I have a small emergency fund (~1 month's expenses in a high[ish]-yield online savings account), and a "cushion" of sorts in savings at my local bank (in case monthly bills are high, or the car insurance premium is due, etc.), but for the most part, my paychecks (which go into my checking account) are budgeted and every dollar is accounted for.
That's my definition of paycheck-to-paycheck. Just the idea that you need to budget each paycheck and, as a result, you'd be screwed if a paycheck didn't come.
That's what we started doing this past fall, and it's been a godsend.
Very much this. Ours is a fortune though because my housemate wanted to make sure that the cleaners were real employees with health insurance and the like.
I can't really complain though because my rent and bills together are still a very good deal. And it eliminates one of the biggest housemate issues.
I think paycheck to paycheck means you have NO emergency fund at all. I, for example, have no savings account, and often, after paying my bills, have only $50 in my checking account, so if something happens I am screwed, have to use credit, or ask my mother for money. That is how I define it, but I guess others could do it differently
ETA: and I guess they do.
My thing is, I live so much paycheck to paycheck that I don't even budget. I get the paycheck and pay bills until there is no money left until I get the next one.
How do multi-CD car stereos usually work? Assuming no CDs in it, does the first CD you put in become #1, the second #2, etc? Or do you have to specify somehow what # the CD is when you put it in?
(Stupid rental car doesn't have an external player input jack </first world problem>)
I would say if you have savings, you aren't living paycheck-to-paycheck.
It's a pool of a set percentage for a small number of people, so to give someone a bit extra you have to take away from somebody else.
I can't believe I'm saying this, but I wish we had that here, because my #2 and I would each gladly give up a small percentage to give our underpaid minion a much larger percentage, but they won't let us! I've offered.
I would say if you have savings, you aren't living paycheck-to-paycheck.
How about if your savings are part of your retirement fund and you'd pay a substantial penalty for early withdrawl?
I think paycheck to paycheck means you have NO emergency fund at all. I, for example, have no savings account, and often, after paying my bills, have only $50 in my checking account, so if something happens I am screwed, have to use credit, or ask my mother for money. That is how I define it, but I guess others could do it differently.
I'm mostly in the same boat. It's how I've ended up getting back into credit card debt this past year.
ETA: Lest anyone wonder how I'm affording a cleaner given this statement, keep in mind that ND and I are not married and don't pool our money. He covers the cleaners.
I would say if you have savings, you aren't living paycheck-to-paycheck.
Yeah, I think of it as someone that doesn't save anything.
But I mostly use it for people who are spending most of their paycheck on necessities.
But I mostly use it for people who are spending most of their paycheck on necessities.
Yeah. Living paycheck to paycheck, if you miss one check, you're screwed, like can't-pay-the-rent screwed.
How about if your savings are part of your retirement fund and you'd pay a substantial penalty for early withdrawl?
Too hard!
Yeah. Living paycheck to paycheck, if you miss one check, you're screwed, like can't-pay-the-rent screwed.
You should have seen me panic because the theatre forgot to pay me in December. After I did all my Christmas shopping, and had no money in the bank. I had set up payments on my bills to come out on the 31st, and there was no money! The administrator ended up giving me $500 out of her petty cash fund until they could cut me a check.
