Paycheck-To-Paycheck

What does 'Paycheck-To-Paycheck' mean

An expression used to describe an individual who would be unable to meet financial obligations if unemployed because his or her salary is predominantly devoted to expenses. Persons subsisting paycheck-to-paycheck have limited or no savings, and are at greater financial risk if suddenly unemployed than individuals who have amassed a cushion of savings.

BREAKING DOWN 'Paycheck-To-Paycheck'

Persons living paycheck-to-paycheck are often referred to as the working poor. These individuals typically have limited skills and are paid low wages, and are more likely to work multiple jobs. Individuals with high paying jobs may also be in a similar situation if outgoing expenses equal (or even exceed) incoming salary.

RELATED TERMS
  1. Unemployment

    Unemployment occurs when a person who is actively searching for ...
  2. Employment Insurance - EI

    An unemployment insurance program in Canada that allows individuals ...
  3. Unemployment Rate

    The percentage of the total labor force that is unemployed but ...
  4. Unemployment Income

    An insurance benefit that is paid as a result of a taxpayer's ...
  5. Continuing Claims

    Continuing claims refers to unemployed workers that qualify for ...
  6. Concealed Unemployment

    When people who are out of work are not counted in official unemployment ...
Related Articles
  1. Budgeting

    How to Break the Paycheck-to-Paycheck Cycle

    Living paycheck-to-paycheck — which many high-income earners do — leaves little wiggle room for any unexpected expenses.
  2. Savings

    7 Biggest Financial Fears and How to Overcome Them

    Financial fears keep most of us up at night. Money determines our comfort in life, and the financial system is such that one misstep could snowball.
  3. Economics

    What "Unemployment" Really Means

    Unemployment occurs when a person who is actively searching for employment is unable to find work. The most frequently cited measure of unemployment is the unemployment rate. This is the number ...
  4. Investing

    10 Ways to Effectively Save for the Future

    Savings is as crucial as ever, as we deal with life changes and our needs for the future. Here are some essential steps to get started, now.
  5. Economics

    Understanding the Unemployment Rate

    The unemployment rate is the percentage of people in the labor force who are unemployed but seeking a job.
  6. Economics

    Understanding Natural Unemployment

    Natural unemployment is often defined as the lowest rate of unemployment an economy will reach.
  7. Economics

    How The Unemployment Rate Affects Everybody

    Depending on how it's measured, the unemployment rate is open to interpretation. Learn how to find the real rate.
  8. Professionals

    Types of Unemployment

    CFA Level 1 - Types of Unemployment
  9. Economics

    Macroeconomics: Unemployment

    By Stephen Simpson Labor is a driving force in every economy – wages paid for labor fuel consumer spending, and the output of labor is essential for companies. Likewise, unemployed workers ...
  10. Economics

    What Qualifies as Full Employment?

    Full employment is an economic term describing a situation where all available labor resources are being utilized to their highest extent.
RELATED FAQS
  1. How do you financially prepare yourself for unemployment?

    Lean some simple ways that you can financially prepare for the possibility of unemployment. Read information for saving money ... Read Answer >>
  2. Unemployment resulting from changes in the basic composition of the economy ... ...

    The correct answer is a. An example of structural unemployment is the technological revolution. Computers might have eliminated ... Read Answer >>
  3. What is the difference between structural unemployment and cyclical unemployment?

    Learn more about unemployment in an economy, what structural and cyclical unemployment are, and the differences between these ... Read Answer >>
  4. Is there a natural rate of cyclical unemployment?

    Learn more about cyclical unemployment and find out about the relationship of cyclical unemployment to the natural unemployment ... Read Answer >>
  5. What is the difference between frictional unemployment and structural unemployment?

    Learn about structural unemployment and frictional unemployment, the differences between the two types and their main characteristics. Read Answer >>
  6. Do rising unemployment rates tend to increase or decrease investor sentiment and ...

    Discover whether rising unemployment rates tend to increase or decrease consumer confidence and investor sentiment. Unemployment ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center