The cost of being: A high school teacher dreaming of life without checkout anxiety
The cost of being: A high school teacher dreaming of life without checkout anxiety
'I worked really hard to build up an emergency fund but just had to spent $950 fixing my car. So now I'm starting the emergency fund again.'
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Yeah so some significant things not mentioned are rates and insurance, but they aren't going to fill that up.
My best guess is some sort of debt. Like credit card or hire purchases, but these would have to be super big to account for half of the in hand income.
The article states specifically
No other debts. Have worked really hard to pay everything off. Had built up an emergency fund but just had to spent $950 on fixing my car. So starting the emergency fund again.
Well I'm stumped! My guess is they guessed at what they spend and underestimated it.
I do wonder why the journalist didn't ask the question though, then we might have a real answer.
It's just a form you fill out - there's no journalist asking questions.
That seems somehow worse. People fill in the form and then it gets published as is on the website? Doesn't seem worth publishing as news or an opinion piece, I'm not even sure what kind of media that's supposed to be.
I think it gets edited. But I don't think there's any enquiry.
Maybe car maintenance and fuel costs?
Back when I was working every time someone on the same income as me was in financial trouble it turned out to be car-related or involve alcohol.
Either that or she's actually socking a huge amount into managed funds. She did say she is saving up for her kid.
Given the numbers; I don't see how she is having trouble.
At ~$750/week to cover phone/internet/insurance etc..I would guess that is less than $250/week.
Where is that $500/week going?
One other thing I noted: when you earn $113k, $1k is not an emergency fund...an emergency fund should be minimum 3 months of after tax income...so like $18k for her. This is to cover unexpected large financial shocks, like losing a job or a car crash....$1k is a mechanics bill (says so in the article). If it takes a few years to build it up that is fine....but 3 months should be a minimum; preferably 6+. If she lost her job, she has less than a week of "emergency money".
I hate to sound like I'm "blaming the victim" here, but something doesn't add up.
Saving up for you kid, doesn't equal not living at all; because the kid is also living the same life.
I agree, the whole thing makes no sense.
Saving up for you kid, doesn’t equal not living at all; because the kid is also living the same life.
Well yes but "being poor is expensive" and in my experience some low-income people try to cushion children from that by saving up so that there are always funds for things like emergency healthcare or even big ticket items like braces, rather than letting them do all the middle class stuff and have no safety net.
Edit, but thinking about it, that doesn't make any sense given her emergency fund thing (which as you say is weirdly low).
“being poor is expensive”
The Boots Theory of Economic Unfairness; it is a little limited, but quite cool.
I'm familiar with it; I think it's a really great illustration! I guess some of the low income parenting examples like boots would be things like dentistry.
I hate to sound like I'm "blaming the victim" here, but something doesn't add up
I completely believe that she could be struggling on that income. I'm not blaming her I'm blaming the journalist for not realising (or caring) the numbers in their article don't add up.
I'm sure there's a reasonable explanation, but I feel like this hardly counts as journalism. They have failed at telling the story.
It's not really an article is it? It looks like a questionnaire that someone has filled out and they've just published it?
There's no mention of healthcare expenses, child expenses (clothes/uniforms, activities, sports, music lessons etc.). Actually no details at all about what is spent on their kid.
Describe your financial low: Domestic violence and financial abuse, new baby, no job, huge debts, continued abuse and legal stress.
I give money away to: Saving for my child’s future. Occasional Givealittle causes or fund raisers that I empathise with.
I think there is a lot of context missing, and everyone getting hung up on the numbers is missing the point.
I do wish journalists didn't do this.
I remember an article a while back with a beneficiary complaining about not getting to buy much icecream.
It makes it sound like spoilt people whining over nothing, whereas plenty of people's wish list is mostly just nutritious food, medicine, or being warm enough.
It's just a fairly general questionnaire, it's not a budgeting document meant to account for every single dollar they spend.
I think it's more concerning that even people on $100K+ are feeling financial anxiety. I know there are those on less making it work, but if those on six figure incomes are feeling the pinch - imagine what a vast majority of kiwis are feeling right now.
Yes, I get the impression most people are worse off lately. Devil take the hindmost seems to be turning into devil take the entire bottom half.
I wonder what conclusions they will come to about what to do about it...