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It would be extremely odd for anyone making after-tax investments to say they live paycheck-to-paycheck. To most people, it means that you have little to no su
by swatcoder 4y ago
It would be extremely odd for anyone making after-tax investments to say they live paycheck-to-paycheck.
To most people, it means that you have little to no surplus after usual monthly expenses.
That means no elective investment contributions and — more importantly — no contributions to liquid savings.
Failure to maintain liquid savings can turn an unexpected event into a catastrophic tailspin.
EDIT: That said, the other comments here are elucidating. I wonder if there is an unnoticed shift in the language used among young professionals and that this survey is accidentally measuring that instead of real financial change.
- purple_ferret 4y agoDon't underestimate the ability of people who make 500k+ to believe they're the struggling middle class.
- diogenes_of_ak 4y agoThis is extremely common.
- SilasX 4y agoBut it’s the same in some key respects. Most of those elective deductions are hard to get the money back out of. So, for practical purposes — like if you lose that job — it’s just as if you had been living paycheck-to-paycheck, assuming you hadn’t built up liquid savings.
- kcplate 4y ago> Failure to maintain liquid savings can turn an unexpected event into a catastrophic tailspin Been there, done that, took 10 years to recover. Even with a healthy income there was at least 3-4 years that I was living paycheck to paycheck.