Survey: 64% of Americans Now Living Paycheck to Paycheck

[Amethyst]

Thrift stores in my area tend to charge ridiculous prices for old furniture, dishes, glasses, etc. Somebody must be paying, or they couldn't charge so much.

I suspect their custom comes from a) new immigrants and b) furnished rentals, AirBnBs and the like.

 

[street]

Getting back to the advertising and Tv commercial business. Companies advertise because every day there are new customers that have not heard of them. Even if that new contact can remember the name and one small thing that is advertised, they have accomplished their goal. It's not like that person or a new person that has heard of them just go out and bay that day. It is a long-term sales goal that someone will remember that product.

 

[Badger]

Thrift stores in my area tend to charge ridiculous prices for old furniture, dishes, glasses, etc. Somebody must be paying, or they couldn't charge so much.

I suspect their custom comes from a) new immigrants and b) furnished rentals, AirBnBs and the like.

I see this too but I thought it was just me in my frugal mode. Thrift stores, antique stores, flea markets were a way of life during my younger years in the 70s-80s and I could find some nice quality furniture (often made better than most of the new stuff) at very reasonable prices. I have around 11 pieces of that furniture that I still use daily. I still browse occasionally for the nostalgia but the prices are too high for what they offer.


Cheers!

 

[Amethyst]

Yep. I kept some of that furniture for 40 years! Only gave it up when we moved to Florida - it wasn't worth paying to move it across the country.

Thrift stores, antique stores, flea markets were a way of life during my younger years in the 70s-80s and I could find some nice quality furniture (often made better than most of the new stuff) at very reasonable prices.

 

[disneysteve]

Pay check to pay check means that in time you get paycheck your bank account is empty.
While I have no doubt that there are people in US who live like this (it was period in my life when I was in this situation) I doubt that there are 64%.

You'd be surprised how many people live this way.

My wife used to work at a place and on payday, everyone would run to the bank on their lunch break to cash their check so that they could afford to buy lunch that day. They were broke by the time payday came around every 2 weeks. Zero savings.

I haven't used an ATM for a long time but when I did, I used to notice the receipts people left behind. I was surprised how many receipts showed a balance of under $100, sometimes a lot under.

My MIL worked at a place where they got paid weekly. For years, the owner wanted to switch to paying every 2 weeks. The staff complained because that meant when they transitioned, there would be one week without a paycheck and they wouldn't be able to manage. Their last 1-week check wouldn't carry them for 2 weeks. They had no savings, not even a 1-week emergency fund.

I'm not talking about high school or college kids here. I'm talking about adults with spouses and kids and cars and houses. So much of what you see on the surface is a facade for many people.

 

[Magus]

You'd be surprised how many people live this way.

My wife used to work at a place and on payday, everyone would run to the bank on their lunch break to cash their check so that they could afford to buy lunch that day. They were broke by the time payday came around every 2 weeks. Zero savings.

I haven't used an ATM for a long time but when I did, I used to notice the receipts people left behind. I was surprised how many receipts showed a balance of under $100, sometimes a lot under.

My MIL worked at a place where they got paid weekly. For years, the owner wanted to switch to paying every 2 weeks. The staff complained because that meant when they transitioned, there would be one week without a paycheck and they wouldn't be able to manage. Their last 1-week check wouldn't carry them for 2 weeks. They had no savings, not even a 1-week emergency fund.

I'm not talking about high school or college kids here. I'm talking about adults with spouses and kids and cars and houses. So much of what you see on the surface is a facade for many people.

Indeed. My 38 year brother and his fiancé live like this as do my sister in law and her husband and my 58 year old aunt and all her kids. More and more companies have gone to weekly paychecks (and some even daily!) due to complaints about not being able to cover till their next check. It's a mind-boggling way to live for me, especially when at least in the case of my family i know how much they are blowing on energy drinks, cigarettes, lottery tickets, dining out, etc yet don't have the money to supposedly buy gas or milk. When I was like this as a college dropout at 20 years old, it encouraged me to work my butt off, cut my spending and create a savings accounts.

There are videos out there of Walmart on Thursday midnight for payday/EBT reloads...its pretty eye-opening.

 

[scrabbler1]

You'd be surprised how many people live this way.

My wife used to work at a place and on payday, everyone would run to the bank on their lunch break to cash their check so that they could afford to buy lunch that day. They were broke by the time payday came around every 2 weeks. Zero savings.

I haven't used an ATM for a long time but when I did, I used to notice the receipts people left behind. I was surprised how many receipts showed a balance of under $100, sometimes a lot under.

My MIL worked at a place where they got paid weekly. For years, the owner wanted to switch to paying every 2 weeks. The staff complained because that meant when they transitioned, there would be one week without a paycheck and they wouldn't be able to manage. Their last 1-week check wouldn't carry them for 2 weeks. They had no savings, not even a 1-week emergency fund.

I'm not talking about high school or college kids here. I'm talking about adults with spouses and kids and cars and houses. So much of what you see on the surface is a facade for many people.

This reminds me a little of something which happened when I first switched from working full-time to part-time back in 2001. Because I also switched from working for a straight salary to an hourly basis, I began getting paid on a 2-week lag. This caused me to "miss" one pay period, something I recovered when I left the company years later (when my hourly pay was higher ).

However, my boss didn't tell me about it until the next payday, when I received no paycheck. She was rather embarrassed and apologized profusely. I simply shrugged and said, "It's no big deal, don't worry about it." She was relieved but was a bit surprised at my "meh" reaction.

 

[Amethyst]

When I started my "career" job, after moving 1,000 miles to the new location, I wasn't paid for 3 weeks because Federal employees are paid biweekly in arrears. Had spent virtually all my slim savings on 3 months' rent up front, plus a deposit on telephone and electric accounts, and had just enough left to make a car payment and pick up a few groceries.

That was a lean and hungry 3 weeks.

 

[athena53]

My wife used to work at a place and on payday, everyone would run to the bank on their lunch break to cash their check so that they could afford to buy lunch that day. They were broke by the time payday came around every 2 weeks. Zero savings.<snip>

My MIL worked at a place where they got paid weekly. For years, the owner wanted to switch to paying every 2 weeks. The staff complained because that meant when they transitioned, there would be one week without a paycheck and they wouldn't be able to manage. Their last 1-week check wouldn't carry them for 2 weeks. They had no savings, not even a 1-week emergency fund.

I'm not talking about high school or college kids here. I'm talking about adults with spouses and kids and cars and houses. So much of what you see on the surface is a facade for many people.

I worked for a Prudential sub from 1985-1995. In the beginning we were paid weekly. It took quite awhile for them to switch to biweekly and they offered loans to people who thought they might have a hard time waiting till their next check.

My first job was with a company that introduced a one-week lag so that you were paid for your work during Weeks 1 and 2 at the end of Week 3. They claimed it was to save costs associated with manually generating paychecks for people who worked overtime or had other adjustments, but this was a company VERY savvy about cash flow so I think that was a smokescreen. They did it very gently- first paychecks were delayed from Friday of Week 2 to Monday of Week 3, a month later to Tuesday of Week 3., etc. I remember an IT guy who said he'd accidentally bounced some checks with the first delay. I'm sure it became a hardship for people like Amethyst, on their first "real" job with no cushion. I had a week between jobs when I left (relocating for new job, wanted to find an apartment) so the delayed payout came in handy.

 

[daylatedollarshort]

Thrift stores in my area tend to charge ridiculous prices for old furniture, dishes, glasses, etc. Somebody must be paying, or they couldn't charge so much.

I suspect their custom comes from a) new immigrants and b) furnished rentals, AirBnBs and the like.

I needed a new crock pot and looked at a small, local charity thrift shop. They wanted $15 for what looked like a 30 year old crock pot. I ended up buying one a brand new one online at Target for $20 with free delivery. There are still some good deals to be had there, but I don't understand some of the high prices at those kinds of stores.

 

[disneysteve]

More and more companies have gone to weekly paychecks (and some even daily!) due to complaints about not being able to cover till their next check.

I see more and more ads and signs from places advertising they pay daily. It's got to cost them a fortune in payroll processing but I guess it's the only way they can attract enough employees. Too many people can't take a job where they won't get a check for 2 or 3 weeks.

 

[Koolau]

Re: Goodwill, I have read in the past that the execs take a lot more money than the charitable stuff gets.



I donate my stuff to Salvation Army, which I believe is better in that respect.

One thing Oahu seems to have in abundance is resale shops. We've heard that it's because the Islands (especially Oahu) have a very high turn over. Military families move in and move out on a regular basis. I've mentioned before that most haole do not stay long. So lots of stuff gets recycled.

We have some favorite shops that are for specific charities such as the Kidney Foundation and Big Bros/Sis. Smaller shops may be operated (totally volunteer) by churches or parochial schools. Of course, Salvation Army has two or three stores. We sort of avoid Goodwill, but have found some real bargains there. We won't cut off our noses, so to speak.

One of the things that helps to make Oahu "affordable" is resale shops. Those living pay check to pay check will do well to haunt these gold mines when needs-for-stuff arise. I've mentioned that we outfitted our first 1300SF townhouse using the hotel furniture resale shop - heh, heh, NOT a charity. We furnished 3br and LR for less than $2K - including the ubiquitous wall art you see in upscale hotels. The art is now so old that people ask us where they can find such nice "prints." We even ended up with a very unique set of wicker furniture that came from the Hilton check-in area. We recalled it from our very first visit to the Islands. It was massive looking yet light as a feather. The cushions had been recovered so it was move-in ready. With the high ceilings and relatively large LR, it worked out splendidly and was absolutely unique.

I've often wondered if the issue of pay check to pay check is more about the inability to lower standards than not making enough money. I so often mention my BFF who is half a mil in debt at 77. He (and his DW) wear new high end clothes. Lease new cars every 3 years. They live in a new (highly mortgaged) house. They just towed his race car to FL to get a jump on the drag-race season. He seems quite comfortable living pay check to pay check as he isn't w*rking but rather living on 2 SSs and 2 modest pensions. I couldn't live like that but YMMV.

 

[Masquernom]

I worked for a megacorp that was facing a lot of law suits. They were preparing to file bankruptcy and reorganize. The court had to approve all expenses, including salaries. The word came down, it might take a couple of weeks before the court approved the payments. So our monthly salary might be delayed a couple of weeks. I was still single then, and had been working for about 10 years, so it was not an issue for me. But I was surprised at the panic of my engineering co-workers. The court ruled quickly, and nothing was delayed, but there was considerable panic until it was settled.

 

[Beststash]

Then there are the folks who live that way by choice.

This applies to someone in my family. It is their choice how they choose to live but I have no patience for the constant poor-mouthing about not being able to afford to pay their bills and yet refuse to get a full time job or insurance or even maintain their transportation. Sadly she seems to have passed it on to her children so it might become a generational problem - hope not. On the bright side - she has a home (with payments) as a result of divorce in the Austin area which is appreciating every year so that is acting like somewhat of a savings account.

I guess I am out of touch with the generational changes because it just seems weird to me.

Like they say - Keep Austin Weird!

 

[Turbo29]

I see more and more ads and signs from places advertising they pay daily. It's got to cost them a fortune in payroll processing but I guess it's the only way they can attract enough employees. Too many people can't take a job where they won't get a check for 2 or 3 weeks.

I've seen that too. I suppose if it was all computerized and the money was loaded on to a debit card (lots of low level jobs pay that way instead of checks) it wouldn't cost too much to process.

 

[Time2]

Goodwill has also gotten expensive. Our local store has $9-12 pants! You can find better deals during sales at Old Navy. I recall buying several Levis 501s as a graduate student in Austin for $2-3 a pair. Of course, that was 25 years ago.

Yep, my wife gave up on Goodwill a few years ago, to costly. Salvation Army has much better prices. We also have a Habitat for Humanity store that has great prices.

 

[Time2]

According to Charity Watch, Goodwill Industries International spends 88% of its money on programs (compared to overhead). They give it a rating of A.

https://www.charitywatch.org/charities/goodwill-industries-international-national-office

We can hope that true, Maybe it was after this, https://www.diversityinc.com/ceo-of...e-paying-employees-with-disabilities-pennies/


Quote;
"Outed by the petition and an NBC expose five years ago that reported workers’ wages being as little as $0.58 an hour, the $3 billion nonprofit’s company-wide practices have yet to change. Current company reviews on “Greedwill” also reveal their below minimum wage injustices.
Exceeding $400,000 (and in one case up to $1.3M) in individual salary for 23 regional CEOs, according to Omaha World Herald, Goodwill clearly could afford to do better for their employees. The bad publicity and hypocrisy is tearing the company apart."

I once got a call asking for a donation to the Sheriffs something fund. I ask, "what percentage do you actually contribute to the Sheriffs Fund". The caller said 5%.

 

[TheWizard]

Back when I worked for a living, I generally kept a few thousand dollars in my checking account after bills had been paid. Around $3000 in later working years, iirc.

In retirement nowadays, I keep a lot more in checking, to pay for lumpy travel expenses, around $10,000.

I find this is more fun than living from one "pay" check to the next
Fortunately, I'm not a spendaholic, so it's not too challenging...

 

[Gumby]

It has only been a month since I let my checking account balance go below $100k for the first time in almost 20 years.

 

[street]

When I started my "career" job, after moving 1,000 miles to the new location, I wasn't paid for 3 weeks because Federal employees are paid biweekly in arrears. Had spent virtually all my slim savings on 3 months' rent up front, plus a deposit on telephone and electric accounts, and had just enough left to make a car payment and pick up a few groceries.

That was a lean and hungry 3 weeks.

Interesting how these modest starts in life turned out so well. Lol I can vouch for some lean times also.

I slept on the floor of an apartment room a guy was renting where I started working. I couldn't afford a place and there wasn't much for places to stay anyway.
I did that for a little over a year and eggs must have been cheap than because that is all I remember eating when I think back on it. I remember I would stop at grocery store a few times after lunch and would buy a candy bar. Lol OMG I remember what a treat to have bar.
So, I lived frugal and even though I started saving from day one I could say I lived pay check to pay check.
I came from a home where we didn't have much, but we had it all.

 

[TheWizard]

It has only been a month since I let my checking account balance go below $100k for the first time in almost 20 years.

$100k is super, so neither of us are in the paycheck to paycheck rut.
For me, excess beyond $10k goes into my settlement fund at Vanguard.

Next month, for example, I have a $3k payment for a dive trip to Indonesia due, so that sort of scales my approach to money management.
Nine years in to retirement, it seems to be working...

 

[Koolau]

$100k is super, so neither of us are in the paycheck to paycheck rut.
For me, excess beyond $10k goes into my settlement fund at Vanguard.

Next month, for example, I have a $3k payment for a dive trip to Indonesia due, so that sort of scales my approach to money management.
Nine years in to retirement, it seems to be working...

I was getting a bit nervous at end of last year. My 3 checking acct. balances (total) were getting down to near $20K. Told DW "I can't live like this!" Had there been one more month in the year, I would have hit up the 401(k) - again. I like to know I can write virtually any sized check I might need to and not worry about the funds being there. I realize I miss out on some investment performance this way, but it's just how I like to live. Of course, soon as 2022 rolled around, I hit the 401(k) for my RMD (+) for the year. Very much YMMV.

 

[Amethyst]

LOL I forgot to mention I arrived without any furniture! Just some clothes, personal items, and pots and pans. Because my funds didn't go as far as I expected, I had to do without for a long time.

I had a cheap mattress delivered to the apartment, and slept on the mattress on the floor for several months before I could afford a used bed. I bought a couple of chairs at a thrift store and used a box for a table for a while.

I had made friends with a young couple in the apartment above mine. When they abruptly separated, she decided to move back to Texas where her family lived, and gave me some of her furniture. Suddenly, I had what I needed.

This stuff can all be managed when you are young and healthy. It serves as an impetus to work hard, be frugal, move up.

Interesting how these modest starts in life turned out so well. Lol I can vouch for some lean times also.

I slept on the floor of an apartment room a guy was renting where I started working. I couldn't afford a place and there wasn't much for places to stay anyway.
I did that for a little over a year and eggs must have been cheap than because that is all I remember eating when I think back on it. I remember I would stop at grocery store a few times after lunch and would buy a candy bar. Lol OMG I remember what a treat to have bar.
So, I lived frugal and even though I started saving from day one I could say I lived pay check to pay check.
I came from a home where we didn't have much, but we had it all.

 

[TheWizard]

I was getting a bit nervous at end of last year. My 3 checking acct. balances (total) were getting down to near $20K. Told DW "I can't live like this!" Had there been one more month in the year, I would have hit up the 401(k) - again. I like to know I can write virtually any sized check I might need to and not worry about the funds being there. I realize I miss out on some investment performance this way, but it's just how I like to live. Of course, soon as 2022 rolled around, I hit the 401(k) for my RMD (+) for the year. Very much YMMV.

I take all my retirement income monthly: pension/annuity, SS, RMD -- three paychecks per month.
I don't do a bucket strategy of any sort.

I usually end up moving excess funds from checking to my taxable investment account once or twice a month.
That money eventually gets invested into stock index funds, which I like much better than a savings account.

So when a "large" purchase (new car) comes up, I'm in good shape.

Now back when I was working for a living, my overall cash flow was similar: gross income; money going to investments.
But there was a big difference: the money going to my 403(b) each paycheck was locked away and not available to me in case of a large expense. So I had to do car loans for a few decades, and get closer to that dreaded paycheck to paycheck situation...

 

[street]

I was getting a bit nervous at end of last year. My 3 checking acct. balances (total) were getting down to near $20K. Told DW "I can't live like this!" Had there been one more month in the year, I would have hit up the 401(k) - again. I like to know I can write virtually any sized check I might need to and not worry about the funds being there. I realize I miss out on some investment performance this way, but it's just how I like to live. Of course, soon as 2022 rolled around, I hit the 401(k) for my RMD (+) for the year. Very much YMMV.

I like to be able to write a check for any size also, and not have to worry about the funds not being there too.
Investments may never be used so markets up and down doesn't really bother me.