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While 4 GB of RAM is still perfectly usable I honestly wouldn't buy a new Mac with only 4 GB of RAM in 2016. 8 GB is much more future proof. SSD size is completely up to you based on what your needs and how much you plan to store on it. Obviously more is better, but if you need extra space down the road you can always buy a portable USB drive later, but there will be nothing you can do other than replace your computer if RAM becomes an issue down the road as it is not upgradable.

Also as an aside, Apple has changed the base model of the 2015 MBA 13 to 8 GB of RAM in the Apple Store (for the same price as the previous 4 GB base model) so you may want to look there or even refurbished through Apple Store as you may be able to get both 8 GB of RAM and a 256 GB SSD within your budget.
 
I had a 2011 13" 4gb/256gb MBA and it worked very well, even with powerful software like Logic Pro, Final Cut Pro, Vectorworks, Photoshop, etc. The SSD is so fast that I probably wasn't aware of how much swapping was taking place. The new models have much faster SSD's so that should help even more.

Having said that, I don't think this is an "either or" situation in 2016. I would want 8gb RAM and a MINIMUM of 256gb SSD (I'm currently using a 2013 i7/8gb/512gb model). But without knowing anything about you, the software you use and the data you need to keep on the computer, I don't see how any of our opinions could be very helpful...
 
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Appreciate the responses and info! About me; well, I just mostly explore the internet, use the computer to store documents and personal photos (no music yet), and run Excel 2013 to do my expenses (but not a power user by any stretch). Going to my HP right now, I have 485 GB of 571 free on my C drive, and 2.25 of 20 free on my D drive (recovery). I really don't think I have all that much in photos. I also store stuff on iCloud and OneDrive. Hope that helps a bit. I admit to not backing things up except on USB drives. Perhaps I need to get an external drive of some kind and back up on that. Don't really know how to do it or what I need to back up. Hoping Apple has that all figured out for me!
 
Having said that, I don't think this is an "either or" situation in 2016.
Totally agree, having both will just increase the years you can continue using your computer. In a few years, having more ram will let your computer maintain its speed as new updates/ programmes come out that require more ram.

Also, having a full SSD is infuriating and its likely you'll fill up 128GB very fast these days.
 
The 8GB is easily the must have option. It is (was?) the cheaper option, and can never be increased.

There are workarounds with the small drive, which while annoying are possible: 64GB SD card, external hard drives or ssd drives, get an OWC Aura drive installed.

I was debating getting the 128GB drive, but I'm glad I went with the 256GB though. I kinda wish I went for the 512GB option actually...
 
The 8GB is easily the must have option. It is (was?) the cheaper option, and can never be increased.

There are workarounds with the small drive, which while annoying are possible: 64GB SD card, external hard drives or ssd drives, get an OWC Aura drive installed.

I was debating getting the 128GB drive, but I'm glad I went with the 256GB though. I kinda wish I went for the 512GB option actually...
Also, you can use the micro SD cards with those converters that sit flush with your macbook air. You can now get 128Gb drives for reasonable prices these days.
 
I share the view of those who suggested the 8GB RAM verson. You have plenty of choices to extend your storage space, like this solution.

nifty-drive.png
 
I agree with those posters who suggest that 128GB and 4GB RAM are not exactly what you would need in 2016.

These days, 8 GB is recommended - though, yes, you will cope with 4GB, although the machine will not be quite as 'future proofed' as it would otherwise have been. Likewise, I have to say that I fond 128GB insufficient for my needs three years ago.

Personally, in this year, my recommended minimum would be 8GB and 256GB SSD. If finance is an issue, I'd recommend that you take a look at the Apple 'refurbished' models; they can offer a pretty decent discount.
 
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