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Bank of America: Nearly one-third of low-income US households are living paycheck to paycheck
(finance.yahoo.com)
this post was submitted on 11 Nov 2025
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politics
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During the time I was getting paid around $25k a year I was bringing home around $700 a paycheck (every 2 weeks). Me putting aside 10% between my 401k and my savings meant that I had around $30 every 2 weeks going into savings. I often ran out of available money several days before my next check, and having an additional $30 would have been nice, but would have likely only given me another few days.
And yes, when I had unexpected bills, and later when I lost my job, I did dip into my savings because that's why I had it, but that 10% want going to be the difference between me living paycheck to paycheck, or not. In fact, the transition to not living that way was a very gradual process.
I'm not sure I understand your logic. If you dipped into your savings, then you clearly thought it was needed in those extreme times and it made a material difference. If it wouldn't have made a difference, then why did you even dip into your savings?
I didn't say that the savings didn't make a difference, I said that having an additional small amount of money available to be each part period wouldn't have kept me from living paycheck to paycheck. Of course having the savings made a difference when something major happened, that was the whole point.
And that is the monumental difference between what you are describing I would just call "sticking to a budget" vs living paycheck to paycheck. Those living paycheck to paycheck don't have that option to pull from savings because they have no savings. You did. What you were doing, by any definition I've run across up until yours, wasn't living paycheck to paycheck.
If you want to keep saying you're living paycheck to paycheck, certainly you can. Its a free country, but you're going to confuse people you talk to or misrepresent to them your situation. It may also be doing a disservice to those that are living paycheck to paycheck.
My point is that just because you are living paycheck to paycheck doesn't mean you can't still save. It's a decision that you have to make but it is doable because no matter how bad you're situation is, there are other people getting by on 5%-10% less than you. By insisting that someone living paycheck to paycheck can't also have savings is what's doing a disservice to them.
For many, it does.
I think that is an extremely myopic view if you're making that as a blanket statement. There are absolutely people that spend every last penny of their paycheck each week on absolute necessities and still go without other necessities. There are families that have some or all of the members skip meals because they don't have enough money for food. There are people that can't afford something as simple as basic underwear that isn't worn out because they live with so few means. Some people have to skip taking life saving medicines because they simply can't afford that. Suggesting folks in any of those type of situations aren't deciding to cut back is a choice they are making is heartless.
Even people that aren't in as extreme situations as those, they may be buried under mountains of debt. Sure, saving a small emergency fund is good, but if they are paying down debt with all of their with the remaining amount of their paycheck, then the idea of saving for a house, car, child's education, or even retirement are likely out of reach for them.
I truly hope you never have to live in real poverty. I also hope that you have the good sense to never say what you said here to someone in poverty. I'm not saying you would. I'm not suggesting you did. I'm not strawmanning you here.
Are there people that aren't in poverty simply living above their means and could cut 5%, 10%, or even more without negatively affecting their lives or health? Absolutely! I'm not going to sit here and claim that everyone exhausting every penny in their paycheck before getting their next one is spending it only on necessities. For those that are simply living above your means, you are giving good advice to them! I agree with you on that.