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Portugal | Independent worker that earns 400$ per month

Hello Everyone, as you noticed on title i'm independent worker that earns 400$ per month, where 200$ of them I receive from someone using my upwork account and only workable computer almost 24/7.

I have over 7k loan and want to pay asap, but i also need my work pc, wich i have only available for 6h. I'm thinking building with used components pc for this guy who works on my pc and upwork for 400$ only and the after that 200$ goes to pay the load it self.

Should i do it or not? What i can do to pay it faster? I'm on course that helps me building professional experience and being certified (wich is amazing when you are certified because you know you learned there), where i receive 200$ aswell per month.

Any questions, I'm available to answer.

Best Regards!

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level 1

Hi. You might crosspost to /r/financaspessoaispt

level 2
Original Poster1 point · 7 months ago

I'm new to reddit. Thanks!

level 1

I think you need to rewrite this post so that it makes more sense. Language barrier aside, the amounts and the situation are counter intuitive, so you may need to explain things in more detail.

Give us the eli5 version. eli5 = explain like I'm 5 years old.

level 2
Original Poster1 point · 7 months ago

Language Barrier Aside.. like.. i'm confused sorry.

What i'm stucked is actually this situation i wrote, i'm undecided if i should invest the new pc for this internet worker and after that pay the loan or actually pay those extra 200$ for the loan and no pc for internet worker.

level 3

Who lives on $400 per month? Are you subsidized by school, parents, etc? Are you trying to gauge your risk if you don't have enough cash to maintain your computer if you run out of money?

level 4
Original Poster2 points · 7 months ago · edited 7 months ago

I'm living with my parents. I'm trying to gauge my risk, but yes don't wanna have debs/loans in the next 10 years.

EDIT: nvm

level 5

You should maybe read some of the other posts on this sub. For example, you haven't mentioned your interest rate on the $7k loan.

Seems fairly obvious that you should build at least one additional computer for $400 if you can recoup that money in only 2 months, and since you also need another computer for your own use.

You generally need an emergency fund, and then after that, you use additional money to pay back your loans.

level 6
Original Poster1 point · 7 months ago · edited 7 months ago

Thanks for your helping me out. I've read other posts on this sub but wasn't so accurate as my problem facing at the moment. My interest rate is close to 6.5%

All i'm worried is pay all loan, it's the only thing i want right now. So i don't need be worried when i have money or not in the future.

What's your recommendation for the emergency fund? 50% of my Income goes to pay it additional other incomings?

level 7

6 months expenses is recommended, as this is ordinarily the time it would take to replace a lost job.

Seems like your risk is due to having only one computer. Why not build another for insurance if the first one goes down, and your customer becomes impatient? Seems like you need one for your own use anyway.

Also, here is an amortization calculator for your loan.

level 8
Original Poster2 points · 7 months ago

Alright, thank you so much!

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