We'd need to define 'paycheck to paycheck' more precisely, but... I'm aware of multiple families in my area that used to have something left over in each check, that went in to beefing up some savings. Fuel, food and rent increases over the last 6-12 months have meant there's nothing leftover any more, and they'll need to start cutting back in some areas more aggressively. They were a bit 'close to the edge' anyway (imo), but with a couple kids, it's not hard to do.