I don’t see how that’s possible unless you have a huge family, you have some sort of chronic disease that insurance doesn’t cover, or you’re wildly irresponsible. Even in a high cost-of-living area, a normal family of four could live quite comfortably on that much money and still save some of it.
(I don’t think that many high-earning people are wildly irresponsible. I suspect that this statistic isn’t right.)
When people hear “living paycheck to paycheck” they automatically assume it means barely making enough money for essentials. It for sure can mean that, but often people living paycheck to paycheck make good money, they just don’t live within their means. It’s not hard to buy a nicer house and a nicer car than your can really afford, and run up credit card debt, and find yourself in a situation where you can’t pay your bills because you’re overextended, even with a good salary.
I don’t see how that’s possible unless you have a huge family, you have some sort of chronic disease that insurance doesn’t cover, or you’re wildly irresponsible. Even in a high cost-of-living area, a normal family of four could live quite comfortably on that much money and still save some of it.
(I don’t think that many high-earning people are wildly irresponsible. I suspect that this statistic isn’t right.)
When people hear “living paycheck to paycheck” they automatically assume it means barely making enough money for essentials. It for sure can mean that, but often people living paycheck to paycheck make good money, they just don’t live within their means. It’s not hard to buy a nicer house and a nicer car than your can really afford, and run up credit card debt, and find yourself in a situation where you can’t pay your bills because you’re overextended, even with a good salary.
A few additional things to consider: