One who is actively saving and investing is, by definition, NOT living “paycheck to paycheck”. That term refers to people whose paycheck barely cover expenses, and do not allow for savings and investment.
I do a little of both.
Slightly better than paycheck to paycheck myself.
A few rounds of major hospitalizations even with decent insurance were almost financially fatal.
I would add that even if someone is saving a small amount of money each paycheck, if whatever is left over is going to repayment of debt (credit card, not mortgage), then they are living paycheck to paycheck.
Mortgage payments convert cash into equity (minus loan interest), so I don't count that as debt repayment per se. Credit card debt is mostly consumable expense liabilities, so repayment of that debt is not sustaining an asset.
So IMHO anyone who still has a revolving credit balance after disposing of their paycheck is living paycheck to paycheck.
-PJ
“One who is actively saving and investing is, by definition, NOT living “paycheck to paycheck”. That term refers to people whose paycheck barely cover expenses, and do not allow for savings and investment.”
Yep. Your working years are as good as it gets. Plan ahead. Also expect taxes to go up as more and more socialism is enacted.
Well I tell ya what, its sure feels “paycheck to paycheck!”
NEVER had ‘SAVINGS’
INVESTMENTS have been real estate—my homes.
First house==$25,250 city parcel
2nd house ==$105,000 5 acres & log house=foreclosure. Sold it for around $380,000.
Third house ==$140,000 & I paid cash with profits from 2nd house. MORE than 5 acres-—NEW house—well—septic. Added more improvements. Worth over $400,000 today.