The downside of "Keeping up with the Joneses"

One of the things that I like about being a grad student, is that no one expects you to be anything other than broke. Thus there's comparatively little pressure to buy a flashy car, own a big house, or eat out all the time. (That said, I did spend quite a chunk of change traveling earlier this year).

What I find amazing though is just how poorly many people seem to do when it comes to the issue of money management. The base principle really isn't that hard: don't spend money you don't have. In other words, live within your means. It may be tough for some, particularly those raising young families. However, should you really be living month to month if you're making $100,000+ a year, as 21% of those folks are reported as doing?

Some 21 percent of those with salaries of $100,000 or more say they are living paycheck to paycheck, according to a recent survey conducted by CareerBuilder.com.

While experts are quick to acknowledge that high gasoline prices, the slumping housing market and a generally weak economy are weighing on consumers' finances, they also agree that the general difficulty in making ends meet is also the result of persistently bad spending and saving habits that are now catching up with the spendthrift American.

(Excerpted from CNBC)