Do You Think You Could Live On a Minimum Wage Salary?

[Maggie]

For the entire month of January, I've been trying to live on minimum wage ($7.25 an hour). I've been trying to mimic the lifestyle of someone who would have to live on the salary of say a McDonald's employee and see how feasible and hard it is. Obviously I had to take some liberties with it dealing with a house, car, utilities, Shocker games, etc.

I've been keeping a daily blog going on it

http://wichitabyeb.blogspot.com/search/label/Minimum%20Wage

It's much harder than one would think. Do you think you guys could do it?

Personally I think you are asking the wrong question (and I didn’t read your blog – so correct me if I am wrong).

As for my own experience, I lived for a year on a $30K salary (as a law clerk); paying over $1K per month because of student loans; paying rent, etc. too all in NYC (check out the average rent, by the way and cost of living standards). Based on my salary vs. the hours worked I was making less than the minimum wage – and I had a much higher monthly financial burden. I would have been better off financially, during that time, working at Wendy’s – if I could get the same hours.

But that’s not really the point is it? Or at least it shouldn’t be. Minimum wage is not supposed to be a “living wage” – and it has done more damage, to young people in particular, than most “social programs”.

Edit: To be fair if you happen to look up average rent prices in NYC (circa 1998 by the way) take into account that I didn't just have one roommate, I had three and I "subletted" my bed to a fourth while I slept on a couch.

[DUShock]

Once you've successfully completed and conquered your month long quest, you need to get in touch with the Dave Ramsey show (“Beans & Rice, Rice & Beans”).
You might just land yourself one whale of a job (maybe you already have one?). Regardless, congratulations for having the cojones to give this a try. People need to read and listen to your experience.


“I’m debt free… FREEEEDDDDOOOMMMMM!!!!!"

I am an old school Dave Ramsey devotee/cult member. If you don't agree with the commentary but adhere to the core you, your family, and generations to follow are winners, debt free winners! All the way to prosperity!

[DUShock]

Total money makeover coupled with financial peace university by Dave Ramsey is a start...

[60Shock]

I do not mean to preach and certainly hope that this does not get interpreted that way.

The one good thing about living on a minimum wqge type of salary (only when you are young) is that it teaches you to appreciate money, to watch what you spend, and to try and put even a tiny bit a away for an emergency. Later on as you progress in your life, it will be a valueable tool.

After graduating WU in 1960 and entering the Army as a 2nd Lt, my total salary was $323.23 a month, prior to taxes. I did have free medical and dental, but we had to pay rent, a car payment, and in addition, I was putting my wife through college. We ate at home 6 nights a week and our only entertainment was to buy a bucket of the Colonel's chicken and to go to a $1 drive-in on Saturday nite. If we ended the month with $5 in the bank, we were thrilled. One month, we actually saved $10 and my wife went to Safeway and bought a steak which we had not had in nearly a year. Then she proceeded to burn it to a crisp. And through my tears, I forgave her.

All I can say is hang in their and get through it. Things will get much better and this will years later be a great learning experience for you.

[Ricardo del Rio]

No opinion.

[EB 22]

Well it's been a fun month thus far and a learning experience. Only a couple days left of this. Been keep track of all my thoughts and perspective of it all. Look forward to having it all written out in a final thoughts piece.

[Kung Wu]

Some perspective: A person donating at the upper end of the Guardian Angel giving level gives more every year to SASO than a person on minimum wage who is working full time with no vacations or holidays earns in a year.

I was under the impression that there are large number of people on minimum wage. I was mistaken. Only 3.5% of people in the country earn at, or below, minimum wage. About 50% of those are under age 25. Another 25% of those are between 25 and 34 years of age, so only 25% of all minimum wage earners are over 34. That means there are about 1.1 million people over the age of 34 making minimum wage.

At least 1/2 of minimum wage earners are waiters/waitresses that have supplement income (unreported) in the form of tips, so while they are showing as earning minimum wage, in fact they are probably making more. So the 1.1 million number, is probably closer to 550,000 people actually earning at or below minimum wage that are over 34.

There is no race disparity: "The percentage of workers earning the minimum wage did not vary much across the major race and ethnicity groups. About 6 percent of White hourly-paid workers earned the Federal minimum wage or less, compared with about 7 percent of Blacks and about 5 percent of Asians. Among hourly-paid workers with Hispanic ethnicity, about 6 percent earned the minimum wage or less."

Lots of more facts here: http://www.bls.gov/cps/minwage2010.htm

[EB 22]

Thanks, it was pretty cool reading about that stuff. I'll have to use some of those facts on my final perspective.

In the meantime, I only have one day left: http://wichitabyeb.blogspot.com/2012...nus-1-day.html

Some perspective: A person donating at the upper end of the Guardian Angel giving level gives more every year to SASO than a person on minimum wage who is working full time with no vacations or holidays earns in a year.

I was under the impression that there are large number of people on minimum wage. I was mistaken. Only 3.5% of people in the country earn at, or below, minimum wage. About 50% of those are under age 25. Another 25% of those are between 25 and 34 years of age, so only 25% of all minimum wage earners are over 34. That means there are about 1.1 million people over the age of 34 making minimum wage.

At least 1/2 of minimum wage earners are waiters/waitresses that have supplement income (unreported) in the form of tips, so while they are showing as earning minimum wage, in fact they are probably making more. So the 1.1 million number, is probably closer to 550,000 people actually earning at or below minimum wage that are over 34.

There is no race disparity: "The percentage of workers earning the minimum wage did not vary much across the major race and ethnicity groups. About 6 percent of White hourly-paid workers earned the Federal minimum wage or less, compared with about 7 percent of Blacks and about 5 percent of Asians. Among hourly-paid workers with Hispanic ethnicity, about 6 percent earned the minimum wage or less."

Lots of more facts here: http://www.bls.gov/cps/minwage2010.htm

[WstateU]

Congrats again! :encouragement:

[EB 22]

The final reflection on Project Minimum Wage: http://wichitabyeb.blogspot.com/2012...eflection.html