[Question_Assumptions]

How can someone with that kind of income live paycheck to paycheck?

You don't live in the New York City metropolitan area, do you? I've seen nice $40,000 homes in Iowa. In the NYC metro area, $40,000 might buy you a cardboard box. If you can look up average incomes, also look up cost of living indexes and housing costs for this area.

[Austim]

You don't live in the New York City metropolitan area, do you? I've seen nice $40,000 homes in Iowa. In the NYC metro area, $40,000 might buy you a cardboard box. If you can look up average incomes, also look up cost of living indexes and housing costs for this area.

No, I live in Austin in a neighborhood where older three bedroom houses sell for between 350-500k. If something were to happen to me or my wife the surviving spouse would have to sell the house and move out to the suburbs where a house may cost 150k. However, we also have savings that would carry us through nine months to a year with no income. We have created this cushion because we are responsible adults and realize that bad things can happen.

[cynicom]

Don't bother to try to educate some people. Firstly it is not possible and secondly, for some reason, in their minds, anyone that runs into a bad place in life, arrived their as a risk in life and if not prepared, tough luck. This thread abounds with people with such character.