I find this pretty amusing

[sze5003]

According to McDonald's this is how minimum wage workers should be living:
http://www.deathandtaxesmag.com/202...w-impossible-it-is-to-get-by-on-minimum-wage/

I like how medical is $20 a month and rent is $600 but there's no budget for gas to use where someone is suppose to drive to their 2 jobs.

 

[Anonemous]

Nice guess the 2nd job is the one at Walmart.

 

[sze5003]

Yeah I think so. Which pretty much sums up why people would rather go in welfare and have kids than work. Rarely do I see people who didn't go to school or have good jobs working 2 jobs. Most of those people that I know get something payed under the table like valet front man. You can make a ton off tips and if you just work special events.

 

[videogames101]

$150 for a car should include gas on minimum wage

that budget seems reasonable to me, i don't get it

it even includes 800 a month for "spending", someone explain whats amusing, this can easily include food

ofc this is assuming being single w/ no kids, once you add in a kid clearly it's not a sustainable income

 

[Gunslinger08]

According to McDonald's this is how minimum wage workers should be living:
http://www.deathandtaxesmag.com/202...w-impossible-it-is-to-get-by-on-minimum-wage/

I like how medical is $20 a month and rent is $600 but there's no budget for gas to use where someone is suppose to drive to their 2 jobs.

1. If you're an adult working at a minimum wage job, you need to learn some skills. Obviously, this doesn't apply to retirees or the disabled who aren't making their entire income from their job.

2. Even living off $1105 a month is doable, if you absolutely can't learn some skills to get a higher paying job. You're going to live like crap, but you can live. Too many people see "wants" as "needs". You need to live within your means, regardless of what those means are.

3. I do find their overall allocations pretty dumb, but I think their heart is in the right place. Even if the numbers and categories are wrong, employees of all wage levels need to make a budget and actually plan a way to match their expenses to income. This is the first step in living within your means. This helps to identify things that you can live without and things that are costing you more than you value them.

 

[sze5003]

I guess they are assuming you already have a car or good credit to get a beater for $100 a month. Then that works. Oh and the amusing thing is healthcare. Now that you are required to buy it, where can you get it for $20 a month. It's more than that I think. Also, this depends where you live. Maybe down south but not in my city. Gas and electric are usually separate bills unless it's controlled and that $90 dollars includes heating and cooling.

 

[KaOTiK]

$150 for a car should include gas on minimum wage

that budget seems reasonable to me, i don't get it

it even includes 800 a month for "spending", someone explain whats amusing, this can easily include food

ofc this is assuming being single w/ no kids, once you add in a kid clearly it's not a sustainable income

Do you not eat?

 

[DrPizza]

I may be mistaken, but it seems that $1105 figure seems high for minimum wage. You're not taking home that much each month - there are taxes, FICA, etc.

 

[Insomniator]

Minimum wage should not have to be a living one.

 

[Born2bwire]

I may be mistaken, but it seems that $1105 figure seems high for minimum wage. You're not taking home that much each month - there are taxes, FICA, etc.

Well, if they are working 8 hours a day, five days a week at $7.25 an hour, then that's $1334 a month. So that's 17% withholding on that which is probably not too far off for that low of an income. But obviously the point here is that the income that they quote requires a 60+ hour workweek at minimum wage.

 

[AstroManLuca]

$150 for a car should include gas on minimum wage

What? Why would it? First off, the budget implies that you would be working two jobs, so that's a lot of driving. But let's assume you only have to drive 10 miles on a work day, and you work 22 days a month (unlikely since you're working 2 jobs). That's 220 miles a month, which translates to 9 gallons of fuel used if you average 25 mpg. That costs a little over $30. Leaving barely more than $100 for a car payment.

That basically means you'd be taking out a 4-year loan to buy a $5,000 car. Cars that cheap tend to be old, and cars that old tend to have high interest rates if you try to finance them. And people who need to finance cars like that tend to have poor credit, meaning even worse interest rates. So maybe make that a $4,000 car instead, to account for interest payments. Now make sure it lasts for the entire term of the loan without any major repairs. Still think you can fit a car payment and the cost of gas and repairs into $150 a month?

Again, this is all assuming you ONLY have to drive 10 miles total, you ONLY drive on work days, and your car gets pretty decent combined mileage given its price.

that budget seems reasonable to me, i don't get it

it even includes 800 a month for "spending", someone explain whats amusing, this can easily include food

ofc this is assuming being single w/ no kids, once you add in a kid clearly it's not a sustainable income

That $800 covers all the shit not covered in the actual budget. That would include around $80 that was left out of the health care bracket (cheap, high-deductible health care costs around $100/mo, not $20), the cost of heat and/or gas (they set it to $0 for some reason), and all your food.

And remember, this is assuming you are working TWO JOBS with a gross monthly income of roughly $2,500. If you work 55 hours a week, that is about $10 an hour. And McDonalds employees usually make less than that.

 

[Drako]

I find it amusing that anyone would consider minimum wage a "liveable" wage. :biggrin:

 

[Atomic Playboy]

$150 for a car should include gas on minimum wage

that budget seems reasonable to me, i don't get it

it even includes 800 a month for "spending", someone explain whats amusing, this can easily include food

ofc this is assuming being single w/ no kids, once you add in a kid clearly it's not a sustainable income

It's sustainable, sure. It's also flat-out bullshit. They have a monthly net income of $2,060. On minimum wage with typical withholdings that's ~75 hours a week. McDonald's idea of a sustainable budget is for employees to work 2 full-time jobs? That seems a little unrealistic, especially given our unemployment crisis of the past few years. And their numbers have no basis in reality. You literally cannot purchase health coverage for $20 a month anywhere in America. Is their idea of health coverage a year's supply of Neosporin and some Band-Aids?

We could be overthinking this, I suppose. Maybe that second job is selling drugs while working the drive-through window. McDonalds is trying to make sure they set aside at least $100 of that illegal money each month out of the goodness of their corporate heart.

 

[Malak]

I find it amusing that anyone would consider minimum wage a "liveable" wage. :biggrin:

But it should be, shouldn't it? The point is none of these full time workers are unnecessary, so it is expected by society to always have these people, and they should be able to live like anyone else regardless of their particular task if they put the same amount of time into it. The only reason fast food workers don't get paid well is because the rest of society can't handle losing the dollar menu.

 

[MixMasterTang]

But it should be, shouldn't it? The point is none of these full time workers are unnecessary, so it is expected by society to always have these people, and they should be able to live like anyone else regardless of their particular task if they put the same amount of time into it. The only reason fast food workers don't get paid well is because the rest of society can't handle losing the dollar menu.

The same people who say minimum wage shouldn't be a living wage are the same ones that complain about welfare and food stamps.

 

[pontifex]

heat's 0 because you'll never be home enough to need it.

 

[dave_the_nerd]

I may be mistaken, but it seems that $1105 figure seems high for minimum wage. You're not taking home that much each month - there are taxes, FICA, etc.

$8.25 Illinois minimum wage.

160 x 8.25 = $1,320.

Calling 83% of your pay "take home" is probably doable if you're in that low a tax bracket, qualify for EIC, and aren't including healthcare premiums (which are usually deducted from paychecks.)

When I was making $1600/month, I was having $200 a check deducted, but that included ~$50/check in healthcare premiums.

What's interesting to me is that McD's cheapest group healthcare option (which sucks balls, natch) was $28/month in 2010. So they're not really being honest there, imo.

http://money.cnn.com/2010/10/05/news/companies/mini_meds_insurance_mcdonalds.fortune/index.htm

 

[SparkyJJO]

Um, I certainly don't make minimum wage but I think I still live relatively comfortably and could get by on 1200 a month. And I've never spent more than $120/month on a car payment. Yes I drive older vehicles, but at minimum wage you shouldn't be spending a ton of money on a car anyway.

Not saying that it is the best to live on 1200 take home a month, but it can be done.

BTW, spending $100 a month on cable if you have a minimum wage job is retarded. Especially if you follow that chart and supposedly have two jobs - when are you going to even watch TV anyway?

Where is food on that budget? Under "other" I guess?

If I got strict on my budget I could probably get by on around that amount. As it is I've cracked down a little bit and have seen my savings grow as a result.

 

[sze5003]

Yeah and they are assuming that each job I think gives decent hours. Most of these type of jobs only give a certain number of hours based on how many employees they have.

I also agree that 100 bucks a month for cable is stupid. Your working 70+ hours a week I don't think you have time for cable. Maybe just 60 or so just for internet. It's doable assuming you only spend on necessity items so you can continue to work. But I'm also assuming they get food stamps and other benefits. Most people I know working these type of jobs take public transportation anyway.

 

[IGBT]

thus the rational for a four year cap on all public assistance. If McD's is your lot in life then you need to embrace it.

 

[blinblue]

First off, the writer of the article most be missing the $800 in spending money for gas/food. The monthly expenses are things you get bills for once a month, you pay for gas and food as you need it and when you get it.

Secondly, that budget is wacky.
I'm insuring two cars with comprehensive coverage (but not collision) for $220 every 6 months. That's $36/month. If you are renting, while you could get renter's insurance, if you are at a minimum wage job, you probably don't have a huge amount to insure in the first place. And even if you want the insurance, renter's insurance is pretty cheap, as in a hundred or two a year.

Health insurance is just an odd number there. What would be $20/month? Does McDonalds offer a plan that cheap? Because in the open market, you probably won't see much below $50/month, and that's if you are young, healthy and can handle a huge deductible (which, if you are working for minimum wage, you can't)

And why are you spending $100/month of cable/phone? Your phone should be at most $30/month (see Virgin Mobile, Page Plus, Tmobile prepaid, etc etc), and can be significantly cheaper (as in <$100/year if you don't need data much). And just use an antenna and ditch cable TV. Though they didn't include internet, so that's another $25-$40/month (I guess that might be under "other).

 

[DAGTA]

First off, the writer of the article most be missing the $800 in spending money for gas/food. The monthly expenses are things you get bills for once a month, you pay for gas and food as you need it and when you get it.

Secondly, that budget is wacky.
I'm insuring two cars with comprehensive coverage (but not collision) for $220 every 6 months. That's $36/month. If you are renting, while you could get renter's insurance, if you are at a minimum wage job, you probably don't have a huge amount to insure in the first place. And even if you want the insurance, renter's insurance is pretty cheap, as in a hundred or two a year.

Car insurance varies wildly between markets. I have a clean record (no tickets, no at-fault accidents) and my car insurance is about $900 every six months. I'm in Phoenix.

My opinion is that anyone working a full time job should make at least enough money to pay all bills and have some spending money. We have enough wealth in the USA to easily afford that, but it's very concentrated in a few people. I don't believe that people working at McDonald's should make as much as someone that trained to work a higher paid job, but I think it's clear that minimum wage is woefully under where it should be.

 

[AstroManLuca]

I think the cable/phone category encompasses internet, tv, and cell phone service. $100 is about right if you aren't being that careful (but you should be if you're on a limited income).

 

[sixone]

$800 a month is plenty for gas and food for one person, plus some fun money. Get a roommate, share rides, be smart with heat/air, and you'll be fine.

I don't spend anywhere near $800 a month on gas, food, clothes, trash, car maintenance, cat food and litter, etc. I do spend $200 a month at least on gas for the car, tho.

 

[MrDudeMan]

I don't see anything wrong with the example budget. It's all pretty reasonable.

The monthly spending item is more than what my family of four will use in a month including healthy food (typically $425). We also spend less on electricity in a 6,000 sq. ft. house and way less on cable/phone.

I think the point was to show what's possible without a lot of optimization because many people either don't understand why they should optimize their budget or they simply don't know how. This is certainly more effort than some companies exert on behalf of their employees.