Anonymous poll: paycheck to paycheck

[Aisling]

With my son's college tuition, the fact that we have to pay a nice amount of taxes this year, with my son's wedding coming up, and with the price of gas killing us for work commutes, we're falling into the paycheck to paycheck life. I'm so not used to this and I'm scared. I know it won't be forever but it's stressing me out.

 

[ilovemk76]

With my son's college tuition, the fact that we have to pay a nice amount of taxes this year, with my son's wedding coming up, and with the price of gas killing us for work commutes, we're falling into the paycheck to paycheck life. I'm so not used to this and I'm scared. I know it won't be forever but it's stressing me out.

At different times one can fall into the paycheck to paycheck life. That alone is not a problem. When it is coupled with no EF or other savings is when it gets really scary.

Each year we have a month that we spend way more than we make. Many of the "once a year" bills are paid in that month. It sure sucks to see that huge red number for the month but we have the money saved for it and have an EF.

 

[walkdmc]

DH and I are in our late 30's, early 40's. The last time we lived pay check to paycheck was probably when we were in college/professional school, living on loans. Since then we've always had some kind of savings.

It's a process and I'm not sure I could trust someone in their early 20's-30's who didn't live paycheck to paycheck, LOL.

 

[Aisling]

At different times one can fall into the paycheck to paycheck life. That alone is not a problem. When it is coupled with no EF or other savings is when it gets really scary.

Each year we have a month that we spend way more than we make. Many of the "once a year" bills are paid in that month. It sure sucks to see that huge red number for the month but we have the money saved for it and have an EF.

We have an emergency fund that would take care of our mortgage for 6 months, but it's locked into an fund that has a penalty if taken out before it matures. We'd only touch that if we were in danger of losing our home, which Thank God above isn't our situation because the $1600 mortgage gets paid first before anything else.

But we were told to expect our mortgage to go up because our property taxes will be going up, and the taxes are added into the mortgage.

Even the utility bills are going up and I'm very frugal with the utilities. What the hell is happening to our economy? We have an average income for our area, low 6 figures, and we used to sail along, but even 6 figures is tight these days. They take so much out of my husband's paycheck in taxes and we still have to pay this year. It's almost not worth making that much money anymore. You either have to be rich or be poor with govt help to survive.

 

[ilovemk76]

We have an emergency fund that would take care of our mortgage for 6 months, but it's locked into an fund that has a penalty if taken out before it matures. We'd only touch that if we were in danger of losing our home, which Thank God above isn't our situation because the $1600 mortgage gets paid first before anything else.

But we were told to expect our mortgage to go up because our property taxes will be going up, and the taxes are added into the mortgage.

Even the utility bills are going up and I'm very frugal with the utilities. What the hell is happening to our economy? We have an average income for our area, low 6 figures, and we used to sail along, but even 6 figures is tight these days. They take so much out of my husband's paycheck in taxes and we still have to pay this year. It's almost not worth making that much money anymore. You either have to be rich or be poor with govt help to survive.

You need more than just your mortgage in an EF. It should cover all living expenses.

When that money comes due it you may want to think of laddering your CDs so each month one is always coming due.

 

[walkdmc]

Just want to add, figure out the cost of 6 months worth of necessities. Necessities do not include cable tv, restaurant meals, etc. I'd need a lot more money in my fund if I wanted to continue with my current creature comforts after loss of income.

 

[marie1203]

It's a process and I'm not sure I could trust someone in their early 20's-30's who didn't live paycheck to paycheck, LOL.

We are in our early 20's. I grew up with a mom that has really good job, we went to private schools, had a nanny for each of us, etc. Until Sep 11th happen and my lost her job because the company was in the twin towers and decided to move back to Europe. My mom choose not to move us again. We struggle to adjust and my mom had a change of heart in her career path and choose to do something that gave her more time with family and a huge pay cut. Well needless to say I saw my mom struggle financially thru my high school years. We had enough to get by and be ok but it was pay check to pay check. During this time my step dad was diagnosed with cancer and we had to pay for certain treatment that the insurance decided to denied it, but it was the best chance for him to make it (he had to close his office down because of it). The whole thing made me very financially aware. Since a young age (16 when i got first job) I started to build up my credit and my savings. DH wasn't so good with money but before we got married we straight it all out. Thankfully we have been able not to ever live paycheck to paycheck. I was lucky that I had a great job were I advance really quick and had a good salary that was more than enough for me. When we got married DH got a big re-enlistment bonus that help us set out our house, pay off the car loan, put money in savings and I stopped working because I had to move to be with DH. I been budgeting since day one and that has help us put money in savings every month, as well as retirement accounts, vacations, pet account. We have been very lucky but that hasn't not come without other sacrifices. Now we are both going to college (DH still works) and are lucky to be not be broke college students.

 

[Aisling]

When that money comes due it you may want to think of laddering your CDs so each month one is always coming due.

Definitely working on that.

My husband's job is safe. He's in a specialized technical field that really needs him. (But of course I know no job is 100% safe. He's just lucky that the company has prospered for the last 30 years, and he's been working there since he was in college).

My fear is how do I adjust to living paycheck to paycheck, emotionally. My husband tells me to count my blessings and we'll just cut back on the extras for a while until son #2 is out of college in two years and son #1 is married and then we won't have to save anymore for a nice wedding gift ($$$$) for him. I'm putting myself out there for a beating, but I've been spoiled by having so much disposable income and I don't know how to handle it in my mind. No big vacations for 2 years, maybe 3, until we are done paying tuition. I just need to know that other people do it and it works out fine. I need to see light at the end of the tunnel, I guess. I was a big spender on stupid things, but at the time we could afford it. Now I'm as frugal as I can be. I just don't want to feel like I'm alone in this situation, so that I can be positive for all of us who are in a rough financial patch right now. I wish there was a support group for people who were used to having lots of extra money but now have to live paycheck to paycheck.

 

[Aisling]

Ok I found a forum for people in my situation. AND one of our own Disers is a member, Disney Steve,offering encouragement and advice.

http://www.savingadvice.com/forums/personal-finance/58324-living-paycheck-paycheck-isnt-point-2.html


This works for me because I'm ashamed to admit I was never a saver. I mean I saved for specific things, but not for a rainy day, except for what's in our CDs. I have to learn to pay ourselves first and put it away without running to WDW or going shopping. I never had to worry about money, so i need a reality check and some strategies. I think I feel better already. Shopping had always made me happy, but I absolutely must find another "hobby" that doesn't cost a dime.

 

[OThopeful35]

We did back when DH was a student and I was working full-time and part-time to cover the household bills. My goodness it was tough but we made it through. Now that we have switched roles, I am a student and DH works and pays all the bills. Even though DH earns a good salary, we are still frugal. We have enough in savings/CDs to maintain our current lifestyle for at least a couple of years.

 

[Aisling]

Please just tell me it's not too late for me to learn the value of a dollar. I feel like a child, but I want to change.

 

[indimom]

With my son's college tuition, the fact that we have to pay a nice amount of taxes this year, with my son's wedding coming up, and with the price of gas killing us for work commutes, we're falling into the paycheck to paycheck life. I'm so not used to this and I'm scared. I know it won't be forever but it's stressing me out.

Been there, done that. Doing it again right now as well. We learned about DR after hitting a rough patch in 2001. We've lived comfortably since then, built an EF. But, we still have moments like we are right now.

Beginning in 2010, my income dropped by about 10%, then our car started to have problems (two years earlier than we had hoped) and we had to put some costly repairs in. We also had to replace our truck. We had 2/3 of cost to put down, but still had to take out a small loan for the remainder at 2.5% interest.

In the fall, our teen was diagnosed with a rare condition effecting her vision and had to have outpatient laser surgery to stop the progression of the disease twice. We got nailed with our medical deductible for both procedures (end of 2010/beginning of 2011) and our 30% of the balance. She also had to have some pricey cardiac testing done following her pre-surgery physical to eliminate concerns from her EKG. (The final diagnosis was that she had four "normal abnormalities." )

We are back to making payments on debt for the first time since 2002, granted most of it is 0% interest. We could use the EF, but it would hurt. And, it's possible she will continue to need more care, some of which are not covered by insurance. So, we opted to do the payment plan and hold onto our cushion in the bank, just in case.

It's frustrating to feel like you are back to a paycheck to paycheck lifestyle.

 

[GoofyFairie]

Please just tell me it's not too late for me to learn the value of a dollar. I feel like a child, but I want to change.

Aisling it is never too late to learn something new. The fact that you recognise it as a problem and are scared by it says volumes. You can do it!
If you really want to feel good and get a new hobby- try volunteering. You will certainly see how many wonderful blessings you have in your life.
Good luck to you! I know you can do it!

 

[indimom]

Been there, done that. Doing it again right now as well. We learned about DR after hitting a rough patch in 2001. We've lived comfortably since then, built an EF. But, we still have moments like we are right now.

Beginning in 2010, my income dropped by about 10%, then our car started to have problems (two years earlier than we had hoped) and we had to put some costly repairs in. We also had to replace our truck. We had 2/3 of cost to put down, but still had to take out a small loan for the remainder at 2.5% interest.

In the fall, our teen was diagnosed with a rare condition effecting her vision and had to have outpatient laser surgery to stop the progression of the disease twice. We got nailed with our medical deductible for both procedures (end of 2010/beginning of 2011) and our 30% of the balance. She also had to have some pricey cardiac testing done following her pre-surgery physical to eliminate concerns from her EKG. (The final diagnosis was that she had four "normal abnormalities." )

We are back to making payments on debt for the first time since 2002, granted most of it is 0% interest. We could use the EF, but it would hurt. And, it's possible she will continue to need more care, some of which are not covered by insurance. So, we opted to do the payment plan and hold onto our cushion in the bank, just in case.

It's frustrating to feel like you are back to a paycheck to paycheck lifestyle.

ETA: I do think you need to take your husband's advice and not let this temporary setback upset you. It doesn't sound like you are in a bad place at all, despite how it feels.
Imagine your situation if you have been living above your means over the last ten years or more. You wouldn't be able to help with college or your son's wedding. You are really in a good place overall. Much better than many others in this country right now.

Strange. I tried to edit my original post and it showed up as a second post?? That's odd.

 

[Mom2Ben02]

I don't think I'd consider your situation living "paycheck to paycheck". You are paying for something not essential. If your husband lost his job, your son could get a loan for college, and your other son could pay for his own wedding, or scale it down.

We are dealing with long term unemployment. Unemployment, my job and my husband's part-time job pays our bills. Period. However, we are paid three months ahead on our mortgage, and have 4 months of all living expenses in an EF. So...CURRENTLY we are paycheck to paycheck, but have a cushion from better days. I hope he finds a job before we have to touch the savings.

 

[Colleen27]

We've lived paycheck to paycheck and I think the reason we got out of it is because we never did get used to it. I think being used to or comfortable with that kind of financial position is a contributing factor to why so many people never get to a more stable financial position - because when you're not nervous/uneasy living paycheck to paycheck it is easy to expand your expenses as your income expands rather than put something aside and start getting ahead. I get nervous with the costs of everything going up that we're going to be right back there before too long and we don't have much left to cut from our budget, just our vacations and the kids' sports/activities. But with the track our economy is on I think that's going to be the unavoidable reality for most middle and working class families - income goes down or stays flat while everything else goes up and we see what was once a nice lifestyle cut back to just getting by.

I agree with Mom2Ben, though - you aren't really living paycheck to paycheck. You don't need every dime to live on, and looking at it as "paycheck to paycheck" is probably causing you more emotional distress than you really should be taking for the situation. You're paying for college, saving for a wedding... that's not really paycheck to paycheck; it is stretching to afford luxuries without debt.

 

[Marionnette]

Definitely working on that.

My husband's job is safe. He's in a specialized technical field that really needs him. (But of course I know no job is 100% safe. He's just lucky that the company has prospered for the last 30 years, and he's been working there since he was in college).

My fear is how do I adjust to living paycheck to paycheck, emotionally. My husband tells me to count my blessings and we'll just cut back on the extras for a while until son #2 is out of college in two years and son #1 is married and then we won't have to save anymore for a nice wedding gift ($$$$) for him. I'm putting myself out there for a beating, but I've been spoiled by having so much disposable income and I don't know how to handle it in my mind. No big vacations for 2 years, maybe 3, until we are done paying tuition. I just need to know that other people do it and it works out fine. I need to see light at the end of the tunnel, I guess. I was a big spender on stupid things, but at the time we could afford it. Now I'm as frugal as I can be. I just don't want to feel like I'm alone in this situation, so that I can be positive for all of us who are in a rough financial patch right now. I wish there was a support group for people who were used to having lots of extra money but now have to live paycheck to paycheck.

Paying for two major expenses at any one time can make you feel like your money will never stretch far enough. We have 2 in college right now. Our daughter will be a senior in the fall and older son will be a sophomore. We also have a third child who will be entering college when #1 graduates. It feels as if there is no end to the spending freeze!

But I don't consider my lifestyle to be paycheck-to-paycheck and I don't think yours is either. Paycheck-to-paycheck means worrying whether you'll be able to stretch what's in the gas tank until your paycheck hits your checking account. Or rooting through your cabinets for a can of tuna or salmon that you can use for dinner. Paycheck-to-paycheck means putting off paying one bill so that you can pay another bill that is already late. It means going without a much needed pair of shoes so that you can buy formula for the baby.

I know that you feel bad about how you have to adjust your lifestyle in order to pay for the things your sons want. College is expensive. Disney weddings are expensive. You're wonderful parents for wanting to help them with their dreams. Try to focus on those things and not what you're sacrificing to make them happen. You will feel better about it.

 

[Tink-aholic]

I am a single parent and have enough cash reserves to either pay for my son's college tuition at a state school or pay for necessities for us if I am 3 years out of work.

 

[ceecee]

Please just tell me it's not too late for me to learn the value of a dollar. I feel like a child, but I want to change.

It's never too late! If I was living paycheck to paycheck I would cut all non-essentials and gradually add them back...eating out, cable, coffees out and maybe even internet service, everything that you don't have to have to survive. It would be hard, but living with the stress of no savings would be worse to me.

 

[mafibisha]

We've been in ALL of the categories. I really think it depends on the *season* of our lives, and the ebb and flow of family needs etc. (ie braces, soccer & cheer stuff, college prep ... yikes!!)

And with the crazy economy lately, those seasons are really blurred.

As an aside, I don't know how to post a poll, but I'd find it interesting - and maybe comforting LOL - to see a poll of everyone's debt.
Is that awful to say / ask? Sorry if it is, forgive me if it is ...
but we're in a season right now where our debt is higher than we'd like.... but recent unemployment and some of the above expenses ... The thought crossed my mind that others may be in the same boat....

So anyone want to do a poll like that?