Living Paycheck to Paycheck on a Six Figure Salary (My Response)

Here is my response to ‪@JakeFerrin‬ on his $129,000 income living paycheck to paycheck - Enjoy! Add me on Instagram: GPStephan | GET YOUR FREE STOCK WORTH UP TO $1000 ON PUBLIC WHEN YOU MAKE A DEPOSIT - USE CODE GRAHAM: www.public.com/...
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[@RandyVincent808]

First money mistake to avoid is feeling the need to solve everything and be there for everyone, you have to invest in yourself before investing in others

[@LouiseGeier90]

Our issue stems from the prevalent belief held by the majority that "having a good job is all it takes to become wealthy." Many people are unaware that these billionaires are using a different set of rules when conducting business.

[@SaraEsther242]

The best approach for novices is to trade under the supervision of an expert, trust me you will be debt free.

[@PatriciaMary11]

I start investing my cash in others to achieve all my dream with the help of Karen Nancy. The difference Mrs Karen L Nancy make in my life is second to none. It's definitely a life changing kindness. I really appreciate her effort in my life time.

[@BrittanyDoris]

I've been making over $4,600 of my investment on monthly intervals since I started investing with her trading service.

[@ArdenAspen35]

Wish I knew about crypto trading earlier.stock is good but crypto is better. Brace up and get yourself a bitcoin before it's too late.

[@schuylergutting8169]

Honestly I made $138k last year, and I buried myself in debt. I sat down at the beginning of the year and figured out why I had nothing left over after every paycheck. Well, $1,600 a month just in vehicle and motorcycle payments not including insurance was definitely a big thing. Sold one car which cleared up $776/mo plus $80 for insurance. Starting to move in the right direction

[@wolverine9079]

Good job 👍

[@WinningFinancially]

Great job!!; keep on going!

[@Iam.brittjai]

I love this for you

[@ludens1526]

Damn your were stupid Af but at least you trying

[@Lifewithemerson323]

Hey am downgrading my apartment 3k to $1,800 baby steps man.

[@hollywoodundeadandpinkguyf2842]

You aren't living paycheck to paycheck if you can afford to put 12% in your 401k. Paycheck to paycheck means you don't have enough left to save/invest at all. He just has lifestyle inflation. He could save quite a bit more to.

[@zoopdefloop8651]

I recently saw a streamer breakdown how his $400,000 doesn’t go that far in NYC. In the breakdown he said he puts $5,000/a MONTH into savings and retirement. Literally more than the median income into just retirement. People are crazy out of touch

[@ColombianLNP]

Completely agree, this was a click bait title

[@ByteExplorer]

Also the equity pay down for his mortgage. And both vehicles were paid off. That guy is pretty well off. It’s also an old video.

[@bluethunder9102]

Idk it’s recommend that you put 15 percent for retirement so it makes sense I guess?

[@luisfilipe2023]

I think he means it as he doesn’t have any leftover at the end of the month since the contributions are taken immediately

[@mariadanielasegura6451]

Paycheck to paycheck is literally having to wait for your next paycheck to finish paying you bills, food, and to have a roof on top of your head. Being able to save a good amount of money isn’t paycheck to paycheck.

[@Ink30]

Paycheck to paycheck just means you can't afford to miss a week of pay

[@saleens330]

Well first bills should be split up per paycheck. Living paycheck to paycheck has a loose definition. Can be broke and can do nothing till your next paycheck. Or you have $50 bucks to your name till the next paycheck.

[@ExposingTheLies360]

Go back to your OF. I dont wanna hear wise thoughts from a WOMAN who probably wastes $500 on nails, the bar, the club and clothes every damn weekend. Oh yeh and chipotle + starbucks.

[@ildar5184]

He's "saving" a thousand something per month in 401k, while netting -2.5k each month. How is that saving? He basically takes on additional debt each month to invest, which is ridiculous. People that hardly make ends meet can also take a loan of a 1k$ each month and put that into 401k, can we call that saving?

[@droid2D2C3P0]

Ugh "spending all of my disposable income" is not the same as "living paycheck to paycheck" 🙄🙄

[@naginifelocin]

Exactly.. paying something over the weekend or a holiday to make the payment but not have it come out right away… that’s paycheck to paycheck to me 😅

[@Ndasuunye]

as soon as they get money, they lose touch with reality. It's not like their millionaires either which is weirder. some people.

[@wowthatsinteresting8951]

It’s the same. Trust me.

[@droid2D2C3P0]

@@wowthatsinteresting8951 no.. it's literally not..

[@wowthatsinteresting8951]

@@droid2D2C3P0 evil people like to bring new meanings to things that are not exactly the same as their situation. Living paycheck to paycheck is a simple as living paycheck to paycheck. You could have saved your money before hand than taking on responsibilities you couldn’t handle in the long term.

[@amandaw2200]

Saving to your 401k though is not paycheck to paycheck, plus he mentions he has a savings built up from previous jobs. To me, paycheck to paycheck means you dont have a savings and nothing gets saved. His situation does shed light on how hard it is financially nowadays, but he's truly not paycheck to paycheck

[@Sofia-ge5wu]

Even if you disregard the 401k he's nothing like paycheque to paycheque. He's choosing to spend lots of money on non essentials.

[@A_Sen_0]

Also he is paying mortgage which a kind of an investment too ,home equity is building up, unlike us who really lives pay check to pay check , we rent & will have nothing after 30 years of renting.

[@ildar5184]

He's -2.5k net each month. Even if he stopped contributing to 401k, which is a thousand something per month, he'd still be seriously in the negative zone. This is even worse than paycheck to paycheck, because it's unsustainable. Basically he takes on additional debt each month to invest, which is kinda ridiculous.

[@stickysteph]

Is it really livings "paycheck to paycheck" when you're able to save that much money in retirement? When I hear "paycheck to paycheck", I'm thinking literally not even having enough left at the end of the week to save anything at all....

[@np5246]

To answer your question, nope.

[@Tonks989]

Lifestyle inflation is a real problem. My husband and I were in the loop and living "paycheck to paycheck" until about a year ago. I was recently discussing finances with one of my friends and she said her household bills are over $6000/month and I felt sick to my stomach for her

[@BenjaminMutuku]

It depends though. Kids tuition? Mortgage? Car payments? Breakdown would be good.

[@Tonks989]

@Mercedes Lounge but when you are calculating those into your budget you should at least make sure you aren't stretching your finances too thin. There is a difference between responsible and reckless lifestyle inflation and its the reckless kind that creates the problematic paycheck to paycheck situations.

[@avennoronha7081]

Props to this guy for literally walking everyone thru his monthly expenses. That's a lot of transparency that a lot of people wouldn't do.

[@chelseybazzle8668]

Eating out is soo pricey. I deleted my UberEats account and started making my favorite dishes at home. I'm eating healthier and my savings account is growing.

[@dashiefiles]

Exactly he’s not paycheck to paycheck just STOP spending money on food like that

[@CrypticCobra]

UberEats is not eating out though, it's delivery. Eating out is almost half the price of delivery, and the food is 3x as good. It is actually hot, and not soggy. I used that app a single times and instantly deleted it. Even with all of the starting bonuses of "free delivery" the other fees are asinine.

[@nickgarcia4988]

Used to live paycheck to paycheck and had about $800 in savings at most. Then looking through what I could control I decided to put a budget on eating out and groceries to see if it would be enough. After a month of eating out once at Taco Bell and spending only the budget in groceries I brought my savings up by $700!!! Almost doubled in one month. Eating out is our generations biggest financial curse!!!

[@TheFirstRealChewy]

Groceries and eating out is a big expense for us. We created a budget for it but I still want to reduce it. So what we are doing, just started a week ago, is to do all shopping once a week on the weekend.

[@ChinaDoll305]

Haha I remember I did my budgets and on coffee and eating out it came up too $1000 in three months! Never again

[@heathjohnson2575]

Groceries are just as expensive

[@connordoyle502]

I spent 22k on doordash in 2020. Hahaa

[@carpelunam]

these type of people dont understand what being poor really feels like... and too be honest I have a feeling Graham doesnt either

[@CrypticCobra]

Well ya, you can only say "you should save 50% of your income" with a straight face if you don't understand just how hard it is to cut a low paying jobs income in half and still survive. If you are making six figures it's easy as hell to live under your means, when you make around 50k, you just can't logically cut 25k out of that for savings. After tax you are living with poverty income, but also don't get to take advantage of poverty services.

[@arielgoldfarb4118]

It kinda pisses me off really ...

[@finleythegolden2909]

I spend about 400 a month on food delivery. A woman cooks all the food about $80 for all my meals and $20 delivery fee she drops the food off Sunday and I have meals for the entire week. I work a lot and despise cooking but like the taste of good food. She is a really good chef and it’s not a lot at all for the amount of good quality food I get each week.

[@colingreen9871]

Growing up lower middle class and seeing my family struggle with money actually living paycheck to paycheck I hate seeing videos like these the disconnect is so huge. If I ever make this much one day I am going to live the same way as I am now because I know just how easy living that extravagant lifestyle can be ripped away from you. I just need a little apartment and car to get me A to B.

[@j88south]

nah fr

[@cherylT321]

Exactly!

[@BobbyMucka]

Graham, I'm an Enrolled Agent and yes, qualifying expenses provided by a babysitter or childcare center allow many people to qualify for the child and dependent care credit.

[@isaacwatson3088]

but that's not deducting it straight on the P&L... everyone can get the kid care credit. he specifically was trying to take a full expense on p&l and be able to spend over what the credit would give you.

[@BobbyMucka]

@@isaacwatson3088 childcare is not a business expense.

[@isaacwatson3088]

@@BobbyMucka yeah I know. That’s why I had my comment. Graham was wanting to deduct it there…

[@shelbynamels973]

@@isaacwatson3088 If the child and dependent care credit is big enough, it might be very close to deducting his babysitter as a tax deductions. Credits are better than deductions, they go straight to the taxes owed, not take money off the income.

[@agonyofthenearmiss]

Life is choices, and they are relentless. I make 130k and I’m living pretty large while saving 20% of my income. I left a HCOL area and choose to eat at home most of the time, shopping the sales at the grocery store. Mortgage is 1249/mo for 2800 sqft. Not a fancy house but big enough for a family with two kids.

[@darkwoodmovies]

That is definitely something to consider, but unfortunately not all of us can thrive in an environment like that. I'd go crazy not living in a city and having to drive everywhere. It stresses me out, and ultimately I have to make a choice between having more money or being happy in life.

[@agonyofthenearmiss]

@@darkwoodmovies that’s what I thought too, at first. Then I realized that being broke is more stressful than driving.

[@darkwoodmovies]

@@agonyofthenearmiss Haha, fair enough

[@CallejasMichael]

@@agonyofthenearmiss spitting

[@blaze376192]

1249 for 2800 Square feet?! Where do you find those prices?!

[@MrA10004]

Saving 12% of your paycheque and telling that you live paycheque to paycheque is just disrespectful to everyone who cannot even afford to save a dollar and are always in overdraft while living paycheque to paycheque.

[@CrypticCobra]

To be fair I don't think this guy ever chaimed to live paycheck to paycheck, that's just what Graham said in the tile (clickbait).

[@np5246]

​​@@CrypticCobra No, it's what the guy claimed in the original video. He even tried to say that the 401(k) might "technically" mean he is not living paycheck to paycheck lol like...no, it *literally* means that he isn't really living that way.

[@johanacaba5219]

As they say, more money, more problems. But, your channel is very helpful to realizing that you don’t have to live above your means, you can spend less and be happy. For me, I realized I don’t need that expensive designer item, a dupe does just the thing.

[@NickOloteo]

As I say, “ more money, more dividends, which means more money and more dividends.”

[@theglassarrow_]

more money just means more temptations. It doesnt mean more problems, done right it means less problems. Speeding ticket? $200 is alot less important to you at 100k compared to 30k.

[@sweatynachos1422]

@@theglassarrow_ I mean i agree. More money more temptations. at the end of the day, we all want to enjoy our lives while we're here so we spend, so its a battle between that, and saving for the future. I guess a balance of both is important.

[@ExposingTheLies360]

Only a dumb broad or fem boy would ever think of spending $500 on a single “designer” item all made in china out of the same materials nike and adidas is made out of. Pure stupidity at its finest.

[@norwegianblue2017]

It's very easy to get yourself in a paycheck to paycheck situation if you start living the lifestyle you've been told someone with your income should live. For example, a person making $130k will probably buy a $65k car, go out to eat all the time, and probably buy/rent a house that is slightly above their means.

[@shachede6828]

He didn’t have 65k car. Who in thier right mind tell you a 65k car is what 130k person should drive. More like if you’re 350-500k a year.

[@norwegianblue2017]

@@shachede6828 The old rule is 50% of annual salary for a new car (max). I'm not talking about his specific case, I'm just saying people can fall in this trap.

[@orez3706]

​@Shachede you'd be suprised what people do that makes no sense.

[@carpelunam]

​@@shachede6828 almost all the customers I deal with in San Francisco?

[@shachede6828]

@@norwegianblue2017 never heard such a rule in my life.

[@IrisP989]

This is not an income problem. This is a spending problem. $782 a month on eating out is insane. We were horrified when we saw that we spend between $200 to $250 a month (my husband and I). $40 to $60 a week on babysitting is an unnecessary expense (you can have a date night at home after the kids go to bed). We also have two small kids and live in a HCOL area.

[@droid2D2C3P0]

The babysitter is unnecessary but it's not unreasonable. Not even close. Especially on their income. Don't shame people for wanting a break out of the house occasionally.

[@IrisP989]

I definitely didn’t intend to shame them. He shares his expenses as if he can’t control the money that is spent and he actually controls that aspect. We are also a 6 figure income household (a bit more than $200K) and find ways to enjoy date nights at home and go out maybe once a month as our break. These are his choices obviously.

[@samuelruiz7377]

Exactly 800 on eating out and on top of that another 1k on groceries this is absolutely a spending problem

[@justalittledangerous]

40 to 60 a week is peanuts when hes spending $800 on eating out. 40 to 60 for a date night plus another $100 once a month on a nice treat.

[@jmiller3579]

Good tips.

[@JamesQNineTwo]

We were able to just now get off of living pay check to pay check as a two income home w/ a child. The weight off of your shoulders is immeasurable. I feel like it is a constant struggle sometimes to just not slip back into the bad money habits, watching your channel has been inspiring and grounding.

[@TheFirstRealChewy]

Build up that emergency fund.

[@JamesQNineTwo]

@@TheFirstRealChewy for sure!

[@justinshearer8180]

I consider paycheck-to-paycheck just enough money for the bare essentials not putting 12% in 401k and spending like 15 to 20 a day for Chipotle and five guys instead of packing his lunch and cooking dinner at home ect

[@budgetforlife]

I agree on the one-off purchase comment. So many budgets do not account for all of those "Random" spending. Often, it is not random and can be categorized so that you set money aside on a monthly basis so that the money is available when the purchase actually happens. Once we started tracking and budgeting for this type of stuff, it made all the difference in our budget. And I wish we would be more specific on the topic of saving. What are you saving for? if it is just a big pot of money, what is its purpose? Savings can be long term (retirement), medium term (house, vehicle) or short term (vacation, furniture). The more specific you have it laid out, then it becomes easier to see if you are on track with your own goals and values.

[@edwinortiz1262]

My monthly unexpected expenses tend to be medically related. Not like I want to get a surgery or see different doctors every month. I have savings for those expenses but it really makes me wonder if I'm better off ignoring health problems.

[@budgetforlife]

@@edwinortiz1262 I am sorry you have so many medically unexpected expenses. It’s hard to enjoy things if you have medical issues. However, if you have that many that every month there is an expense then I would advise to incorporate that into your budget and fund it every month if you can. You can always repurpose to something else if you don’t need it but it might be helpful to have a medical category cushion.

[@edwinortiz1262]

@@budgetforlife that's what I stated doing, which put me into the paycheck to paycheck category. At least I can still afford to invest for retirement.

[@budgetforlife]

@@edwinortiz1262 Yeah, paycheck to paycheck is rough. Glad to hear you have some retirement savings though! All the best in the future.

[@MB-eb9ed]

I used to spend $5/day at Starbucks and now it’s $3.50 at McCafe. I’m improving lol

[@theglassarrow_]

What I find the biggest part for people living paycheck to paycheck at such high income is paying for premium versions of things, and spending extra on their kids. I know someone who makes 80k+ and states that hes living paycheck to paycheck while sending all his kids to private school and has nearly an additional 20-30 subscriptions. All while having several maxed out credit cards and gets a new credit card when ever an unexpected expense comes up.

[@Universal_Craftsman]

That's insane. 😮

[@mocheen4837]

Making $300,000 in San Francisco is barely enough to pay for preschool and private school. You are barely even considered middle class. Most people in the upper middle class make $400,000 to $500,000.

[@MiaMizuno]

​@@mocheen4837here in Munich, Germany, private schools (grammar school) can cost 100€ per month. However I know some people who raise their kids bilingual and they want to send their kids to International school here. Which is like this : Entry fee: 5000€ Monthly fee: 1200€ per kid It's the amount I earn... Crazy these schools are for rich kids

[@luisfilipe2023]

Honestly I think the problem is with what Americans consider “middle class lifestyle”. I went through the article and it describes what we would consider to be rich

[@buyerclub2]

He is saving 16% between him and his employer, and after far less than 50 years he will have sufficient funds. His expenses will change. Guarantee it.

[@A_Canadian_In_Poland]

It always shocks me to see Americans that spend more on food than on rent...how is this even possible?

[@morbotheturtle3796]

Unfortunately, Americans see experiences (even as minimal as eating out) as necessities to live a happy life. Most broke (or even not-broke) people here eat out more than they cook.

[@janetlim]

I went to US for a while. I think in US, the expensive stuff is quite cheap and cheap stuff is expensive. Especially if the stuff involved services, super expensive.

[@radical_eyez]

​@@janetlim yep! Want a big ass TV? We got you. Want to not be bankrupted by illness? Just bootstraps your way out of cancer gg

[@ykook7000]

Lazy yanks don't cook

[@marsallen4298]

Its all about living within your means and being able to adjust your life style accordingly

[@millabasset1710]

I don't make a lot of money, only $70k a year as single man. $25,200 goes into my house every year. if I budget properly, I can take home $27,000 a year if I'm lucky. I did watch this video, the guy does seem reckless with money and he makes significantly more than me. I will admit, it is said how expensive life gets year after years. The western world is going to suck decades down the road.

[@Mama_Yae]

As much as I appreciate the financial wisdom, whats the point of living just to deny yourself the small pleasures of life. Yeah its smart to forgo the occasional meal out or coffee or item for yourself, but once you take that away it just feels more misrible and sad. Why work your whole life just for you to be able to survive when you're too old to work, at that point I'd rather enjoy life while I still can and if it means i wont be able to survive when older, I'd rather just die instead of withering away not being able to do anything.

[@kekoo20]

Word

[@MeganeMondeoMX5]

Would you rather a coffee every day or to be able to afford your mortgage, your petrol, your energy bills? Interest rates are going up, you can't just "enjoy life" anymore, you have to be sensible (unless you live with mummy and daddy of course)

[@warrenlowe676]

Groceries and eating out at $1700 a month? FOOL.

[@rubn5]

Man if I made six figures I’d be well off. I make 50k in Los Angeles and live just fine I split the rent with my girlfriend and still have plenty of money left over.

[@anthony26c]

That once a month twelve times a year comment definitely spoke to me 🤣🤣🤣

[@Mack8907]

You CAN deduct a portion of childcare on your taxes. I take advantage of this BUT it's not something that I require to ensure solvency. I understand that I am fortunate in this case, as it wasn't always that way. So happy my last kid starts Kindergarten in the fall, gives me a few years before they become expensive again. It is similar to getting a 10k/year raise.

[@stevenporter863]

People should just live below their means instead of being reactionary and relying on a tax deduction to make ends meet.

[@Mack8907]

@@stevenporter863 that is completely accurate but it’s important to look at the reasons as to why they don’t. Living outside your means isn’t the problem, it’s the symptom of something else. Whether that’s due to the mental inability to not ‘Keep up with the Jones’s” or because they have impulse control issues, the spending is the easiest part to reign in once you diagnose the underlying trouble.

[@alanaedwards8117]

Yes! Daycare expenses can provide a very nice refundable credit on your personal tax return, Form 1040. If you are paying for daycare, please provide this information to your tax preparer.

[@jordynashlee]

The more u know ❤️

[@alanaedwards8117]

Definitely!

[@danielj3010]

"..hopefully a reasonable wife" this is a huge variable everyone overlooks!

[@MimouFirst]

Last year I've basically had to start over from almost no savings or income. I live in the Netherlands off €2,550 net monthly income. My fixed costs are €1,200. I save up about € 800 a month right now. I use my bicycle instead of having a car.

[@T.S.000]

"The moral of the story here.....don't...just don't have kids." Roger that!!!

[@maryrenaud6732]

The people I know who are overspending usually have significant extra debt above their mortgage: a home equity loan due to remodeling, high car payment of say $700+ per month, cruises and travel, credit card debt, big ticket expenditures like a tractor for $16 k, financing every expenditure at 0% but not paid off in the timeframe allowed -retroactive interest at 27%, eat out a lot, buy a new tv even though the old one is perfectly fine and much more… It is the buy now pay later mentality, which seems to lead to out of control expenditures…

[@michaelswami]

I always thought living paycheck to paycheck meant saving nothing for the future and just getting by day to day on what you earn. I have a 30% savings and investing rate which makes use of every dollar each month, but do not regard that as living paycheck to paycheck.

[@akirawwwwr]

CPA here ~ i see the point and the logic that baby sitter cost 'can' be write-off as business expense. However, you can only write-off expense as business expense if it is directly associated in the business operations. Also, having a babysitter seems can qualify as a luxury more than business expense. Hence, it would be good if you have financial capacity if you decide to have a baby. Just saying lol. Nice channel Graham! Teaching good financial decisions that is not taught in school. Wish they put some curriculum for this soon as Genz's are spending most of their money to things just to keep up to the instagram and tiktok trend.

[@pepijndegroot7728]

As a car enthousiast, its crazy to see how much people are spending on a car. Just get yourself a proper second hand car instead. Because the moment a car drives out of the dealership it already lost a significant amount of its value while the car is exactly the same. And also dont buy an suv, they are beyond stupid, estates are almost always cheaper, better to drive, more economical, faster, bigger on the inside and better looking (but thats subjective)

[@Jaylion777]

Maybe I am just misunderstanding what living paycheck to paycheck means, but my understanding of what that means is that your family is only able to spend on the necessities in order to survive and you are unable to do any sort of luxurious activities or saving. I do not know how you can say you spend money on hiring a babysitter, or eating out often, or having weekly date nights, or having money set aside for vacation time with a straight face while saying you live paycheck to paycheck. I am speechless at how out of touch some people are once they get used to a certain lifestyle that they now consider luxury activities or goods as necessities or as a god given right. Obviously keeping yourself sane and happy through these types of activities and goods should be an opportunity that everyone should have; but people living paycheck to paycheck would not have the money to afford this.

[@donaldlyons17]

Agreed but many online tend to exaggerate. It is far better to say he is broke despite making X than to say he is paycheck to paycheck because it is very different to be in his situation because he is both buy extras and saving for retirement.

[@jennylynn9668]

I don't eat out. Maybe once a month. Insurance, shop around, every two years. There are insurance groups who will find the cheapest for you. If the insurance premiums increase they will call you and look for another company for you.

[@Miggy2222]

How much you make is almost irrelevant when you are just going to spend it all at Disney World, $800 on eating out, and randomly spending the rest of it on shopping and subscriptions. Also, what is the $1,700 through Venmo?! Caleb Hammer would destroy this guy 😂😂

[@CrypticCobra]

So? He is not in debt and is living the way that makes him happy. Everything about this is sustainable and healthy.

[@WholeHeartily]

As a single, I spend about $50-$60/wk on eating out.. but I maybe spend $60 on groceries lol. So $300 on food total. I make my coffee at home and it’s free at work, I typically eat lunch at home, or Chick-fil-A (frosted lemonade and chicken nuggets $10 once or twice a week), I work in a kitchen on the weekends, so my dinner is free and I typically bring leftovers home for lunch during the week. Went out with the girls, spent $40. That’s not normal, but I like the flexibility in my budget.

[@Shawn-zg6ok]

Accounting student and vita tax volunteer here. The child care tax credit often covers babysitters. I’ll also point out he said they spend $60/month on childcare that’s $720/year. The benefit from deducting $720 for someone making 130k is negligible. I of course strive to get my clients the best tax rate but we’re talking maybe $150 less in taxes. I do recognize that as a good savings but being in the situation of $60/month for childcare is a bargain and there’s a lot of people in far worse circumstances.

[@alexceddia4578]

Congrats on one million, Graham !

[@subhs8629]

I died at ‘reasonable pup’😂🐶

[@rizellegonzaga4175]

"Moral of the story, don't have kids" lol and here I am spending money to try and have a money moocher 😂

[@aic0809]

Lol at money moocher! 😂 Good luck to you! 🙏🏾 At least you know what you’re getting into, financially speaking.

[@rizellegonzaga4175]

@@aic0809 Thanks! At least I think I know what I'm getting into lol.

[@DynastyTrickDogs]

this has to be the most insensitive video graham has ever posted

[@sexcess]

The child care expenses are not specifically a business expense, but something better: the child and dependent care tax credit.

[@OmahaTonyG]

I made around $200k last year. I’m not broke. I’m doing extremely well and I’d be willing to bet that the luxuries that these six figure people have are being greatly downplayed to garner sympathy.

[@MeganeMondeoMX5]

No 💩 you're not broke 😅 People on 20k a year are broke, realise that.

[@FlansyLinny]

I only make 40k a year but I’m definitely not broke. My house is paid off, car paid off, and I save half my income every year. I live in a low cost of living state where houses are under 100k.

[@MeganeMondeoMX5]

There are people genuinely living paycheck to paycheck on minimum wage, or pension. You have retired people unable to afford heating, unable to pay their energy bills, unable to afford food each week, resorting to food banks. The guy in this original video, and people in the comments saying they are on 100k+ and they are "learning" how to save money are so delusional.

[@shelbynamels973]

"This is my house, this is my Passat, this is my Forerunner, these are my books". He sounded so much like a blue-collar Tai Lopez here.

[@Hollowgy]

I spend 0$ on eating out as my wife cooks great and we spend around 200 on groceries as we produce most of the food we eat at home

[@tulip5210]

what ingredients do you all buy, and what do you all make?

[@zanneizzo8113]

Great video. Would love to encourage the guy to step down his spending instead of cold turkey on some items. Like eating out: start doing take outs from your favorite restaurants where you aren't buying drinks etc. Go to lesser fancy places to eat that are a bit cheaper but still good to get the "eating out" buzz. Each month go one fewer time than the month before. This allows you and you won't feel deprived. Nobody needs new clothes every month - NOBODY - do a closet/drawer assessment. Just because you like to shop doesn't mean you NEED to buy. Stay out of stores unless you really NEED something. Spend more time enjoying your kiddos instead of spending money. You are earning a nice income, please don't fritter it away on nonessentials. Save more than just a 401k for that rainy day that always comes. My husband and I built our wealth together because our needs were few and our wants were usually bought second hand (I hate paying full price for anything). We are enjoying a pretty stress free life with many nice things, but more importantly, we have great family relationships because we didn't sacrifice them to keep up with the Jones'.

[@EdRadley]

The sad thing is it probably is closer to 51 years rather than 31 years if it's being invested within a traditional account as opposed to a Roth. Taxes have a choke hold on the poor and middle class even though they pay for less than half of all tax collections.

[@randyh801]

Graham and I are cut from the same cloth: natural savers. I see $700+ in eating out in a month and think, “how is that possible?” I make decent month and usually spend about 1/3 that.

[@CrypticCobra]

Sounds like his only problem is he is the only one bringing home a paycheck. I understand one parent staying home to care for children.... but that means their should be NO childcare costs. Yet this guy is spending a ton on child care. The hell is his partner doing?

[@TeKnoVKNG23]

Not paycheck to paycheck, lol. If you can afford to pay your mortgage and put money away in savings/investments/401k you aren't living paycheck to paycheck. Paycheck to paycheck literally means you pay your rent and bills, buy limited food and you have nothing left until your next check, nothing left over for savings, let alone owning real estate. These people are so out of touch.

[@shannonsampson3267]

Thank you, Graham! I watched Jake's video when it was brand new. I found it intriguing and I have enjoyed watching other KZbinr reactions. Jake did a short to update what his family spent on food in January. It increased by significant amount 😳 His wife is pregnant and craves things.

[@patol7525]

If the family of four making $350k a year and the maximum 401k contribution is $22500 per year, how can they contribute $38k?

[@JABloch]

Both spouse's could be working, or a large employer contribution. Max contribution (employee + employer) is $66k. Also, that article was from a few years ago when the limits were lower.

[@patol7525]

@@JABloch Thank you!

[@classicphysique9493]

The problem here is lifestyle inflation, you need to buy assets first and then the liabilities, for example the cars the mortgage and kid. Set yourself with strong assets and then all that can come after, the biggest asset you have in your mind!

[@123chargeit]

I don't know why this is so surprising. Most families live off two incomes and the average income is 60k a year. 130k is basically just the cost of having a wife not work in this economy.

[@bendyarms]

Need another what I spend in a week/month from Graham

[@chachisadventures3378]

That’s how much Graham goes out…TGI Fridays and Dennys 😂😂

[@hypnauticasleepsounds9329]

I’m a tax preparer and you can totally deduct day care and baby sitting. It’s called Dependent care credit. You just need your sitters SSN or daycares EIN

[@WJWeber]

He was saying as business expense. Not personal

[@660techno]

Babysitter: in Canada, it went in front of de supreme Court of Canada against Canada revenue agency and it was decided that babysitting is not a business expense.

[@trenthorton9532]

Tax CPA here. No, childcare is not a deductible business expense. Having a child is a personal decision, so, despite the fact that it affects how much you can work, the costs of caring for a child are ultimately personal in nature. You can howver get a child care tax credit, but it's not a whole lot, and requires that both parents have earned income during the year. Also, any amount of FSA used for childcare cuts into the tax credit amount that you can obtain. During the pandemic, the FSA limits and child care credit amounts were temporarily expanded, but they've now gone back to their old structures.

[@CheatPotionMaker]

Thankfully I'm making enough to where I don't have to follow the cliche "living meh" until I get old and tired. However I'm single, no kids, love to cook, make my own coffee, don't really go out, and isn't materialistic. Everyone's situation is different. But for those who like the avocado toast, don't give it up. You only live once. Just learn how to cook and make it at home 🤣

[@ntimn8r]

A lot of people don't understand tax brackets. There is a sweet spot at around 120 thousand a year where you can use just the head of household deduction to allow you to stay in that mid-tax bracket. That could save someone around 16 grand or more take home a year by making less money. This matters especially if you are paid hourly. If you work tons of overtime just to say you got that 130 thousand a year, then you will get bumped up in tax brackets. You will end up paying way more taxes and probably bring home less money at the end of the year working all that overtime than if you just worked 40 hours and made 120 thousand in the first place. You waisted hours of your life just to pay the government. Something to really consider before asking for a raise.

[@christinaw8660]

I make my coffee at home too Graham. 👍☕

[@LinkingYellow]

I added the last month cause I was curious. I spent $200 for groceries, and $400 on eating out. Though this is just for one person.

[@MeganeMondeoMX5]

How are you spending 400, one person, eating out? This is insane.

[@LinkingYellow]

@@MeganeMondeoMX5 it's expensive. Especially if I'm using DoorDash. That's like $30-$50 depending on what I'm ordering. That's about 8-13 times in a month, or an average of 2-3 times per week. That would have felt insane while I was in college, living with my parents, but it doesn't feel insane when I'm making the other 18-19 meals in a week, and have the budget for it.

[@F30Bearvarian]

I liked the “coffee at home” joke 👌

[@chukuemekaoje1015]

One parent going SAH full time will ABSOLUTELY cut down child expenses.... But at the same time, I'm willing to be that if both parents worked, then the mortgage was like taken out based on two incomes (instead of one). While child care costs go down, the mortgage ends up taking a higher proportion of the household income as a result. So not only is it potentially an issue of living an expensive lifestyle, but also lack of adequate planning (mortgage, income, number of kids, etc).

[@saulgoodman2018]

That's if they make less then it cost.

[@TheReelLifeOfStacey]

This is a new rhetoric being push and I think it’s the working of something deeper. People are QUICK to tell that 55k earner to live within your means THE SAME GOES FOR THESE PEOPLE!!!!

[@sierrasky2491]

Living frugally is something people are trying to get a handle on in this day and age of entitlement. And I think that this guy was really nice and being transparent so this is helping a lot of people.

[@dicamardo]

These are not examples of living paycheck to paycheck. When you can save money every month towards retirement and your kids college and you are getting all your wants fulfilled including expensive dining and three week vacations, that's living within your (very large) means. This is in no way a comparison to someone barely getting from paycheck to paycheck where one major emergency could bankrupt them or make them homeless.

[@TVHouseHistorian]

Thank you, *Fiola!* 👏

[@glittermeaway]

Definitely NOT paycheck to paycheck when categories Shopping and Clothing/Shopping are $890 a month.

[@glittermeaway]

Oh yeah and has a financial advisor for $150 monthly

[@vernoncooke7348]

If that’s per month, that looks a little high. Maybe $200 or $250 a month max average. Maybe I call it a slight bit of extravagance.

[@regtalkswealth]

It's very possible to be a high earner and still broke it's called living above your means the great thing about him is his doing well in income and he sounds like his noticed how he could improve

[@AHeriocWatermelon]

It's not paycheck to paycheck when you're putting that much away into a 401k and spending that much money on eating out...paycheck to paycheck is when you have no money left over after covering your bare essentials.

[@anthonyflexas]

The hoodie comment 😂😂

[@cleanairninja9256]

He can save a bundle on clothes by buying his children's clothes at thrift shops. I had a buddy who did that. He and his wife were both professional people but their son wore nothing but thrift shop clothes until he became a teen.

[@o0laieta0o]

There's two ways of saving taxes on childcare: the childcare tax credit and the dependent care FSA. $6000 each one pretax and one tax credit from 20% to 35% of max of $6000. Since daycares are at least $1000 a month, we use both fully.

[@o0laieta0o]

There's limits on who can be providing the care tho. Like you need their ssn if it's a sitter and they have to claim the income.

[@Athandatu]

Congrats on making 1M subs 🎉 Also, I’m happy to see the updated wardrobe 😊

[@angeltbrd]

We didn't live like this until we were debt free and millionaires. Now we live large. 60 years old.

[@mariesanchez]

“Don’t have kids” - I wish I did this 😂 all salary goes to food and kids for serial!!!!!

[@joseramirez-rp1id]

Yeah I have three kids make about $75000 a year. I don’t have money left for saving or investing after bills and making sure family have food in they’re belly roof over their heads and clothes on their back. And just enough to put gas in my car to make it to work.

[@BetterManufacturing]

A lot of people living paycheque to paycheque that I know are okay with living that way 😢 it’s their life. I don’t get it…….

[@TheGrahamStephanShow]

It goes fast!

[@BetterManufacturing]

@@TheGrahamStephanShow ya if you don’t tell your money what to do and own it, it will tell you what to do and your money will own you. 🤔

[@WJWeber]

Agreed. A lot of things though people eb and flow. Somethings are challenging though. To a certain degree you might be expected to provide a certain lifestyle weather that be to your spouse or kids. It’s much easier to hunker down when it’s only you to have to deal with.

[@mooistheroo]

congrats on 1million finally!

[@davidmilhouscarter8198]

7:53 I spend $100 or less per month on eating out. Groceries are $400-500 per month. I’m one person.

[@stevenporter863]

Live below your means. People should think ahead what will this choice cost me in the future; as opposed to being reactionary and not thinking ahead, leaving little or no margin then relying on a tax deduction to make ends meet. Life is like a restaurant for the most part: if you ordered it (personal decision) you should pay for it. You wouldn't expect everyone else in the restaurant (taxpayers) to pay for the meal you choose.

[@deangerber1797]

Or student loans

[@donaldlyons17]

SO many people don't think like that at all. So many say how can it get it vs. maybe I just can afford to have it.

[@elisabethhunt1114]

I just discovered your channel and love watching it! I've learned so much

[@TheGrahamStephanShow]

I'm so glad!

[@DomGuam]

“ I live paycheck to paycheck “…… spends more eating out then my entire checks. Not including the 401k and other luxuries

[@steakemuppnb952]

Graham - as a guy who owns a restaurant, I need you to curb it on telling people not to eat out. Trying to save my own money here too!!

[@vernoncooke7348]

It is very rare I eat out at restaurants

[@unikornkontroller]

I live in the same city as this guy. I only have one child but we spend maybe $70/wk eating out and around $100/wk on groceries. I have no idea how they spend so much on these two things...especially groceries.

[@VidimusWolf]

His own house, two cars, a dog, a family, can afford high AC on all day, maxed out 401k, eating out like crazy, can get dental care and health care, has savings as well, goes on family holidays, and the list goes on. Wtf is "paycheck to paycheck" in his mind?