The most common one is saying that someone is paycheck to paycheck but they're also funding their 401(k) up to company match, etc.
It's usually just the inverse of saying most people don't have ready cash savings laying around; because there's no need to when you have credit every which way all the time.
Much better to look at the debt load on people and how that changes over time. Someone who makes $5k a month and spends $3k on debt service and lives off $2k is going to feel much different from someone who makes the same $5k, lives on $2k, and spends $3k on candles or whatever (since they can stop buying candles anytime but you can't easily stop paying down debt).
When I hear "living paycheck to paycheck" I think it means your recurring expenses (rent, utilities, food, etc.) consume all your income every month and you have nothing left to save. No savings. No investments. No 401K. If you don't get your next paycheck you can't pay the rent.
I think your definition is completely reasonable, but it's not how people answer the question (again, based on reading the report, which has a lot more detail.)
> It's usually just the inverse of saying most people don't have ready cash savings laying around; because there's no need to when you have credit every which way all the time
This is quite a precarious situation to me. People should not need nor be encouraged to rely on debt to live life, especially month to month.
The default mode should be working people make enough to, if budgeted moderately well, can pay for everything plus save money away post tax[0]
Anything less and you’re only growing systemic issues over time
[0]: including tax exempt savings like 401Ks is ill-reflective of people’s ability to save money aside for emergencies and unexpected costs
It's usually just the inverse of saying most people don't have ready cash savings laying around; because there's no need to when you have credit every which way all the time.
Much better to look at the debt load on people and how that changes over time. Someone who makes $5k a month and spends $3k on debt service and lives off $2k is going to feel much different from someone who makes the same $5k, lives on $2k, and spends $3k on candles or whatever (since they can stop buying candles anytime but you can't easily stop paying down debt).