PLANO, Texas (CBSDFW.COM) – As the partial government shutdown drags on, furloughed workers are facing the prospect of the first missed paycheck this year.
The situation has trigged fury in some– worry in others– and an awakening in the rest of the nation to the fact that living “paycheck to paycheck” is more common than many may realize.
Victor says several years ago, her husband urged her to take Dave Ramsey’s financial management class dubbed Financial Peace University.
She became a convert and the couple teaches the course at their Plano church, but first she had to learn that having money doesn’t necessarily mean that you manage it well.
Victor says she and her husband earned good money, so she was initially reluctant to admit that they were spending more than they earned– and that’s living paycheck to paycheck, regardless of tax bracket. In their classes, she says, such situations are common.
“Most people have $1,000 or less saved– even in affluent areas where we are, Plano, Frisco, McKinney, Allen.” So Victor says she and her husband got serious about making their money fit their priorities. They began by selling a brand new car, eliminating car payments, insurance and maintenance.
The next step was to cut back on the things they still had.
Victor admits the couple had the means and the will to make changes– others are facing a steeper climb. According to a 2017 CareerBuilder survey, 78 percent of US workers live paycheck to paycheck. That same survey found that nearly one in 10 of those workers earn $100,000 or more. And more than 1 in 4 save nothing at all each month.
In the face of statistics like this, the government shutdown and prospect of missed pay has touched a nerve– even among those unaffected.
As the Victors prepare to lead another session of Financial Peace at Plano’s Prince of Peace Catholic Community Church next month, Jolawn stresses that more money isn’t always the answer. It’s learning to manage it better by living on less. And yes, she says, budgeting is key: you can’t begin to save money until you know where it’s going.