re: One-Third of Americans Making $250,000 Live Paycheck-to-Paycheck

Dumbasses gonna dumbass

In this economy this news (I saw on TDAT first) makes me question why I didn’t bail on AFRM last year before it crashed into poverty.

However I’m shorting UPST and making some bones back.

Curious as to what the exact definition of paycheck to paycheck is?

My wife and I don’t make quite 250k a year but we aren’t that far off. Every month we put around $4,500 on average into 401ks, Roth IRA, HSA, and a 529 for our kid. We have a 6-9 month emergency fund so not really saving anymore in cash.

Our pay cycles are the same so we both get paid the same day bi-weekly. By the end of those 2 weeks we are usually running pretty low in our checking account (as low as $500 sometimes) until we get paid again.

Would you consider this living paycheck to paycheck ?

The “fear” of NSF makes me keep more in checking so that I never have to worry about it. Opportunity cost is minimal given savings accounts aren’t paying more than 1% annually.

Saving a bunch for retirement and then being light on FCF at the end of the month is not living paycheck to paycheck.

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The same people on the OT that say this are putting $20k a year in their 401k. I suspect this data isn't very reliable since it's a questionnaire.

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I feel like I am check to check

Can't touch 401k

Physicians are probably a very significant portion of those making $250K or more.
They are notoriously bad with money. Some of it is the sort of “shock” associated with being a college kid, then racking up 6-figure debt, then working a very average income at ungodly hours for 3-8 years, then having a 4-20x multiplier applied to the next paycheck.
It’s in no way a defense. But there is a “delayed gratification” and “everything will eventually work out” mindset that generally develops, and the thought of financial literacy doesn’t come until far later (particularly rough because you basically cannot save in your 20s in any meaningful way unless you had some significant family support)


I’m just going to share a story of a colleague of my wife’s. $250-350K income. Their house is appropriate. They have two car notes which are well within reason- they don’t drive top-trim or luxury vehicles. But the doctor in the couple doesn’t contribute to the company 401K, and the allied health one recently switched jobs and talks about having about $35,000 in his old 401k as a pretty good start. They’re in their mid-late 30s. That’s their entire retirement fund- maybe 10% of their annual gross. They’re super fortunate that they can right the ship to make up for past mistakes. But they’re talking about building a house worth 2x-3x their income instead of furthering (I’d argue “starting”) a nest egg.


Financial literacy is, both fortunately and unfortunately, a standalone part of life. It isn’t tied to age, income, intelligence, education, or social status. You can be a lot more sound and comfortable at an average income than one of these dipshits in the top 5-10%

250k is 120k from a decade or so ago.

It's good money. It's not unreal/amazing $.

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Those people need to read some White Coat Investor.

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I owe Jim Dahle at least 0.1% of my annual assets. But I think he’s too kind (and busy selling disability insurance and real estate ad space) to take it.

Child support and alimony have much to do with this.

This nation needs a serious discussion about alimony. The current system enslaves good men.

I made damn good money - but it was whittled away by taxes, alimony and child support.

Add in my 401k, mortgage and savings contributions, and I had nothing leftover.

Only debt was mortgage but damn it was rough.