in America like a person who jumped off a 30 story building and after falling 28 stories says, "So far so good".

If you have food to eat and a roof over your head, these are the good ol days.

 

[Revoltingest]

Even if you can save, interest rates are a joke and the value of your money will shrink.

You've been too agreeable lately, so I'll attack this tidbit.
This isn't really a problem. Interest rates are low due in large part to low inflation.
So while one's investments don't grow so fast, one's money doesn't lose value so fast
either. As interest rates rise, so do: one's tax bracket, inflation (currency devaluation),
risk of another bubble & its bursting.

 

[Twilight Hue]

Just remember that when good times return, tis best to remain faithful to your current frugal ways.
So many of us got in trouble when times were easy, but then stopped being so.

Thats solid advice. A portion got ate away in medical expenses and my gamble in moving to a job that payed less so I could be home. Started out good but dipped in winter leaving me with a fraction of what i was making earlier. New job should bring my income back to the glory days when I was driving for TMC. This time it's stay at home full time. They go to Canada which pays 10 cents more a mile than US runs.

I have no plans for extra spending, keeping my lifestyle the same, and am looking into investing potentials with moderate risk. Probably mutual funds or bonds for starters once the bills are paid and enough saved to use for investing. My savings account was worthless to the point where I closed it outright. The bank was charging fees for it's "maintenance" utter BS if you ask me in regards to that. " Paper processing" fee was incurred a year after I opened the account. Rigghhttt...... Ok. No paper for you Mr. Banker. Im taking my paper out. .99% interest I earned anyway. Oh my........

Enough for that gumball machine. Just barely...........

 

[Sunstone]

Allowing slave wage goods to enter the country has killed most manufacturing jobs.

Yup. That's one of the bigger pieces of the puzzle, so to speak.

I see living in America like a person who jumped off a 30 story building and after falling 28 stories says, "So far so good".

I'm totally with you on that one, Rick. There's a reckoning coming.

 

[Sunstone]

I see living in America like a person who jumped off a 30 story building and after falling 28 stories says, "So far so good"

I'm going to be very interested to see whether the end comes dragged out over a long period of decline -- like Britain after WWII -- or sudden, like a Great Depression we never get out of for decades. Or maybe a bit like both. My curiosity is up on this one.

 

[Revoltingest]

Relevant news....
China surpasses US as world's largest trading nation | Business | The Guardian

 

[Twilight Hue]

I'm going to be very interested to see whether the end comes dragged out over a long period of decline -- like Britain after WWII -- or sudden, like a Great Depression we never get out of for decades. Or maybe a bit like both. My curiosity is up on this one.

You know my mind was on the great depression. Im kind of thinking that something of that magnitude will occur sometime in the next 5 to 15 years. Im no expert at all on economics. Just got that feeling.

 

[Sunstone]

You know my mind was on the great depression. Im kind of thinking that something of that magnitude will occur sometime in the next 5 to 15 years. Im no expert at all on economics. Just got that feeling.

Well, if you listen to some fairly prominent economists, NM -- and I do mean more than just Paul Krugman here -- we could have, and we should have, gotten ourselves a booming economy by now, but we lacked the political will to do the things that would have gotten us it. Of course, economics is a soft science, not a hard one, and it's got a lot of guess work to it. But there are economists who have track records of guessing right more often than other economists. And those are the ones I like to listen to regardless of their ideologies.

 

[Saint Frankenstein]

Yes. I live with my mother and we're basically poor. She makes a little above $10 an hour and I'm unemployed. It's really horrible. There's no budget because pretty much all the money goes to bills and food. Sometimes we can't afford food so go hungry.

 

[Reverend Rick]

It is simple math folks. You can't save enough money to retire for 30 years.

Would you rather have a fantastic reirement for 10 years or beans and rice for 30?

In my estimation, a person would need to save over 25% of their income for retirement to live like a king.

In addition, many folks want the retirement age raised. Really? You want old folks hogging what little jobs there are left? The whole idea of retirement is to enjoy life while you still can and then kick the bucket and leave some money behind for your children.

IMO the most greedy among us expect to draw a check from the government for over 30 years in retirement.

Can anyone estimate the expense of 30 years of health insurance for an old fart? Most likely the expense exceeds the person's income for life. How does that work? Seriously, do young folks who do make a decent income want to be taxed to death to afford this? Someone has to pay for this right?

I know, let the rich pay......... Take all their money away and it is not near enough.

We as a country are spending money we will never be able to pay back.

The OP talks about living within our means, why not the government?

 

[Reverend Rick]

You've been too agreeable lately, so I'll attack this tidbit.
This isn't really a problem. Interest rates are low due in large part to low inflation.
So while one's investments don't grow so fast, one's money doesn't lose value so fast
either. As interest rates rise, so do: one's tax bracket, inflation (currency devaluation),
risk of another bubble & its bursting.

I have a bubble for you Rev! Me agreeable? :slap:

When we lose the ability to borrow and spend we will print and spend and it will take a wheel barrow to bring enough money to the store to buy a loaf of bread.

 

[Revoltingest]

I have a bubble for you Rev! Me agreeable? :slap:

When we lose the ability to borrow and spend we will print and spend and it will take a wheel barrow to bring enough money to the store to buy a loaf of bread.

But think of the interest rate banks will have to pay you in order to convince you to keep your money there!
Anyway, I think inflation is a government run scam on us.

 

[Sunstone]

I know, let the rich pay......... Take all their money away and it is not near enough.

Mind if I ship you a bail of straw to replace all the straw you used building that man?

Almost no one wants to do that except perhaps a few people, Rick, and they ain't going nowhere with their ideas. But a solid majority of Americans, including a surprisingly large number of registered Republicans these days, wants the rich to pay higher taxes. Pay higher taxes, not pay everything in taxes.

Won't happen, of course. We live in a plutocracy now. The will of the billionaires trumps the will of the people.