I've wondered for a while if it is possible to make it on a single job at minimum wage. So I did some number crunching. If get any responses to this, perhaps I can flesh it out with actual research. Anyway, here is what I came up with on the spur of the moment.
At $9/hr for 40 hours a week you make $18720 per year. This averages to $1560 per month. Take out 7.65 % in Social Security and Medicare and you have $1440.66 to live on. Take out $156 tithe and you're down to $1284.66. Okay, let's take out $500.66 for rent, leaving $784.
Food, for a family of four would be up there as essential, for sure. That's going to put you out at least $234 (Hey, I've seen $45/week budgets), bringing you down to $550 for utilities (power, heat, water, phone) and auto expenses. Can it be done?
If auto expenses include monthly payments, things are going to be really tight! $200 payments and $100/month for gas brings you down to $250 for utilities! A basic land line phone runs around $30, so you now have $220 for power/heat and water. Water should be about $30, and you would then have to keep the lights on, so to speak, for under $190.
Ouch! Those car payments really hurt. Perhaps your car is paid for. That is good, for then you can lay aside from $100 to $200 per month for emergencies. If not, perhaps selling the car and buying a junker might be the way to go. Or not.
Look, I am just crunching numbers here. It may not work at all, or some people might be really good at managing resources and could make it on a full time job at $9/hour. If they could, they could probably get a job as a money manager! And there you go, the way out. :-)
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