Tuesday, February 12, 2013

Making it on $9.00 per hour

 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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