76% of Americans Are Living Paycheck-to-Paycheck

[Capt Worley PE]

Roughly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings, according to a survey released by Bankrate.com Monday.

Fewer than one in four Americans have enough money in their savings account to cover at least six months of expenses, enough to help cushion the blow of a job loss, medical emergency or some other unexpected event, according to the survey of 1,000 adults. Meanwhile, 50% of those surveyed have less than a three-month cushion and 27% had no savings at all.

"It's disappointing," said Greg McBride, Bankrate.com's senior financial analyst. "Nothing helps you sleep better at night than knowing you have money tucked away for unplanned expenses."

Even more disappointing: The savings rates have barely changed over the past three years, even though a larger percentage of consumers report an increase in job security, a higher net worth and an overall better financial situation.

http://finance.yahoo.com/news/76-americans-living-paycheck-paycheck-045900956.html?l=1

 

[Lumber Jim]

maybe if the Government wouldn't take so much from the weekly paycheck and then take the rest through taxing purchases, I'd be able to get ahead!!

 

[Krakosky]

Yep. This is me. I actually just requested to put my student loan into forbearance so I can put that money into savings over the next year. Can't figure out another way to get ahead.

 

[guitarjamman]

I honestly feel like college has A LOT to do with this. I went to a local state university to try and save a penny, but still left with around $600/month student loan payments. My father makes enough money on paper, but with four kids to feed and trying to keep his business in the green, there was not much left to contribute. He went and paid his way with loans, that is the way we all had to do it. That being said, we did not receive any government handouts - we were above the poverty line and were not a special interest group. The middle class is sucked dry in this country and you are left with people who cannot weather a rough patch in the finances.

How on earth can someone who works a job and makes $35K (average) per year afford to put money in savings when there are kids to feed at home and gas tanks to fill? It costs me around $60 to fill my gas tank once a week, spend around $200 a month on groceries (and that is cheap!), have a mortgage to keep good on, etc...

We live paycheck to paycheck and I am not ashamed to admit it either. There is money in savings but surely not enough to cover 6 months of payments. I am not even trying to keep up with the Jones' either!

 

[EM_PS]

<---- In the 3/4 club

sadly have never been good w/ savings accounts - I think taking out a CD or some such instrument would be the only way to keep the $$ out of my grubby mitts where it could actually have a chance to accrue

 

[Road Guy]

But I need a new car and the iPhone 5, and a trip to Belize, how can I afford to save?

I remember being out if school and making $30-40k per year an somehow we managed. And we even put money away in a 401k...

I was driving 40 miles to commute to be able to afford housing though...

I think if you don't start out taking some money out via your check (direct deposit) so that you don't see it your basically ******.... It teaches you to live with a little less....

 

[mudpuppy]

By their definition, I am living paycheck to paycheck. Their definition is having enough in your savings account to cover 6 months' expenses. I have maybe enough to pay 3 months expenses. But if something should happen and I couldn't work for that long I would either get unemployment or disability insurance payments. And if things somehow got really really bad, I have enough in retirement accounts to live for at least 7-10 years. I would hope I could find a job in that amount of time.

In other words, their statistics are misleading (imagine that).

 

[Capt Worley PE]

^FWIW, unemployment isn't taht much. I maxed out at $269/wk, and I don't believe it has gone up appreciably.

It varies per state, I think, though.

 

[Lumber Jim]

^ The work thing is no problem but if not having kids is the way to get there then the 24 percentile isn't the life for me. Good for you though!

 

[Road Guy]

yeah if i didnt have kids i would have 5 years of savings in the bank..

 

[Dexman PE PMP]

But kids come with tax deductions...

 

[Master slacker]

And that makes it AAAAAAAAAAAAALLLLLLLLLLLLLLLLLLLLL worth it. :huh:

 

[Road Guy]

Kids still put you in the hole. Don't believe the Dino's ....

 

[Dexman PE PMP]

Yep, just like the tax deductions for mortgage intrest. For every $1 you spend towards mortgage interest, your taxes are reduced by ~$0.30, so let's go ahead with that 30-yr refi...

 

[Road Guy]

It's more like .03

Or it is for us.. We don't even get the full child deduction cause were just so super rich!

 

[Dexman PE PMP]

I just enjoy the fact that MP subsidizes my lifestyle...

 

[Road Guy]

X2

 

[YMZ PE]

Except for her car insurance, I fully support my mother, who has lived with us for the past year.

...

We have no children. Don't want 'em. Never did. Discussed it early before my girlfriend became my wife.

How are you not getting nagged every day about giving your poor mother grandchildren? That's what impresses me most about your situation.

 

[sycamore PE]

I'm in the 24% and I have one kid. I plan to have more. My husband and I are both engineers and both graduated with no debt. We both had scholarships, worked while in school, and got help from our parents. We drive older cars that we bought cash, and we live in a low cost of living area where our daily commute is less than 3 miles total. We can go weeks without moving a car when the weather's nice.

We're pretty happy and spend a lot on travel. Having 2 engineering salaries definitely makes it easier to be in the 24%.

 

[Capt Worley PE]

Biblical scholars say me having children (they cruelly refer to them as spawn....but, whatever) would be the fifth sign of the apocolypse.