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Nearly Half Of America Lives Paycheck-to-Paycheck

Friday, January 31, 2014 - 7:47 AM
According to a report by the Corporation for Enterprise Development, nearly half of Americans are living in a state of “persistent economic insecurity,” that makes it “difficult to look beyond immediate needs and plan for a more secure future.”

According to the CFED, "too many of us are living paycheck to paycheck. 44% of Americans are living with less than $5,887 in savings for a family of four." This financial insecurity isn' just affected the lower classes. One-quarter of middle-class households also fall into the category of “liquid asset poor.”

Nearly Half of America Lives Paycheck-to-Paycheck | TIME.com
4
ShorebreakShorebreak2,367 posts since
Apr 6, 2010
Rep Points: 12,616
1. Friday, January 31, 2014 - 8:53 AM
This is exactly why I do not see the Presidents new Myra accounts being viable. These people do not have enough disposable income to put aside for the future.
Once again though, unless there has been some major event in these peoples lives why are they being irresponsible and having children. Having a child is expensive and they should have their finances in order first. They make bad life decisions then complain they do not have enough income to survive and expect to be bailed out. I feel bad for the children in these homes.
3
FARFAR91 posts since
Feb 26, 2013
Rep Points: 328
2. Friday, January 31, 2014 - 9:17 AM
According to a division supervisor of the Bureau of Labor Statistics the majority of jobs that will be available in the coming years will be low paying jobs. There will not even be many openings for people with college educations and even fewer jobs available for those with advanced degrees. 
$25 to open and as little as $5 invested is better than nothing. This money will be put in accounts that Treasury will cover the fees. These accounts will pay more than a savings account that would be offered now and cannot lose money. This is for people that have no 401K or any pension at work. Once $15,000 is saved a person can put it in the market.
1
AllyAlly774 posts since
Jan 16, 2010
Rep Points: 2,258
3. Friday, January 31, 2014 - 10:30 AM
Here we go again.

1. If one takes a look at the cars driven on the street, most can afford good transportation.

2. If one visits restaurants, customers do not think twice ordering expensive wines, food, and desserts.  Those retaurants are often packed on a daily basis.

3. If one inspects clothings people wear or department stores on sale; people are not really poorly-dressed.

4. If one surveys ones' town, there are numerous houses being renovated or newly-built, with expensive features and rich landscaping.

5. If one visits any amusement parks, theaters, opera house, arts museums, most are crowded with joyful people who spend like there is no tomorrow.

6. If one takes a look at high education, colleges/universities have their bills paid on time, moreover, most are expanding in buildings, facilties, and faculty. 

So, please don't tell me that many people are living from paycheck-to-paycheck.  It is at best a mirage far from reality. 

Just my two cents without retribution.

 
4
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
4. Friday, January 31, 2014 - 10:45 AM
#3  Maybe they are living from "paycheck to paycheck" because they are blowing every paycheck on all the things you listed.  If people are "spenders" they are going to blow it all no matter how much their paycheck is.  They just don't have the incentive to save and when they go bust, they know they can get the taxpayers to take care of them. 
4
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,087
5. Friday, January 31, 2014 - 11:10 AM
I tend to agree with Paoil2. I read an article not too long ago that a person was making $100,000 and could not make ends meet. Please spare me the violin music.
I personally do not believe or understand any of these polls that throw out  percentages. I am sure they always fudge the numbers to make their argument work. I live in MA and when the feds decided on the death penalty for the marathon bomber the ACLU of MA came out and said 60% of the MA residents would prefer a life sentence. Not sure who ACLU is polling but I do not know one person that would prefer a life over death sentence. I am sure there are some out there but 6 out of 10. Just not believable.
2
FARFAR91 posts since
Feb 26, 2013
Rep Points: 328
6. Friday, January 31, 2014 - 11:15 AM
or maybe the people you see are the 90% or more that are working? The people that have no money are not at places like this at least where I live they are not. There are people in the Salvation stores or Goodwill looking for coats and clothes on the days that the clothes are marked down. Hard to believe that the people you see are the 6-7% of the unemployed or the people that have stopped looking. The people I see that are not working are at the library using their computers looking for a job, or at Michigan First or at the job fairs. We have people getting in line in the middle of the night in tents with blankets and sleeping bags and trying to keep warm with coleman lanterns in below zero weather waiting for the job fair to open. This line was for job at a grocery store that isn't even built yet.  
2
AllyAlly774 posts since
Jan 16, 2010
Rep Points: 2,258
7. Friday, January 31, 2014 - 11:59 AM
Unless I misunderstood what I read it stated these people "have" paychecks.  They are not the ones looking for jobs or buying at the Salvation or Goodwill stores.  If they were, they probably would not be blowing all their money away.  People who do not know how or want to live frugally can blow $1,000.00 a week away if they want to.  The people at the Goodwill stores are probably your frugal people trying to make their paychecks go further.
2
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,087
8. Friday, January 31, 2014 - 6:43 PM
Re: Here we go again.

1. If one takes a look at the cars driven on the street, most can afford good transportation. Experian shows that more buyers are financing more of their purchases. According to the company's third-quarter report, most buyers are borrowing more than the purchase price of the car, with new car buyers borrowing an average of 110 percent of the purchase price, and used-car buyers borrowing an average of 130 percent.

2. If one visits restaurants, customers do not think twice ordering expensive wines, food, and desserts.  Those restaurants are often packed on a daily basis. In all, 49% of adults said they were not eating in restaurants as often as they would like, according to a national survey of 1,000 adults conducted April 25 to 28 for the National RA by ORC International.

3. If one inspects clothing people wear or department stores on sale; people are not really poorly-dressed. Consumers aren't buying discretionary items like clothes right now. So says Macy's CEO Terry Lundgren as the company reported earnings that disappointed Wall Street for the first time in four years today. 

4. If one surveys ones' town, there are numerous houses being renovated or newly-built, with expensive features and rich landscaping. More people this year are also investing to increase home value vs. last ... to take out a line of credit to finance their home renovations.

5. If one visits any amusement parks, theaters, opera house, arts museums, most are crowded with joyful people who spend like there is no tomorrow. After several years of forced frugality, we're all ready for some fun. So suggest the results of the Chase Freedom Lifestyle Index, which compares spending in the first quarter of 2012 with the same period last year. Theme park spending was up 21%.

6. If one takes a look at high education, colleges/universities have their bills paid on time, moreover, most are expanding in buildings, facilties, and faculty.  According to the Consumer Financial Protection Bureau, total student debt now exceeds $1 trillion. The average student graduates with about $27,000 in debt, with 10 percent of graduates having debt that exceeds $40,000. This means that students will pay an average of $320 per month for the first ten years after graduation. This places yet another burden on new graduates who are having a hard time finding a good job because of the continuing poor performance of the economy. Student debt could be the next big financial crisis.

So, please don't tell me that many people are living from paycheck-to-paycheck.  It is at best a mirage far from reality. 

People are living on credit cards.
3
ShorebreakShorebreak2,367 posts since
Apr 6, 2010
Rep Points: 12,616
9. Friday, January 31, 2014 - 9:10 PM
#8:  Maybe they are living on credit cards "after" they blow their paychecks on all the stuff you posted about.  I think too many people are living beyond their means even if it means overusing their credit cards.  But that's their problem.  Not mine until they have to use my tax dollars so the government can help them out if they go too far.
2
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,087
10. Saturday, February 1, 2014 - 7:50 AM
SB,

My perspectives are that those statistics, as in any statistics in this category, are meaniningless.  For example, from my very limited survey, Americans are doing fine :-)  But I know my statistics are biased and wrong, too. 

So why waste time coming up with silly statistics like that, unless of course one has to earn one's living coming up with those statistics and making some sense out of them. 
2
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
11. Saturday, February 1, 2014 - 8:13 AM
51hh:

Sure, I recognize your "perspectives" are anecdotal. Because of the small sample, there is a larger chance that it may be unreliable due to cherry-picked or otherwise non-representative samples of typical cases. To use a sample as a guide to an entire population, it is important that it truly represent the overall population. Representative sampling assures that inferences and conclusions can safely extend from the sample to the population as a whole. A major problem lies in determining the extent that the sample chosen is actually representative. Statistics offers methods to estimate and correct for any random trending within the sample and data collection procedures.
2
ShorebreakShorebreak2,367 posts since
Apr 6, 2010
Rep Points: 12,616
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