What is minimum wage?

In the U.S. the current minimum wage rate is $7.25 (it may have changed depending on when you’re reading this post so check the post date). Based on that pay rate let’s do a little math.

In a given year full time workers put in approximately 2,080 hours. Multiply that by minimum wage and they’ll be pulling in $15,080 yearly ($1,257 monthly) before taxes. The tax rate for someone in this bracket is 15% for federal, state taxes will vary, we’ll simply use the 15% here to estimate on the low end. That means take home would be $12,818 a year, or $1,068 a month.

What can you buy with that?

How far your money goes will depend on where you’re living of course. In any part of the country you can probably find a decent place to live, most likely with roommates, for about $400-$500 a month. You can also fit in groceries for about $150, and your utilities will be about $40-$50. You may also have a small clothing allowance of $20-$30 a month if you thrift. Using a high estimate you’ll spend about $750 a month on expenses, which will leave you with $300 a month in disposable income. What you do with that will be above and beyond what it necessary to survive so things like eating out or recreation.



So is living on minimum wage possible? Yes, I think living on minimum wage is possible. I even wrote a post about how I do it, a few months ago. However, I think that if you’re even semi-ambitious you’ll move beyond $7.25 an hour in a very short period of time. What you do with your excess funds at that point is up to you, but realize that worse case scenario, you can survive on minimum wage with proper money management.

Only 0.3% - 0.4% of workers are at minimum wage.

A phone, vehicle, and utilities are not a "necessity".

You apparently do not live in the South. A vehicle with current plates and insurance is a requirement for every job, as is a phone in your name at your current residence. And, yes, electricity for an air conditioner and running water to bath are a necessity down here as well.

You apparently do not live in the South. A vehicle with current plates and insurance is a requirement for every job, as is a phone in your name at your current residence. And, yes, electricity for an air conditioner and running water to bath are a necessity down here as well.

To become employed in most places in the US, you must have a car and a phone. Those questions are asked first. A "no" means you don't get the job.

Khross, so why can't people bike to work every day? Do they live 20 miles away or something?

Arathain:

You haven't disproved anything. You've asserted your anecdotal evidence is true. But, it's not ...

Georgia law requires all residences to have a working air conditioner and electricity or gas to power it if someone is in residence at that location. They've required central air conditioning on all new construction since the mid-70s.

Likewise, since most of Georgia and the rest of the South doesn't have public transportation or enough people for Taxi Service, reliable transportation is required. Due to the volatile nature of weather in the South East, a bicycle doesn't count because it can be sunny and sweltering one moment and a full blow monsoon the next.

So, yeah, that's how it is down here ...

Arathain:

You haven't disproved anything. You've asserted your anecdotal evidence is true. But, it's not ...

Georgia law requires all residences to have a working air conditioner and electricity or gas to power it if someone is in residence at that location. They've required central air conditioning on all new construction since the mid-70s.

Likewise, since most of Georgia and the rest of the South doesn't have public transportation or enough people for Taxi Service, reliable transportation is required. Due to the volatile nature of weather in the South East, a bicycle doesn't count because it can be sunny and sweltering one moment and a full blow monsoon the next.

So, yeah, that's how it is down here ...

Something, something, Scotsmen?