Budgeting

McDonalds and Visa teamed up to make a budget for minimum wage workers. You can find a write up on it here:

McDonalds’ suggested budget for employees shows just how impossible it is to get by on minimum wage

The original PDF is here.

I'm going to steal this graphic 'cause I'm lazy:

Now I want to point out something here. If you're making minimum wage and assuming you don't live somewhere where having a car is absolutely necessary, then a few things should be changed in this budget:

1)No Car Payment. If you make minimum wage you will be using public transport and/or a bike for all your traveling needs.

2) No Car Insurance. Since you won't have a car, you don't need insurance. Combined that's $150 back in your pocket.

3)Cable/Phone: Umm..You make minimum wage. You do not get cable. Period. You get an antenna and you point it for the best reception of local over the air (OTA) channels. When there's nothing on that interests you, you read a fucking book, preferably one that will get you off the minimum wage treadmill.

Next you get a cell phone with the minimum cost per month as possible. Guess what? You don't have the luxury for large ass data plans. If you can afford one, get one so you can apply for jobs online during a break. Since they combined cable and phone lets say you save 50% by dropping the cable part so your savings is $50.

Next thing. You make minimum wage. You do not buy lunch while out. You carry your lunch TO work. You cook a whole mess of food on your day off. You eat left overs for the rest of the week and carry some for lunch. You're going to save a whole lot of money this way.

So by the note I made here, one adds $200 to the savings line.

The author of the blog entry complained about the heat line being 0. Every apartment I've been in has included heat and hot water in the rent. So it's OK to expect that the heat line will be 0.

A $90 electric bill is actually pretty high. Especially if it is for a single person. I have quite a few electronic devices sucking power and I rarely hit $90 in electricity costs. This usually happens in the summer when the AC is running. If you have a $90 electric bill, I'd check to see if someone is tapping your line. Seriously. Next I would be checking what is running. Unplug every damn thing in house (except the fridge) and see what's sucking power. A single person should have an electric bill around $40. Take the savings from the lack of car and insurance and purchase florescent bulbs. You'll rarely have to change them even though they will cost way more than an incandescent bulb. They will also burn far less electricity.

You making minimum wage? You should wash your clothes by hand, particularly your draws as soon as you get home. Your wardrobe should be lots of dark colors that you can get away with wearing more than once before having to wash them. Your entire existence is about efficiency in order to maximize the amount of money that stays in your hand and to maximize the time it stays in your hands.

Lastly, you and some of your minimum wage people need to start a susu. Each time you get paid you each put in a set amount of money into a pot. The pot is awarded to one of you each month/week/whatever you all decide. No one gets to drop out until everyone gets paid in the round. This will allow you all to get a once a month (or whatever) boost in income. It is like a savings account you get to tap. Interest free.

This does not negate the point that the author made about the need for minimum wage being increased. However, I have seen people with marginal income do dumb shit with their money. Matter of fact I've seen people with relatively high income do dumb shit with their money. So money smarts should always be a part of the solution to poverty.