You might be right here. If "minimum wage" is essentially at least $20 an hour in most places, and most companies are desperate for workers, it's hard to believe a $400 emergency could be so crippling. Maybe it's experienced by folks too lazy to work.
I might buy someday and upgrade. We shall see.
For me, not working was never an option. I also work an incredible number of hours but I probably wouldn't prefer otherwise.
You are thinking about it a little bit differently than the reality of the 400.00 emergency expense. Think of it in this way, let's say you make 2MM a year but spend 3MM a year? Are you rich? If you are spending in that manner, then to come up with the 400 you might have to sell something because you have a cash flow problem.
We tend to project our conservative values on others. For instance, the financial principles I think many on this forum follow.
1. Live withing your means.
2. Put your money in appreciating assets not depreciating assets (think really high-end cars not S&W's).
3. Know the difference between needs and wants.
So, my point is you would be surprised at the income levels of people who are broke. It is not because they don't earn it is how they manage what they earn.
As far as the property, hindsight is always 20-20.
My wife and I went to Lake Tahoe in 2009 for our anniversary and there were real estate agents in the hotel lobby advertising properties that people were trying to unload for what they owed.
Properties that were selling for 500k at the time, but 2 years prior were selling for 1MM. My wife and I seriously considered purchasing one but didn't.
I looked the other day at some of the areas where we considered making a purchase. The properties are now 1.5 - 2MM. Lesson learned.
Timing can be everything - you make money on things when you buy them not when you sell. Good luck in your search but don't make the mistake we made. If an opportunity presents itself, figure out how to hop on it.
