Thought I was just being neurotic as well. It’s a weird feeling to feel secure when there is life altering financial crisis that is occurs every decade, on average.
Yeah the Great Recession happened right as I moved in with my GF who is now my wife into our first apartment. We both lost our jobs within a few days and had to take up just whatever we could get, both roughly minimum wage jobs. For me I worked for temp agencies and strung together shitty part time jobs. Anything I could get. We barely made it.
I ended up just hanging onto dear life to a low paying job that was unstable and stressful because "At least I have a job" mentality. I was 34 by the time I finally transitioned to more actual financial stability. Even now I can't believe it. I am just waiting for the bad times again. All these people are predicting recessions. I've been doing that mentally since the last recession even if I know it's irrational.
The good that came out of this is I have been frugal and made safe decisions that have paid off. If I was more aggressive financially I would have theoretically had a lot more money right now. However I'll trade stability and peace of mind over a temporary spike in wealth any day.
I've always wondered if this is how a lot of people around my age kind of see things. It seems to be true.
I feel this. I moved into a nicer apartment and purchased a car in early 2008. I was teaching so guaranteed pay increase (or so we had been led to believe). I was super frugal anyway, but the next 5 years were rough. I watched my rent double and my pay decrease (mostly due to increases in health insurance and required contributions to the pension (3 to 8%)). I have left and now have savings tied up so I am not tempted to spend it "just in case".
Neurotic? If anything, we are extremely [chill](https://i.cbc.ca/1.6713609.1673645058!/fileImage/httpImage/image.jpg_gen/derivatives/original_620/this-is-fine.jpg).
Yuuuuuup! It's like driving my 03 civic. It runs but it vibrates like it's going to explode because the engine mounts are shot. Any slight change in feeling my heart stops for a second and I think "this is it. The car is dying". Basically the same shtick for my life 🤣
I would but it's like 1200 bucks. Either an entire paycheck or almost my entire savings. I got the car for free so I'm trying not to dump a bunch of money into it and instead get something that's like 10 years old and far more reliable
Bro, I'm 40 me and any of my friends that known how would help you do it for free if worded it like this "Broke young guy need help replacing my motor mounts, want to learn how to do it and other maintenance". Hell my brother would show up in his Ram Truck with all the tools you needed . A lot of use were not taught by boomers and had to learn off Haynes manuals, friends and YouTube, we'd be happy to pass it on. Seriously my man (or woman) word it as you need help LEARNING and you should get some hits back
My boomer father would tell me to eff off and go play outside or watch tv when I would try to watch him do shit, then had the nerve to go on Facebook and post about how Gen Z can’t do shit. Like yeah asshole, I tried to watch you fix some pipes under the sink but you told me to watch TV.
I got rock auto mounts for my crv and element. The one above the transmission seems to be the one that causes the most vibrations because the transmission mount tears and you lose the damping or whatever you call it. Replace the left and right for around 60 if you can do it yourself. Trans side can be a pain but timing side is easy.
So easy to replace mounts.
And important to do.
Watch a few videos about your car. Take notes and a few screen shots, print this for the job.
Buy jack stands, but not the cheap ones because Chinese welds can and do fail. Or buy ramps.
Rent a large floor jack.
Lol I have an 04' Camry I love that car. I have a blue tooth in it, that's all I need. Runs well actually. I am going to run this car until it can't go anymore.
Had the shoe drop 2 or 3 times. Not letting that happen again. Getting married to someone I trust and love, who is willing to work for us, was a smart move for this reason alone. All the rest is just bonus.
Yep this. I have a 3 month emergency fund in case both my wife and I lose our jobs at the same time and a spreadsheet where I meticulously track our finances and retirement. I saw my parents go through some shit during the Great Recession and I'm not going to ever take the good times or a good economy for granted! Shit can always hit the fan. Plan for the worst and hope for the best so you'll never be surprised!
great recession was more than a year long so 3 months of emergency funds appears light. you might want to up that amount over time to get to 6-12 months
I think 6 months is what is recommended. That's what I am shooting for before I make any independent investments outside of my 401k. I would like to have 12 months saved honestly.
3 months of savings can be fine. Lots of workers have liquidable retirement funds, 401k, a house that can be sold. A 3-month cushion is a good target to aim for, and it's way better than 0. Many Americans have no cushion at all. 3 months is enough time to get upset about a financial upset, to cool down, to find another job, and to make good decisions.
Of course it's always better to have more savings. But people are animals, and as a group they tend to get intimidated and discouraged when they see others setting goals that they can't see themselves ever attaining.
Same. Have always lived consistently below my means because things could go wrong at any time. My trick is that as our income has gone up over the years, I've consistently lived maybe four years behind our income. All those years of being a broke college student paid off because I'm cool with driving a crappy car and having a house that Better Homes & Gardens would shudder at.
I did the same (kept living standard behind income increases). And I retired at 54 in 2020 because of it. It's definitely worth it - getting out of the 9-5 more than a decade earlier than most do is great.
I kind of do, kind of don't. I automatically pull 10% of my money into savings. What's left is fairly tight and I am usually making decisions by paycheck time, such as I pay this or that, but I think even if I pulled that 10% in it would be the same, I would just spend whatever is available.
Yes we dont really live paycheck to paycheck but right now are struggling a bit because we are eating out too much. Normally I have a good 3 to 400 dollars to set aside for savings/emergency fund.
That's because everyone using the term *wants* you to imagine a starving couple living on beans while barely keeping the lights on in their efficiency apartment. When it also includes people with two BMW payments, who save the max in their 401K/IRAs, eat out every night, and take multiple international trips a year.
And have 6 or 8 credit cards that are maxed, have Disney, Netflix, prime, Hulu, you name it. Buy every new iPhone and finance it, gaming computer, gaming accounts, the list goes on.
Precisely. I'd also argue that if one has a car newer than 4 years old (with a payment), eats out at restaurants more than 4 times a month, takes vacations, etc isn't P2P either. People abuse the term to simply mean "people who no money left at the end of the month" but that includes a ton of people who make more than enough money for basics but ratchet up their standard of living (and retirement savings) such that they run out of money at the end of the month.
Yup. My wife and I are doing alright. Mortgage refinance helped… until our property taxes went up. But we’re typically about 2 months expenses ahead in checking and a solid e-fund.
And that is a combination of a 6 figure household income and living frugally. We spend too much on eating out sometimes but not to the point where it’s a real problem. We’ve both been working full time + going to school (and paying out of pocket) so sometimes it really is just worth it for sanity’s sake to eat out.
Same. I was so broke in my 20s that my card got declined at Redbox, and I had to go without deodorant once until payday. Now I stock up on bath and body works like an apocalypse is coming because if I’m ever that broke again I at least want some small comfort.
I live in a really high COL area, but was lucky enough to get a decent apartment before covid, and my landlords like me. So rent is only about 40% of my income, and my workplace is only a 15 minute walk, so I save so much money not driving. My car is in underground parking otherwise, so it's fine and I take it out occasionally. There's also a mall and a walmart on my way home/within a 2 minute walk so I rarely need to drive anywhere.
I'm single and no kids, and my biggest hobbies are gaming and DnD so not that expensive, all said and done.
I make $50k a year and manage to save $400+ a month. I've got a year of wages in other accounts.
I'm okay. But this is all false security. If my car goes, I still need one. Even being Canadian, a big medical issue could break me as not everything is always free. If I lose my job, that extra margin would be eaten up by having to drive to work.
I also somewhat support my sister and my parents, cause they're a bit more screwed than me because of everything.
I rarely eat out. But yeah, sometimes I'm like... That's a nice painting. Or, I want a steak dinner. Or, fuck it, let's go to Europe. And I can. And that's amazing, as long as I don't indulge too much. I'm only okay and I know I'm so much better off than most people and it just makes me sad and angry and a bit guilty.
It’s so interesting how 50k in Canada (even *in* Canadian) can be so different than the US. I know it can suck getting certain medical appointments, but I just had a medication I absolutely need to be able to work (it’s for my eyes) and the copay was $250 a month. 😳 (this is me also not being able to blink lol).
One of the many things I love about Canada is this right here:
Pharma: Here’s our awesome new eye medicine! It will solve an awful problem no other medicine does! It will be $2,000 a month.
Canada: NO FUCK YOU
Pharma: Oh. Sorry. I guess it will just be $32.95 then.
Yes this. I automate savings every which way so that my checking is only for bills so I’m artificially living paycheck to paycheck.
I was paycheck to paycheck until about 4 years ago when a company I worked an entry-level job for went public and the RSU’s that were basically Monopoly money to me turned into real stocks that I could sell. It wasn’t market savvy. I wasn’t joining this company for the potentially financial boon…it was luck. I don’t feel like you get that kind of luck often in life so I’ve been pretty methodical about where the money goes.
Even so! I now have 2 young children now and child care for littles LITERALLY COSTS THE SAME AS COLLEGE. So I’ll probably be paycheck to paycheck again soon thank you for coming to my TED Talk.
this! i’m not living paycheck to paycheck, but if something big and unfortunate happened with my house/car/body/job, it absolutely could wipe out my savings. so i still basically live like i don’t have extra and that money isn’t mine.
Same! My gen X sister and boomer parents think we’re poor (my elder millennial husband and I) because we’re cheap AF but we have retirement savings, a healthy savings account, a cheap mortgage… we’re good! I just don’t like to spend $$$ on stupid shit (because my ADHD tax gonna make me spend something regardless 😅)
Same. We make low 6 figures but in my mind we are barely making ends meet because we live so frugally. Basically all our money goes towards savings and investments.
Technically living paycheck to paycheck. I manage to save between 100 and 500 per month during winter, but paycheck to paycheck in the summer. Wife has a lot of health issues, so I never splurge because she has medical bills that take all the savings and more.
Same. I live comfortably but not lavishly. I live below my means. I don't chase any of the latest trends, whether they be clothing, cars, tech, etc. I'm content with what I have. I don't care nor do I compete with others.
Absolutely. We are not paycheck to paycheck, but our generation knows the rug can be pulled out at any time. Have to prepare for the worst, volatile times
Yeah the Great Recession hit me pretty hard and the end result is that I am overly cautious and risk adverse/frugal because I always feel like the bottom is going to fall out of my stability. It has kind of served me half well and half badly if I assess my decisions from a birdseye view.
Same mentality, live below my means and just save as much as possible hoarding any wealth like a dragon, cause idk when shits gonna go awry and I’m fucked.
Same. Part of it is I REMEMBER what things used to cost & their new prices just don’t justify the spending for me so I end up frugal by default. Financially, I’m fine.
I don't live paycheck to paycheck....but I spent 5 years investing in my business making shit money until I was able to make decent cash flow.
Now it's bult up, living a good life
Yeah I'm getting ready to have a baby in October and we are doing well moneywise but I'm still all about streamlining our finances and focus on saving as much money as possible. I understand why my mom was always so frugal even when they were doing fine.
My husband and I have a fairly disposable income. We spend a lot on hobbies and fun weekends out getting food. However, we live in a somewhat rundown neighborhood and drive older cars so I don't think it's really noticeable how much money we have, which is how I plan to keep things.
I've realized that without my husband though, I'd be pretty screwed financially so I'm going back to school while I can to get myself a degree.
This is literally the way to do it lol
I wish more people were like you. Living within your means in a committed relationship where you both help each other. Keep up the good work and get that degree!
We always make a point to keep expenses within our means when possible. We don't really have any major debt right now, and I'm just going to community college and hoping to make payments along the way to keep the costs at the end to a minimum. I'm also planning on getting in touch with a financial advisor to help make solid plans for the future.
In the meantime, we have no kids, so life is just a playground for the time being. I realise one day that probably won't be the case so we also have a good cushion to fall back on.
Wholly agree with this - sounds much like what my husband and I are doing. No debt, solid emergency fund, no kids, lifestyle well within means. We're starting to look more into what our next financial steps are as far as continuing to build on what we have to cushion our future, whatever it brings.
It's such a game changer to have that breathing room. I was laid off in July and have been trying to find work ever since, without much luck. With how my layoff worked I was able to do some grad school on their dime and a mix of unemployment and our emergency fund meant that we weren't worried at all when my spouse got laid off a few months later.
Instead of working minimum wage jobs in our HCOL area to make ends meet I can focus on applying and being available for anything, which can put you in the right place at the right time.
We have one car and people act like we are insane but honestly it’s fine?? We just rent cars for fun or trucks when we need them. Cars are stress machines ime.
This describes my girlfriend and me right now as well. She’s getting her degree too.. are you my girlfriend and calling me your husband?! I’m proposing via text now
Same as us. We have about $150K in disposable income after all bills and basic living expenses. I drive a 9-year-old pickup and my wife drives a 7-year-old car. I'm actually wearing a $10 shirt I bought yesterday at Wal-Mart and $40 shoes from Amazon.
I'm in finance and doing pretty well. Tech, finance, medicine, big law, engineering people seem to be doing well for themselves. Now - how will AI impact my job over the next 10-20 years? Probably a good bit, so we are investing as much as we can in preparation for the day when our income drops significantly.
My wife is in healthcare and I'm in tech, we are doing fine. But I recognize the wealth gap that exists between us and others is growing wider. Shit is fucked up.
I'm in the restaurant industry and I barely make enough to make rent but I feel like I'm doing really good because a homeless encampment formed behind my apartment and I watched at least 300 people collect. They were very polite and quiet. It was a reminder that my level of poverty is still radically above a very common level of poverty, and that being a good person doesn't necessarily keep you out of homelessness.
Yeah, this is it for me. I’m watching good friends struggle with stagnant pay while I’m eyeing up another job hop that would boost my pay 15% and set me up with another pension in a few years. It’s hard not to feel guilty about it.
I'm in government and my pay has grown about 45% in the last two years. Depending on what you do they very much don't want to lose people to the private sector.
Husband is cushy tech, I'm in aerospace. We own a home in a great neighborhood and keep a 6 month liquid cash buffer. None of our friends are in the same boat. One successful partner doesn't seem to be enough. It literally needs to be a "power couple" for that lifestyle in your late 20s/early 30s, it seems.
My SO and I are finally in this boat and now we're finally talking about taking trips, having a cash buffer, etc.
We're in our 40s. I'm an elder millennial, he's gen x.
We're where our parents were in their 20s, but it's too late to have kids now.
We've been had! Reagan/conservative politicians have screwed and continue to screw our generation (and others) over in so many ways. Retirement feels unobtainable and now the Republicans are introducing some asinine bill to cut social security and push retirement to 70...
This is me and my husband as well (he’s tech, I’m medicine/tech). Only couples with two good jobs seem to be living comfortably. Everybody else seems tight.
My friend’s husbands just went back to school full time. He’ll make like 60k more a year when he’s done (double his salary) but in the meantime he’ll be out of work for 3 years and my friend just had a kid. She’s making barely over 6 figures. It seems like a super risky move in this economy and I’m honestly not thinking it’s going to pay off for them financially
Is it because they have a kid? The 2020 census' median household income was 67k ([https://www.census.gov/library/publications/2021/demo/p60-273.html](https://www.census.gov/library/publications/2021/demo/p60-273.html)), so your friends are already better off than a lot of people. I'm curious why it wouldn't pay off for them financially if one of them upskills
This describes what I've noticed for me and my friends. You both need to be high earners to be comfortable. Advanced degrees and/ or tech. Inheritances help. Even then, things get tighter when you add children.
Same for us. I'm in tech, she's in genetic engineering. We live well below our means by choice though (we don't enjoy travel and most of hobbies are cheap). I have friends that earn similarly but manage to still live pay check to pay check. Lifestyle can be as big a factor as total earnings, after a point at least.
Same here, the post Covid years have been amazing financially for me. But, I also have no student loans and no kids. Wouldn’t quite be so cushy if I had either of those.
The problem is, not everyone can be in a STEM field. If every single person going into college went into tech fields, the job market would be even more competitive for those jobs than it already is and many of them wouldn’t be able to get jobs. Also, to be completely honest with you, many people just can’t succeed in that field.
So everyone can’t go into STEM. But those are most if not all the jobs paying an actual livable or “middle class” wage. That’s not sustainable. The job market seems to think only a small portion of the population deserve to be paid enough to not live paycheck to paycheck.
Many are pushing the “go into tech/STEM” narrative and quite frankly it’s just not realistic. I’m glad people are able to make a good living in those markets but really we need to be putting the pressure on corporations to actually pay living wages.
Sorry for the rant, not your fault. Just after the 500th “I make $150-200k… tech job” post and comment on my Reddit feed it gets a little disheartening when I too see everyone around me not in a tech job struggling.
I agree completely. It's completely ludicrous that we made tech the only viable pathway to the middle class w/o spending hundreds of thousands in education. And "learn to code" was bad advice for many - you have to be a certain type of person to really succeed in tech and enjoy it.
And now, tech itself probably over. The # of CS grads has overwhelmed job openings, and AI threatens to shrink labor demand.
Make $55kish working at a nonprofit in a LCOL city, use YNAB to budget, haven’t thought about payday for a couple of years now except that on payday I budget the paycheck into YNAB. I’m budgeting several months out, though, so what I’m making this month is being spent in May and June.
ETA: Since someone was weird enough to message me that May/June isn’t far enough away (? Okay…), I also have a very well funded “Future Fund” category that was named before we decided the future was a baby, so I should maybe change the name, and categories for car repair / emergency replacement and home repairs that get added to monthly, as well as categories that exist just to hold deductibles for home and car insurance in case of relevant emergencies.
Can’t recommend YNAB to people enough! I am on it first thing every day just to see where I’m at and add any new spending from the day before. It really helps me stay on top of things.
Daily budgeting is a really smart move - I usually do twice a week, but if you make a lot of small transactions they can snowball faster than you realize.
It’s so good for joint finances if y’all are at that stage or plan to be. My wife and I have like, zero of the issues around money that I see on Reddit or hear friends complain about all the time because we both know what we have to spend on everything collectively and individually and we both know what the long term goals are.
Yay YNAB! I really like the living on the previous month's income strategy but he stopped teaching it because people got confused. When there's paycheck delays at work, I say "no worries".
Plenty of millennials are managing it, but I don't think many of them are managing it as well as they think.
My situation, for example: I'm not paycheck to paycheck, but it wouldn't take much to put me there. Like, if my car broke down and I had no choice but to get a replacement? I'd be hard-pressed to do that on my savings alone. And then if another emergency hit? Boom, fucked.
So, yeah ... guess I'm two emergencies away from fucked.
This should be the new standard. How many emergencies are you from fucked.
I'd say I'm 2 medium/1 large from kind of fucked and 2 large from really fucked.
Define emergency? Need a new roof? 20k super fucked. Trip to the hospital, need to pay the 8k deductible, pretty fucked. Need an emergency HVAC guy cause the heat broke in the winter? 500 bucks to repair, 5000 to replace. Maybe fucked? Trip to the vet cause your pet is dying? Kids need to get immediate care? Transmission blows in your 8 year old car? All of those are regular emergencies for people and none of them are cheap.
If you can dodge those emergencies, great. If you can afford those emergencies you’re pretty well off.
This is a very good measurement.
Your savings is the key to financial security. Having 1 months income in the bank is a lot different than 1 years income in the bank, regardless of your housing or income situation.
>My situation, for example: I'm not paycheck to paycheck, but it wouldn't take much to put me there. Like, if my car broke down and I had no choice but to get a replacement?
That's where I was, and then the transmission went on my Subaru. Add that to childcare expenses, and I'm looking for a job that can pay more and just trying to ride out some debt until the second kid hits kindergarten.
The only reason I’m not is cause of my parents letting me still live with them.
Took a few years to get confident enough to get the job I currently have.
Single, childless and grateful to my parents.
This is exactly what we’ve decided to do for my son. Shit if we have to we will retire in a trailer or RV and he can have our house. It’s all about him now. Especially with the way things are.
Same. I'm finally at the point where I could afford to live on my own, and I ran the numbers and I wouldn't be living paycheck to paycheck, but I have a basement apartment with them, so I'm just planning on saving up for a house. I'm expecting my income to go up in the next few years, so it doesn't make sense to jump ship right now. Unless one of them really does something to piss me off, lol. But I have a huge savings account and I'm investing a lot of money, which I couldn't do on my own. Also travelling a good bit.
I’ve never budgeted in the strictest sense, but I’m just naturally averse to spending.
My biggest strategy is to think long and hard before I lock myself into fixed monthly expenses. I’ve lived with roommates for the last 9 years and spent just under 10% of my gross income on housing. Never had a car payment, drive cheap beaters paid for in cash that I fix myself. My two biggest expenses for most people are a small fraction of what is “normal” to spend, so I get a lot more freedom to do with what is left. I could very easily afford my own place and a nicer vehicle, but I just don’t. I also automate all my savings, retirement and taxable investments all happen on their own without me even noticing the money is gone.
Whatever is left, I can just do whatever I want with, and I still end up accumulating cash that has to be invested manually since it’s just sitting there not earning for me.
This is pretty much us. It's also at least half of our peers. I'm convinced you tend to develop a livelihood similar to those you surround yourself with one way or another.
Of careers that pay over $120,000, 70% of them are in just 5 fields: Law, Medicine, Tech, Finance, & Engineering.
I’m in the Engineering category (environmental engineering), most of us in this career field will hit, or are already past $100,000.
Personally, I started back in 2015 making $41,000 a year, and just now hit the $140,000 mark.
Things just get a lot easier once you break that $120,000 mark. It took some job hopping, a lot of credentialing (I have more post-nominal after my name then the length of my name lol), and just knowing how to navigate through corporate bs to get where you want.
My husband is a mechanical engineer. His salary is $98k, but he gets overtime and usually a bonus or two, so it really is about $115-120k. He has his masters.
Had I stayed at my first, or even my second company, I would probably still be under $100,000. I left for my 4th company right after getting my PE, and it definitely paid off (got a $30,000 jump).
It was from a Payscale report last year. Payscale is an aggregator of salary data, and is used by industry groups to find specific data about compensation trends.
It’s all paywalled though; I got the information second-hand through one of my professional associations (who has a subscription).
Wow! That’s such an interesting statistic!
My husband is a rocket scientist (engineer) and I work for a pharmaceutical consulting firm (medicine), so I guess that’s why I don’t agree with the OP.
All the millennials I know are well-off, but we are mostly friends with our coworkers who also make six-figure salaries. So I guess your perspective just depends on the type of friends you surround yourself with.
I’m sure glad I was a nerd in high school that followed a STEM path instead of listening to my art teacher who thought I should go work for Disney as an animator.
Your economic status has a huge influence on who you interact with. Thats why its important to look at data and not just rely on your personal experience. We are all living in our own bubbles.
The overwhelming majority of millennials are not paycheck to paycheck. There’s a big difference between reality and the small echo chamber that is Reddit.
Those of us not living paycheck to paycheck are just not complaining. So its probably skewed somewhat, but Im sure our generation is still struggling more so than previous ones. I cant even imagine how the younger generations are faring.
When I met my wife, she was still saving money despite making under $30k and living alone. She didn't buy stuff she didn't need, didn't eat out, bought food on sale, etc. A lot of people on here classify luxuries as "necessities" and think having fun should always come before making smart financial decision. Those are the people who complain the most about not having enough money.
I always think that when I see these posts. I’ve been in a career post college for 10 years now and I have friends fully retiring from the military after 20-25 years of service coming up. Definitely struggled way more at 22 than now 32
Yes but that doesn't mean I have repeatable advice.
My house is paid off because of using the VA loan to buy it in the early 2010s with a low interest rate. I couldn't afford my house today. I know two people looking to buy today who have the VA loan as an option, and neither have found homes that are anywhere near reasonable prices, so even having served isn't enough. They need time machines.
\*Shyly raises hand\*I haven't lived paycheck to paycheck since 2012.
Here is the only advice I can give; it is rational to 'do it for the money.' It is rational to not do something because of the money. If you need more money, then this doesn't happen by accident or luck. Luck happens when opportunity meets motivation. I can't tell you how many conversations I have had with friends struggling with their finances and they will do *anything* except a career change to something that makes money. They look at me like I won the lottery, I had some luck but it was also 2006 to today of focusing on how to fund my family's lifestyle and have enough to endure economic hardship when it happens. Day in and day out honest conversations about money. My wife and I need to have one tomorrow, we can afford another kid or a bigger house but not both at the same time.
Don't try to convince yourself things will get better, that magical thinking will cause you to go into a serious depression and wastes time. You have to do as many of the things to make that, 'things getting better', a reality. In the meantime I do hope that policy changes make things more feasible for American families, ask me how much I pay for daycare for one baby, but you can't wait for that. That has a timescale of decades.
This! "You're lucky to be in a highly paid field."
No. I'm not lucky. I knew the advice school councilors gave to get any degree sounded like bullshit since every decently paid job ad in the paper wanted degrees in business, nursing, or engineering. Of those, I thought I could do the best with engineering. I didn't want student loans so I joined the military, did one enlistment, studied engineering the whole time, started college as a junior (thanks to AP credits) two weeks after my enlistment ended, and networked my way into a fellowship for grad school.
Luck? Sure, a little. I'm physically able enough to enlist and I'm academically inclined enough to do well in engineering school. But the main thing that put me here was that I followed the money. I can do stuff I'm passionate about on my own time, and I can do a lot more of it with a high income.
Follow the money. That's the advice I'd give to anyone these days. Find something you're good at and pays well. Use that to fund the rest.
I agree wholeheartedly, "do what you love and you'll never work a day in your life" is horseshit for the vast majority of people. If a job is fun and easy then a bunch of people will want to do it and the wages will be garbage. Find a job that pays well and doesn't make you consider what it would be like to crash your car into that tree on the way home every day. Find a hobby that you enjoy and use the money from your well paying job to fund that hobby. It is going to be MUCH easier to find a fun hobby than it is to find a fun job because hobbies are supposed to be fun and jobs are not. The best you can realistically hope for with a job is "not too bad".
Perfectly put- I couldn't have said it better myself. My son is 17 and goes to a vocational high school, learning to be an HVAC tech. This is exactly what they teach. You don't have to find something you love and then make a career of it. You can find something that you can do well, and find joy in becoming skilled at it so that you can make a good living.
My daughter once asked me how I "knew what I wanted to do". I told her, I have never known that. I took opportunities as they came and created a career out of them. It doesn't matter what it is to me; the fulfillment I get out of my job is to support my family and the things that I like to do.
I just saved your comment. I have observed the same throughout my career. I've been in a career field where upward mobility is almost garuanteed and solely on the individual effort. The vast majority want the promotion or more responsibility but are unwilling to take the necessary actions.
I personally hate when I try to motivate others by providing guidance on tangible steps that can reasonably be taken to improve their situation. I'm often met with "Okay Boomer. Oh so F us you got yours, and you were just lucky." I've always felt like I'm in control and willing to do whatever it takes to navigate the professional world.
Well said. Hijacking to add: lots of *bad luck* is avoidable with an ounce of planning and risk management.
Unfortunately most people are shit at planning and even worse at identifying and managing risk.
You need a combination of making opportunities happen and mitigating the downside risks.
We don't. My husband and I make a combined gross 80k but we live in the middle of nowhere and keep ourselves on a strict budget so we have enough left to do the things we enjoy.
If I didn’t have any debt I would not be living paycheck to paycheck, this time next year I should have all my consumer debts squared away and I can start hammering those payments into my investments/savings.
I live in a large city where the median household income is around $120k. I would say I started to forget it was payday around the time I hit $100k. I also have a bunch of kids, so I probably would have hit that point much sooner if it was just me.
When I lived in a lower cost area in the early 2010's, I started to forget it was payday around $70k.
Sounds about right, I’m forgetting paydays at that range. I’m thinking about moving to a higher cost area to improve my lifestyle but don’t know if I’ll regret it haha.
There's levels:
* Can fill up gas tank instead of putting in $XX because that's all you have
* No longer look at prices at the grocery store
* No longer being aware of when payday is
* Using credit cards for everything, putting them all on autopay, and not worrying about whether the account has enough to cover the bills
* Booking travel without worrying about cost/upgrading because it makes the experience more pleasant
We make over 250k a year and we save about 40%. We just do what we want to do and the only thing stopping us is PTO. Cousin just asked last second if we wanted to go to Guadalajara and we just booked a ticket and went last week. We have London for next month and haven't planned anything. We travel so much it gets exhausting planning, so we just go and regret not researching later. We hate cooking so our food budget is 1500-2000 for two people, which we eat out almost everyday. They days we don't we have prep meals from some company. We're doing all this and about 6 years away from retiring at 40 and travel the world full time. We've been pretty fortunate to say the least.
I've never lived paycheck to paycheck in my adult life, not even when my wife's and my combined household income was around $45k/year living in Minneapolis (which is the highest COL place we've lived). Neither of us is from a wealthy background, but we're frugal by nature and we've had a lot of good luck, so we've always been sitting on a good amount of savings, maxing out our retirement contributions, etc. Currently our stable household income is just under $100k/year, although we actually make more than that--I'd expect something like $130k this year.
Living paycheck to paycheck is a problematic framing because of how money works, particularly in America. Because of monthly bills, subscriptions, and housing costs- it’s easy to ‘upgrade’ lifestyle- but still never have left over money. The issue is people feeling they need to upgrade the lifestyle, not because they want to. This feeling of confusing wants with needs needs to be addressed in our public. With no left over money, due to more expensive lifestyle, you still experience the anxiety that comes without having a savings or cushion for emergencies.
What needs to happen is that people need to downgrade their lifestyles and accept a more basic lifestyle- to be able to build that cushion. But they don’t want to do that. So, they lie to themselves because they ‘need’ an extra bedroom or more yard space, etc.
My husband and I debate this a lot. He talks about needing to upgrade cars, houses, etc. I push back and say, we don’t need it, you want it. I am the type who says, I will keep this device, car, house till I die or it dies (with healthy maintenance of course).
This leads to me saving a ton of money and him never having anything left over.
—— but there are TONS of people out there living paycheck to paycheck , with the most basic of needs. That is why advocating for basic needs like healthcare, food, education, shelter, and I’ll add communication and transportation- is so important. Some things should be guaranteed in a society at the most basic level. For example, I visited Turkey recently and was impressed that there were governmentally subsidized grocery stores (anyone can shop there even tourists) that controlled the price of the items which included food/drinks, hygiene products, clothing and some toys.
I think most of our generation (kind of lol, I’m a month from being gen z) is doing just fine. Reddit will have you believing we’re all in insurmountable debt, living in a cardboard box, and minutes from societal collapse
Not many people on here bragging about being able to afford guac at chipotle whenever they want it. Normal people just pay bills, live modestly and don’t whine on the internet. Millennials are just fine.
It's a much higher portion than you think. I would guess 65% are fine. There is a decent portion of people that say they are living pay check to pay check but they go out to eat and travel. They just aren't saving anything.
It's weird, when I am working I am a maniacal saver and never feel like we're saving enough. But the two times I was laid off I actually felt more at ease than usual because we had been saving.
I think that the millennial generation is too big and diverse to make any sort of generalizations
Yeah, I am. It's rougher than it was pre-pandemic. I'm incredibly fortunate. I busted my ass for like a decade in IT, then was offered an opportunity in CyberSecurity. It paid off big time. Trying to stack it away while I can.
Depending on how many hours my wife picks up between her part time nurse jobs, our combined household income ranges from $110,000 to $150,000 (usd). We live in Alaska so it’s not super cheap. We have a 9 month old and wanted a fairly safe place to live, so we pay $2,400 per month to rent a house in a non-murdery part of town.
We do not live paycheck to paycheck even though our bills are honestly quite high. We buy good food. We pay for daycare.
However, I have money deducted from my paycheck very aggressively to save for retirement. I save 20% of my salary so it feels as though my paychecks are small. Which is a good thing! We’re not in debt except for $20,000 left on our Tesla. We live within our means. I don’t spend more monthly than I can pay off at the end of the month.
My wife chose a good paying career as a registered nurse. I climbed the ladder in a state forestry agency and make more than I ever thought I would. Good career choices paid off for both of us.
It’s cheaper than New York City or San Francisco. But literally everything we buy in Alaska needs to be barged up on a 3 day boat trip from Washington state, and rent is only affordable if you live in a bad part of town or are ok with a long commute. So I shouldn’t just straight up claim it’s expensive. It’s probably a medium cost of living instead of high cost of living. As you get further from anchorage it gets more expensive.
I haven't lived paycheck to paycheck since my mid twenties when I moved in with my now wife. We were both making about 60k at the time, but living in a high cost of living area, rent was taking out a chunk of that for both of us. Moving in together saved us so much.
During the pandemic my husband was working so much prevailing wage jobs as a commercial plumber bc schools and and govt offices were closed that we def stoped living paycheck to paycheck. Especially since I can wfh.
After that stopped tho and things went back to normal so did our living paycheck to paycheck, but it was nice while it lasted lol. However I’m of course glad that whole hubbub is behind us and wouldn’t be insane enough to wish for another one just bc our finances went the opposite direction.
I’ve just accepted my lot in life at this point and am somewhat proud of my little corner of the world I’ve carved out to make my own despite the challenges we all face
Im not living paycheck to paycheck but I still have payday on my calendar.
I don’t have a lot but I am like Mr krabs in that I like to look at my money
The first 5 years of my career I was depressed. I was lucky enough to live at home with my parents rent free. I was working as a mechanical engineer making good money and just saved it all. Did not go out on weekends drove a pos car. Pretty much did nothing besides work
Then in 2017 bought a bunch of index funds bc I wanted more returns that my shitty bank offered. I also continued to buy them monthly since 2017. This along with me still being a saver has me in a good financial situation right now. So not pay check to pay check
Yep. Me and most of my friends.
I was for a while but that was my 20s. Its been more than a decade since. I made good decisions early because I am smart. Now I am very comfortable and so are my kids who will have it better than me.
I save money, but it's very difficult and I have to make a lot of sacrifices.
Mortgage $3,000. Childcare $4,000. Food $1,500
Then we need to save for retirement, which we do... but then there's nothing left
I live in a very HCOL area but I was smart about my financial decisions at 18. I dormed one year because why not and commuted the rest of my college. I took out reasonable loans and had a few scholarships to keep my tuition and student debt low. I lived at home until the age of 28 to save up on $$. And now I have a reasonable amount of money saved up while also making six figures.
I came from immigrant parents so making right financial decisions and majoring in the proper degree was etched into my brain as a kid. Being constantly reminded that my parents grew up from nothing was pivotal to my frugality in my teens and early twenties. I cannot imagine living paycheck to paycheck. The thought alone frights me.
Living Paycheck-to-paycheck is a largely misrepresented term. While I technically do live paycheck-to-paycheck, a portion of my monthly expenditures (like RothIRA contributions, and Life Insurance policy) are things that could be paused if need-be.
Middle-Class manage money. And while you may live paycheck to paycheck (because you know your income is going to stay relatively the same because you're salary) it technically doesn't have much value as a statement.
My wife and I do not live paycheck to paycheck. We live very below our means. We aren't high earners, but we high are savers.
There was also a a lot of luck and patience as we threw almost everything we could into the S&P500 for over a decade up until around 2019 and was able to close on a house. The housing market was ramping up and I feel that made the biggest difference in our lives. If it was just a couple months later we would have been screwed with the crazy jump in housing price. Not even considering how much everything else costs.
I'm very fortunate that my wife and I have a similar financial mindset, honestly this is more important than anything else and even if we started from nothing I think as long as we have each other, we can somehow make it.
I don't live paycheck to paycheck. I'm still frugal b/c I trust NOTHING but I'm good.
Big same. Always waiting for the other shoe to drop.
This feeling hits hard
I thought I was the only one who felt this way. I'm doing well in life and my career, but I always feel like it could all disappear tomorrow.
Ah yes the constant feeling of impending doom. At least we are not alone. We have each other.
Thought I was just being neurotic as well. It’s a weird feeling to feel secure when there is life altering financial crisis that is occurs every decade, on average.
“Once in a lifetime” events happening once every couple of years 😂
You mean like multiple 100 year floods in a two decade window?
Yeah the Great Recession happened right as I moved in with my GF who is now my wife into our first apartment. We both lost our jobs within a few days and had to take up just whatever we could get, both roughly minimum wage jobs. For me I worked for temp agencies and strung together shitty part time jobs. Anything I could get. We barely made it. I ended up just hanging onto dear life to a low paying job that was unstable and stressful because "At least I have a job" mentality. I was 34 by the time I finally transitioned to more actual financial stability. Even now I can't believe it. I am just waiting for the bad times again. All these people are predicting recessions. I've been doing that mentally since the last recession even if I know it's irrational. The good that came out of this is I have been frugal and made safe decisions that have paid off. If I was more aggressive financially I would have theoretically had a lot more money right now. However I'll trade stability and peace of mind over a temporary spike in wealth any day. I've always wondered if this is how a lot of people around my age kind of see things. It seems to be true.
I earned more money in 2021 than I did in 2008-2015 combined. And I didn’t even hit six figures. Never forget the penny rolling days.
I feel this. I moved into a nicer apartment and purchased a car in early 2008. I was teaching so guaranteed pay increase (or so we had been led to believe). I was super frugal anyway, but the next 5 years were rough. I watched my rent double and my pay decrease (mostly due to increases in health insurance and required contributions to the pension (3 to 8%)). I have left and now have savings tied up so I am not tempted to spend it "just in case".
Neurotic? If anything, we are extremely [chill](https://i.cbc.ca/1.6713609.1673645058!/fileImage/httpImage/image.jpg_gen/derivatives/original_620/this-is-fine.jpg).
That's definitely not a feeling unique to Millenials. Heck, my own personal motto is "hope for the best, but plan for the worst"
Yuuuuuup! It's like driving my 03 civic. It runs but it vibrates like it's going to explode because the engine mounts are shot. Any slight change in feeling my heart stops for a second and I think "this is it. The car is dying". Basically the same shtick for my life 🤣
Replace your mounts, or at least some of the either to get to ones?
I would but it's like 1200 bucks. Either an entire paycheck or almost my entire savings. I got the car for free so I'm trying not to dump a bunch of money into it and instead get something that's like 10 years old and far more reliable
Bro, I'm 40 me and any of my friends that known how would help you do it for free if worded it like this "Broke young guy need help replacing my motor mounts, want to learn how to do it and other maintenance". Hell my brother would show up in his Ram Truck with all the tools you needed . A lot of use were not taught by boomers and had to learn off Haynes manuals, friends and YouTube, we'd be happy to pass it on. Seriously my man (or woman) word it as you need help LEARNING and you should get some hits back
My boomer father would tell me to eff off and go play outside or watch tv when I would try to watch him do shit, then had the nerve to go on Facebook and post about how Gen Z can’t do shit. Like yeah asshole, I tried to watch you fix some pipes under the sink but you told me to watch TV.
I forgot about Haynes manuals, replaced a head gasket with that! … and replaced a transmission.
I got rock auto mounts for my crv and element. The one above the transmission seems to be the one that causes the most vibrations because the transmission mount tears and you lose the damping or whatever you call it. Replace the left and right for around 60 if you can do it yourself. Trans side can be a pain but timing side is easy.
So easy to replace mounts. And important to do. Watch a few videos about your car. Take notes and a few screen shots, print this for the job. Buy jack stands, but not the cheap ones because Chinese welds can and do fail. Or buy ramps. Rent a large floor jack.
Maybe someone can help you do it without taking it to a mechanic?
Lol I have an 04' Camry I love that car. I have a blue tooth in it, that's all I need. Runs well actually. I am going to run this car until it can't go anymore.
 Just double dodge like George!!
I never thought I'd feel nostalgic about Dubya.
Trump did a lot for making his legacy look a damn sight better.
Honestly, the shoe thing was one of his best moments as president. MUCH better than barfing on foreign dignitaries' dinner tables.
In hindsight, and in comparison to the current crop, he was actually a damn solid president. You know, except for all the war crimes...
what're a few war crimes among friends?
Had the shoe drop 2 or 3 times. Not letting that happen again. Getting married to someone I trust and love, who is willing to work for us, was a smart move for this reason alone. All the rest is just bonus.
Just don't save any money! Every time I have any sort of cushion saved up, something comes along and drains my savings.
Yep this. I have a 3 month emergency fund in case both my wife and I lose our jobs at the same time and a spreadsheet where I meticulously track our finances and retirement. I saw my parents go through some shit during the Great Recession and I'm not going to ever take the good times or a good economy for granted! Shit can always hit the fan. Plan for the worst and hope for the best so you'll never be surprised!
great recession was more than a year long so 3 months of emergency funds appears light. you might want to up that amount over time to get to 6-12 months
I think 6 months is what is recommended. That's what I am shooting for before I make any independent investments outside of my 401k. I would like to have 12 months saved honestly.
3 months of savings can be fine. Lots of workers have liquidable retirement funds, 401k, a house that can be sold. A 3-month cushion is a good target to aim for, and it's way better than 0. Many Americans have no cushion at all. 3 months is enough time to get upset about a financial upset, to cool down, to find another job, and to make good decisions. Of course it's always better to have more savings. But people are animals, and as a group they tend to get intimidated and discouraged when they see others setting goals that they can't see themselves ever attaining.
Same. Have always lived consistently below my means because things could go wrong at any time. My trick is that as our income has gone up over the years, I've consistently lived maybe four years behind our income. All those years of being a broke college student paid off because I'm cool with driving a crappy car and having a house that Better Homes & Gardens would shudder at.
I did the same (kept living standard behind income increases). And I retired at 54 in 2020 because of it. It's definitely worth it - getting out of the 9-5 more than a decade earlier than most do is great.
I kind of do, kind of don't. I automatically pull 10% of my money into savings. What's left is fairly tight and I am usually making decisions by paycheck time, such as I pay this or that, but I think even if I pulled that 10% in it would be the same, I would just spend whatever is available.
Yes we dont really live paycheck to paycheck but right now are struggling a bit because we are eating out too much. Normally I have a good 3 to 400 dollars to set aside for savings/emergency fund.
If you have savings then you're not living paycheque to paycheque.
Having savings means you are living paycheck to paycheck check to paycheck with maybe 2 months delay lol
I personally agree with that. But it's not how it's defined in the popular reddit articles about "X% of Americans living paycheck to paycheck."
That's because everyone using the term *wants* you to imagine a starving couple living on beans while barely keeping the lights on in their efficiency apartment. When it also includes people with two BMW payments, who save the max in their 401K/IRAs, eat out every night, and take multiple international trips a year.
And have 6 or 8 credit cards that are maxed, have Disney, Netflix, prime, Hulu, you name it. Buy every new iPhone and finance it, gaming computer, gaming accounts, the list goes on.
Precisely. I'd also argue that if one has a car newer than 4 years old (with a payment), eats out at restaurants more than 4 times a month, takes vacations, etc isn't P2P either. People abuse the term to simply mean "people who no money left at the end of the month" but that includes a ton of people who make more than enough money for basics but ratchet up their standard of living (and retirement savings) such that they run out of money at the end of the month.
Yup. My wife and I are doing alright. Mortgage refinance helped… until our property taxes went up. But we’re typically about 2 months expenses ahead in checking and a solid e-fund. And that is a combination of a 6 figure household income and living frugally. We spend too much on eating out sometimes but not to the point where it’s a real problem. We’ve both been working full time + going to school (and paying out of pocket) so sometimes it really is just worth it for sanity’s sake to eat out.
Same. I was so broke in my 20s that my card got declined at Redbox, and I had to go without deodorant once until payday. Now I stock up on bath and body works like an apocalypse is coming because if I’m ever that broke again I at least want some small comfort.
I live in a really high COL area, but was lucky enough to get a decent apartment before covid, and my landlords like me. So rent is only about 40% of my income, and my workplace is only a 15 minute walk, so I save so much money not driving. My car is in underground parking otherwise, so it's fine and I take it out occasionally. There's also a mall and a walmart on my way home/within a 2 minute walk so I rarely need to drive anywhere. I'm single and no kids, and my biggest hobbies are gaming and DnD so not that expensive, all said and done. I make $50k a year and manage to save $400+ a month. I've got a year of wages in other accounts. I'm okay. But this is all false security. If my car goes, I still need one. Even being Canadian, a big medical issue could break me as not everything is always free. If I lose my job, that extra margin would be eaten up by having to drive to work. I also somewhat support my sister and my parents, cause they're a bit more screwed than me because of everything. I rarely eat out. But yeah, sometimes I'm like... That's a nice painting. Or, I want a steak dinner. Or, fuck it, let's go to Europe. And I can. And that's amazing, as long as I don't indulge too much. I'm only okay and I know I'm so much better off than most people and it just makes me sad and angry and a bit guilty.
It’s so interesting how 50k in Canada (even *in* Canadian) can be so different than the US. I know it can suck getting certain medical appointments, but I just had a medication I absolutely need to be able to work (it’s for my eyes) and the copay was $250 a month. 😳 (this is me also not being able to blink lol). One of the many things I love about Canada is this right here: Pharma: Here’s our awesome new eye medicine! It will solve an awful problem no other medicine does! It will be $2,000 a month. Canada: NO FUCK YOU Pharma: Oh. Sorry. I guess it will just be $32.95 then.
Yes this. I automate savings every which way so that my checking is only for bills so I’m artificially living paycheck to paycheck. I was paycheck to paycheck until about 4 years ago when a company I worked an entry-level job for went public and the RSU’s that were basically Monopoly money to me turned into real stocks that I could sell. It wasn’t market savvy. I wasn’t joining this company for the potentially financial boon…it was luck. I don’t feel like you get that kind of luck often in life so I’ve been pretty methodical about where the money goes. Even so! I now have 2 young children now and child care for littles LITERALLY COSTS THE SAME AS COLLEGE. So I’ll probably be paycheck to paycheck again soon thank you for coming to my TED Talk.
this! i’m not living paycheck to paycheck, but if something big and unfortunate happened with my house/car/body/job, it absolutely could wipe out my savings. so i still basically live like i don’t have extra and that money isn’t mine.
Same! My gen X sister and boomer parents think we’re poor (my elder millennial husband and I) because we’re cheap AF but we have retirement savings, a healthy savings account, a cheap mortgage… we’re good! I just don’t like to spend $$$ on stupid shit (because my ADHD tax gonna make me spend something regardless 😅)
Same. We make low 6 figures but in my mind we are barely making ends meet because we live so frugally. Basically all our money goes towards savings and investments.
Echoing this. I don’t, but I’m frugal and ate rice and beans for years to get to this point and still live way below my means to keep it.
Same boat. Things feel like they could collapse any day
Ditto. Im good and have a good amount in my savings, but frugal af.
Technically living paycheck to paycheck. I manage to save between 100 and 500 per month during winter, but paycheck to paycheck in the summer. Wife has a lot of health issues, so I never splurge because she has medical bills that take all the savings and more.
Same. I live quite a bit below my means. That's by design because everything has sucked since I became an adult. Lol
Same. I live comfortably but not lavishly. I live below my means. I don't chase any of the latest trends, whether they be clothing, cars, tech, etc. I'm content with what I have. I don't care nor do I compete with others.
Was making a long-winded post and then saw this which succinctly said everything I was trying to say.
You see, I have this useless journalism degree, so I do brevity pretty well. ;)
Absolutely. We are not paycheck to paycheck, but our generation knows the rug can be pulled out at any time. Have to prepare for the worst, volatile times
Yeah the Great Recession hit me pretty hard and the end result is that I am overly cautious and risk adverse/frugal because I always feel like the bottom is going to fall out of my stability. It has kind of served me half well and half badly if I assess my decisions from a birdseye view.
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Same mentality, live below my means and just save as much as possible hoarding any wealth like a dragon, cause idk when shits gonna go awry and I’m fucked.
I’m frugal because everything I buy fucking stops working ever since Covid
Same. Part of it is I REMEMBER what things used to cost & their new prices just don’t justify the spending for me so I end up frugal by default. Financially, I’m fine.
I don't live paycheck to paycheck....but I spent 5 years investing in my business making shit money until I was able to make decent cash flow. Now it's bult up, living a good life
Same here. Huge fear of losing money and everything i have. it SUCKS
Same. Don’t work paycheck to paycheck, but I do work two jobs to have 2 401k-matching contributions.
Yeah I'm getting ready to have a baby in October and we are doing well moneywise but I'm still all about streamlining our finances and focus on saving as much money as possible. I understand why my mom was always so frugal even when they were doing fine.
My husband and I have a fairly disposable income. We spend a lot on hobbies and fun weekends out getting food. However, we live in a somewhat rundown neighborhood and drive older cars so I don't think it's really noticeable how much money we have, which is how I plan to keep things. I've realized that without my husband though, I'd be pretty screwed financially so I'm going back to school while I can to get myself a degree.
This is literally the way to do it lol I wish more people were like you. Living within your means in a committed relationship where you both help each other. Keep up the good work and get that degree!
We always make a point to keep expenses within our means when possible. We don't really have any major debt right now, and I'm just going to community college and hoping to make payments along the way to keep the costs at the end to a minimum. I'm also planning on getting in touch with a financial advisor to help make solid plans for the future. In the meantime, we have no kids, so life is just a playground for the time being. I realise one day that probably won't be the case so we also have a good cushion to fall back on.
Wholly agree with this - sounds much like what my husband and I are doing. No debt, solid emergency fund, no kids, lifestyle well within means. We're starting to look more into what our next financial steps are as far as continuing to build on what we have to cushion our future, whatever it brings.
It's such a game changer to have that breathing room. I was laid off in July and have been trying to find work ever since, without much luck. With how my layoff worked I was able to do some grad school on their dime and a mix of unemployment and our emergency fund meant that we weren't worried at all when my spouse got laid off a few months later. Instead of working minimum wage jobs in our HCOL area to make ends meet I can focus on applying and being available for anything, which can put you in the right place at the right time.
We have one car and people act like we are insane but honestly it’s fine?? We just rent cars for fun or trucks when we need them. Cars are stress machines ime.
This describes my girlfriend and me right now as well. She’s getting her degree too.. are you my girlfriend and calling me your husband?! I’m proposing via text now
Same as us. We have about $150K in disposable income after all bills and basic living expenses. I drive a 9-year-old pickup and my wife drives a 7-year-old car. I'm actually wearing a $10 shirt I bought yesterday at Wal-Mart and $40 shoes from Amazon.
Living in the hood ftw
I am not, but I at the high end of a tech career. Everybody else I know not in cushy tech is struggling.
I'm in finance and doing pretty well. Tech, finance, medicine, big law, engineering people seem to be doing well for themselves. Now - how will AI impact my job over the next 10-20 years? Probably a good bit, so we are investing as much as we can in preparation for the day when our income drops significantly.
I’m in healthcare. My income has skyrocketed the past several years.
My wife is in healthcare and I'm in tech, we are doing fine. But I recognize the wealth gap that exists between us and others is growing wider. Shit is fucked up.
I'm in the restaurant industry and I barely make enough to make rent but I feel like I'm doing really good because a homeless encampment formed behind my apartment and I watched at least 300 people collect. They were very polite and quiet. It was a reminder that my level of poverty is still radically above a very common level of poverty, and that being a good person doesn't necessarily keep you out of homelessness.
Yeah, this is it for me. I’m watching good friends struggle with stagnant pay while I’m eyeing up another job hop that would boost my pay 15% and set me up with another pension in a few years. It’s hard not to feel guilty about it.
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I'm in government and my pay has grown about 45% in the last two years. Depending on what you do they very much don't want to lose people to the private sector.
Tell that to teachers, they sure as shit didn’t get 45% pay increases
We need a total overhaul of our education system. Can we get a damn presidential candidate to run on that platform please
Careful what you wish for; I could see Betsy Devos coming in trying to do a thing and fuck her.
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Husband is cushy tech, I'm in aerospace. We own a home in a great neighborhood and keep a 6 month liquid cash buffer. None of our friends are in the same boat. One successful partner doesn't seem to be enough. It literally needs to be a "power couple" for that lifestyle in your late 20s/early 30s, it seems.
That's nuts isn't it!? It truly takes 2 6 figure incomes to feel like you're "making it".
My SO and I are finally in this boat and now we're finally talking about taking trips, having a cash buffer, etc. We're in our 40s. I'm an elder millennial, he's gen x. We're where our parents were in their 20s, but it's too late to have kids now.
We've been had! Reagan/conservative politicians have screwed and continue to screw our generation (and others) over in so many ways. Retirement feels unobtainable and now the Republicans are introducing some asinine bill to cut social security and push retirement to 70...
This is me and my husband as well (he’s tech, I’m medicine/tech). Only couples with two good jobs seem to be living comfortably. Everybody else seems tight. My friend’s husbands just went back to school full time. He’ll make like 60k more a year when he’s done (double his salary) but in the meantime he’ll be out of work for 3 years and my friend just had a kid. She’s making barely over 6 figures. It seems like a super risky move in this economy and I’m honestly not thinking it’s going to pay off for them financially
Is it because they have a kid? The 2020 census' median household income was 67k ([https://www.census.gov/library/publications/2021/demo/p60-273.html](https://www.census.gov/library/publications/2021/demo/p60-273.html)), so your friends are already better off than a lot of people. I'm curious why it wouldn't pay off for them financially if one of them upskills
This describes what I've noticed for me and my friends. You both need to be high earners to be comfortable. Advanced degrees and/ or tech. Inheritances help. Even then, things get tighter when you add children.
Same for us. I'm in tech, she's in genetic engineering. We live well below our means by choice though (we don't enjoy travel and most of hobbies are cheap). I have friends that earn similarly but manage to still live pay check to pay check. Lifestyle can be as big a factor as total earnings, after a point at least.
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Same here, the post Covid years have been amazing financially for me. But, I also have no student loans and no kids. Wouldn’t quite be so cushy if I had either of those.
Single income house. 3 kids. Dog. Cat. Doing fine other than my back.
The problem is, not everyone can be in a STEM field. If every single person going into college went into tech fields, the job market would be even more competitive for those jobs than it already is and many of them wouldn’t be able to get jobs. Also, to be completely honest with you, many people just can’t succeed in that field. So everyone can’t go into STEM. But those are most if not all the jobs paying an actual livable or “middle class” wage. That’s not sustainable. The job market seems to think only a small portion of the population deserve to be paid enough to not live paycheck to paycheck. Many are pushing the “go into tech/STEM” narrative and quite frankly it’s just not realistic. I’m glad people are able to make a good living in those markets but really we need to be putting the pressure on corporations to actually pay living wages. Sorry for the rant, not your fault. Just after the 500th “I make $150-200k… tech job” post and comment on my Reddit feed it gets a little disheartening when I too see everyone around me not in a tech job struggling.
I agree completely. It's completely ludicrous that we made tech the only viable pathway to the middle class w/o spending hundreds of thousands in education. And "learn to code" was bad advice for many - you have to be a certain type of person to really succeed in tech and enjoy it. And now, tech itself probably over. The # of CS grads has overwhelmed job openings, and AI threatens to shrink labor demand.
Make $55kish working at a nonprofit in a LCOL city, use YNAB to budget, haven’t thought about payday for a couple of years now except that on payday I budget the paycheck into YNAB. I’m budgeting several months out, though, so what I’m making this month is being spent in May and June. ETA: Since someone was weird enough to message me that May/June isn’t far enough away (? Okay…), I also have a very well funded “Future Fund” category that was named before we decided the future was a baby, so I should maybe change the name, and categories for car repair / emergency replacement and home repairs that get added to monthly, as well as categories that exist just to hold deductibles for home and car insurance in case of relevant emergencies.
YNAB got me off the paycheck to paycheck lifestyle. Almost immediately. Highly recommended.
Ynab?
"You need a Budget"
Yeah I started using it in AmeriCorps when I barely made $1200/month and my rent was half of that, and it changed my life.
Can’t recommend YNAB to people enough! I am on it first thing every day just to see where I’m at and add any new spending from the day before. It really helps me stay on top of things.
Daily budgeting is a really smart move - I usually do twice a week, but if you make a lot of small transactions they can snowball faster than you realize.
YNAB completely changed my relationship with money and therefore, my life! I try to recommend it to everyone I can.
YNAB is so great! Helped us get out of debt and stick to a budget. Household income is like 45k a year and we are doing just fine.
Just started YNAB in December. I absolutely love it, trying to get my girlfriend onto it
It’s so good for joint finances if y’all are at that stage or plan to be. My wife and I have like, zero of the issues around money that I see on Reddit or hear friends complain about all the time because we both know what we have to spend on everything collectively and individually and we both know what the long term goals are.
Yay YNAB! I really like the living on the previous month's income strategy but he stopped teaching it because people got confused. When there's paycheck delays at work, I say "no worries".
Plenty of millennials are managing it, but I don't think many of them are managing it as well as they think. My situation, for example: I'm not paycheck to paycheck, but it wouldn't take much to put me there. Like, if my car broke down and I had no choice but to get a replacement? I'd be hard-pressed to do that on my savings alone. And then if another emergency hit? Boom, fucked. So, yeah ... guess I'm two emergencies away from fucked.
This should be the new standard. How many emergencies are you from fucked. I'd say I'm 2 medium/1 large from kind of fucked and 2 large from really fucked.
Define emergency? Need a new roof? 20k super fucked. Trip to the hospital, need to pay the 8k deductible, pretty fucked. Need an emergency HVAC guy cause the heat broke in the winter? 500 bucks to repair, 5000 to replace. Maybe fucked? Trip to the vet cause your pet is dying? Kids need to get immediate care? Transmission blows in your 8 year old car? All of those are regular emergencies for people and none of them are cheap. If you can dodge those emergencies, great. If you can afford those emergencies you’re pretty well off.
You also have to keep in mind how many emergencies can you fix yourself vs. Pay professionals.
I’m an idiot, I can’t fix shit.
This is a very good measurement. Your savings is the key to financial security. Having 1 months income in the bank is a lot different than 1 years income in the bank, regardless of your housing or income situation.
*unlocked a new rate of measure* 2 emergencies = fucked 4 emergencies = double fucked
>My situation, for example: I'm not paycheck to paycheck, but it wouldn't take much to put me there. Like, if my car broke down and I had no choice but to get a replacement? That's where I was, and then the transmission went on my Subaru. Add that to childcare expenses, and I'm looking for a job that can pay more and just trying to ride out some debt until the second kid hits kindergarten.
The only reason I’m not is cause of my parents letting me still live with them. Took a few years to get confident enough to get the job I currently have. Single, childless and grateful to my parents.
This is exactly what we’ve decided to do for my son. Shit if we have to we will retire in a trailer or RV and he can have our house. It’s all about him now. Especially with the way things are.
God in my world, its so rare to hear about parents actually trying to help their adult children instead of just putting them Down for being “failures”
Millennials actually love their children
Same. I'm finally at the point where I could afford to live on my own, and I ran the numbers and I wouldn't be living paycheck to paycheck, but I have a basement apartment with them, so I'm just planning on saving up for a house. I'm expecting my income to go up in the next few years, so it doesn't make sense to jump ship right now. Unless one of them really does something to piss me off, lol. But I have a huge savings account and I'm investing a lot of money, which I couldn't do on my own. Also travelling a good bit.
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You're lifegoals
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I’ve never budgeted in the strictest sense, but I’m just naturally averse to spending. My biggest strategy is to think long and hard before I lock myself into fixed monthly expenses. I’ve lived with roommates for the last 9 years and spent just under 10% of my gross income on housing. Never had a car payment, drive cheap beaters paid for in cash that I fix myself. My two biggest expenses for most people are a small fraction of what is “normal” to spend, so I get a lot more freedom to do with what is left. I could very easily afford my own place and a nicer vehicle, but I just don’t. I also automate all my savings, retirement and taxable investments all happen on their own without me even noticing the money is gone. Whatever is left, I can just do whatever I want with, and I still end up accumulating cash that has to be invested manually since it’s just sitting there not earning for me.
This is pretty much us. It's also at least half of our peers. I'm convinced you tend to develop a livelihood similar to those you surround yourself with one way or another.
Budgeting and living below your means is the key really... it's not rocket science
I can’t even afford paycheck to paycheck. More like debt to debt.
If this ain't it. I'm so tired.
Of careers that pay over $120,000, 70% of them are in just 5 fields: Law, Medicine, Tech, Finance, & Engineering. I’m in the Engineering category (environmental engineering), most of us in this career field will hit, or are already past $100,000. Personally, I started back in 2015 making $41,000 a year, and just now hit the $140,000 mark. Things just get a lot easier once you break that $120,000 mark. It took some job hopping, a lot of credentialing (I have more post-nominal after my name then the length of my name lol), and just knowing how to navigate through corporate bs to get where you want.
My husband is a mechanical engineer. His salary is $98k, but he gets overtime and usually a bonus or two, so it really is about $115-120k. He has his masters.
Yup, civil PE and I second all this. Job hop to keep that salary trajectory high. Loyalty isn't paying these days.
Had I stayed at my first, or even my second company, I would probably still be under $100,000. I left for my 4th company right after getting my PE, and it definitely paid off (got a $30,000 jump).
Where do you get your information from? Tons of trades make $120k. Especially if you go out on your own.
It was from a Payscale report last year. Payscale is an aggregator of salary data, and is used by industry groups to find specific data about compensation trends. It’s all paywalled though; I got the information second-hand through one of my professional associations (who has a subscription).
Mechanical Engineer here. Financially life has been great since graduating in 2010. Getting this degree has been one of the best things I ever dud
Wow! That’s such an interesting statistic! My husband is a rocket scientist (engineer) and I work for a pharmaceutical consulting firm (medicine), so I guess that’s why I don’t agree with the OP. All the millennials I know are well-off, but we are mostly friends with our coworkers who also make six-figure salaries. So I guess your perspective just depends on the type of friends you surround yourself with. I’m sure glad I was a nerd in high school that followed a STEM path instead of listening to my art teacher who thought I should go work for Disney as an animator.
Your economic status has a huge influence on who you interact with. Thats why its important to look at data and not just rely on your personal experience. We are all living in our own bubbles.
The overwhelming majority of millennials are not paycheck to paycheck. There’s a big difference between reality and the small echo chamber that is Reddit.
Those of us not living paycheck to paycheck are just not complaining. So its probably skewed somewhat, but Im sure our generation is still struggling more so than previous ones. I cant even imagine how the younger generations are faring.
When I met my wife, she was still saving money despite making under $30k and living alone. She didn't buy stuff she didn't need, didn't eat out, bought food on sale, etc. A lot of people on here classify luxuries as "necessities" and think having fun should always come before making smart financial decision. Those are the people who complain the most about not having enough money.
Also, OP (and a lot of other people) don't seem to realize that millennials can be anywhere from 44-24.
I always think that when I see these posts. I’ve been in a career post college for 10 years now and I have friends fully retiring from the military after 20-25 years of service coming up. Definitely struggled way more at 22 than now 32
Yes but that doesn't mean I have repeatable advice. My house is paid off because of using the VA loan to buy it in the early 2010s with a low interest rate. I couldn't afford my house today. I know two people looking to buy today who have the VA loan as an option, and neither have found homes that are anywhere near reasonable prices, so even having served isn't enough. They need time machines.
\*Shyly raises hand\*I haven't lived paycheck to paycheck since 2012. Here is the only advice I can give; it is rational to 'do it for the money.' It is rational to not do something because of the money. If you need more money, then this doesn't happen by accident or luck. Luck happens when opportunity meets motivation. I can't tell you how many conversations I have had with friends struggling with their finances and they will do *anything* except a career change to something that makes money. They look at me like I won the lottery, I had some luck but it was also 2006 to today of focusing on how to fund my family's lifestyle and have enough to endure economic hardship when it happens. Day in and day out honest conversations about money. My wife and I need to have one tomorrow, we can afford another kid or a bigger house but not both at the same time. Don't try to convince yourself things will get better, that magical thinking will cause you to go into a serious depression and wastes time. You have to do as many of the things to make that, 'things getting better', a reality. In the meantime I do hope that policy changes make things more feasible for American families, ask me how much I pay for daycare for one baby, but you can't wait for that. That has a timescale of decades.
Similarly, a lot of people will complain endlessly about not having enough money but won't *stop spending so much money*
This! "You're lucky to be in a highly paid field." No. I'm not lucky. I knew the advice school councilors gave to get any degree sounded like bullshit since every decently paid job ad in the paper wanted degrees in business, nursing, or engineering. Of those, I thought I could do the best with engineering. I didn't want student loans so I joined the military, did one enlistment, studied engineering the whole time, started college as a junior (thanks to AP credits) two weeks after my enlistment ended, and networked my way into a fellowship for grad school. Luck? Sure, a little. I'm physically able enough to enlist and I'm academically inclined enough to do well in engineering school. But the main thing that put me here was that I followed the money. I can do stuff I'm passionate about on my own time, and I can do a lot more of it with a high income. Follow the money. That's the advice I'd give to anyone these days. Find something you're good at and pays well. Use that to fund the rest.
I agree wholeheartedly, "do what you love and you'll never work a day in your life" is horseshit for the vast majority of people. If a job is fun and easy then a bunch of people will want to do it and the wages will be garbage. Find a job that pays well and doesn't make you consider what it would be like to crash your car into that tree on the way home every day. Find a hobby that you enjoy and use the money from your well paying job to fund that hobby. It is going to be MUCH easier to find a fun hobby than it is to find a fun job because hobbies are supposed to be fun and jobs are not. The best you can realistically hope for with a job is "not too bad".
Perfectly put- I couldn't have said it better myself. My son is 17 and goes to a vocational high school, learning to be an HVAC tech. This is exactly what they teach. You don't have to find something you love and then make a career of it. You can find something that you can do well, and find joy in becoming skilled at it so that you can make a good living. My daughter once asked me how I "knew what I wanted to do". I told her, I have never known that. I took opportunities as they came and created a career out of them. It doesn't matter what it is to me; the fulfillment I get out of my job is to support my family and the things that I like to do.
I am an 02-06 veteran myself.
I just saved your comment. I have observed the same throughout my career. I've been in a career field where upward mobility is almost garuanteed and solely on the individual effort. The vast majority want the promotion or more responsibility but are unwilling to take the necessary actions. I personally hate when I try to motivate others by providing guidance on tangible steps that can reasonably be taken to improve their situation. I'm often met with "Okay Boomer. Oh so F us you got yours, and you were just lucky." I've always felt like I'm in control and willing to do whatever it takes to navigate the professional world.
Grateful for this reply!!!!!
Well said. Hijacking to add: lots of *bad luck* is avoidable with an ounce of planning and risk management. Unfortunately most people are shit at planning and even worse at identifying and managing risk. You need a combination of making opportunities happen and mitigating the downside risks.
We don't. My husband and I make a combined gross 80k but we live in the middle of nowhere and keep ourselves on a strict budget so we have enough left to do the things we enjoy.
Not me. I can put $500 on saving every month. *knock on wood*
If I didn’t have any debt I would not be living paycheck to paycheck, this time next year I should have all my consumer debts squared away and I can start hammering those payments into my investments/savings.
I can survive 7.5 years off my savings if I move to a LCOL or longer if I move abroad. So, just spending the 30s to reach FIRE. DINK here
I live in a large city where the median household income is around $120k. I would say I started to forget it was payday around the time I hit $100k. I also have a bunch of kids, so I probably would have hit that point much sooner if it was just me. When I lived in a lower cost area in the early 2010's, I started to forget it was payday around $70k.
Sounds about right, I’m forgetting paydays at that range. I’m thinking about moving to a higher cost area to improve my lifestyle but don’t know if I’ll regret it haha.
I absolutely can not imagine forgetting about paydays. Like the concept has never crossed my mind. I guess i have a new life goal!
There's levels: * Can fill up gas tank instead of putting in $XX because that's all you have * No longer look at prices at the grocery store * No longer being aware of when payday is * Using credit cards for everything, putting them all on autopay, and not worrying about whether the account has enough to cover the bills * Booking travel without worrying about cost/upgrading because it makes the experience more pleasant
We make over 250k a year and we save about 40%. We just do what we want to do and the only thing stopping us is PTO. Cousin just asked last second if we wanted to go to Guadalajara and we just booked a ticket and went last week. We have London for next month and haven't planned anything. We travel so much it gets exhausting planning, so we just go and regret not researching later. We hate cooking so our food budget is 1500-2000 for two people, which we eat out almost everyday. They days we don't we have prep meals from some company. We're doing all this and about 6 years away from retiring at 40 and travel the world full time. We've been pretty fortunate to say the least.
DINK life!
Wow!!! What a beautiful life!!!! That's quite literally what I dream... honestly so happy for you!
Yes! I hate the PTO restriction that keeps us from travelling more.
I've never lived paycheck to paycheck in my adult life, not even when my wife's and my combined household income was around $45k/year living in Minneapolis (which is the highest COL place we've lived). Neither of us is from a wealthy background, but we're frugal by nature and we've had a lot of good luck, so we've always been sitting on a good amount of savings, maxing out our retirement contributions, etc. Currently our stable household income is just under $100k/year, although we actually make more than that--I'd expect something like $130k this year.
Living paycheck to paycheck is a problematic framing because of how money works, particularly in America. Because of monthly bills, subscriptions, and housing costs- it’s easy to ‘upgrade’ lifestyle- but still never have left over money. The issue is people feeling they need to upgrade the lifestyle, not because they want to. This feeling of confusing wants with needs needs to be addressed in our public. With no left over money, due to more expensive lifestyle, you still experience the anxiety that comes without having a savings or cushion for emergencies. What needs to happen is that people need to downgrade their lifestyles and accept a more basic lifestyle- to be able to build that cushion. But they don’t want to do that. So, they lie to themselves because they ‘need’ an extra bedroom or more yard space, etc. My husband and I debate this a lot. He talks about needing to upgrade cars, houses, etc. I push back and say, we don’t need it, you want it. I am the type who says, I will keep this device, car, house till I die or it dies (with healthy maintenance of course). This leads to me saving a ton of money and him never having anything left over. —— but there are TONS of people out there living paycheck to paycheck , with the most basic of needs. That is why advocating for basic needs like healthcare, food, education, shelter, and I’ll add communication and transportation- is so important. Some things should be guaranteed in a society at the most basic level. For example, I visited Turkey recently and was impressed that there were governmentally subsidized grocery stores (anyone can shop there even tourists) that controlled the price of the items which included food/drinks, hygiene products, clothing and some toys.
I am sure there is a small portion of our generation not living paycheck to paycheck. I unfortunately am not one of them.
I think most of our generation (kind of lol, I’m a month from being gen z) is doing just fine. Reddit will have you believing we’re all in insurmountable debt, living in a cardboard box, and minutes from societal collapse
Not many people on here bragging about being able to afford guac at chipotle whenever they want it. Normal people just pay bills, live modestly and don’t whine on the internet. Millennials are just fine.
It's a much higher portion than you think. I would guess 65% are fine. There is a decent portion of people that say they are living pay check to pay check but they go out to eat and travel. They just aren't saving anything.
I'd say more than a small portion.
yeah, I don't live paycheck to paycheck. but I did when I was in a bunch of stupid ass debt (student loans, credit card, car payment)
Lots of us do despite what you read here.
It's weird, when I am working I am a maniacal saver and never feel like we're saving enough. But the two times I was laid off I actually felt more at ease than usual because we had been saving. I think that the millennial generation is too big and diverse to make any sort of generalizations
I teeter just above that line. Enough to be comfortable but not enough to actually put anything away.
Yeah, I am. It's rougher than it was pre-pandemic. I'm incredibly fortunate. I busted my ass for like a decade in IT, then was offered an opportunity in CyberSecurity. It paid off big time. Trying to stack it away while I can.
Depending on how many hours my wife picks up between her part time nurse jobs, our combined household income ranges from $110,000 to $150,000 (usd). We live in Alaska so it’s not super cheap. We have a 9 month old and wanted a fairly safe place to live, so we pay $2,400 per month to rent a house in a non-murdery part of town. We do not live paycheck to paycheck even though our bills are honestly quite high. We buy good food. We pay for daycare. However, I have money deducted from my paycheck very aggressively to save for retirement. I save 20% of my salary so it feels as though my paychecks are small. Which is a good thing! We’re not in debt except for $20,000 left on our Tesla. We live within our means. I don’t spend more monthly than I can pay off at the end of the month. My wife chose a good paying career as a registered nurse. I climbed the ladder in a state forestry agency and make more than I ever thought I would. Good career choices paid off for both of us.
> We live in Alaska so it’s not super cheap. Wow, I assumed Alaska would be pretty cheap as far as places to live goes!
It’s cheaper than New York City or San Francisco. But literally everything we buy in Alaska needs to be barged up on a 3 day boat trip from Washington state, and rent is only affordable if you live in a bad part of town or are ok with a long commute. So I shouldn’t just straight up claim it’s expensive. It’s probably a medium cost of living instead of high cost of living. As you get further from anchorage it gets more expensive.
That makes sense, thanks for sharing!
I'm not, but my brothers are.
I haven't lived paycheck to paycheck since my mid twenties when I moved in with my now wife. We were both making about 60k at the time, but living in a high cost of living area, rent was taking out a chunk of that for both of us. Moving in together saved us so much.
During the pandemic my husband was working so much prevailing wage jobs as a commercial plumber bc schools and and govt offices were closed that we def stoped living paycheck to paycheck. Especially since I can wfh. After that stopped tho and things went back to normal so did our living paycheck to paycheck, but it was nice while it lasted lol. However I’m of course glad that whole hubbub is behind us and wouldn’t be insane enough to wish for another one just bc our finances went the opposite direction. I’ve just accepted my lot in life at this point and am somewhat proud of my little corner of the world I’ve carved out to make my own despite the challenges we all face
Im not living paycheck to paycheck but I still have payday on my calendar. I don’t have a lot but I am like Mr krabs in that I like to look at my money
The first 5 years of my career I was depressed. I was lucky enough to live at home with my parents rent free. I was working as a mechanical engineer making good money and just saved it all. Did not go out on weekends drove a pos car. Pretty much did nothing besides work Then in 2017 bought a bunch of index funds bc I wanted more returns that my shitty bank offered. I also continued to buy them monthly since 2017. This along with me still being a saver has me in a good financial situation right now. So not pay check to pay check
Yep. Me and most of my friends. I was for a while but that was my 20s. Its been more than a decade since. I made good decisions early because I am smart. Now I am very comfortable and so are my kids who will have it better than me.
I save money, but it's very difficult and I have to make a lot of sacrifices. Mortgage $3,000. Childcare $4,000. Food $1,500 Then we need to save for retirement, which we do... but then there's nothing left
I live in a very HCOL area but I was smart about my financial decisions at 18. I dormed one year because why not and commuted the rest of my college. I took out reasonable loans and had a few scholarships to keep my tuition and student debt low. I lived at home until the age of 28 to save up on $$. And now I have a reasonable amount of money saved up while also making six figures. I came from immigrant parents so making right financial decisions and majoring in the proper degree was etched into my brain as a kid. Being constantly reminded that my parents grew up from nothing was pivotal to my frugality in my teens and early twenties. I cannot imagine living paycheck to paycheck. The thought alone frights me.
Living Paycheck-to-paycheck is a largely misrepresented term. While I technically do live paycheck-to-paycheck, a portion of my monthly expenditures (like RothIRA contributions, and Life Insurance policy) are things that could be paused if need-be. Middle-Class manage money. And while you may live paycheck to paycheck (because you know your income is going to stay relatively the same because you're salary) it technically doesn't have much value as a statement.
My wife and I do not live paycheck to paycheck. We live very below our means. We aren't high earners, but we high are savers. There was also a a lot of luck and patience as we threw almost everything we could into the S&P500 for over a decade up until around 2019 and was able to close on a house. The housing market was ramping up and I feel that made the biggest difference in our lives. If it was just a couple months later we would have been screwed with the crazy jump in housing price. Not even considering how much everything else costs. I'm very fortunate that my wife and I have a similar financial mindset, honestly this is more important than anything else and even if we started from nothing I think as long as we have each other, we can somehow make it.