Home > $20 and Minimum Wage Challenge Update

$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:

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

  2. miclason Says:

    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:

    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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