Poll:Living paycheck to paycheck

[Bestwifeever]

We always saved first, into the retirement accounts only, and then lived paycheck to paycheck until the kids were out of college. We didn't go over the remaining income or cut back on the savings, but we cut it as closely as we could. I was laughing to DH after paying a bill last week about how I used to sort the bills out and figure out what was due when, even writing the date in the stamp area on the envelope for when to mail it, versus today when it just gets paid right away without having to think when money would be in the checking account. When we had extra, we found a way to spend it, almost always on a kid's activity or taking them travelling overseas.

Don't regret those days one bit. Maybe in my next life I'll learn how to budget and set aside funds for future expenses, but probably not.

[GoodWishes]

When DH and I bought our first house, we used up all our savings for the down payment and lived paycheck to paycheck for several months until we started saving again. We lived in the house for a while with no furniture except for the mattress on the floor, no washer/dryer, no garage door opener (hard for me to lift the old heavy double garage door). We made a list of prioritized wants and got everything over the next year or so.

[ejman]

We were fortunate that we decided that instead of a fancy wedding we asked parents for a trailer to live in while we were both working full time and attending college in Texas. Rent for the trailer spot was $30 a month and we started saving money just about out the gate. Old cars that I did all maintenance on, delaying kids until we had both graduated. We had saved so much that we were able to buy a new house even before finishing graduate school. Of course, tuition at the University of Texas was $50/semester back then...

[joeea]

I've never had to live paycheck to paycheck.

My parents did for some years. I have been fortunate enough to be able to avoid that.

[bradaz2488]

Always kept a stash of cash to cover unexpected expenses. Never was late on a bill or rent and was lucky to have good roommates. Only used a credit car for emergency expenses like car repairs. Seems like the younger generation is willing to spend more and put more on their credit cards to go on big trips. We know a lot of people between 20-to-30 at the restaurant we go to and I'm amazed on the number trips they go on a year and even out of the country. When I was their age I would never consider spending that much $ just on trips. Then again, when I was a kid our big vacation was pilling in the car and going to see Grandma & Grandpa. No extravagant amusement park vacation for our family. Now I sound like a old man

[tdv2]

Never lived paycheck to paycheck for two reasons. 1. I was fortunate to have work right when I graduated college and; 2. I had LYBM programmed in me from my parents at an early age.

[Nodak]

I grew up poor and after college for a few years I lived paycheck to paycheck in a small apartment furnished in early Salvation Army.

[GrayHare]

I worked enough during later college years to cover expenses, including tuition, then the week after graduation took on a 2nd job. Via that I avoided paycheck to paycheck.

[street]

I always saved and I never have lived pay check to pay check.

[FI_RElater]

It ain't real unless you remember picking up aluminum cans along the highway for, maybe, 12-13 cents a pound --- man those were tough times.

[socca]

Quote:

Originally Posted by GoodWishes When DH and I bought our first house, we used up all our savings for the down payment and lived paycheck to paycheck for several months until we started saving again.

After buying my first house in Chicago in the early '90s, I used to haul my trash to a local dumpster because I didn't want to pay for trash pickup. Living paycheck-to-paycheck? Heck no. I just wanted to get my $100k mortgage paid off ASAP (took four years). Not my finest moment from an ethical standpoint, but I guess every little bit helped.

[cranberryjoe]

When I was in grad school in a high COLA area, the paycheck from my job was barely more than my rent. I remember worrying if my paycheck was delayed I would miss the rent payment because my checking account balance was otherwise never quite enough to cover the rent.

Thinking back on those days it's no wonder I didn't have a social life - I couldn't afford one! After rent, cheap meals cooked in my apartment, and gas for the car, I think I managed to save $20 a month because I remember buying a lens for my camera during that time, probably about $125, which nearly wiped out my savings. What a relief when I graduated and started pulling a real paycheck. My frugal ways were set, though, and here I am almost 40 years later FIREd and spending whatever and whenever I want!

[Fedup]

I did live from paycheck to paycheck the first few years after college. I can't remember when I get my first credit card, but that helped with cash flow problem. I didn't have to worry about whether I have enough for food.

[FlaGator]

I'm in the 5-10 bracket, and closer to 10.

All through college, a few years after and then a few more in the late 80's-early 90's when my career plans changed without my permission

Never forgot what I learned from those experiences, and spending in later years was more prudent (and income more bountiful)

[Mulligan]

Quote:

Originally Posted by Aerides Until I was about 30 tbh. From 21-25 I would cut it very close. I remember rolling up quarters, or running to the grocery store to cash a check on a Wednesday because I knew it would float till Friday (payday) - before the days of insta-clear. I played credit card floats and all sorts of silliness. From about 25 - 30 I would strictly budget a few paychecks out, got debts paid down, and got started on savings.

I cant let the silliness go. Even now I still have about 12k on a CC float. I bet I have owed the CC for 20 years running. I could pay it off but I get bombarded with 2% access checks 0% 12-15 months and just roll them over. Pay it down and something always comes up. My latest is my vehicle. Bought a used one on my credit card and pay it off as I go.
Of course I could pay it off, but I like running my debts through my monthly pension cash flow, not my savings/investments.

[W2R]

Quote:

Originally Posted by FI_RElater It ain't real unless you remember picking up aluminum cans along the highway for, maybe, 12-13 cents a pound --- man those were tough times.

Those cans were great income when the month lasted longer than the paycheck, though!

[ohyes]

I remember living paycheck to paycheck well. DH and I lived that way for years, looking forward to income tax refund time.

A couple weeks ago, we purchased a (used)computer tower from a local business. We are acquainted with one of the owners. We were reminiscing about the good old days. She joked that a group she meets with each Tuesday at a local pizza joint (same night DH and I often go and that is how we kinda know her) were talking about how great it is to be older.....when the checking account service charge no longer poses a threat. Ha ha, i totally get that.

DH and I still cut it close each month. The difference : these days, we have money in other savings accounts than can rescue us. We seldom use them, but we never had the luxury of their existence back-in-the-day.

[Luck_Club]

I could say never but chose the 5-10 year. I always met my obligations and only had a few times I had to pay a late payment fee more due to poor planning then not having enough.

With that said. I have used debt strategically my entire life to make sure the ball kept moving forward.

[RobLJ]

Undergrad through most of grad school.
I did borrow some, so it probably wasn't paycheck to paycheck, if you want to be overly literal; it was worse.
In retrospect, it was good times; I could afford a six pack of Old Milwaukee tall boys 2-3 times a week--that was Good Times!
(I don't think DW and I had positive net worth until about 1990, give or take a few years.)

In retrospect, borrowing 2k on my Dad's signature loan in 1980 to go across the country to grad school and then borrowing another 10k to fund the next two years was the best investment I ever made.
That's in retrospect, of course. I'm fairly sure I would not be here without my father's cosign or the gubbermint graduate loan program and living negative paycheck to paycheck; I would still be living paycheck to paycheck now, I suspect.
YMMV.

[Ready-4-ER-at-14]

Did a lot of schooling and advanced degrees, paid off all debts quite quickly, and had kids early by todays standards. Bought some of the middle class toys as well when young.

Sometimes what was in the freezer, what was in the cupboards, stored fuel oil for the winter, a token amount saved, and credit card spending balance were my three month emergency funds. Focused on no debt rather than passive income at start. Went through one lay off but found a job quickly.

Family was not really money centered nor money smart so I mostly stumbled upon ways to save money on expenses, and finally to have money work for me. Unexpected divorce send me financially below water for a while. Learned a lot about humility then.

Probably later than some others here I figured investing out and let money work for me. That was when I quit looking for capital gain and wanted cash flow.