Most Americans live paycheck to paycheck

[james.hendrickson]

From CNBC.

Most Americans live paycheck to paycheck

* Nearly 10 percent of those making $100,000 or more say they can't make ends meet.
* Overall, most workers said they are in debt and many believe they always will be.

By Jessica Dickler | @jdickler
Published 10 Hours Ago | Updated 7 Hours Ago
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No matter how much you earn, getting by is still a struggle for most people these days.

Seventy-eight percent of full-time workers said they live paycheck to paycheck, up from 75 percent last year, according to a recent report from CareerBuilder.

Overall, 71 percent of all U.S. workers said they're now in debt, up from 68 percent a year ago, CareerBuilder said.

While 46 percent said their debt is manageable, 56 percent said they were in over their heads. About 56 percent also save $100 or less each month, according to CareerBuilder. The job-hunting site polled over 2,000 hiring and human resource managers and more than 3,000 full-time employees between May and June.

Most financial experts recommend stashing at least a six-month cushion in an emergency fund to cover anything from a dental bill to a car repair — and more if you are the sole breadwinner in your family or in business for yourself.

While household income has grown over the past decade, it has failed to keep up with the increased cost-of-living over the same period.

Even those making over six figures said they struggle to make ends meet, the report said. Nearly 1 in 10 of those making $100,000 or more said they usually or always live paycheck to paycheck, and 59 percent of those in that salary range said they were in the red.

Link: https://www.cnbc.com/2017/08/24/most...-paycheck.html

[Smallsteps]

When you read these stats what comes to mind?
What angle does the articles suggest perhaps need for some government intervention.
My thought goes to priorities. I have worked in industries that had first time workers like retail/ customer service I have worked with people whom was doing very well along with people whom are simply one step away from complete disaster. In my experience most of those having a bad time have made really "poor" choices. The biggest mistakes made are spending before cash in hand.
Many have the idea that their financial life would be fixed by a better job, raise when in fact there ARE many workers who are making progress even in low wage jobs.
Where is the coverage for that?
Occasionally we see a simple worker leaving a large inheritance to a charity. People always down play how hard and the dedication it took to amass a fortune.
If anyone wants to fix wealth disparity you need to encourage personal responsibility which by the way cannot be legislated.

[snafu]

It seems nothing was learned from the financial crisis nearly a decade ago. Financial institutions have unrealistic quotas to meet and give ridiculous amounts of credit to make their numbers.

Consumers can't seem to wrap their heads around the fact that their Gross income is not their Net income and that a lot of Net income is already committed to basics like rent/mortgage, utilities, food, clothes and transportation. All you really control is the Discretionary sum left.

Our morning show is talking about 'Best Toy Awards' just now. The top 3 preferred by the testing kiddies were all over $ 100.

I can't begin to imagine what things will look like when seniors whose salaries were automatically pensioned are gone. Who will be supporting all these folks who are so busy being consumers they are unable to save for retirement?

[amarowsky]

This same thing worries me when I hear about these tremendous successes w/ Real estate investing.

RE investing guru's almost always seem to be just promoting constant acquisition of rentals for income (through massive leveraging).... To me it seems to be too risky...

I think I'm comfortable with the idea to leverage maybe 3x your income ( I believe same rule of thumb for purchasing your residence).

So on my current plan, if I make 70k, I should not go over 210K of debt, even if it is income producing. So if my home mortgage + auto loan + investment property go over 210K debt, I should not consider acquiring more. Ideally, I'd like to have everything paid off, and then take out a new loan for a house and have someone rent it, and use the surplus to pay itself off. Rinse and repeat.

Not as aggressive, and not taking full advantage of leveraging. But this just seems like such a more comfortable tolerance of debt to me.

I couldn't imagine living paycheck to paycheck @ 100K income.... Between the wife AND I we're at right around 100K income, and I think we are running a $3,200 monthly surplus (after retirement savings of 1 fully funded Roth + 401k's, mortgage, insurances, utilities, and car loan+insurance). Granted maybe 1-1.5k of that goes to random monthy living expenses (eating out, drinking, travel, home stuff, ). I think we still save roughly $1-2k a month.

If I alone made 100k, I think the Net income Delta from my 70k --> 100K would almost all go into investing + mortgage payoff. I'd be SET in like 4 - 5 years, instead of my current forecasted 9 years.

9 years 3 months, is my target for our financial freedom/Independence.

[bjsint]

I read that raising a child from brith too 17 will cost you $233,610 or about $14,000 annually... which seems on the low side.

My parents had 3 kids in private school(public school Uk). I think we were living paycheck to paycheck back then, even though my Dad earns within the top 5% and paid the highest tax bracket.

There's no way even they could afford that theses days.

[Gailete]

Many have the idea that their financial life would be fixed by a better job, raise when in fact there ARE many workers who are making progress even in low wage jobs.
Where is the coverage for that?
Occasionally we see a simple worker leaving a large inheritance to a charity. People always down play how hard and the dedication it took to amass a fortune.
If anyone wants to fix wealth disparity you need to encourage personal responsibility which by the way cannot be legislated.
Like

In about 30 years, things are going to be really, really bad for those folks going into retirement with loads of debt and they never got their McMansion paid off either and they have so many home loans against its value, that they will never pay them off. I truly believe that at least those in the $100K/year class should all be able to find $100/month out of their budget to save - they should be able to save even more than that. Excuses won't cut it at all. Even those that don't make much and think that they can't save anything, most if they try can shake some nickles and dimes loose. There are ways that if nothing else they can do in front of the TV such as surfing the interenet, surveys, etc. that even if they don't pay much, they pay better than zero. Take that money and save that money in an agressive savings vehicle of some kind. There are many ways to live frugally, especially when you are healthy and can do the frugal things. If physically you can't travel all over for the best savings, then be sure you are using loyalty cards to save on what you are buying. But somehow living frugally isn't as popular as spending money on anything you want.

[LivingAlmostLarge]

none of this will matter until people retire without pensions. I mean a majority of people retire without pensions. Being 38 I have few friends with pensions. Majority don't. But majority of them have parents with pensions. So it's a very different ballgame now.

[Jluke]

I truly believe that at least those in the $100K/year class should all be able to find $100/month out of their budget to save - they should be able to save even more than that.

100k/year gross: minus taxes, minus healthcare, minus 18500 to max the 401k.

about 60k Net out of the 100k gross...

lose ~21500 of your earnings to the above... and another 18500 you can't touch...

If I alone made 100k, I think the Net income Delta from my 70k --> 100K would almost all go into investing + mortgage payoff. I'd be SET in like 4 - 5 years, instead of my current forecasted 9 years.

your delta would go to taxes....

[Cobainik]

I am a doctor. I have 100k student loan debt. I own a car but I uasually prefer to bike to work. I don't even eat out. I live in Chicago and don't feel like I am living luxuriously. I just don't comprehend why I don't have any money. My parents raised my three siblings and me on less money than I make on my own. It feels like I should be swimming in money, but rather, I have only 20k in the bank after seven years of a six-figure income and have made minimal progress on my student loans.I need to know how to get a pay stub to see if I did the math wrong somehow.

[bjl584]

I am a doctor. I have 100k student loan debt. I own a car but I uasually prefer to bike to work. I don't even eat out. I live in Chicago and don't feel like I am living luxuriously. I just don't comprehend why I don't have any money. My parents raised my three siblings and me on less money than I make on my own. It feels like I should be swimming in money, but rather, I have only 20k in the bank after seven years of a six-figure income and have made minimal progress on my student loans. I need to know how to get a pay stub to see if I did the math wrong somehow.

You'd get more traction if if started a new thread with this question as opposed to replying to a 4 year old post that only vaguely relates to what you are asking.

[disneysteve]

I am a doctor. I have 100k student loan debt. I own a car but I uasually prefer to bike to work. I don't even eat out. I live in Chicago and don't feel like I am living luxuriously. I just don't comprehend why I don't have any money. My parents raised my three siblings and me on less money than I make on my own. It feels like I should be swimming in money, but rather, I have only 20k in the bank after seven years of a six-figure income and have made minimal progress on my student loans.I need to know how to get a pay stub to see if I did the math wrong somehow.

Welcome. I agree with starting a new thread, but until then: You don't have an income problem, you have a spending problem. The way to attack this is to look at a detailed list of where every dollar is going. Do you know? Do you track that? If you're earning 6 figures and have put away less than 3K/yr for 7 years, you're spending too much.

If you're willing, post your spending breakdown and we'll be happy to help point out places where you can cut back and direct more to saving and debt repayment.