Do You Live Paycheck to Paycheck?

[sun rise]

Outside of a rocky beginning we've been able to save for a number of reasons. We lived below our means in a lower middle-class neighborhood in the same house for decades. And we did not have children. And my wife's car is a 1999 Nissan and mine a 2014 Toyota plugin.

I attribute part of this to having had depression era parents. My father-in-law had a basement full of this and that which he used when something broke down, for example. And my father bought cars for cash by saving the change in his pocket every day without fail.

 

[ChristineM]

When we (hubby and i) began our business it was a struggle some months we couldn't afford to pay ourselves. As time passed money improved, income became a pleasure we could enjoy regularly.

In 2015 we sold the business for enough to live comfortably (after tax) for the rest of our lives and give the children a decent start when that time comes.

 

[John53]

Can't answer, I don't live from pay cheque to pay cheque but I wouldn't call our nest egg substantial. We live comfortably but have to be careful.

 

[lewisnotmiller]

I don't have a car, so no petrol expenses for me. (Just the occasional public transport.)

I try to increase my savings every month or two by an amount that would cover all of my basic expenses for at least a month.

That's sensible. Just because of the position I'm in regarding family, age, etc, my income and costs are much higher per month.

School fees, basketball fees, piano fees, arts supplies, travel (for work), mortgage...

Lately there have been a few things which have increased costs beyond what has been normal;
1) train line in my area is temporarily impacted by duplication works, so more driving and less public transport (I now drive about halfway to work, before jumping on a train)
2) mortgage rates have increased considerably over the last year.
3) middle child selected a school different to eldest (starting high school), so buying uniforms, etc adds considerable cost in a month.
4) house was flooded. Is it insured? Yes...but that negotiation has been going for three months so far, and in the meantime all necessary works are funded from my pocket.

My wife has also been off work for over 2 years (our choice) after the birth of our third child.

I say none of that in a 'woe is me sense'...these are all just things that can happen in life, and we are pretty solid financially despite it all. But these mostly minor or temporary things can put people under financial stress, meaning those savings become important even without a job loss or physical ailment.

TLDR; building a buffer is important

 

[The Sum of Awe]

I would say I have some cushion in savings, not much though. It’s a very slow savings and some months I do not save anything. I’m in the US making about $19 an hour.

 

[TagliatelliMonster]

For the purpose of this thread, "substantial savings" are enough money to cover your basic expenses—including rent, bills, and food—for at least three months where you live if you lost your income today.

The poll is anonymous.

I have "substantial" savings, but simultanously we currently live paycheck to paycheck, in the sense that we just have enough income to get through the month without digging into the savings, but not enough to add additional savings.

This is mainly because our company isn't generating enough revenue yet.
It's growing steadily so I hope that 2023 is the year where I can go over that bar again and give myself a nice raise.

As it stands, all our employees earn more then me, El Capitano

Off course, I own a third of the company and those shares are worth a good amount as well. You could say that those are "savings" also. You wouldn't be wrong.
At the same time though... I'ld have to sell them in order to use that cash.

So for the time being, it's not like they help me in any way in paying bills.

 

[Debater Slayer]

I have "substantial" savings, but simultanously we currently live paycheck to paycheck, in the sense that we just have enough income to get through the month without digging into the savings, but not enough to add additional savings.

This is mainly because our company isn't generating enough revenue yet.
It's growing steadily so I hope that 2023 is the year where I can go over that bar again and give myself a nice raise.

As it stands, all our employees earn more then me, El Capitano

Off course, I own a third of the company and those shares are worth a good amount as well. You could say that those are "savings" also. You wouldn't be wrong.
At the same time though... I'ld have to sell them in order to use that cash.

So for the time being, it's not like they help me in any way in paying bills.

Good luck with the company! I hope this year proves even better than you expect it to be.

 

[Viker]

I have plenty and I am comfortable. I plan on winding down my money making soon. I have enough already to do me another lifetime.

 

[Wildswanderer]

I haven't had a paycheck for a very long time, I guess you could say I live customer to customer.
Ok, not quite but I don't have a whole lot put back.

 

[Debater Slayer]

I have plenty and I am comfortable. I plan on winding down my money making soon. I have enough already to do me another lifetime.

Happy Birthday!

 

[Revoltingest]

I have plenty and I am comfortable. I plan on winding down my money making soon. I have enough already to do me another lifetime.

I don't mind making more money.
It's working for it that gets in the way.

 

[idea]

I lived paycheck to paycheck in college, just different stages in life and circumstances. I'm in dual-income home, and in a multi-generational net - my parents supported me, and I supported my kids, my kids will support me, and I will support my parents if needed. (have large enough saving and health insurance that it should not be needed either way.

Do families not support one another anymore? Just move in with parents/kids if things get bad?

ETA: when in college, I lived off cheap food and housing, walked, found the cheap rent. Had student loans paid off before graduating. Minimalism is a good thing, I have good memories of those years.

 

[Viker]

Happy Birthday!

Thank you!

 

[Viker]

I don't mind making more money.
It's working for it that gets in the way.

I hate that four letter word. W**k.

 

[Debater Slayer]

I lived paycheck to paycheck in college, just different stages in life and circumstances. I'm in dual-income home, and in a multi-generational net - my parents supported me, and I supported my kids, my kids will support me, and I will support my parents if needed. (have large enough saving and health insurance that it should not be needed either way.

Do families not support one another anymore? Just move in with parents/kids if things get bad?

In my culture (Arab), parents typically support their kids, and vice versa. Sometimes relatives besides immediate family also step in. (Our extended family stepped in and paid off major debt that my parents had many years ago. We're doing much better now.)

 

[idea]

In my culture (Arab), parents typically support their kids, and vice versa. Sometimes relatives besides immediate family also step in. (Our extended family stepped in and paid off major debt that my parents had many years ago. We're doing much better now.)

In America more and more grandparents are stepping in to help with kids, and more and more kids are learning they do not have to leave home to attend college. I'm not sure what started the culture of - move out as soon as you can - in America. I sure wish my parents were around to help out when I had kids (we moved to another state for jobs). I'm trying to talk my kids into staying local, although we've already had one leave the nest

 

[TagliatelliMonster]

I have plenty and I am comfortable. I plan on winding down my money making soon. I have enough already to do me another lifetime.

What do you do for a living?

if you don't mind me asking

 

[Vinayaka]

I have 3 income sources: CPP, (Canada pension Plan) OAS, (Old Age Security) and my teacher's pension. Boss gets her CPP (nowhere near as much as mine, and OAS and the rental income from the one room in the house we rent.

 

[Koldo]

We live off income from savings/equity.
I get Social Security.
Mrs Revolt works now & then.
And our expenses are low.
(I have a home loan only because I lend
out the money at a higher interest rate.)

Ah, a loan shark.
New pic for yer avatar then:

 

[wandering peacefully]

I am fortunate enough to have cash for food , heat and shelter and also land to use for backup income if necessary.. it is handy and I wish more people didn't have to struggle.