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You forgot about the two kids. You're talking about a very young person, I'm talking about someone with a Master's or PhD who has worked for 25 years and has been laid off and now can't find a job for more than $9/hr. But it's their fault, because they were irresponsible. For a healthy young adult, you can live on practically nothing, I will agree but for how long?
The cost of living in Arkansas is among the lowest in the country. The year I bought my 1300 sq ft ranch fixer upper with no garage, on a small subdivision lot for $137,000 in one of the lower priced areas that is still safe, my brother bought a 2500 sq ft.newly remodeled colonial on 10 acres, lakefront with 5 camping/RV hookups that he could rent out if he chose for $110,000. My house on the east side or west side of the metro Detroit area would have been about $240K back then. With taxes and insurance, when I purchased my house, my house payment was $1500/month. Taxes and insurance alone are now $275/month. The LOWEST cost apartments, which are government subsidized, are $575 a month for a one bedroom, $900 for a three bedroom. Thankfully, interest rates have dropped so my mortgage is now only $950 a month.
Car insurance in Arkansas is clearly much cheaper too. My daughter's car has minimum coverage and if it was the only car in the family would be $728 every 6 months. More than $100 a month just for that and that's no car payment. The majority of jobs in this area are in the inner city with no livable housing nearby and no mass transportation. You have to have a car. Mopeds in 10 degree weather with 2 feet of snow are not an option either.
My heat/electric bill is $202 a month on the budget plan (equal payments throughout the year to avoid having a $400 bill in January and February and a $50 bill in April when no heat or A/C is needed). Water bill is $50 a month and I never water my lawn.
My health insurance is $75 per pay period plus deductibles and co-pays. Monthly prescriptions for my family = $200/month when I purchase them at the pharmacy in my building, which gives us a 40% discount on co-pays. 3 ER visits this year for my daughter= $375. Her MRI= $125. In the last month alone she's been to her doctor and two specialists at a total of $125 in co-pays.
Gas for me to get to work is $45 a week. I work 25 miles from my home because I don't want to live in a slum. My car payment is $245 a month and I put half down on one of the lower priced cars out there. Because I'm still paying on it, I have to pay for full coverage so I pay $1000 every 6 months.
I've blown your $9/hr budget just with my mortgage and utilities. I didn't include cable, internet or phone because I recognize that those are luxuries. Someone making $9/hr would never save enough to put half down on a car.
I know your answer is "move". The whole country can't live in Arkansas because there aren't enough jobs there. If we all moved to Arkansas, housing prices would skyrocket because demand would be so high.
You are living in a bubble.
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