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Do you live paycheck to paycheck? |
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| re-posted from a different category to hopefully attract some more answerers.... |
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I <3 Hello Kitty | Living Check to Check? |
What percentage of your previous check should you have in the bank on the day you get your current paycheck to be classified as NOT "living from check to check"? (in your opinion) |
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Steve D
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The standard guideline from financial planners is that you ought to have an emergency fund equal to your total expenses for three to six months.
So it's not a percentage of your check. (That's an overly literal interpretation of the phrase "living from check to check.") It's based on what you would need in order to go on living the same lifestyle and paying all your bills if your checks were suddenly to stop.
Once you have your emergency fund in a savings account where you can get to it easily - but only if it's a real emergency! - then you can start saving for other things, like a down payment on a home, retirement, college for the kids, next year's vacation, etc.
Sorry, but if you're looking to feel good about your finances because you haven't spent all of one check before the next one arrives, that's not realistic. It's a start, but there's a lot more you can do to really take charge of your money and put it to work for you. |
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Maya
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In my opinion, at least enough to cover rent and utilities for another month. |
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Ange
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In my opinion if I could still have $25 when we got our next paycheck than we wouldn't be living from check to check but $50 is what I use to go by. Not much I guess lol |
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nadoracing
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Pay Yourself First! This is the golden rule of personal finance. 10% of your check every month should be put away to where you will not spend it. You work too hard to give all of your money away to other people. |
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tkquestion
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In my opinion, you must have sufficient saving available to cover all of your expenses for at least whole months before you can declare yourself NOT living from check to check.
Preferably, you should have 3 to 6 month worth of paycheck saved away.
If your saving (buffer) is only a percentage of your weekly/monthly take home pay, then just one small unexpected expense will put you in danger zone. |
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♣
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I say put aside the amount of money you would need to live for one month at the very least. Including utilities, food, gas, rent etc.
other than that, you ARE living check to check.
to fix that problem, save at least 10-25 dollars every pay day. Dont touch that money at all. Act as if it doesn't exist......save up for as long as you can......remember, that money is only used if you havent eaten in seven days, about to be evicted, to re attach a limb, to pay for your funeral. Only use it as a down payment if you have at least twice as much money in the bank as you need for the down payment. |
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Nana
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1 cent? |
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loryntoo
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25 to 50%. The best professional advice I can give you is tuck back at least $50 from your paycheck for emergencies. If you still have it the following payday, tuck back $50 more. When you've saved back $500, go put it in a Certificate of Deposit and keep tucking back those $50s. You'll sleep better knowing that you can handle minor emergencies.
If you end up going to a payday loan place, here's how to work your way out of it. If you borrow $300 the first time, the second time pay it off and borrow back no more than $275. Third time, $250. You can whittle it down and get out of it. Otherwise you will making them rich and not getting it done. I manage a payday loan place and this is what I tell my customers (none of whom hesitate to come back when they need emergency money).
The last tip I can give you is about income tax returns. Before you go spending it, put back $500 in a Certificate of Deposit. It will be there when you need car repairs. Blow the rest if you want, but set some back first! |
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Jeremy D
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I don't think there is a rule. But just save some money. I wish I had have saved some from early on. |
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tax_hater
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I would say that if you can't go at least a month without a check then your living from check to check. |
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scorpion187us
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Between 20 to 25% |
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Nova J
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i'd say if you have to wait on your paycheck to go get groceries or buy gas then you are living paycheck to paycheck. |
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LadieVamp
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30% of your previous check. |
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Tessie
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I agree with the previous post (enough for 1 month)...if I don't have enough money in my acct to pay two months' bills...then I start to freak out...like I'm doing now! |
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swsbcabg
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at least enough to pay one month's total set of bills, but also a bit of play money. good luck achieving that one! |
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