How many live paycheck to paycheck?

[dragoncar]

LOL, what a third world country where people have to pay shitloads to send money from one bank account to another and get paid with a piece of paper which they have to cash or bring to their bank.

Funny stuff indeed, except wire transfers have lots of fees everywhere in the world. Wire transfers are not the same as EFT, ACH, and their international equivalents.

Wire transfers have fees all over the world, but most countries have free electronic payment systems that are vastly superior to our ACH process

[Tabaxus]

Having lived (on the parents') paycheck to paycheck when growing up, with all respect to the message of the thread, it's... disingenuous... to say that someone is living paycheck to paycheck because they have automatic deposits going to their savings/investing accounts. 

[steveo]

Like a bunch of people said, I live 'paycheck to paycheck' in the sense that all my savings and whatnot is automated. If I knew I wasn't going to be paid on time, I could adjust and be fine for a few months.

I live paycheck to paycheck as well. I could survive for a long time without an income but I would be withdrawing money out of my mortgage and I don't want to do that. I have a bare minimal emergency fund but I don't think that I really need it due to having a massive amount that I can draw from within my mortgage and we get paid regularly every fortnight.

[riverffashion]

Having lived (on the parents') paycheck to paycheck when growing up, with all respect to the message of the thread, it's... disingenuous... to say that someone is living paycheck to paycheck because they have automatic deposits going to their savings/investing accounts.

Agree.
Thread got into a couple tangents

[use2betrix]

Weird.  My US bank (USAA) does not fees for incoming domestic wire transfers.

Actually, the link I just found states that U.S. bank charges $20, while my bank (Wells Fargo) only charges $15.

I think people here are confusing EFT's with wire transfers. I can send money to people in ways other than wire, for free all day long. I'm unsure what the reasoning of the wire cost is, but it's there.

Nope. 

https://www.usaa.com/inet/pages/banking_wire_transfer_instructions?akredirect=true 

Right hand side:
Wire Transfer Fees
Domestic Outgoing: $20
International Outgoing: $20
International Wire Service fee $25
Incoming: No charge See note 1 (which relates to foreign currency)

Your link doesn't work for me. This link below basically says that all the biggest banks in the country have incoming domestic wire transfer fees.

http://www.mybanktracker.com/news/wire-transfer-fee-comparison-top-10-us-banks.

I travel all over the country regular and want a bank all over.

[Mrs. Crackin' the Whip]

It's crazy really.  At my work, people get paid on Fridays and they come in on Monday asking for a $50 advance on their next check.  It's a small company so we do that kind of thing.  The kicker is that I work in construction so these guys make $15 - $25/hr plus regular overtime for Saturday work.  It's crazy that some of them can't even make it until the next week!

[psinguine]

I'm pretty sure at this point that my boss thinks I'm living paycheck to paycheck. But that's okay, because I pretty much am. My wife and I are taking an incredibly agressive turn on our last few debts and as such money tends to disappear as soon as it arrives.

He passed a comment last week about how I've been cashing my cheques the same day I receive them (that didn't used to be the case). This is on the heels of a sudden (to him I'm sure) complete shift in pretty much everything I do. No more work lunches. No more new toys, tools and trinkets every few weeks. A sudden loss of sixty pounds in eight months. I replied that it would be nice if I got to keep any of that money. It's no fun handing it directly to the bank.

He has since been offering me a lot more hours. I'm not going to complain.

[BrandonP]

Thankfully not!

I did when I was a student, working a low paid job though. Actually, even then, it probably wasn't quite paycheck to paycheck. But a couple of months out, I would have been struggling!

[libertarian4321]

I never even look at my paycheck to see if it's come in.  Honestly, my company could probably stop paying me and I wouldn't notice for weeks or even months.  I probably should pay more attention to it.

Every so often, I'll notice money is piling up in my checking account (I have direct deposit), so when it hits $30k or so, I'll move it into some stock and bond mutual funds.

I guess it's a "Mustachian people's problem." :)

[crazydonut]

I am. I was laid off 6 weeks ago. Before then, I was not but now I've almost used up all my savings and now I'm waiting on UI.

[Moostache]

Years ago my employer paid us twice a month. When they decided to switch over to paying biweekly they sent out this memo telling everyone how wonderful it was because they would get two extra paychecks a year even though their checks would be slightly smaller.

People. Flipped. Out.  So many were living so close to their paycheck that the 10% reduction they would see per paycheck was catastrophic to them. There were meetings, discussions, and frustrated Q&A sessions.

In the end they ended up paying everyone a bit extra on the last check of  old  system , I can't remember how much, and told people to deal with it. There would be no more.

It was entertaining but alarming to watch.

Long ago I worked someplace where they normally paid you on Friday. They decided to switch payroll processors and told everyone that we would would get paid on the following Tuesday instead for one week, and then go back to normal. People flipped the fuck out. "I won't be able to pay my rent" "My car is going to be repossessed" etc, etc, etc...

Caused enough of an uproar that they had to delay the switchover for a couple weeks so everyone could financially prepare themselves. At the time, I did not really think anything of it, but now I'm like "holy shit, those people are doomed".

[dragoncar]

Years ago my employer paid us twice a month. When they decided to switch over to paying biweekly they sent out this memo telling everyone how wonderful it was because they would get two extra paychecks a year even though their checks would be slightly smaller.

People. Flipped. Out.  So many were living so close to their paycheck that the 10% reduction they would see per paycheck was catastrophic to them. There were meetings, discussions, and frustrated Q&A sessions.

In the end they ended up paying everyone a bit extra on the last check of  old  system , I can't remember how much, and told people to deal with it. There would be no more.

It was entertaining but alarming to watch.

Long ago I worked someplace where they normally paid you on Friday. They decided to switch payroll processors and told everyone that we would would get paid on the following Tuesday instead for one week, and then go back to normal. People flipped the fuck out. "I won't be able to pay my rent" "My car is going to be repossessed" etc, etc, etc...

Caused enough of an uproar that they had to delay the switchover for a couple weeks so everyone could financially prepare themselves. At the time, I did not really think anything of it, but now I'm like "holy shit, those people are doomed".

So people got money for free.  I would also complain about the switch to receive this free money.

[One Noisy Cat]

   When I was in the military 35 years ago people used to talk about "The dreaded Three Weekend Payday".
Paydays were the 15th and 30th. If one of those days was a Saturday or Sunday, the eagle would sh*t on Friday (in the form of a green computer punchcard). So if the 15th was Sunday, you would get paid Friday the 13th and Monday the 30th. Of course this was before ATMs, Saturday banking hours were rare and overdrafts didn't exist.  A couple units I were at didn't have dining halls and one I had to live out in the economy with a housing allowance designed to be less what you paid in rent (that was changed after I left). I'm not sure how many people had to borrow money. I didn't (except when the YN1 messed up my paperwork and didn't get housing for 2 1/2 months. Naturally she got a commendation medal when she rotated out. And if I ever run into her and her equally dopey husband, I won't say hello). I did loan money to one guy and you guessed it, major problems getting it back but I did.

[johnny847]

   When I was in the military 35 years ago people used to talk about "The dreaded Three Weekend Payday".
Paydays were the 15th and 30th. If one of those days was a Saturday or Sunday, the eagle would sh*t on Friday (in the form of a green computer punchcard). So if the 15th was Sunday, you would get paid Friday the 13th and Monday the 30th. Of course this was before ATMs, Saturday banking hours were rare and overdrafts didn't exist.  A couple units I were at didn't have dining halls and one I had to live out in the economy with a housing allowance designed to be less what you paid in rent (that was changed after I left). I'm not sure how many people had to borrow money. I didn't (except when the YN1 messed up my paperwork and didn't get housing for 2 1/2 months. Naturally she got a commendation medal when she rotated out. And if I ever run into her and her equally dopey husband, I won't say hello). I did loan money to one guy and you guessed it, major problems getting it back but I did.

Haha there is a veteran in my lab and he said many of his friends ran out of money in these three weekend pay cycles. He said the mess halls were a lot more crowded that third weekend.

[regulator]

Weird.  My US bank (USAA) does not fees for incoming domestic wire transfers.

Actually, the link I just found states that U.S. bank charges $20, while my bank (Wells Fargo) only charges $15.

I think people here are confusing EFT's with wire transfers. I can send money to people in ways other than wire, for free all day long. I'm unsure what the reasoning of the wire cost is, but it's there.

Nope. 

https://www.usaa.com/inet/pages/banking_wire_transfer_instructions?akredirect=true 

Right hand side:
Wire Transfer Fees
Domestic Outgoing: $20
International Outgoing: $20
International Wire Service fee $25
Incoming: No charge See note 1 (which relates to foreign currency)

Your link doesn't work for me. This link below basically says that all the biggest banks in the country have incoming domestic wire transfer fees.

http://www.mybanktracker.com/news/wire-transfer-fee-comparison-top-10-us-banks.

I travel all over the country regular and want a bank all over.

Schwab Bank is what you want then.  Have done business with them for years.  No fees for pretty much anything.

[Villanelle]

   When I was in the military 35 years ago people used to talk about "The dreaded Three Weekend Payday".
Paydays were the 15th and 30th. If one of those days was a Saturday or Sunday, the eagle would sh*t on Friday (in the form of a green computer punchcard). So if the 15th was Sunday, you would get paid Friday the 13th and Monday the 30th. Of course this was before ATMs, Saturday banking hours were rare and overdrafts didn't exist.  A couple units I were at didn't have dining halls and one I had to live out in the economy with a housing allowance designed to be less what you paid in rent (that was changed after I left). I'm not sure how many people had to borrow money. I didn't (except when the YN1 messed up my paperwork and didn't get housing for 2 1/2 months. Naturally she got a commendation medal when she rotated out. And if I ever run into her and her equally dopey husband, I won't say hello). I did loan money to one guy and you guessed it, major problems getting it back but I did.

I am always astounded when I accidentally go to the commissary on payday.  All those people are living so close to the edge financially that they run out of groceries the day before payday, and then don't have enough money to be able to shop even one or two days before they get that check.  It's probably 30% busier on payday, and that's with a good number of people avoiding shopping those days.  So I'd say at least 40% of the community runs things so close that they *must* shop on payday.  Crazy. 

[Nords]

   When I was in the military 35 years ago people used to talk about "The dreaded Three Weekend Payday".
Paydays were the 15th and 30th. If one of those days was a Saturday or Sunday, the eagle would sh*t on Friday (in the form of a green computer punchcard). So if the 15th was Sunday, you would get paid Friday the 13th and Monday the 30th. Of course this was before ATMs, Saturday banking hours were rare and overdrafts didn't exist.  A couple units I were at didn't have dining halls and one I had to live out in the economy with a housing allowance designed to be less what you paid in rent (that was changed after I left). I'm not sure how many people had to borrow money. I didn't (except when the YN1 messed up my paperwork and didn't get housing for 2 1/2 months. Naturally she got a commendation medal when she rotated out. And if I ever run into her and her equally dopey husband, I won't say hello). I did loan money to one guy and you guessed it, major problems getting it back but I did.

I am always astounded when I accidentally go to the commissary on payday.  All those people are living so close to the edge financially that they run out of groceries the day before payday, and then don't have enough money to be able to shop even one or two days before they get that check.  It's probably 30% busier on payday, and that's with a good number of people avoiding shopping those days.  So I'd say at least 40% of the community runs things so close that they *must* shop on payday.  Crazy.

I've told this tale on other threads, but I'll encore it here.

The U.S. military's pay service sends out alerts to the financial institutions, so servicemembers & families know exactly what day their pay will be electronically deposited to their account.  The only unknown what time of the day it will be deposited. 

So on payday (or for some military-friendly banks, the day before) it's common to see shoppers in the commissary with full carts parked off to the side of an aisle near the cashiers.  If they've timed it right then the money is in their accounts by the time they get in the cashier's line.  Otherwise they're refreshing their banking apps on their smartphones to see whether the pay deposit has hit their account yet, so that they can get in line and buy the food to feed their families.

I was once at a checkout register behind a woman whose debit card was declined.  She wasn't even fazed by the "insufficient funds" rebuff.  She whipped out her smartphone, logged into her banking app, drew on her home equity line of credit, added money to her checking account, and then swiped her debit card again.  Her proficiency and speed of execution made me suspect that she does it a lot. 

We avoid grocery shopping during the three-day period centered on a military payday, especially if it's a weekend.  But on a Wednesday morning in between paydays, the commissaries are nearly deserted.