A Chasing Sunsets Fund – A Better Way to Plan Nice-to-Haves in Financial
Independence.
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One of the spending needs that many of you would consider as part of the
income needs for your financial independence (FI) or FIRE, is to have
enough mon...
1 week ago
Haha, think it's mainly targeted at employees. They get more in cash & on monthly basis instead of annually.
ReplyDeleteNot sure how much of lower income spent on medical expenses and govt might think lower income should be safeguarding their abilities to pay for medical needs. Cash can anyhow spend. Hmmm
DeleteBased on latest 2018 household expenditure survey, % of monthly income spent on healthcare:-
DeleteFor bottom quintile households = $256/$2,235 = 11.5%
For top quintile households = $432/$26,587 = 1.6%
But the more pertinent question is why low-income employee & low-income self-employed have different WIS treatment? Afterall both are low-income and likely to be bottom quintile right? ;)
A bit of human nature, behavioural finance, and nudge theory has gone into why policymakers have decided to implement WIS in this manner. ;)
(BTW the survey includes "non-work income" as part of household income .... hence you definitely won't be in bottom quintile! LOL!)