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Considering that a lot of benefit programs (think rewards, mileage, credit cards with perks, etc) are only accessible to well-off people, I agree with you for the most part.
If you have money, it's easier to get things more cheaply, and if you don't have money, you pay more for the same services the wealthy person is getting.
If you don't have money you can not afford the same services a wealthy person is getting. Do without. That's the point here.
What hourly rate do you put on posting inane comments on the internet? A big part of poverty does not arise from wasting money, it arises from wasting time. You are never paid as well as when you work for yourself. It's a great way to accumulate wealth.
I put $0/hour on things I enjoy, if I can choose when I do them and how much. The rationale here is that (1) if I didn't do one thing I enjoy, then I would be doing something else non-working anyway; and (2) Money is a means to an end and not an end in itself.
This does not apply to DIY car or home maintenance, unless you enjoy it so much you would do it for someone else for free, even if they were a total stranger. It's not really a good comparison.
As far as walking to work, my walk probably does not take longer than your drive does, time-wise. It's about 30 minutes. So when we discuss living 20 miles away and driving vs. living ~1.2 miles away and walking, the "time cost" is basically a wash.
Your numbers are way off. My car (including pro-rated price, gasoline, maintenance and insurance) costs $2500/year to drive 10,000 miles a year. If you call it $2600/year, that's $50/week. I do the routine maintenance myself. Buy a Haines/Chilton manual.
Health insurance costs me $263/month.
$600/month for rent and utilities is reasonable, with a roommate.
A used washer/dryer is $100, one time expense. Clothing is trivial, you buy socks and underwear new, everything else at thrift stores. It's not like you have to dress well for a $10/hr job.
Food is more like $5/day, or $35/week.
That brings you to around $250/week, out of $350/week take home. Put $200/month in savings and you still have $200/month for entertainment and incidentals.
1. Where I live health insurance for a poor person is 1k/mo including deductible, copays, and monthly premium. That's a very conservative estimate for a healthy person that gets a good rate, btw.
2. Your transportation numbers are WAY off for a large portion of this country. Insurance where I live for a good driver with a used car is $200/mo. One full tank of gas/week is around $50-60. Also, to claim that all a car needs is 'routine maintenance' is flat out ridiculous! Stuff breaks, stuff needs to get replaced, etc.... cars don't run forever! Registration fees where I live are also 300-400$/yr, that's 30 bucks a month just for that. Tolls, parking (which often can't be avoided), and taxes also have to be added.
Basically, your budget isn't even close to accurate.
1. Where I live health insurance for a poor person is 1k/mo including deductible, copays, and monthly premium. That's a very conservative estimate for a healthy person that gets a good rate, btw.
2. Your transportation numbers are WAY off for a large portion of this country. Insurance where I live for a good driver with a used car is $200/mo. One full tank of gas/week is around $50-60. Also, to claim that all a car needs is 'routine maintenance' is flat out ridiculous! Stuff breaks, stuff needs to get replaced, etc.... cars don't run forever! Registration fees where I live are also 300-400$/yr, that's 30 bucks a month just for that. Tolls, parking (which often can't be avoided), and taxes also have to be added.
Basically, your budget isn't even close to accurate.
1. Where I live health insurance for a poor person is 1k/mo including deductible, copays, and monthly premium. That's a very conservative estimate for a healthy person that gets a good rate, btw.
2. Your transportation numbers are WAY off for a large portion of this country. Insurance where I live for a good driver with a used car is $200/mo. One full tank of gas/week is around $50-60. Also, to claim that all a car needs is 'routine maintenance' is flat out ridiculous! Stuff breaks, stuff needs to get replaced, etc.... cars don't run forever! Registration fees where I live are also 300-400$/yr, that's 30 bucks a month just for that. Tolls, parking (which often can't be avoided), and taxes also have to be added.
Basically, your budget isn't even close to accurate.
1. We are in our 50's and individual health insurance costs $500 each, half what you say.
2. We have NEVER paid $200 a month for car insurance! Our bill is $90 a month for 2 used cars.
I just filled up my tank for $19. Our registration and taxes run $110-145.
Yes, everyone makes different choices that can greatly affect their expenses.
1. We are in our 50's and individual health insurance costs $500 each, half what you say.
2. We have NEVER paid $200 a month for car insurance! Our bill is $90 a month for 2 used cars.
I just filled up my tank for $19. Our registration and taxes run $110-145.
Yes, everyone makes different choices that can greatly affect their expenses.
I think the health insurance bill of
$1k/month was probably for someone with a chronic condition that causes them to hit their OOP-max every single year without fail. Or possibly a chain smoker.
Although I do not use Obamacare, the cheapest plan for me (male, late 20's, non-smoker) would cost $110/month, plus deductibles and co-pays. (This is with NO subsidy, mind you.) The latter for me are very low (knock on wood!) and would be so on any health plan. Averaged over the last 6 years, I'm at $160/year even if I had to pay it all out of pocket.
I have insurance through my employer. It's overpriced ($600+ per month), but the employer covers most of it, so only $103/month is taken from my pay. I wish they would offer a plan like mine but with a higher deductible. Oh well.
1. We are in our 50's and individual health insurance costs $500 each, half what you say.
2. We have NEVER paid $200 a month for car insurance! Our bill is $90 a month for 2 used cars.
I just filled up my tank for $19. Our registration and taxes run $110-145.
Yes, everyone makes different choices that can greatly affect their expenses.
Not sure what the point is? If your individual health insurance is $500/mo that would be $1000/mo for a couple and maybe $1200/mo for a family. Auto insurance varies greatly by locale and whether you have liability vs liability and collision. AAA says the current national average gasoline price is 2.41/gal. $19 will therefore buy the average motorist 7.88 gallons. Not what many call a "fill up". You still driving that Yugo?
Choices affect cost of living, but some folks choose to live where their jobs and families are. Not everyone gets to do that in the cheap seats.
A lot of people's financial problems stem from poor lifestyle design such as:
--Having a kid out of wedlock.
--Buying too much house/rent costs too high as a % of income
--Buying too much car
--Too much student loan debt (Yes, I get that it can't be avoided for many...but more than a few borrow more than they really need and/or could have attended a cheaper college)
--Divorce (often the result of spending too much on houses/cars)
Then what people do is they try to get semi-serious about it after they've created the mess but it doesn't work.
Your list is spot on !
People will get on here and argue the merits or the "need" or the "right" of people to do these things....and I'll not disagree with your "right" to do them. However, having the right to do things doesn't mean they aren't possibly very stupid financial decisions in any individual case.
Geez....just look around you. Over the years, having conversations (and just observing) with your co-workers, friends, neighbors, other family members etc..., it should at that point be obvious that the above mentioned items can and do more often than not, result in anything from financial hardship to financial bankruptcy.
Of course there are many legitimate reasons people find themselves in these situations, I'm not doubting that....but what isn't in doubt in my mind is that every one of these presents a huge financial problem. Just make sure you're first free "choice" doesn't result in your second "choice" (financial difficulty/ruin) being made for you without you having any choice in the matter.
In some cities, the rent is higher with 3 roommates than it is to live alone in the suburbs/rural areas.
Also, is it somehow impossible to believe or understand that people can have roommates outside of the city? I know several different people who are in roommate situations but who live in the country.
Plus, if a person has a car, maybe they have a better chance of picking up a second job or finding a better job that is a little farther away, which can lead to them not working the same crappy job for the same low pay and walking back and forth to work every day for 6+ years.
Ok, here is your opportunity to put an entry in to my "car commute challenge".
Not sure what the point is? If your individual health insurance is $500/mo that would be $1000/mo for a couple and maybe $1200/mo for a family. Auto insurance varies greatly by locale and whether you have liability vs liability and collision. AAA says the current national average gasoline price is 2.41/gal. $19 will therefore buy the average motorist 7.88 gallons. Not what many call a "fill up". You still driving that Yugo?
Choices affect cost of living, but some folks choose to live where their jobs and families are. Not everyone gets to do that in the cheap seats.
I was replying to the poster that gave drastically higher numbers.
We have liability and collision, great credit, multiple car discounts and spotless driving records.
I don't drive a Yugo, but are you trying to mock people that choose more efficient, small economy cars? Personally, I hate driving big SUV's, not to mention the higher costs associated with the bigger vehicles. So yes, my car tank only holds 10 gallons and our gas is less than $2. I can get 420-450 miles on that $19.
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