Why do most people live paycheck to paycheck in this day and age? Short and simple answer is that people have put themselves in debt with car payments, credit cards and all the other stuff they buy on credit.
When I retired from the Navy, I kept working for a few years, because I felt that I had to. I also had credit cards and some things that I was still paying off. A few years after that, I got everything paid off, cut up and paid off the credit cards and decided to see if I could live on my pension. And, fortunately, I was able to pull it off.
Then, the economy crashed under Jr., and I was wondering if my pension was safe, so I started to see if I could save enough money to constitute 3 months of my retirement. I got it built up, but then car and house problems came along, so I'm halfway below the 3 month cushion I had built, but am in the process of rebuilding it again. Interestingly enough, when I got rid of my credit cards, I seemed to have a lot more money to save.
Get rid of your credit cards and maybe you can build some savings.
A lot of younger people think 40 hours a week is gospel. Before I became a landlord, I always had a job that worked a lot of OT, six days a week, or I had two jobs. At one point in my life I had three jobs.
I've done a variety of things in my life. I was a car wash attendant, a bricklayer apprentice, laborer, guitar teacher, medical equipment repairman, medical equipment delivery driver, factory cleaner, straight truck driver, and finally a tractor-trailer driver the last near 30 years, and as mentioned, a landlord.
I think us older folks had more of a drive, and we were much more frugal. And as another poster mentioned, we didn't have many conveniences or technology to spend money on. We had a color television set with rabbit ears, one landline phone, a stereo with an 8-track player, and perhaps an Atari video game where the cartridges were about five dollars each. We went to McDonald's a couple of times a year, not a weekly staple like many folks today.
So it's really a combination of things.