Paycheck to Paycheck?

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AUTHOR: R Quinn on 6/28/2024

You have probably read the claim 70+% of Americans are living paycheck to paycheck. We usually interpret that to mean they have limited income, but tend to ignore spending which is half the equation.

Today is the last working day of the month. My pension arrived in my checking account. Money has been auto transferred to an account used to pay ongoing bills. Money has been transferred to an emergency fund as happens each month. I just paid two credit cards in full.

After those transactions the balance in the checking account receiving my pension is virtually the same as it was at the end of last month.

Could I honestly answer I was living P to P? I could but it would be absurd because during the month and every month there is significant discretionary spending, eating out, gifts to grandchildren, funding 529 accounts, etc.

To some degree that is true for nearly every family, although the discretionary spending likely is quite different from two octogenarians.

Beware headline grabbing surveys! 


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