Is minimum wage really that hard to live on? I was at a friend’s house last night for a small party and met a girl there she mentioned that she chose Hawaii because it was a place where you could do a lot of the things you enjoy for free and a lot of people don’t really focus on career paths. She then also mentioned that she would be happy living on minimum wage because it wouldn’t affect her lifestyle much… besides becoming slightly infatuated for the rest of the evening, I realized I had my next blog post set when she said that she could live on minimum wage quite confidently. Even though she said she could, is living on minimum wage possible?
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.
Have you ever lived on minimum wage? If not, do you think you could?
Do you think minimum wage should be higher, or is it enough to survive on?
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Personally living on minimum wage anywhere in the U.S. at this time and day is impossible. Theirs literally no way anyone could live off $1,000 a month (if that) anywhere in the united states. Food alone for one person is on average $250 a week. Plus the fluctuating gas prices these days.
Noah Rainey´s last blog ..Google the Monopoly?
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Ryan Reply:
March 21st, 2010 at 6:53 pm
Hey Noah,
You’re spending $36 a day on food?? What are you eating man?
Gas is also implying you have a car… which is a want, not a need.
I live at about $1,000 a month so I suppose I’m living an impossibility…?
Ryan´s last blog ..Is Living on Minimum Wage Possible?
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Noah Rainey Reply:
March 22nd, 2010 at 8:03 am
Yes, I spend $36 a day on food. I’m a fairly large man. A car is a need if your job is out of reach by bike (Which is a great majority of people).
Noah Rainey´s last blog ..Google the Monopoly?
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Daniel Johnston Reply:
March 26th, 2010 at 1:51 am
Some people do have to eat more than others because of the way their body is made. However, it is possible to live without a car by moving close to work. The cutbacks, though, are enormous. Ryan talks some more on this subject: http://www.plantingdollars.com/personal-finance/needs-vs-wants/
Daniel Johnston Reply:
March 26th, 2010 at 1:54 am
Some people do need to spend more on food than others because of the way their body is made.
However, it is possible to live on minimum wage. For example, you can move closer to work and get rid of your car. The cutbacks, though, would be enormous; too great for most American’s these days. Ryan talks more about this subject: http://www.plantingdollars.com/personal-finance/needs-vs-wants/
Money Reasons Reply:
March 23rd, 2010 at 3:51 pm
I was able to live on minimum wage, when I was a college student. Working as a student lab assistent was a minimum wage job, and I did fine. At one point I had to live with 4 other roommates (eventually I found an apartment that cost $200 (this was over 10 years ago). I lifted weight and had a high protein diet, but I did fine.
I just had to be more crafty… going to the bars when they had .25 beer night, walking everywhere, entertainment was hanging (and working out) with friends…
I was living on minimum wage and having the time of my life.
So yes it’s very possible to life on minimum wage when you are young. But as you get older, I would imagine that it would get harder. Impossible? No, not impossible, I’m sure millions of people do live on minimum wage. I’m also sure that people in many other areas of the world live on much much less and get by fine.
Money Reasons´s last blog ..Why Business Owners Should Use Credit Cards
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I also agree it’s possible to live on minimum wage; however I understand why people choose something else.
The additional cost of childcare and healthcare can push ones budget and make minimum wage an unlikely salary. I’ve known people that can make more money on welfare benefits while staying at home with their children with free healthcare, education and housing opportunities. I’ve known people that work in the adult entertainment industry because the salary is much higher than minimum wage. I know some customer service positions offer $1.00 more than minimum wage, if you’re willing to take the abuse. There are restaurant jobs whose hourly pay is less than minimum wage, however tips are included.
Most entry level, no education/experience positions in my area start in the $8.00 – $10.00 range. When minimum wage increases, most entry level positions will start a bit higher. It’s an equal base.
I don’t believe minimum wage was intended for anyone to live on.
Scott Barron
Scott Barron´s last blog ..ONE campaign
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Ryan Reply:
March 21st, 2010 at 6:56 pm
Yea, I’m mostly bringing this up as a worse case scenario, because almost anyone could pick up a minimum wage job if they fall on hard times. It is possible, but it’s probably not a satisfying scenario by any means professionally. Children do add a lot more to the equation, yes, but a person also chooses whether or not to have a kid.
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scottbarrononline Reply:
March 22nd, 2010 at 5:42 am
I would be curious to know more about a minimum wage lifestyle in Hawaii. I was stationed in Honolulu for 2 years and found it to be very expensive. Luckily I lived shipboard so my food and shelter was funded by the government. Though I felt sticker shock when I went shopping, dining or finding entertainment!
Living on minimum wage in a rural Ohio town would be possible as housing is inexpensive. It’s also socially acceptable for an adult to live on minimum wage in small towns because there aren’t many high paying jobs to choose from.
Do you think age makes a difference?
scottbarrononline´s last blog ..ONE campaign
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Ryan Reply:
March 22nd, 2010 at 9:28 pm
Hey Scott,
Honolulu is the 25th most expensive city in the world I believe. It’s not cheap at all. Rent for me sharing with two other guys in a house is 660 a month, plus utilities. However, I can walk to the beach, climb diamond head, or engage in heaps of other FREE outdoor activities which are both good for my health and my wallet. If someone wanted to go out to eat every night and hit the clubs, then yes it’s expensive. The bus is cheap at $2.25 for two rides and you can walk/ride your bike most places.
I think age makes a difference only in terms of what people at different ages do wherever it is that you live. It’ll probably be harder for a social norm standpoint and because older people often want kids which would be harder with this low of pay. Again, that’s a want, not a need though.
Based on the responses here I’ll be following up with a post about this tomorrow.
I think it’s possible, but it’s highly advisable to have some decent savings! My husband and I basically live off minimum wage x2 here in France. We’ve had a couple of little interruptions in our experiment in shoestring living here, but going by our budgets for the first few months at it, I’d say it’s doable.
Your budget works I think, except that you really don’t have extra money for surprises like the car breaking down or . . . you know, surprises. So, I’d say that instead of a $300 disposable income, you’ll probably end up with more like 100 (per individual) Seriously, maybe I’m just bad at budgets, but there always seems to be something. There may be months without $200 in ’surprises,’ in which case, you can just put that money into the emergency fund for the next big surprise. . .
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Ryan Reply:
March 22nd, 2010 at 9:29 pm
Agreed. I don’t think shooting for minimum wage is a great strategy… just trying to illustrate that it is possible as a worse case scenario.
How long have you been in france and how long do you plan on staying?
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Simple in France Reply:
March 23rd, 2010 at 2:17 am
Ryan–I’ve been here since July and I plan to stay . . . indefinitely. My husband is French and compromised for 6 years living with me in California, so we’re back in France now. I had to finally accept letting my career take a back-seater and my strategy in doing coming to France has been to figure out how to live on very little so that this time around, I can pick any career I want . . . or even a part time job, self-employment.
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Daniel Johnston Reply:
March 26th, 2010 at 1:59 am
Certainly it’s a smart idea to have a saving fund. Most financial experts recommend at least 6-8 months so people will have the time to find a job paying as well (or almost as well) as their previous job.
Unfortunately, most people already have too much expenses to save for an emergency fund; they can’t even pay their bills!
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hi,
good point, it is possible to live on minimum wage yes, the only expenses mentioned are food, drink and place to sleep.
but to get a minimum wage, you need to work; to go to work, you need transportation. I’m from Malta (EU) so i have no idea what transport costs in the US, however here in Malta public transport is unreliable and with certain jobs it is impossible to cope without own car. So with that $750 I would add approx $100 per month for car loan, and lets say another $80 for fuel. (myself I pay $120 monthly per loan and $120 for fuel, but i’m constantly driving so that might not apply to everyone).
another thing, this calculation can only be applied to single persons. people with kids would never manage to cope on a minumum wage…impossible.
mobile phone bills (atleast here in Malta) are super high as well.. i always need to add €100 a month on that……
and another thing
i hope u guys aren’t planning on ‘renting’ for the rest of your life..someday we will need to get a mortage and buy ourselves our own place. put another $400 per month on that then and start looking for a better job!! 
Simple in France i agree with you, somehow I always have to pay an extra special surprise of $200 – $400 a month.
i hope i don’t go bald too soon………’almost minimum wage stress’ is making me lose my hair
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Ryan Reply:
March 22nd, 2010 at 9:36 pm
Lol, balding could be the cool new look for you! Would also save you $ on haircuts!
I’m not sure what it’s like in malta, but there’s a minimum wage job available on almost every corner here in the states for anyone willing to sit at a gas station, retail outlet, or fast food restaurant. Unless one is way out in the country it should be walkable. I’ve never been to malta, is everything spaced out quite a bit?
The kid issue is a toughie. Yes, this is based on a single persons lifestyle, it is a bit skewed because I write from my own single perspective. I do agree it would be harder, but I’m not sure how much harder. What do you think the additional costs would be?
The cell phone is a bit of a luxury as well… I know it sounds a bit extreme, but 30 years ago they didn’t even exist.
I’m not in any way advising the minimum wage lifestyle, just trying to discuss worse case scenario bare bones where could one survive in terms of income.
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Daniel Johnston Reply:
March 26th, 2010 at 2:02 am
I’d guess that 1 child might cost $600 a month (a very rough estimate). Since the average person is married and has 2.5 kids, and I think most people would have to spend $1,000 on themselves each month, if both partners made minimum wage, it wouldn’t be enough.
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living on minimum wage is possible. Yet, i think it will be very difficult to save up to $300 out of $1000 monthly. I live on a minimum wage rate, but i think it’s easier for me because i’ve got no family with me.
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Ryan Reply:
March 22nd, 2010 at 9:37 pm
Yea, family is a biggie. Since you live on minimum do you plan on having kids at all before your income rises?
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Can I live on min. wage? Yes, but I’d be incredibly unhappy. Putting aside what society tells us, I love my car, I love my tv and hbo… call me spoiled if you’d like, but that’s not much to ask for in life.
Whether I have $$ or not, I will always want a nice place, decent car. There are things in life we all just “want”.
P.S. you didn’t compute things like health care plans into that fee or eating out twice a week, etc.
Moon Hussain´s last blog ..Are You Embarrassed Of Saying “Passive Income” Out Loud?
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Ryan Reply:
March 22nd, 2010 at 9:43 pm
Yea, I didn’t compute those things in… was focusing strictly on needs, and what it takes to survive and focusing on if it was “possible.”
I wouldn’t consider spoiled at all and this post isn’t insinuating anything at all, just debating whether or not it’s possible.
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i am currently living in east africa and i have in many cases lived comfortably below the minimum wage of 1dollar, the thing is that here life is very cheap but the lack of employment makes people poor. it is possible to live fairly comfortably with 60 dollars a month(tried and tested by yours sincerely) if you know where to live and eat
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Ryan Reply:
March 22nd, 2010 at 9:44 pm
Wow, $60 a month, how did you learn where to live and do you enjoy living there?
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I guess if you’re single and you don’t have children, it’s possible to survive – but in my opinion, living and surviving are two different things. Yes, you can survive by eating out of a garbage can, but is that really living?
I think beyond providing teenagers with extra funds that their parents aren’t going to fork over, minimum wage is a joke.
Yes, I’ve had to survive on minimum wage before and I pray I never have to experience that again.
Kiesha @ WeBlogBetter´s last blog ..Does your husband want you to be like his mother?
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Ryan Reply:
March 22nd, 2010 at 9:48 pm
Guess it all depends on how low we’re willing to go… maybe I should write a post about doing the financial limbo???
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OOh, there’s going to be a Mrs.Planting Dollars soon! What? I’m an instigator…LOL!
I do think it is possible to survive on minimum wage, but as you mentioned in several comments above, your expenses have to be extremely low and your definition of “living” has to be somewhat tailored. I know people “living” on minimum wage. Some have their priorities screwed so they are behind on a couple of bill payments, while others just stay at home. ALL. THE.TIME.
My monthly budget is about $100 more than the extimated take home payment for those on minimum wage. I definitely could see myself living on that, but I also have the luxury of having a paycheck that is larger than that (if I go over budget, I have extra money) and that I don’t have to pay for rent, phone, car, etc.
Investing Newbie´s last blog ..The Secret [Raise]
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Ryan Reply:
March 22nd, 2010 at 10:14 pm
Haha, girls still have coodies
I’m still trying to avoid anything with commitment… scary!
I didn’t realize your living expenses were that low, very nice!
Maybe I’m becoming a bit jaded since a lot of people around here live cheap and just do a lot of outdoor activities… surfing, hiking, sports, etc… which don’t cost much. Maybe not so possible in other areas?
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Daniel Johnston Reply:
March 26th, 2010 at 2:22 am
It definitely seems like it would be a lot easier to live on minimum wage in your area than where I live, for example.
I live in a fairly big city. There is no surfing here, and activities such as hiking and sports cost money. However, I still could live at a minimum of $950, which is under the $1,068.
In a bigger city like New York City, it would be pretty much impossible because it’s so expensive there, and almost everything (even playing the park) costs money.
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I notice that in your monthly bills breakdown, you didn’t mention the cost of a car (I’m all for biking everywhere) or utilities. I would also guess that making minimum wage at a job would probably mean that a person wouldn’t be eligible for health benefits, so that would have to budgeted in as well. It seems like living on minimum wage is possible, but difficult.
I did it years ago (a long, long time ago) and was able to make it happen. However, I didn’t have to pay for my health insurance (I was still covered under my parents) and my car was a beater, very low cost for me (minus repairs that I constantly had to make). However, it was difficult. I couldn’t do a lot of extracurricular activities. It can be done, but it’s better to have a bit more of a cushion.
Little House´s last blog ..How credit card debt consolidation can eliminate your anxieties
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Ryan Reply:
March 22nd, 2010 at 10:44 pm
Agreed, the more cushion the better
Just debating if it’s possible. I also did include a little for utilities, but the health insurance is a good point. Not sure which jobs offer it and which jobs don’t. I’ve had some in my earlier years while in school that I know offered it, but it all depends.
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Daniel Johnston Reply:
March 26th, 2010 at 2:26 am
Most companies these day’s don’t offer health insurance benefits because it’s so costly (for some, $25,000 a year or even more).
Since the government is taking it over now, I think it will be a hundred or two dollars a month, and you have to buy it (it’s against the law not to). So that would bring $750 expenses up to around $900. Still plausible.
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Being a freelancer by trade (writing/acting/whatever), my income jumps up and down constantly, so I’ve learned to expect the bottom of the curve and then when I get a spike, I put it away in savings for a rainy day (i.e. a prolonged bottom).
That said, I live comfortably on about $1,000 per month. I have a car, but it’s paid off (Idaho doesn’t have public transportation to speak of, and it’s all spread out so riding a bike doesn’t work so well), I eat pretty cheap, rent a room and don’t spend on anything I don’t absolutely need. For instance, I haven’t bought any new clothes for months…
Search Engine Viking´s last blog ..Anchors Away: What Is Anchor Text?
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Ryan Reply:
March 22nd, 2010 at 10:45 pm
Yea, not a big fan of clothes shopping myself, although this is one of the best products to find super steals on!
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I think living on minimum wage is doable. We adapt to the situation that best serves our needs.
I recently quit my job as a nurse to stay at home and raise our newborn son. Now, we’re on one income. I feel a small pinch as we don’t eat out or shop as often. But, it’s a small price to pay to watch our son grow up.
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Ryan Reply:
March 22nd, 2010 at 10:46 pm
I like the adaptable attitude!
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I lived on around $1000 a month in Montreal, Canada for a few years and had a very full life…. Now in Egypt I am living on less and also having a full life too (obviously that is partially related to the difference in cost of living here)… Min wage living is very possible. I recently acquired a copy of The Tightwad Gazette and the way that lady saves money in every aspect of her life is phenomenal…
Forest´s last blog ..FREE DOWNLOAD -Tribes: We Need You to Lead Us by Seth Godin
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From personal experience I can say that I have lived on as little as $500 a month including rent while in university and now I struggle living on a substantial monthly salary.
It is knowing how to live within your means. On a minimum salary you can’t afford the latest gadgets and you are more likely to seek out promotions. While in university when my friends were getting their first iPods, I got a 64mb mp3 player free with a promotion offer (in 2004) and it did exactly what it needed to! Then in 2005 I got a free 512MB iPod shuffle when I switched banks as a promotion.
Now that I am not financially strapped, I have an iPhone and a second hand car and rent a decent apartment and spend money socializing with friends a lot (read eating and drinking out and going out).
The problem is that I went from one end of the spectrum of living on as little as possible to the other end where I am living on as much as possible (luckily I have been smart enough not to go into debt)!
I think the problem is that we start to expand our wants as our resources increase and the salary can never fill the void. So over the past few months I have been cutting out a lot of the excess. I am starting to live a minimalist lifestyle and recently starting to get my personal finances under control. I find that even though I had been at it on and of for months; ever since I started my blog a month ago I have been more focused and determined at cutting the fat.
The Simple Machine´s last blog ..Getting Smart about buying a Car!
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I’m guessing life insurance isn’t included in this. If you aren’t prone to sickness or can live without an accident it may be possible. Also how big would your emergency fund be? Things happen in life…I’d be interested in how to prepare for “stuff” that happens living on minimum wage.
Tess The Bold Life´s last blog ..My Dad and His Tool Shop
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I have lived at minimum wage plenty of times. The last time was with two adults and two children. It can be done. We didn’t have a car, and public transportation wasn’t that good. People who say it can’t be done are thinking you HAVE to have a car, you HAVE TO have a big house, etc., etc. I actually look back on that period of my life fondly, and wish I could go back to those days when I had so much more time to do the things I wanted to do.
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I totally agree Ryan that it is possible to live on minimum wage. I just think it depends on the mind-set. If someone has a problem sticking to a set budget, then they may find it often difficult to live on minimum wage because there’s no telling what they may splurge on. But nonetheless, I would agree that it is totally possible!
Jarrod
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i would agree in some parts of the country it is possible but not everywhere. that being said how many people on minimum wage know how or would take the time to break the numbers down as you did? not many.
its all about budgeting and knowing your limits.
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Luckily, I have, no, never had to live on minimum wage. I’m afraid that will become the norm soon. More and more people are getting educated, which means more people need jobs. I have doubts on whether the economy will ever be able to catch up to offer enough jobs for everyone (or pretty much everyone) to have one. I think a lot of them will end up being employed on minimum wage.
I do think I could live on minimum wage if absolutely necessary. I’ve done some calculations about what I wouldn’t be able to give up and how much those cost, added that to your $750, and I think I could live on around $950 per month. It’s pretty amazing to me, because imagining that life, I think I would actually be pretty happy; maybe even more happy, because there wouldn’t be many distractions, so therefore I could get more done.
However, for the long haul, I really wouldn’t be very happy living on minimum wage. The reason is that I wouldn’t want to live like that when I retire, and saving $100 a month isn’t going to give one much of a retirement fund. If I had to, I would, but it would not at all be the retirement I have envisioned.
The debate about what the minimum wage should be is certainly an interesting one. Currently $7.25 in most states, I think it should be higher. My reasoning is that most people have children, and children are expensive. Anyone who says they and two or three (around the average amount of children) children can live on just over $1,000 is just not being realistic.
If there was a husband and a wife, both bringing in minimum wage, there would still not be enough money.
I think most people would be able to survive on $1,000 per month (most are just not willing to cut back all the way to $750), and let’s say the kids cost $600 a month. That would be total of $3,200 a month. Multiply that by 12 equals $38,400 a year. Divide that by two equals $19,200 a year. So $19,200 a year is what I think the minimum wage should be.
So $19,200 divided by 2,080 equals $9.23. Multiply that by 1.15 (for the 15% tax), and we’ve got $10.62. That’s what I think minimum wage should be.
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I think it’s totally possible to live on minimum wage. I’d have to stop paying back student loans and credit cards, but on minimum wage you can get hardship forbearance anyway. It can be as full or as empty a life as you want. But it’s enough to live inside (with roommates), pay (1/3rd) the utilities, and keep gas in the ($600 used) car. Heck, there’d even be some left over for beer.
Best part about minimum wage jobs is that there are a lot of them available during non-daytime hours. You could work a basic fast food job in the evenings, and make art, or start a business, or loaf at the beach all day. I can’t think of much that’d be better than that. Except maybe loafing on beaches I haven’t been to yet, with cold beer and good company.
j.´s last blog ..Day 41- Crazy Ideas
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In California 30 hours a week is considered full time work for a lot of Retailers. Minimum Wage is 9.50. This is $1,140 a month. Take out taxes it is $1,000 a month. Take out the union dues and health care it is $960 a month.
I live in a bad neighborhood and rent out a room with 3 roommates. My rent is $700. My utilities are $175 if you include cell phone. A Fast Pass to take the bus is $60.
This comes to $935.
This leaves me $25 dollars for a month worth of Food, toiletries, toilet paper and home cleaning supplies, paid laundry and student loans.
It also assumes nothing unexpected ever happens that requires money.
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I think you’ve overestimated taxes.
I make a little bit more than minimum wage, live in a state with high (and practically regressive) state income taxes, have no children or additional deductions, and pay less than you’ve estimated for taxes. I think you didn’t take into account the standard deduction, so really only $10k of that $15k will be taxed.
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Indeed it is. You can even get relatively wealthy on a minimum wage. I wrote a post about it
http://earlyretirementextreme.com/2008/01/how-to-get-wealthy-on-minimum-wage.html
Of course, anyone sufficiently disciplined and driven to do this will probably make more than minimum wage in short order.
Early Retirement Extreme´s last blog ..Guest post on Monevator about extreme retirement
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Living on the minimum wage is possible here in London, you just have to learn to adapt. Cut down on the booze, nights out, woman with expensive tastes and life becomes a hell of a lot cheaper…!
William K Wallace´s last blog ..
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Money is important and its difficult to survive without it and i think instead of thinking to cut expenses one should think about earning more.
Plant Money online´s last blog ..Spiritual ways to earn money online
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I agree that it is indeed possible to live on minimum wage. Despite what others may believe, it is not absolutely necessary (unless you have children) to have a large structure to live in.
I have lived in Houses, Apartments, in a Garage, Campers, Hotels and Motels, on Ships, in a Semi-Truck, in a Van, and in a car with the passenger and rear seat removed made into a bed with storage back through the trunk. Incredibly, the car is by far the most comfortable and convenient of all. No joke.
You can take showers at Truck Stops, Fitness Centers, etc..
Very relaxing and enjoyable and assuring to know that you don’t need all those things that people think they need to be happy.
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I’ve lived on minimum wage before. You can, but you have nothing like say, health insurance a lot of times. Any emergency like a sinus infection from a fight with the flu that you couldn’t treat properly, or something like a tooth ache, bankrupts you and threatens either the roof over your head, or the ability to make the money to fund that roof over your head. forget cable t.v. it ain’t happenin’
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Well it depends on how much you spend. But it’s really hard to live on minimum wage these days. I live in Jamaica and there is no way you would survive here on minimum wage.
Kharim´s last blog ..I Love My Blog. What About You?
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“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.”
Where? Even in the smaller, less desirable cities in the middle of nowhere, you’d be hard-put to find a place for that. What if you have a family? Are you going to go insane with overcrowding? How will the parents find alone-time? Where will the children play?
“You can also fit in groceries for about $150,”
Less if you stack grocery and manufacturers coupons, and shop the sale items as much as possible (I’ve tried some wonderful new foods this way). But the cost of produce varies from state to state, region to region. Also, not all of us have vegetable gardens or are allowed to have them. (But tomatoes can be grown by the window, and fresh flowers can always be grown inside.)
Coupon. Coupon. Coupon. If you don’t have a printer, invest in one – it will pay itself back very quickly in terms of on-line coupons (those inserts will soon be fading away). Or try trading on Freecycle.
“and your utilities will be about $40-$50.”
Nope. Even if you’re on public assistance, you can’t get gas and electricity for that. What about if you have to pay for your own heat?
“You may also have a small clothing allowance of $20-$30 a month if you thrift.”
I rarely spend on myself anymore (one of the joys of being older and not needing to have a Carrie Bradshaw wardrobe) except for cold-weather gear. But I do spend that amount on my family.
Forget about sewing and knitting. This isn’t our mother’s Simplicity Pattern days. Fabrics and yarns are expensive. Used to be it would be less costly to make your own dress. Those days are long gone.
Thrift shopping? Wash EVERYTHING in hot, soapy water. Otherwise you risk scabies or bedbugs.
“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. ”
Through trial and error I won’t have to buy toiletries (deodorant, shampoo) and cosmetics for the next year or so (again, check freshness dates on cosmetics, or ask at the store). But I otherwise don’t think you can do minimum in the U.S.A., not now.
With all due respect, you failed to mention health insurance co-pay; med co-pay; life insurance if you have a family; supplies and tuition if you’re on your way to a new career or have a serious hobby you hope to turn into a career.
Most free dental clinics no longer do cleanings and other prophylactic work – you’re faced with removing the tooth, or suffering (and possibly getting sick). So you have to budget in emergencies like this.
You are describing a **very** minimal existence, depressing almost. If you can do it, all power to you (library books, videos, etc – these can be cut from the purchasing budget).
I can and do do without a cell phone, but it’s a headache.
I think your thesis may be well-applied to those who enjoy white martyrdom (an ascetic existence). But I for one don’t want to be stranded in the desert with a Bible but without a dentist.
It also works, if it works at all, if you don’t have children at home – why make them suffer, when they had no say in this?
An interesting read, nonetheless. Thank you for posting it.
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Ryan Reply:
May 29th, 2010 at 8:54 am
Hey Deborah…
Perhaps we’ve had extremely different experiences in budgeting, but I stand by my numbers. My rent in the 25th most expensive city in the world 1/2 mile from one of the most popular beaches in the world runs $650 a month, and in the midwest it was $300 a month in a newly remodeled 1,200 sq ft house in a great neighborhood… both of these were living arrangements in 3br houses with two other people, but I had my own bedroom and plenty of space.
My utlities are currently $100 a month in an expensive area of the country, but in the midwest they were about what I estimated in the article.
Groceries I currently spend about $35 a week here… breakfast is often oatmeal with bananas, lunch is a sandwich with apple, and dinner is often stir fry that I make in batches. Its healthy and cheap.
I suppose I could raise my estimate to $850 a month if you’d like to count in a few luxuries, but I’d say that money doesn’t determine the happiness of a person… lots of people spend their time surfing and working as little as possible here. Outdoor activities and many hobbies such as computer programming, reading, exercising, or learning new skills are often free as well.
This scenario is for a single person or couple… children of course make it a whole different ballgame… but the article doesn’t present an argument from the assumption of having children.
Health insurance co-pay at the moment including dental for me at an entry level job is $25 a month. Life insurance is a luxury and it’s necessity is debatable, tuition is also debateable, but if you can live this low, secure a government loan for a community college associates degree in a field with demand you’ll easily pay back that degree by raising your income substantially.
The whole point of this article isn’t to argue that someone should do this, or that it’s better to live on minimum, it’s simply asking if it’s possible… which it is.
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Thanks Ryan for your detained and great response. I would like to reply to this:
“Life insurance is a luxury and it’s necessity is debatable … .”
I would say no, not if you have children. Anything could happen to either parent, at any time, but life insurance is particularly necessary if one is a single parent with no other parent to fall back upon in the event of the custodial parent’s death.
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So yeah, you might be able to do it in a less-expensive city if you don’t have children and are willing to share with others, like in a co-op house. But for those of us who have, by choice or necessity, left that life behind, it’s impossible where I am (Greater Boston area). Our city is truly the model for many who face the very real “medicine or food this month?” Your very fortunate in your rent, I wish our region could be like that. Here, a 2-br even in a crummy little industrial town runs @1,500 (lousy, bedbug infested, etc.) – @2,200/month (small but clean).
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So, what if one does not find meaning through an in-demand field? The road is that much harder. But an in-demand field is going to pay more than any federal or state minimum wage. As for other minimum wage jobs – the McJobs – does one really want to live one’s life without meaning? For example, IMNSO, retail jobs are a complete waste of time. Library assistant at a low wage, not a waste of time.
Of course, there’s the rare thing, such as the folklore and mythology MA student (like Comic Book Man on The Simpsons) working at a comic book store! Can he support a family on his own? But, like you wrote, “the article doesn’t present an argument from the assumption of having children.”
Do you know why Edith Wharton, who had established herself as the Martha Stewart of her day, became a novelist? Writing design books, she was tops, but it really didn’t pay in those days. She started writing fiction because she had expensive tastes. Oh, for the day when talented writers could almost be assured a decent income!
I can see your scenario for a single person without many needs, who has mastered the household budgeting process. (And hopefully meds are included in such a person’s health insurance.)
But say this, for example, another case: once you go to a min wage job and say (not you, just in general) you have been receiving gov benefits, your co-pays go way up; you are only allowed to make a certain amount a month, etc.
Anyway, a great little blog, Ryan, and I thank you for being out there.
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Very possible to live on minimum wage. I have always lived below minimum wage myself and i was even able to save some money for travelling.
I have never in my entire life used up all my monthly income. Had never been below zero at the end of a month in my whole life. And seriously, I d´ont understand how people can get to the point where they simply walk around and spend money on useless things.
I´d be happy with that $1,257 a month really…
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I think you can do anything you have to, such as living in a tent or small mobile home. There are people that have been foreclosed on in this country right now living in tent cities and making ends meet with a minimum wage job. I truly believe to make ends meet though and to live a somewhat average life most that I know make minimum wage have 2 jobs and just work long hours. That is a much more feasible budget to live on these days if you have no other skills and have to collect minimum wage.
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