Challenge::Live on $5.15 an hour::

[rob62521]

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.

[lrjohnson]

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

I was sadly disappointed in Nickel and Dimed. I'm a big Ehrenreich fan so maybe my expectations were too high.

[veronak]

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

Hey I am going to give this a try I do not have a car payment live at home. Next pay day will be on the 30th so we'll see but only for a month

[alanaj]

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

It can be done, but it's not pretty! I'll pass!

[lrjohnson]

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

Re: it's not pretty. What would you think the minimum level would be to have an okay life? I'm in CA, where minimum wage is $6.75. I'm spending no more than minimum wage, and I'm in month two, and it seems to be going okay. I have no kids, admitted. And I have a base level of household goods, admitted. I will say that much of many of my household items are hand me downs or garage sale finds, as well as kitchen stuff-if I had to replace it all, I could start with a couple plates and cups and forks and a mattress and a lamp, and build up. I think at $8 an hour with affordable healthcare I could do very well. At minimum wage (CA) I know I'm not hungry or cold. I am not trying to say that min wage is at a good level, but I think being frugal can take away some of the pain. If we look at oatmeal and non-cable TV as viable options, and not as punishments, some folks with lower incomes might have a better quality of life.

[Ima saver]

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

Ifjohnson, can I ask a question. Do you pay rent or own your own home? Is that part of your minimum wage challenge?

[Ima saver]

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

Sorry, I read your thread and I see that you do pay $400 in rent!

[lrjohnson]

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

Sure you can ask. I've posted my original budget on my blog (link below) as well as updates on budget changes and spending. My rent is $400. The total for the house is $800-My Guy and I split all household expenses, such as rent, utilities, groceries, 50/50. My rent is for a pretty large house-it was a high rent when we moved in 4 years ago, but then rents shot up everywhere but ours stayed the same so now it's low for what we get. Vivtorian built in 1887, 12 foot high ceilings, 2 bedroom, split bathroom (an actual "bathroom" without a toilet, and a toilet room.) We pay our own gas and electric; water and garbage is included in the rent.

Buying a house in California is super tough-
"The minimum household income needed to purchase a median-priced home at $542,720 in California in June was $125,870, based on an average effective mortgage interest rate of 5.71 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $111,420 in June 2004, when the median price of a home was $468,050 and the prevailing interest rate was 6.01 percent."

Median priced home at over hlf a million is just nuts.

[Ima saver]

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

Well you are doing great on this challenge!! Prices for houses are high here, but nothing like where you are. I would guess an average house goes for about $200,000 here. Things have really changed in the past 4 years. We sold our first spec house about four years ago, for $112,000. 2 bedrooms, 2 baths but small, 1200 sq. ft.. But with a nice mountain view.(and brand new)

[SicilyYoder]

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

Its interesting to see this post- because the topic of my book, which I hope to have out in 2008, is about, "Living in Kentucky on an Entry-Level Pay." I was browsing the ads at several job sites today. True, I am not going to quit my writing or my 2 merchandising jobs. I work only 2 days a week, so I thought I could research the other days when I am not touring. I will be going to interviews next week. I'm going to make a budget on what my pay would be for the particular job I get and go search for attainable housing. This really scares me because I am very picky about where I live- being an author and all, so I'll have to do some real pretending. I donate some of my private-label to the food banks and know alot of folks have a hard time, thus the idea of doing this came up.

[bjl584]

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

I can't do it. Mortgage alone is $668. Even if I could, I would have to ask myself why. $5.15 is minimum wage. I went through 4 years of college, and am half way through grad school all so that I don't have to worry about living on $5.15 an hour. I made $4.75 at my first job, but I was 16 then and living at home. Living on $5.15 presently is unrealistic and in my view foolish to even consider. I worked long and hard to get a good paying job for a reason. That reason wasn't to hoard my paycheck and live like a miser. The reason is to build wealth, investments, gain knowledge, be able to support good causes, and be able to indulge in a little bit of the finer things that this world has to offer. You can't have life without living a little. That's just how I see things though.

[disneysteve]

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

I couldn't live on $5.15/hr, or $10.30/hr if you double it. Not with mortgage, property taxes, insurance, food, utilties, etc. Forget "luxury" purchases. Just our basics would put us way over that limit.

You should keep one thing in mind, though. Everyone is assuming a 40 hour work week. I think lots of folks earning minimum wage either work more than 40 hours at their main job or work 2 or more jobs, so even the minimum wage earners often aren't living on $10,700/year.

[markio26]

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

we could not live on minimum wage now... maybe when we retire... we do take 4 months off every year and save for that... we still owe credit cards... low rates though and we never charge unless it is on discover and i pay it off the next payday....

[tinapbeana]

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

i don't think you should have to work 2 jobs to be able to sustain yourself on minimum wage. isn't the concept of a minimum wage is that it is the minimum that needs to be paid for you to be able to live? if folks have to work overtime or work 2 jobs on minimum wage, perhaps the minimum should be raised.

[disneysteve]

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

i don't think you should have to work 2 jobs to be able to sustain yourself on minimum wage. isn't the concept of a minimum wage is that it is the minimum that needs to be paid for you to be able to live? if folks have to work overtime or work 2 jobs on minimum wage, perhaps the minimum should be raised.

I agree. I wasn't suggesting the min. wage was ok. Just making the point that challenging folks to live on $5.15 isn't realistic because so many folks actually earning that amount work far more than 40 hours.