Is It Worth the Money to Get a College Degree? Lets Do the Math and Find Out!

[dfrecore]

There are a LOT of reasons people live paycheck-to-paycheck, and it's not always because the paycheck is too small.  I've known WAY more people that make decent or more than decent money that live p2p than people who are totally broke because they make no money.  WAY more.  Like 50-to-1.

You left out those who lived BEYOND their means, and now are living paycheck to paycheck because their debts consume too much of their income.

I would add that except at the very lowest levels of poverty, people COULD choose to save at some rate (2%,10%), build some savings and NOT live p2p, they just don't.

Ah, yes - I only listed an additional 3 tiers, knowing that people would know of others.

I will tell you that my kids are a great example of living within your means.  Both kids have worked 30-40 hours a week since summer of 2020; one has worked more consistently, but the other has always made more per hour.  They both have paid-for cars, so no bills; one started paying for car insurance in 2021, the other in 2022.  Since 2020, one has made more than the other overall, and managed to save 90% of their take-home pay, while the other spent most of what they made (doesn't help that he got 1 ticket and 2 minor accidents so his auto insurance is through the roof, but that's all about choices in how you drive).  She's 20 and is looking at buying a house, while he is 19 and is decidedly NOT going to be buying anything any time soon.  Between driving issues and spending like an idiot, he has exactly nothing saved, not even for a rainy day (like, if he has car trouble).  She has a car maintenance fund, a car fund (for a purchase if she needs to), a school fund (if something comes up that she has to pay for immediately until she gets reimbursed), and a house fund.

I can tell you right now, she will ALWAYS squirrel away money, and ALWAYS have money sitting there in case of an emergency, and ALWAYS put money in her 401(k) (she's not yet old enough to join).  And he MAY learn to save, but it won't be the same; he's going to count on MAKING a lot of money so that he can spend a lot.  That's the plan anyway.

They both had the same opportunity to save money (both lived at home with 90% of expenses paid for).  But one did and the other did not.  I would imagine this is how it is with lots of people - they don't make choices that pan out in the long run and then say "I live paycheck-to-paycheck because it's impossible not to."