Re:Living paycheck to paycheck is disturbingly common
by amf12 on Tuesday January 01, 2019 @01:00AM
(#18799168)
> Financial shocks exceeding savings
The point that person is making is, if a person who makes more than the minimum wage is to reduce spending to 90% of the current spending they would be better able to absorb these unforeseen financial shocks.
> How many kids do you have?
This is another thing I notice (outside and in the article too). A lot of people who live paycheck to paycheck have 3 or more kids. Naturally more kids increase costs. Now I am by no means saying people shouldn't have more kids, but that number should depend on their financial situation too.
The only point you missed was saying that you only spend $5 a day on food.
Tell me this dear sir or madam...
1) How many kids do you have?
2) How much did you spend on healthcare in the last 5 years?
Financial shocks exceeding savings coupled with a system which requires drawing on high APY credit in order to absorb those shocks I think is a more likely culprit.
Just one event like that can have a family struggling to stay afloat and carrying thousands per year in interest payments on top of everything else.