Paycheck to paycheck means just that - your income is balancing exactly your expenses. This doesn't mean that you are not living in modest luxury. Having enough money to cover essentials is just definition of - at the edge of poverty. Paycheck to paycheck is about (anti) fragility. They overlap strongly in the bottom part of the income ladder and diverge as you go up. You may be financially vulnerable even if pulling a lot of income. This doesn't mean that you can't get easier out of a hole if you fall with higher income, but paycheck to paycheck evaluate the chance of falling into it.