I've always been a believer that spending habits are a bigger factor than income in the ability to live comfortably. Needs and wants are completely different things. It drives me absolutely crazy when people get in the habit of spending money everyday on unnecessary things like energy drinks, pop, coffee, cigarettes, & lottery tickets. I cut most of that BS out years ago and used the $$ to pay off a 30 year mortgage way early. And that didn't even interfere with my motorcycle buying ADD. Living within your means (whatever yours are), with a cushion is they key to living comfortably. I've known many people that earn well into six figures that live paycheck to paycheck. I also know people with a nice nest egg that earn much less. Remember NFL players getting loans to survive the lockout? There is no excuse for earning that kind of money and not having a financial cushion http://www.businessinsider.com/nfl-players-high-interest-loans-2011-4 Spending everything you earn is a terrible habit, regardless of income. Living off credit (spending money you haven't earned yet) is even worse. My rule has always been to have 6 months of TOTAL living expenses in a savings account then put money into 401k until it hurts. If you have a 6 month cushion you can handle just about any financial interuption that comes your way.