Do you know how to survive on minimum wage? You can’t!
States have a minimum wage from $7.25-10 per hour. Exceptions our Alabama that has no minimum and Wyoming which has a minimum of $5.15. Many families have one or two family members who work one or more minimum wage jobs trying to make ends meet.
It would take about $300 per month for food needs for the average adult in the U.S. Actually, about $200 is spent so some are undernourished.
Housing and Other Cost
Over all annual cost for one person is about $20,000.00 which includes food cost.
A man and a wife have three teenage children and they both hold minimum wage jobs to support them. For a 40 hour work week at say $8.00 per hour, they earn together $33,280 each year. That is enough to support how many people if the cost of living is $20,000.00? Almost 2 people. They are 5 people.
Food Cost Estimate $2000.00/month
Housing Cost Estimate $600.00
Insurance and Medical $400.00
Car Payment $350.00
Clothing and Such $100.00
That’s $3,750.00 each month. That’s $45,000.00 each year. But that is not all the expenses (and I’ve low-balled here). There are educational expenses, business expenses, medical expenses not covered by insurance, entertainment, eating out and donations, etc. The family might pay over $3,000.00 in taxes.
Such a family would be hurting!
Many families are hurting!
Just think about a single-parent family with one source of income. Some are on welfare. Some end up on the street.
Not only minimum wage folks are having problems. Some folks with good incomes have been forced out of their homes due to economic conditions. Those who have been able to keep their homes, have found that the value of their homes has dramatically dropped. The loan value on their property is now zero whereas not long ago, they would have been able to take a second mortgage to get through rough times.
Many people have lost their jobs due to downsizing and outsourcing. They have become underemployed with some taking minimum wage jobs as second jobs to supplement their income. Many of these are at the age where they are trying to put children through college. You know what has happened to college costs having gone up 1200% in recent years.
Retired people get few increases in retirement income. Small increases by Social Security don’t do much. Savings put away in 401 and other plans have diminished dramatically. Some have tremendous costs to take care of the aging. (It cost about $60,000 a year for me to take care of my wife who has a ALZ. I have insurance but the company is facing bankruptcy.)
If seniors cannot pay for their care, the states gobble up all of their assets when they die to pay in part the cost for the care that the state provide. There is nothing left as an inheritance.
Work From Home Jobs
Many workers have become tired of the workplace. A day job has expenses such as transportation, work clothing, eating outside meals, and other business expenses. If they can work at home, they don’t need a day care center to take care of their children. This works well for stay-at-home mothers. But finding the right work from home job can be difficult.
If a person has special skills, he can often provide those skills from home. For example, after I retired some 20 odd years ago, I did engineering consulting which included travel to foreign countries.
Those with secretarial skills can provide those skills to local offices. Accountants and medical professionals can work from their own.
If you are a writer, and you can learn income from your writing. I have written a number of novels and that is certainly a work-at-home job.
The World of the Internet
There are ways to make money on the Internet. From my experience, and that of my family, creating your own products and selling them on the Internet is a fast way to earn income. If you have skills such as knitting, sewing, crocheting woodworking, metalworking and such, you can open up a store on a site such as ETSY at no cost and start selling immediately.
Three of my granddaughters are making good incomes by creating products and selling them on the Internet. My son is a veterinarian, but he has had two good businesses Internet-based. One he sold musical instruments(which he sold last year) and the other is in herb business which he operates on and off the Internet.
Two of my granddaughters are putting cousins through college. They have children and marketing on the Internet allows them to earn a good income. They have about a dozen employees working for them.
My other granddaughter imports materials from China and then has products created locally which she and her partner sell on the Internet.
You can promote other people’s products through affiliate marketing. You must be careful here. There are too many gurus that will give you a free gift and then grab you by the hills and shake the coins out of your pockets. They will drain you dry.
The premier training site for affiliate marketing is Wealthy Affiliate. They have a free membership which is lifelong and it will get you started. They will give you two free websites.
Like so many college students who have worked their way through college through affiliate marketing, Kyle and Carson, the creators of Wealthy Affiliate, did the same thing, joined up a created training center. I joined WA in 2008.
I suggest that before you start a business of any kind that you have a business plan. You can prepare a business plan at no charge at SBA.gov.
John T Jones PhD
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