Living Paycheck to Paycheck on $100k
Thu 25 Sep 2008 – 9.25
Yes, the economy is collapsing, but this is a shocking story at any time during the business cycle. According to a new study from careerbuilder.com, about 21% of those earning more than $100,000 per year are living paycheck to paycheck. So if you’re a broke twentysomething just scraping by, rest assured that it’s not just you.
A couple years ago, the rate was actually negative, meaning consumers were dipping into savings to cover expenses. One-in-ten workers making more than $100,000 say they put no money in a savings account each month…
So while it would seem that a lack of money can be blamed on fuel and food prices, it seems more likely that the lack of discipline of the average person is finally catching up to us — even to those who earn a handsome salary.
This actually doesn’t shock me. I know the people who earn a lot also create for themselves a high-cost lifestyle, often centered around clothing, partying, and cars. Just think of Wall St. — you can’t turn up at Goldman Sachs in a nobby old tweed blazer you bought at Goodwill for $4 (although that’s totally my favourite garment), you’ve gotta look smart in those $1000 suits. And the dry cleaning, don’t forget the dry cleaning!
It’s also very easy to get bitten at home. Buying processed and take-out food is a false economy. As is buying name brand electronics and splurging on vacations.
My solution: save your damn money! Some months I manage to stash 50% of my take-home pay, and I don’t make anywhere near $100k. What’s so important? There are so many ways to save money, just browse this site and you’ll find a few. Start with cutting the number of times you head to Starbucks — try to limit it to $20/month, which is about 1 latte per week.
posted by Scott in careers, coffee, life, personal finance.
Wed 24 Sep 2008 – 9.22
I thought I should share an editorialentitled “I worked my butt off in school and all I got was this crappy economy,” written by Brett McKenzie from The Huffington Post about her life and career as a millennial. Now in her mid 20s, Brett talks about jump-hopping, education, finance, and other twentysomething issues relevant at this time of great economic uncertainty.
Approximately every 1.6 years, perhaps thanks to a lackluster bonus, a stinky coworker, or an impossible boss, those of us born between 1977 and 1988 decide, “well I can certainly do better than this,” and reactivate our Monster.com accounts.
Until now.
Worth a read. Check it out here »
posted by Scott in careers, education, life, personal finance.
Student Loan Companies Agree to “Code of Conduct”
Sun 14 Sep 2008 – 9.45
Perhaps as a response to the credit crunch, or perhaps on the long-shot that financial institutions have grown a conscience, the bodies that grant student loans have agrees to a self-imposed “Code of Conduct.” The agreement comes from pressure from NY State Attorney General Andrew Cuomo and advocacy groups who accused these organisations of shady practices.
If you’re still in school or considering going back for further education, check out the article here »
via Gothamist
posted by Scott in education, personal finance.