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You save money and live within your means.  I am not saying that this is the case with all workers so do not misunderstand when I say that a good number of workers who live paycheck to paycheck and could not afford a pay period without pay is because they use all of their income and do not have savings and so then when it hits the fan ( whether it be something like this or just their company/ business laying people off they get in trouble in a hurry.