Exactly. Everybody defines that differently. That's why I take these alarmist articles with a grain of salt.
For example, one might have less than $1,000 in a savings account but also have $200,000+ in equity on their home, a million dollars in their 401k and fully paid off credit cards. Should that person be considered a hardship case and living paycheck to paycheck? Probably not but they tend to get lumped into surveys like this to make a problem seem bigger than it really is.
Now I don't recommend being in the situation described above. Taking out a home equity loan, an early withdrawal from a 401k, or running up credit cards to make ends meet is never an optimum strategy. But I would not consider those people poor. Just poor managers of money.
Many financial gurus will tell you to have 90 days worth of living expenses in the bank, easily accessible, so that you can cover unexpected expenses and have a cushion against a loss of income for a while. Personally, I try to keep at least six months of expenses in cash that is readily available without having to tap into your other assets or credit. That way if I suddenly lose my job, I don't have to panic. I can find another source of income or more likely, I can use my job loss as an opportunity to sell my home, pull up stakes, and move to a friendlier and less expensive part of the country (I live in the NYC metro area).
Yep..... that was my point.
If you’ve accumulated wealth, whether cash, hard assets, etc., who’s to say it’s excess as it’s really nobody’s business. Sounds like some don’t want others to have anything to fall back on when times get tough. A storm like no other is coming so prepare accordingly.