Posted on 11/07/2022 10:04:07 AM PST by RomanSoldier19
Making bank doesn’t mean you have loot saved in the bank. Roughly 45% of those making more than $100,000 say they live paycheck to paycheck; 47% of those making between $150,000 and $200,000-a-year; and 28% of those making over $200,000, a new report from PYMNTS.com found. What’s more, a 2022 survey from LendingClub revealed that 30% of those earning $250,000 or more live paycheck to paycheck. And that’s too bad, as many savings accounts are now paying more than they have in a decade — see the highest rates you may get on a savings account now here.
“The combination of taxes and inflation leave little purchasing power,” says MaxMyInterest CEO Gary Zimmerman, who notes that a $100K salary isn’t what it used to be. So how do these high earners start spending less and saving more? We asked the pros.
(Excerpt) Read more at marketwatch.com ...
If you’re making 200K and you’re living paycheck to paycheck, you’re doing it wrong.
That’s what I call stupid rich people.
They should listen to Dave Ramsey.
THIS. Looks like a whole new audience of ‘stupid’ for Dave Ramsey to educate.
Unless you’ve got 8 kids of have spent very foolishly (a Ferrari,a house on Martha’s Vineyard,etc) that sounds like BS.
GMTA. post #5
“Rich” is a relative term.
$200,000 is not rich in states like California or NY or other high-cost of living areas.
$200,000 could be rich in areas like Florida or Georgia or Texas or any other low-cost of living areas.
Someone making $200,000 in high-cost of living areas might be just middle-class or lower, depending on where that salary is earned.
Many people live paycheck to paycheck no matter how much they make. It’s dumb, but they do it.
If you’re making 200K and you’re living paycheck to paycheck, you’re doing it wrong.
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Nope. It’s the american way to live up to and beyond your means.
Even if you don’t live in a high cost-of-living city where 200k wouldn’t seem like much, you still buy up to your income level. Where someone making 55k/year would finance and 175k house, someone making 200k would want that 600k house.
Why? Because they can. Of course.
I say it’s the american way, but really it’s just human nature.
“.....A recent study from professors at Harvard, Yale, Brigham Young and William & Mary found that individuals who auto enrolled in a company retirement plan still carried similar levels of debt as those who opted to save on their own. “We found there’s no difference between the two groups in how much credit card borrowing they’re doing,” said Yale finance professor James Choi, who assisted in conducting the report. “There was no difference in credit scores and their measures of financial distress.”.....
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It all comes down to having lots O’ debt and not living below your means.
There was some documentary about the NYC sanitation department. In Manhattan the garbage men make around $100k. But they can’t afford to live in Manhattan.
😂🙌. Location may be a factor. We were fairly comfy two years ago. Now, not so much. On WAY less than that number. Thank goodness branDUHn got the SS raise passed eh?😴😴😴
“Or you’re living in a high-cost of living blue state or city.”
That maybe what you’re doing wrong.
Debt can be a good thing, but not credit card debt. Debt provides leverage and if used properly can enhance returns.
I'm trying to explain that to my brother.
How are things looking for the Nevada "elections"? ANy good news that you're seeing?
Is Clark County going to fail The Regime?
Exactly.. probably that $4500 mortgage payment, $2500 car payment etc, etc,...
Live below your means
Save 20% of your income
Stay out of debt
That's it. You do those three things and you will never have to worry about your retirement years.
I argue that a home mortgage is okay to have as debt as you are essentially building equity (wealth) for yourself as you pay it off. Just don't be the person who is constantly doing a re-fi or taking out equity loans. Just stick to the original mortgage and over time more and more of your payment will go towards the principal. People who re-fi put themselves right back to having their payment go mostly to interest. Also, your mortgage should not be more than about 25% of your income. So get a smaller house if you need to.
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