Moneymoney

Thu Mar 7, 2019, 05:53 PM

Why Do Some People Live Paycheck-To-Paycheck?

It is common place today to hear of people living paycheck to paycheck. If so many people are living so close to the edge one must ask why? There are many reasons why someone might be in financial distress but one looming question remains. If they lack sufficient funds to live as they do, why do they continue on that path?

It has become evident to me that many people live paycheck to paycheck because they choose to. It seems that many people today decide what standard of living they want and start living it. They get the home, car, clothes, jewelry and other items they view as their birthright. Then they try to find a job that will pay for it all. They are basically doing things ass backwards.

In a normal world a person gets a job and builds a life around what they can afford. They live within their means in other words. This includes having sufficient funds for emergencies so they can continue on for a while if something happens to disrupt their income. This is the way most responsible people have always lived.

Today is different.

https://www.zerohedge.com/news/2019-03-07/why-do-some-people-live-paycheck-paycheck

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Reply Why Do Some People Live Paycheck-To-Paycheck? (Original post)
Troll2 Mar 7 OP
Bob the Bilderberger Mar 7 #1
imwithfred Mar 7 #2
Magyar Heidinn Mar 7 #3
rahtruelies Mar 7 #4

Response to Troll2 (Original post)

Thu Mar 7, 2019, 06:33 PM

1. Rule of thumb

I've been self-employed since 2000. I always tell people who want to work for themselves that they should set aside 6 months' living expenses before they take the plunge. To this day I have a special account that holds 6 months' living expenses and it sits there in the event my gigs suddenly dried up and I had no income. That rule should apply to people with regular full-time jobs too I would think.

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Response to Bob the Bilderberger (Reply #1)

Thu Mar 7, 2019, 06:42 PM

2. Most who live paycheck-to-paycheck live that way because they're trying to attain

a standard of living they can't afford. They need to rein in their hopes and expectations.

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Response to imwithfred (Reply #2)

Thu Mar 7, 2019, 07:02 PM

3. Living beyond ones means is certainly a cause, another

is plain laziness and indulgence in alcohol, drugs, tobacco and what ever shiny objects that catches their eye.

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Response to Troll2 (Original post)

Thu Mar 7, 2019, 07:12 PM

4. This started in the 1970's during the Great Inflation. For close to 10 years savers were the

visible suckers. Save for a car/house and the the price just rose quicker than your savings and oh BTW those savings got taxed at your top marginal rate. President Reagan broke the Inflation but the mind set continued with many boomers and was passed on to the kids and then grandkids. Since 2008 we have had the mirror snare- low inflation BUT interest rates of near zero for savers.................

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Moneymoney