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# \$20 and Minimum Wage Challenge Update

November 5th, 2006 at 11:54 pm

I'm two-thirds through the Minimum Wage Challenge.

I spent \$1592 a month last year. My savings are the difference, \$1592-\$1026 (see below) = \$566 times 8 months = \$4,528.

Add to that \$190 in “savings” and \$14.21 in my emergency fund, I’ve saved \$4,732.21. If I take out what I spend in Europe, \$1809.64, which is not part of my Challenge, I’ve saved \$2,922.57 living on CA Minimum Wage for 8 months.

* My income is calculated as follows: CA minimum wage of \$6.75 for 40 hours a week, at 4.33 weeks in a month, \$1178 total. I’ve taken FICA and SDI (CA State Disability Insurance) out for a total of \$1073. I made \$4.74 in recycling this month. That gives me \$1077.74 in income; however I “overspent” \$15.14 last month (in the gifts category) and under the “YouNeedaBudget” system (an Excel-based budget I’m using to track my Challenge Budget) if a category is overspent the money is taken straight out of the next month. Therefore I had \$1062.70 to spend.

** When I originally began the Challenge March 2006 I assumed no federal or state tax liability. Wrong! I’d actually owe \$47 a month, so I have to budget \$95 a month to catch up. So my actual spendable income averaged over each month is my original calculation of \$1073 less \$47 for \$1026.

***\$584.64 is the sum of the positive numbers; that’s the amount I have banked and unspent for non-monthly expenses. It is obviously not what was budgeted less what was spent. Each month I budget for non-monthly purchases; for example, I budget \$13 for AAA and car registration every month, but have yet to spend it because it has yet to be due. That’s why the balance is up to \$104.

### 3 Responses to “\$20 and Minimum Wage Challenge Update”

1. janh Says:
1162775959

You are so inspiring....this is awesome to watch and learn from.

2. miclason Says:
1162830406

ooooohhh!...I could never do that! (of course, minimum wage in ES has just been RAISED TO \$175/month-- PRE-TAX!)...that wouldn't even cover my rent! (which is \$157.50/month!)...what I SHOULD do, though, is try to live on \$800/month pre-tax, which is what I make! LOL!...

3. PRICEPLUS Says:
1162838136

I wish I were as organized so I could make an attempt to mimic what you are doing! janh has it spot on. You are very inspiring indeed!")

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