Paycheck-To-Paycheck

AAA

DEFINITION of 'Paycheck-To-Paycheck'

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.

INVESTOPEDIA EXPLAINS '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. International Poverty Line

    An international monetary threshold under which an individual ...
  2. Poverty Gap

    The average shortfall of the total population from the poverty ...
  3. Cost of Living

    The amount of money needed to sustain a certain level of living, ...
  4. Poverty

    A state or condition in which a person or community lacks the ...
  5. Stub

    The balance part of a check or receipt that is retained for record-keeping ...
  6. Federal Poverty Level - FPL

    The set minimum amount of gross income that a family needs for ...
Related Articles
  1. The Beauty Of Budgeting
    Budgeting

    The Beauty Of Budgeting

  2. Standard Of Living Vs. Quality Of Life
    Fundamental Analysis

    Standard Of Living Vs. Quality Of Life

  3. Are We Losing The Middle Class?
    Personal Finance

    Are We Losing The Middle Class?

  4. 8 Financial Tips For Young Adults
    Taxes

    8 Financial Tips For Young Adults

comments powered by Disqus
Hot Definitions
  1. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  2. 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 ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  6. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
Trading Center