I have honestly NEVER understood how people end up in such terrible financial situations. Seriously, how hard is it to spend less than you earn? People always make dry jokes about running the rat race, but seriously, it’s not a complex formula. Live within your earnings, and earn as much as possible.
I’ve been financially and otherwise independent since 19. I left home for university SPECIFICALLY because I didn’t know how to go out into the world and just live alone- so I eased into it. But I put myself through school, paid for tuition, food, gas, rent etc etc, just being careful and smart with my money. That never changed when I started making more and living better.
Where do people like this even come from... and a better question is: HOW?!
If you work full time and make minimum wage in the United States, you only earn about $1250 dollars a month. If you can live in a place where rent is cheap, you might pay $400 a month for a studio apartment. (That's on the low end where I live, and the cost of living here is pretty low). Then you have water, electricity, and sewer. Things you have to pay, that's another 100$ easy. I'm assuming your being conservative here. The government believes that $200 a month can cover food. It's not true but hey, if you are willing to rat enough ramen let's say it is true. Let's say you spend 10$ a month on hygiene products. Shampoo, soap, toothpaste, ect. I bet your cheap appartment doesn't have a washer and dryer. Laundry mats are expensive. Let's say you spend 20$ a month there. You bring your own homemade detergent to save money, and hang your damp clothes to save a little.
You spend 20$ a month on the world's worse phone plan because if your boss can't reach you you'll lose your job.
So, that's all the needs right? And you have 500$ a month left. Great job right?
Well, I said you earn about 1250$ a month, that's not what you take home after taxes. You still need to pay taxes. Also your job is legally required to pay for medical insurance, but not dental or eyecare so if you need either of those, you have to pay for that yourself. Plus co-pays if you do get sick.
Have we talked about transportation? You have to get to work. If the rent is 400$ taking a bus is almost definitely not an option. So now you have a car payment. And insurance, and gas.
It's easy to need more than you can afford. And that's with the best possible budgeting strategies. Which aren't taught in public schools so you can't expect everyone to know them.
And none of this covers if you have any dependents and assumes that you have no disabilities whatsoever.
^ this. idk if it's just a thing in the united states or if it happens in other countries too but a lot of people here barely make enough money just to survive.
I’ve been financially and otherwise independent since 19. I left home for university SPECIFICALLY because I didn’t know how to go out into the world and just live alone- so I eased into it. But I put myself through school, paid for tuition, food, gas, rent etc etc, just being careful and smart with my money. That never changed when I started making more and living better.
Where do people like this even come from... and a better question is: HOW?!
So, that's all the needs right? And you have 500$ a month left. Great job right?
Well, I said you earn about 1250$ a month, that's not what you take home after taxes. You still need to pay taxes. Also your job is legally required to pay for medical insurance, but not dental or eyecare so if you need either of those, you have to pay for that yourself. Plus co-pays if you do get sick.
Have we talked about transportation? You have to get to work. If the rent is 400$ taking a bus is almost definitely not an option. So now you have a car payment. And insurance, and gas.
It's easy to need more than you can afford. And that's with the best possible budgeting strategies. Which aren't taught in public schools so you can't expect everyone to know them.
And none of this covers if you have any dependents and assumes that you have no disabilities whatsoever.