I think paycheck to paycheck means that each check just covers your expenses until the next time you get paid. In theory, if you had a windfall worth 3 months of paychecks (an inheritance or maybe it was savings built from tax refunds over years or something), then you could have a 3 month buffer, but each time you don't get paid, it is eating a chunk of your emergency savings. If you don't live paycheck to paycheck, each pay period you are covering your expenses PLUS adding to your savings. The exact definition of covering expenses can vary. For person A it might mean that a portion of each week's earnings go toward retirement savings (401K), she is putting money away to cover annual property taxes due in 6 months, she has a weekly contribution to her kid's 529 plan and after regular expenses she has $20 left in the bank by the time the next paycheck arrives. For person B it may mean that the first two checks of the month cover rent, the third check covers utilities and groceries and the fourth covers everything else with nothing left over. Its a lot easier for Person A to deal with the unexpected than it is for Person B, but both could be seen as living paycheck to paycheck - one or two paychecks missed could have a big impact.