Heey, so I also had similar thoughts when I was living by $300/mo, but it’s really, really not much. Here’s the short breakdown
rent. Rent is sky-high in places like Berlin, London, Paris, the US, and a lot of other places. You can find a studio apt for like $400/mo in a poor place
food. Earning $4k/mo means a lot of work and cooking is not an option. If you rent a cheap apartment, chances are you have a poor kitchen. So it adds $400 per person a month
emergency. If your partner loses a job or a close relative gets something like cancer, you start spending much more. I had both, unfortunately
Are you trying to rub it in or something? $4000 isn’t much to you, good for you. Others disagree, and there’s no sense arguing what somebody poor would do if they needed to suddenly spend a lot of money. What’s the point of that?
It’s not like the idea hasn’t occurred to us. The fear of such an event is already in our heads all the time. The honest answer most people could give is: I really don’t know.
I assumed your first comment was sarcasm. $4k/mo sounds incredible
Heey, so I also had similar thoughts when I was living by $300/mo, but it’s really, really not much. Here’s the short breakdown
rent. Rent is sky-high in places like Berlin, London, Paris, the US, and a lot of other places. You can find a studio apt for like $400/mo in a poor place
food. Earning $4k/mo means a lot of work and cooking is not an option. If you rent a cheap apartment, chances are you have a poor kitchen. So it adds $400 per person a month
emergency. If your partner loses a job or a close relative gets something like cancer, you start spending much more. I had both, unfortunately
These are my total regular monthly joint expenses between both my partner and I:
Rent & Utilities: $1200
Entertainment: $150
Student loans: $200
Health/dental: $600
Groceries: $600
Business: $250
Auto: $250
=$3250
Soo… what would you do if you need to spend like $8000 tomorrow?
Are you trying to rub it in or something? $4000 isn’t much to you, good for you. Others disagree, and there’s no sense arguing what somebody poor would do if they needed to suddenly spend a lot of money. What’s the point of that?
It’s not like the idea hasn’t occurred to us. The fear of such an event is already in our heads all the time. The honest answer most people could give is: I really don’t know.
IDK, got preoccupied with the topic. Take care
I can’t think of a single situation besides ransom that would require I spend $8,000 but, to answer your question, I would take out a loan.
Regardless, if my partner and I each made $4,000/mo, we’d have over $4,000/mo of discretionary spending, which is insane