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Having 40% of your take-home pay after covering essentials is not living paycheck-to-paycheck. But it's also true that if you're starting with nothing, saving
by extra88 9y ago
Having 40% of your take-home pay after covering essentials is not living paycheck-to-paycheck.
But it's also true that if you're starting with nothing, saving for a down payment in such a housing market is unattainable.
- geggam 9y agothat is 40% for 4 people or 10% each... and you will notice I left out many costs like fuel / car maintenance. Life is different when you arent single
- extra88 9y agoMy home is single income, two people. I don't see the point in dividing the what remains equally amongst each household member when there are so many expenses that can benefit more than one person and there will be different wants and needs at different times. Living paycheck-to-paycheck means if you miss one paycheck, you'll have bills you can't pay. With the numbers you've provided, I don't see how your income and essentials would force you to not have savings to cover a few months. You didn't mention how many income sources your household has; even if 75% is from one source, having a second source does add a lot of security.