Challenge::Live on $5.15 an hour::

[mom-from-missouri]

Re: Challenge::Live on $5.15 an hour::

You also need to remember that a lot of minimum wage earners who have more than one in their household qualify for benifits, such as WIC, if they have children age 5 and under, or are preg., food stamps, medicade, HUD, free or reduced childcare or headstart, or free tution if they are a student. So, some of the people who we may think are making it on $5.15 an hour are not making it without assistance.

[HalMd]

Re: Challenge::Live on $5.15 an hour::

There is no way my lifestyle would permit this, largely because of my mortgage.

But I would add that, if I were on minimum wage, my main goal would NOT be how to live within my means. It would be HOW TO INCREASE MY WAGE. By definition, most jobs pay above minimum wage.

I also do not agree that minimum wage is intended as the lowest amount required to live on. When I took my first jobs in highschool in a store and cutting grass, there was no assumption that I would live on that money. You will require assistance (from government or family) if you try to live on minimum wage.

[rduell]

Re: Challenge::Live on $5.15 an hour::

I'm interested in watching this thread as well. If you want to read a book about living on minimum wage, check out "Nickeled and Dimed." It's about the author going undercover living on minimum wage.

Reading this book was the reason I left my job as a library director and took a job with the library system headquarters. We read it as a book club book and I realized while reading it and discussing it (with a couple of board members in the club!) that if something ever happened to my husband there is no way that I would even begin to be able to make it on what I was making there. I had no benefits (besides 6 vacation days a year) and was being paid $7 an hour. With 5 kids all still home at that time it was impossible. So when the System job came up I jumped at it.

The book was a good wake up call.

[Broken Arrow]

Re: Challenge::Live on $5.15 an hour::

Wow. I figured that without rent, I could do it. However, I took a quick calculation with my budget without rent, and it was still over the minimum wage! However, if it wasn't for rent, I think I can scrimp enough to make it (without lowering my 401k contribution)... but not that I'd want to.

[PRICEPLUS]

Re: Challenge::Live on $5.15 an hour::

It is impossible to live inmy neckof the woods for 5.15 an hour. It is just not withing the realm of possibility!

[Snoopy2645]

Re: Challenge::Live on $5.15 an hour::

I think thats an excellent point momfrommissouri they usually get alot of help if thats all they are making. I get so sick of people who say they do it all & are actually getting the help from the gov. I dont know maybe I am a little jealous I had my dd at 18 & because I always saved every penney I made I had to much in savings to ever qualify & since I wasnt on state aid I didnt get any childsupport either for along time & still barely get any for dd & if I would have been on state aid the state would have nailed my ex I guess I should also mention I was raised not to believe in depending on anyone else for help

[bjl584]

Re: Challenge::Live on $5.15 an hour::

Ah, the ongoing debate about the minimum wage. There are many arguments for and against. On the one hand, it is nearly impossible to survive on $5.15 an hour. On the other hand, how did someone end up in a position in life that all that they are capable of earning is the minimun wage? And if they ended up in that position, should it be the taxpayers job to bail that person out? I believe that only 2% of the population earns minimum wage, and most of those people are part timers in their teens and over the age of 65. Also, when wages go up without productivity and profits going up, businesses will react by cutting hours or their labor force or by raising prices. In the end, nobody really gets ahead or ends up any better off than they were in the first place. Afterall, if all that we needed for prosperity in this country was to raise the minimum wage, then wouldn't it make sense to have everyone earning $50 an hour, maybe $100? Then we could all be millionaires. That is obviously not the case. Often the minimum wage has nothing to do with increasing standards of living. It is an artifical boost to the economy that is used as a political tool to gain votes.

[tinapbeana]

Re: Challenge::Live on $5.15 an hour::

You also need to remember that a lot of minimum wage earners who have more than one in their household qualify for benifits, such as WIC, if they have children age 5 and under, or are preg., food stamps, medicade, HUD, free or reduced childcare or headstart, or free tution if they are a student. So, some of the people who we may think are making it on $5.15 an hour are not making it without assistance.

i agree that a lot of people who make min wage qualify for assistance, usually b/c they are supporting a family (not just themselves) on the wage.

i guess my biggest gripe is when i hear people (not saying it's you or anyone here even!) complain about folks on welfare/WIC/whatever assistance and they whip out the argument "Get off assistance and go get a job making minimum wage, they're everywhere!" personally, i don't think it's reasonably possible to live on minimum wage without assistance.

$5.15 after 15% deductions (state, federal SSN, medicaire) is about $4.37 per hour, $174.80 per 40 hr week, or an average of $757.46 net per month (174.80*52/12). this $9089 per year is below the 2006 poverty guideline for one person of $ 9,800 (although of course the gross on minimum wage $10712 is just over the poverty line).

757.46
- 350.00 (my lowest rent ever)
- 125.00 (average water gas & elec)
- 50.00 (bare minimum food for 1)
- 45.00 (my lowest car insurance ever)
- 40.00 (gas to get to work and grocery for the month)
- 25.00 (basic phone for emergencies)
= 122.46 left per month.

notice there's no health insurance coverage in this list, no retirement, no savings, and if one is already in debt there's no debt repayment. and this is just for 1 person.

is it possible? i guess, but the very thought of it is downright depressing.

[Diolla]

Re: Challenge::Live on $5.15 an hour::

I don't even know anyone making minimum wage. Even McD's pays $7 starting wage here.

[tinapbeana]

Re: Challenge::Live on $5.15 an hour::

most clerical jobs around here start at $7 or $8 an hour, but fast food/convenience store jobs are all lower than that.

as for the comment about 'how do you get to the point of having to make minimum wage' (which to me sounded kinda like someone making minimum wage deserves to make so little, but maybe that's just me): i would say anyone who's been laid off or downsized is in the position to have to make minimum wage. the unemployment commission here expects you to lower your salary expectations every 2-3 weeks you are out of work. after 6 months there is no more unemployment assistance period. if the only job you can get then is minimum wage while you're looking for something better, that's what you get. it's not always about laziness or lack of education or motivation.

on the other hand, some folks (myself included) can't get a minimum wage job even if they wanted to. i've tried: grocery stores, walmart, and fast food joints have all turned me down because i was 'overqualified', so i wound up making nothing rather than $5.15 an hour back in 2001...

[fairy74]

Re: Challenge::Live on $5.15 an hour::

most of us have a reason we cannot do it, but it does make you think about all the people that are forced to do it (for whatever reason). Humbling.

[disneysteve]

Re: Challenge::Live on $5.15 an hour::

I don't even know anyone making minimum wage. Even McD's pays $7 starting wage here.

I think, and please correct me if I'm wrong, that true minimum wage jobs are more common in rural areas. In urban areas, there is much more competition for workers and employers have a tough enough time filling job openings even when paying well above minimum wage. Also, many cities and states have their own minimum wage that is higher than the national level, so minimum wage means different things in different places anyway.

[bjl584]

Re: Challenge::Live on $5.15 an hour::

I live in a rural area, and the most rural job that I could find in last Sunday's paper was working as a farm hand on at a local horse farm. Even that job started out at $6.00. I can't remember the last time that I saw a job starting out at minimum wage.

[tinapbeana]

Re: Challenge::Live on $5.15 an hour::

honestly, though, it's not about the minimum wage is or what it should be, it's the thoughts of making an actual living at

$6 per hour ($12480 gross/yr)
$7 per hour ($14560 gross/yr)
$8 per hour ($16640 gross/yr)
$9 per hour ($18720 gross/yr)
$10 per hour ($20800 gross/yr)

honestly, who can imagine living as an individual and being able to save and care for yourself long-term at say $9 per hour ($18720 gross/yr)? this is double the poverty line, but could you honestly survive at that in say NYC, Atlanta, Chicago, LA, etc? i lived in SC on $11.25/hour and contributed 5% to my 401k, and it was beyond hard...

[Ima saver]

Re: Challenge::Live on $5.15 an hour::

Well my husband makes a lot more than minimum wage, but he also works 55-65 hours a week and that helps a lot.