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.
2 Comments | Leave a comment »
That’s just the point, even with a high monthly income, these folks aren’t saving — just spending it as it comes. If there is an interruption in the income stream, then trouble starts.
Comment by Scott on Tue 07 Oct 2008 — 14.33 |
sometimes I really wonder about those people…so sad that those glorious starbucks drinks are so expensive…sigh
Comment by Jess on Wed 15 Oct 2008 — 12.51 |
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