When I decided to take on the minimum wage challenge, I didn’t realize both how little and how much it would affect my life.
I apologize for this image being sideways; it was the only way I could make the print big enough to read, without fiddling a bunch more, which I can not do due to major head pounding.
For new folks, a reminder of how I’m determining income: California minimum wage of $6.75 at 40 hours a week at 4.33 weeks a month is $1169, less 7.65% FICA ($90), one-half percent SDI ($6). I’m assuming no federal or state tax liability, due to low income; that may be an erroneous assumption. $1169 – $96 = $1073. If I sell a book on half.com or recycle, I’m allowing that income. It doesn’t add up to much, my extra income is averaging $8.31 a month.
I’ve put $117 in “savings,” and I’ve started an emergency/big purchase fund that has a whopping $5.88. I have $278.82 “banked” for non-monthly expenditures; for example, I have budgeted $51 a month for car insurance, which I pay semi-annually.
The areas I thought would be more difficult were eating out, entertainment, and gifts. The area that has actually been the most difficult is medical.
I’m using the YNAB budgeting system to track my expenses for this challenge; the spreadsheet cost me $19.95, so I’m considering this my $20 dollar challenge. My spent of $1073 is $519 less than my average per month last year. (I know I have some banked, but it will be spent on non-monthly budgeted purchases.) Adding back in the $39 I put into "savings" under the challenge, I saved an additional $558 for the $20 challenge. This makes for $1674 in savings in three months for my $20 Challenge.
I’ve Lived at Minimum Wage for Three Months
May 31st, 2006 at 10:16 pm
May 31st, 2006 at 11:15 pm 1149117323
PS - I think you're right about medical expenses being a surprise. My family has been experiencing surprises and difficulties in that exact area of our budget, and we have at least a middle-class income and decent medical coverage. Hmm, medical issues could be a weakness for many of all wage classes (and they might not even be aware of it, until too late...) For those living on minimum wage, well, a medical situation would be very devastating. What sobering thoughts...
June 2nd, 2006 at 01:39 pm 1149255599
This is really cool what you did.
October 20th, 2006 at 03:54 pm 1161359658