None of this on it's own is bad obviously, but if it's causing you financial anguish and you're having to live "check to check", there are places you can save money.
Prepare yourselves for financial worst case scenarios.
One-Third of Americans Making $250,000 Live Paycheck-to-Paycheck, Survey Finds
- Thread starter ADevilYouKhow
- Start date
None of this on it's own is bad obviously, but if it's causing you financial anguish and you're having to live "check to check", there are places you can save money.
Prepare yourselves for financial worst case scenarios.
To be clear, none of this is causing financial anguish, we have $1mm+ in retirement/investments, $200k separately saved for college (2 kids, who are both 3), $500k in home equity and a $100k cash emergency fund. We live paycheck to paycheck until we get our year end bonus, which is substantial (a little less than 1x base on a blended basis). While technically discretionary, it’s just how comp is structured in our industry.
The point I’m trying to make is that it is easy to live paycheck to paycheck at $250k+ if you live a VHCOL area and have kids.
Fair enough.
Given your savings, nest egg, equity and overall financial security. I wouldn't put you in that "check to check" category.
I reserve that moreso for people that won't be able to pay their rent of buy groceries unless they get their next paycheck.
dora_da_destroyer
Master Baker
With the cost of homes in the bay, mortgage tax and insurance is easily 7k-12k/month. This ain’t living like a baller, simply the cost of homes averaging 800k-2M in many cities
Car expenses for one car are easily $800/month for an average care -$400-500 note, 300 gas, 100-200 insurance, then we won’t talk about paying $7 to cross a bridge everyday
Car expenses for one car are easily $800/month for an average care -$400-500 note, 300 gas, 100-200 insurance, then we won’t talk about paying $7 to cross a bridge everyday
that's not even close to paycheck to paycheck.
I guess but living in an area like that is a choice
if your home costs 950k and you're living paycheck to paycheck I'm not sympathetic 
Personally I just wouldn't live in a city where housing is that overpriced. I'd have to be close to a millionaire before I even thought about an 800k house.
dora_da_destroyer
Master Baker
It’s not likely you’re making $250k+ not living in a HCOL area outside of being a doctor or decent sized business ownerI guess but living in an area like that is a choice
Personally I just wouldn't live in a city where housing is that overpriced. I'd have to be close to a millionaire before I even thought about an 800k house.
And you’re in Detroit, your views on homes prices are deeply skewed due to the market, as mine are too having lived in HCOL areas like the bay and DMV, but the median home price in CA is 800k, it’s expensive, but 250k salary allows you to afford it while also being an “average” salary here - as in, yea it’s nice money but not “made it” money the way it is in other cities
You may be right because as someone who's lived in Michigan his whole life, 250k (or even 150k) seems like crazy money to still be struggling.
I just checked and the average home price is 708k in Cali, whereas it's 214k in Michigan. Remind me never to move to Cali.
resistanze
Pro
Yeah, what a weird ass definition of paycheck to paycheck. If you have enough to put 6 figures in your retirement vehicle, you're not paycheck to paycheck just because you can't buy a helicopter.
My wife and I are in the Bay and make similar income (no kids) and mortgage and a lot of peers have this mentality that they're poor because they got bills.
It's a privileged position to be in.
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88m3
Fast Money & Foreign Objects
Yeah, what a weird ass definition of paycheck to paycheck. If you have enough to put 6 figures in your retirement vehicle, you're not paycheck to paycheck just because you can't buy a helicopter.
My wife and I are in the Bay and make similar income (no kids) and mortgage and a lot of peers have this mentality that they're poor because they got bills.
It's a privileged position to be in.
cash poor and asset rich you're still living to paycheck to paycheck at the end of the day
there's nothing "wrong" with that either
dora_da_destroyer
Master Baker
then we gotta redefine paycheck to paycheck. that term has always meant "i'm fukked/gonna barely scrape by if i get laid off tomorrow". if you got six figures worth of liquidable assets (taxable brokerage accounts and cash, not retirement accounts) you're not living paycheck to paycheck as you can pay your bills just fine for a few months if you lost your job tomorrow. people living paycheck to paycheck dont have the cash to float them during tough times.cash poor and asset rich you're still living to paycheck to paycheck at the end of the day
there's nothing "wrong" with that either
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very much this. can't be hijacking that term in this manner, better go somewhere with that.
if you were living paycheck to paycheck, you wouldnt have a six figure emergency fund
or am i missing something here
The framing of the article and conversation are fundamentally flawed.if you were living paycheck to paycheck, you wouldnt have a six figure emergency fund
This conversation can never be fruitful, because the reality is 250K is "more than enough" to live. It's also a far cry from what is considered POVERTY.
People who are truly living check to check, are also typically food insecure and overridden with debt. Their money flaws out of their checking account a day or two after its processed. .
The ability to put money into an investment / savings account, is a disqualifier.
Now if the framing of this article and conversation was about how 250K in a high income neighborhood, doesnt go as far as many people think, now that's a fair assumption to make.