4 in 10 Americans live paycheck to paycheck

[youbet]

There will always be people living paycheck to paycheck. I don’t really worry about it, but glad to know it’s only 4 in 10 in the US.

+1

Sometimes there does seem to be a preoccupation on the part of some on this forum with fretting over the life decisions or circumstances of others, even when those things have no impact on ourselves. Sort of a "gossipy" thing.

Congratulations to you for standing above the fray! It demonstrates a high level of self-confidence and personal responsibility.

 

[pjigar]

You hardly seem like the type of person who spends $600 on a pair of shoes. Affording to be generous is a good quality, but you can afford it. When we go out to dinner with family, my DB thinks we're cheap if we don't want to spend $200 on a bottle of wine. My issue is the psychology behind spending. I can't tell the difference if someone is wearing Polo or Walmart and I just don't get the need to feel better about yourself if you spend more on something.

I think it is more about mindset. I feel very good about myself when I actually pay less for a good purchase. I only pay for the "utility value" of any product. If it is a high quality item that will last me twice as long then it deserves twice as much price.

But you are right, most people feel good about themselves when they spend more! It is completely illogical to me: You just "lost" whole bunch of money (i.e. the time it took to earn them) and you are supposed to feel good about it?

 

[youbet]

But you are right, most people feel good about themselves when they spend more!

Really? I don't have a study or statistics to back it up, but among the folks I know, most enjoy getting a good deal rather than paying more. Example: friends will often mention they shopped hard and got a good deal on their car (purchase or lease). Few boast that they feel good that they paid more for the same made and model just because "spending more makes them feel good about themselves."

I also note that our local grocery which gives a 10% discount to seniors on Tuesdays is packed with customers at that time. Few seem to be looking for an opportunity to pay 10% more for the same thing.

I'm aware of the concept you're referring to, but I'm questioning that it applies to "most people."

 

[scrabbler1]

Being paid every 2 weeks, I had a friend who considered the 3rd paycheck of some months (as some months would inevitably have 3 pay-outs instead of 2) to be a freebie, money she could spend freely. I was like, what?

I always considered those 3rd paychecks freebies because I, like 38chevy wrote, set up my budget for 2 paychecks per month. One paycheck covered all or most of my big monthly expenses I had to pay at the start of the month, the other covered the smaller, mid-month expenses and sometimes the leftover start-month expenses. A third paycheck was pure gravy.

After I paid off the mortgage, I had leftover money from both paychecks, so that third paycheck was gravy on top of gravy.

 

[pjigar]

Really? I don't have a study or statistics to back it up, but among the folks I know, most enjoy getting a good deal rather than paying more. Example: friends will often mention they shopped hard and got a good deal on their car (purchase or lease). Few boast that they feel good that they paid more for the same made and model just because "spending more makes them feel good about themselves."



I also note that our local grocery which gives a 10% discount to seniors on Tuesdays is packed with customers at that time. Few seem to be looking for an opportunity to pay 10% more for the same thing.



I'm aware of the concept you're referring to, but I'm questioning that it applies to "most people."

I should say, most people around me in a big city. My own anecdotal observation.

 

[Amethyst]

Personally, I wish I could obtain the best of everything for free

Speaking as someone who knows fabric, how clothing is constructed, etc., there certainly is a vast difference between designer and Walmart clothing, in terms of how well the clothes fit and whether they wear well over time.

That said, a person whose sense of self-worth is wrapped up in how much they can afford to spend, is missing something about self-worth. It's like having class: you either do, or you don't, and money won't help you fake it (although it may cause others to pretend not to perceive your lack). Spending money to "fix" self-worth is like putting wallpaper on a wall that is falling down.

My issue is the psychology behind spending. I can't tell the difference if someone is wearing Polo or Walmart and I just don't get the need to feel better about yourself if you spend more on something.

 

[Rianne]

Dave Ramsey has an interesting solution to this problem. I've not taken his class, but our church at the time hosted his classes and I heard this: You take your net pay in cash, put it in an envelope. Then have other envelopes with bill types written on them. So, mortgage $1000 of that cash goes in there. Car payment $400 of that cash goes in there etc

His philosophy is when you see, feel the "cash" it makes it harder to blow. When the reality of the actual money going into different envelopes, that feels real. He hates credit cards for this reason.

In that church, he helped many people get out of debt and understand how they were spending money. I heard so many positive stories of success.

 

[tmm99]

I always considered those 3rd paychecks freebies because I, like 38chevy wrote, set up my budget for 2 paychecks per month. One paycheck covered all or most of my big monthly expenses I had to pay at the start of the month, the other covered the smaller, mid-month expenses and sometimes the leftover start-month expenses. A third paycheck was pure gravy.

After I paid off the mortgage, I had leftover money from both paychecks, so that third paycheck was gravy on top of gravy.

I see. I thought this method was employed by people who are living month-to-month, but maybe not.

 

[SumDay]

I have an acquaintance who was complaining about the high fees & penalty charged by the county for late property payments, which are due 12/31. I suggested she open a Christmas Club account at a local credit union and deposit 1/12 (math is hard) of the total amount each month and then they'd have the money to pay it on time. Her: "I can't afford to put $120 a month away all year!" No, but they seem to be able to afford $400+ in penalties, accompanied by the stress of threatening letters sent by the county. I'll never, ever get it. They both have new cars, by the way.

 

[Gumby]

I have an acquaintance who was complaining about the high fees & penalty charged by the county for late property payments, which are due 12/31. I suggested she open a Christmas Club account at a local credit union and deposit 1/12 (math is hard) of the total amount each month and then they'd have the money to pay it on time. Her: "I can't afford to put $120 a month away all year!" No, but they seem to be able to afford $400+ in penalties, accompanied by the stress of threatening letters sent by the county. I'll never, ever get it. They both have new cars, by the way.

On the first of each month, I put a debit entry in my check book for 1/12th of our property tax payment. Every six months, when the tax is due, I reverse the accumulated debits and make the payment. It is a trick I learned long ago - if you don't see the money, you won't spend it. It is no longer necessary to do this given our current financial situation, but the frugal habits of a lifetime are hard to change.

 

[gerntz]

Things could get rough then with a long govt shutdown

Let me know when that happens. As is, relatively small part.

 

[youbet]

Isn't it true that in some or most (all?) of past shutdowns, the gov't workers were eventually paid, in arrears, for staying home? That is, it turned into a paid vacation. It seems like it's the tax payers who are getting screwed here. Expenses stay the same while services are reduced.

I just saw a furloughed worker on TV being interviewed. She was furious that she was expected to be on call to return to work on short notice. She wants to go to Calif to visit family she missed out on seeing over the holidays and doesn't want to have to rush back if the shutdown ends.

I guess the shutdown is impacting workers in various ways depending on their circumstances.

 

[MichaelB]

Contractors are also not getting paid, and my guess would be they are not likely to get retroactive compensation.

 

[youbet]

https://wamu.org/story/18/12/21/how...deral-workers-and-the-rest-of-the-d-c-region/

While Congress traditionally promises to retroactively pay back federal workers for any missed paychecks, that can only take place once the shutdown ends.

Federal contractors typically do not receive back pay following a shutdown— at least from the government.

Yeah, sounds like the actual fed employees will likely be fully paid in arrears and only those living on a paycheck to paycheck basis will find it detrimental. It'll be a paid vacation for folks with a decent emergency fund.

Contractors, not so much. And that's consistent with the private sector where, depending on the contract, they could be cut instantly and without severance benefits (the reason contractors are brought on in most cases).

 

[joeea]

I always considered those 3rd paychecks freebies because I, like 38chevy wrote, set up my budget for 2 paychecks per month.

If you got a tax refund, did you also consider that a freebie, rather than a 0% loan to the government?

 

[joeea]

Yeah, sounds like the actual fed employees will likely be fully paid in arrears and only those living on a paycheck to paycheck basis will find it detrimental. It'll be a paid vacation for folks with a decent emergency fund.

There are no guarantees. I wouldn't bank on what "traditionally" happened.

Oh, and while they were out, their promised 2019 pay raise was canceled. Some vacation.

 

[aja8888]

Contractors are also not getting paid, and my guess would be they are not likely to get retroactive compensation.

I worked as a contractor fo years for various companies. I was never paid for not working. That's not anything new.

 

[RAE]

Yeah, sounds like the actual fed employees will likely be fully paid in arrears and only those living on a paycheck to paycheck basis will find it detrimental. It'll be a paid vacation for folks with a decent emergency fund.

Fed. employees are typically eventually paid for the shutdown days that they were scheduled to work, but there is no absolute guarantee of that.....Congress has to pass a bill each time, authorizing that to happen. And with regard to it being basically a "paid vacation", I wouldn't exactly call it that. For one thing, fed. employees typically don't have much warning when a shutdown will begin, or when it will end. When you take a vacation, you get to plan (in advance) when to leave and when to return. So basically, during a shutdown, you have to get up each morning and check the news to find out if you are to report work tomorrow, or not. So you really can't plan anything much more than a day, or maybe a few days (at most), in advance. And, speaking from experience (as I have gone through a few shutdowns as a fed. employee), when you eventually do get back to work, your various project deadlines have not changed, and now you are behind, so you have to scramble to try to catch up. So it's not a whole lot of fun, even if you have an emergency fund to cover your expenses for a while. I don't know of too many fed. employees who are happy about any govt. shutdown.

 

[scrabbler1]

If you got a tax refund, did you also consider that a freebie, rather than a 0% loan to the government?

I never considered it either one. I very rarely got income tax refunds, and sometimes they were due to mistakes I (or my payroll department) made in withholding or estimated tax payments.

 

[MrsHaloFIRE]

Isn't it true that in some or most (all?) of past shutdowns, the gov't workers were eventually paid, in arrears, for staying home? That is, it turned into a paid vacation. It seems like it's the tax payers who are getting screwed here. Expenses stay the same while services are reduced.

I just saw a furloughed worker on TV being interviewed. She was furious that she was expected to be on call to return to work on short notice. She wants to go to Calif to visit family she missed out on seeing over the holidays and doesn't want to have to rush back if the shutdown ends.

I guess the shutdown is impacting workers in various ways depending on their circumstances.

I was a federali for years. For every shutdown due to lapse in appropriations I was paid. I also recall at my agency if you had scheduled leave during shutdown it was cancelled, you were off anyway so you did your planned thing like your dental appt etc, and then when the shutdown was over you were paid for the whole shutdown including the time you would have been burning leave. My agency however was furloughed one summer, I think it was 2013 And we had to take one day off unpaid per pay period for a couple months. I recall co-workers putting it off thinkung they wouldn't have to do it until the last Thursday of the pay period when their supervusors had to tell them to not come in the following day for their unpaid day. I recall a GS-13 cancelling a planned holiday cruise because of this.

 

[MrsHaloFIRE]

Fed. employees are typically eventually paid for the shutdown days that they were scheduled to work, but there is no absolute guarantee of that.....Congress has to pass a bill each time, authorizing that to happen. And with regard to it being basically a "paid vacation", I wouldn't exactly call it that. For one thing, fed. employees typically don't have much warning when a shutdown will begin, or when it will end. When you take a vacation, you get to plan (in advance) when to leave and when to return. So basically, during a shutdown, you have to get up each morning and check the news to find out if you are to report work tomorrow, or not. So you really can't plan anything much more than a day, or maybe a few days (at most), in advance. And, speaking from experience (as I have gone through a few shutdowns as a fed. employee), when you eventually do get back to work, your various project deadlines have not changed, and now you are behind, so you have to scramble to try to catch up. So it's not a whole lot of fun, even if you have an emergency fund to cover your expenses for a while. I don't know of too many fed. employees who are happy about any govt. shutdown.

Yes!!! I recall leaving town on day 3 of a shutdown to go see my parents. Shutdown continued a couple days then we were told to come back. I recall sending a very frank but nice email to my boss that I was several hours away enjoying visiting my parents, respectfully requesting annual leave and I would see him Monday morning. He happily approved.

 

[Elbata]

Quote:
Originally Posted by audreyh1 View Post
There will always be people living paycheck to paycheck. I don’t really worry about it, but glad to know it’s only 4 in 10 in the US.
+1

"Sometimes there does seem to be a preoccupation on the part of some on this forum with fretting over the life decisions or circumstances of others, even when those things have no impact on ourselves. Sort of a "gossipy" thing.

Congratulations to you for standing above the fray! It demonstrates a high level of self-confidence and personal responsibility."

-------------------------------

I see what you're saying--re: "life decisions" or at times people having no choice.

For me, it's kind of a weird spot to be in. Not that I see myself superior, but it's sad to see how life's decisions can lead to so much want.

I'm now in a place that I'll never have to lift a finger for the rest of my life. Food, shelter, clothing, whatever, it's taken care of. I believe Bob Brinker's term was "terminal velocity", where enough income would continually overtake the decome.

So seeing people with such want, it's instinctual to want to help, not to sit there and be judgmental.

 

[HFWR]

I grew up without a cell phone...

Whoa -seriously?

We had a party line...

 

[NW-Bound]

We had to use cans linked by a string.

 

[GravitySucks]

We had to use cans linked by a string.

We had to climb mountains and start fires.