Is it dangerous to live paycheck to paycheck?

Question

Do you have money in savings? How do YOU determine how much money you save?

Answer 1

It is dangerous to live paycheck to paycheck.
Have you ever found yourself in a financial emergency and had to ask someone to boworrow some money. Doesn't that look and feel sooooooo bad?
Well, I have found that by tracking the money I spent in one month, I was able to cut back on so much junk that I didn't notice I was spending money on, BUT I did notice the money when it was being saved in my savings account. Its irresponsible to not save.
I save 20% of my income everymonth and I split that between two savings accounts, One for long term goals and The other for short term goals.
Long tern being my home. Short term being anything that might come up that I want to spend on.

Answer 2

It can be if an emergency requiring money comes up. Yes, I have money in savings. I save as much as I can, I don't have a set amount. I spend what I NEED to and then ocassionally spend some on something I want but don't need and save the rest.

And yes, living paycheck to paycheck can be a choice. I know someone who spends what he makes every week. He doesn't have to bills wise, but whatever is left over he'll spend on something unnecessary.

Answer 3

I think you're missing the point. You make it sound as if living paycheck to paycheck is a choice. Of course no one wants to live this way. But how can you save if you have no money to save?

Answer 4

Yes its dangerous living paycheck to paycheck. A good rule of thumb is to have 3 months worth of wages in your savings account.

Answer 5

It is very dangerous to live from paycheck-to-paycheck because then you never have any money to cover emergencies or to have any fun. I try to balance my saving money with spending money on discretionary items. Try to save at least 10% of every paycheck and you will have some financial security

Answer 6

Very. If you lose your job and can not find a new one in a few weeks you could end up losing anything you don't own. (Get thrown out of an apartment, car repossessed, etc.)

A general rule of thumb is to save 10% of your income. If you can afford to, do 10% of your gross, if not then make it 10% of your net pay.

Another good rule of thumb is to have at least three months worth of bills and Six if you can.

I do have three months in saving, working toward four. I actually have money taken from my check into the savings account when it is direct deposited into the checking.

Answer 7

1) Yes.
2) Yes.
3) If you don't have a house it would be wise to save half your paycheck until you have enough for a down payment.

Top 3 Answerer in Business & Finance. (Vote for me)

Answer 8

My husband and that i have were given both been homeless or with a house yet too detrimental to purchase plenty food (inspite of foodstamps) and we went to the food banks for 'donated food' ... optimal OF IT grew to develop into no longer reliable food ... human beings provide 'old' cans they could opt to throw away, damaged (smashed) pasta, blended dried beans that pick distinct parts of soaking and cooking time ... even vegetables they do no longer %. to eat via very actuality they're wilted and dried out. after I provide to a foodbank (which we do frequently) i bypass to the save and purchase NEW fundamentals ... bins of pasta (the in simple terms precise they have, too), NEW cans of food, clean flour, clean vegetables, canned meat and canned juices, infant food in all sorts ... then I take it and drop it off with a 'i choose this helps' and an recommendations-blowing smile ... if I carry round, I tell the those that we as right away as were the position they're, and we've money now, so we are in undemanding words 'paying decrease decrease back' what we've been given ... and human beings put off their heads and image that they are in simple terms 'down for awhile' extremely of being 'down continuously' ... it isn't selfish to feed a man or woman who needs food ... an previous man or woman, a worker, a mom, a father, a clean infant ... human beings pick to bypass to mattress FEELING finished AND information they're going to GET finished the following day, WEEK, MONTH, 3 hundred and sixty 5 days. Donate reliable food (even if it potential you're prepared to opt to eat rather a lot less for an afternoon or 2 a month) and the global will be a more effective robust effectual position for each body!

Answer 9

i like the frist answer, i work in fast food (the only place that will hire a 16 year old) and i wont even make $2100 this year, at my cruent rate of pay. ( and i am getting the most i can in the SMALL town i live in, i dont have a car and no one will pay any more than what i am getting now) it is not a choice, we just dont get paid enuff to suport ourself, let alone a family. and there are 6 in my family, it takes my pay check, my dad's pay check, and my brother's pay check just to put food on the table and pay bills. college savings? yah righ. i am hoping for a scholarship, but if i dont get it i cant go to college and nether can my brother. ( my brother is 18)

Answer 10

Yes, but it's also hard not to, isn't it? They say you should have at least two months living expenses saved up for an emergency, and it's better if you have six. That would certainly be nice, lol.