Oh you'd be surprised how many people at the $250k income level have been cruising along barely net worth neutral in spending and took out some kind of personal

Oh you'd be surprised how many people at the $250k income level have been cruising along barely net worth neutral in spending and took out some kind of personal loan or used their credit card for that $10k "new roof" blip or impulsively traded in a car that was a few k upside down, and they started to get further and further underwater. At some point the credit runs out and the next $10k blip means they are literally homeless within a few months. I think the difference is that people like that have a MUCH better safety net in the form of family and friends who can easily provide $5-10k handouts to get a family out of a jam. (Then of course you have the people that are already abusing THAT source of funds. Even though they are making $250k). You would be AMAZED at how close to the edge people live at every income level. It's like a part of human nature to do it, regardless of whether one is a millionaire or a pauper.