“Percentage of Americans with household income above $100,000 who are living paycheck to paycheck.”
Source: CNN/Money “Americans and their Money” study
The Fix: As a CERTIFIED FINANCIAL PLANNER™, I’ve seen first-hand that it’s not really about what you make. It’s all about what you save. So heed the rule to “Pay Yourself First.”
That means that you should take your savings contribution out of your paycheck first and direct it automatically to your savings account, whether it be a Roth IRA, your workplace 401(k), or just an emergency savings account.
If you’re like most people and wait until the end of the month, there won’t be anything left to save. So if you haven’t done it already, set up your automatic savings transfer today. For best results, you want to save 10% to 15% of your income, but if you can’t do that now, start smaller and adjust the amount upward every six months.