@investinglatina calls this your “survival number” and has a tutorial that explains exactly how to calculate the cost of your bare minimum needs. Why would you need this? It gives you clarity about your cash flow and the amount you absolutely need—critical info should you experience a sudden income loss—but it also teaches you the value of learning to live with less. Here’s how to calculate yours.” data-reactid=”19″>Can you name the exact dollar amount you need to survive month-to-month? Julie Alma-Taveras of @investinglatina calls this your “survival number” and has a tutorial that explains exactly how to calculate the cost of your bare minimum needs. Why would you need this? It gives you clarity about your cash flow and the amount you absolutely need—critical info should you experience a sudden income loss—but it also teaches you the value of learning to live with less. Here’s how to calculate yours.
rent to income ratio. (Depending on how big of a hit you expect to take financially, is relocation an option for you? Maybe.) Your survival number is the jumping off point that allows you to get creative about your cost of living and make adjustments from there as needed.” data-reactid=”22″>Experiencing an income loss? Look at your survival number and zero in on spots you can trim. Maybe you can borrow a family member’s Netflix password for a few months. Or maybe you and your partner have to have a hard conversation about your rent to income ratio. (Depending on how big of a hit you expect to take financially, is relocation an option for you? Maybe.) Your survival number is the jumping off point that allows you to get creative about your cost of living and make adjustments from there as needed.
three months worth of that amount set aside.)” data-reactid=”27″>Income holding steady right now? That’s great. But your survival number is still an important number to know. For one thing, it’s what you should base your emergency savings on. (If you know you need $1,100 a month to cover your core needs, your goal should be to build up your savings to have at least three months worth of that amount set aside.)
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