How to Live on Minimum Wage

For a period of time I lived on an income beneath what a welfare recipient in the same situation would have lived on. I worked part time for minimum wage at an animal shelter while supporting my daughter. My husband had passed away with no insurance. I had a mortgage to pay, and the widows pension had not yet kicked in (even then, the widows pension and orphan benefit combined would only be just under $500 a month).

Plan Ahead

Nobody wants to think that one day their world will be shattered and they will find their wage plummeting, but it is a reality that might occur. Planning ahead for shortfalls in cash later is a good survival tool. Here are some things you can do before your wage is reduced to help you save money.

No car payments – Instead of buying the latest model, or even a newer, used car, a cheap car that will get you from point A to point B, is all you really need. Car payments will drain your monthly income. View your car as a means of transportation, not as a status symbol. Buy a cheap car, with no payments, or if you are in an area with good mass transportation, consider that as an option. Living close to jobs is also a good strategy.

Cheap Mortgage – Owning your home is always better than renting, if your mortgage payments are lower than an equivalent rental would be. Plan early in life by saving up money for a large down payment on a home. Do not buy the biggest house money can afford, buy the one you can get the biggest bang for your money out of.

Limit your Family Size – One child will be a financial burden, every additional child will stress your finances even more.

Live within your Means – Do not live on credit. Do not buy things you cannot afford at the time. Every month put some cash away for a rainy day, emergencies, or vacation. Always live below your means, and once a year take stock of how much money you have saved, be willing to enjoy some of it at that time.

Cut Costs

When it happens, do not consider a wage loss to be a “momentary” set-back. You need to act immediately to reduce expenses.

Cut additional Television expenses. Stop cable, satellite, additional channels, pay per view, etc. leave your self with the minimum.

Cut your Internet. Yes you can live without a computer.

Cut your Cell Phone. Landlines are cheaper. If you are tied into a cell plan, reduce your use, and see if you can switch to a cheaper monthly plan.

Eat Soup. No joke, a can of soup is usually under $1 or $2. There is absolutely no reason why a person has to have steak and potatoes at every supper. It might be a shock to some who are use to eating big meals, but in the long run its also a great deal healthier to have some small meals in a week.

Go for a Walk. Entertainment can be transferred from watching movies to enjoying “free” outdoor activities such as walking or going to the park.

Forgo your Togo Coffee. Most people do not realize how expensive takeout coffee really is. In a month some people spend as much as $200 just on take out coffee.

Give up Smoking, and Drinking. If you have an expensive bad habit, now is the time to leave it behind you.

Drink Tap Water. Bottled water is one of the most hideously marked up items. Often costing pennies to bottle, it is generally sold at a price that exceeds the cost of gas for our cars. Tap water is free! In some cases bottled water was shown to be tap water.

Order Water. You should reduce the number of times you go out for meals at restaurants, but it is still something you may want to enjoy. When you go out, do not order a drink, just get tap water. Again drinks are one of the highest marked up items in a restaurant.

Do not Renew Newspaper or Magazine Subscriptions. This is a waste of money when you are in dire need of it yourself. Most magazines and newspapers are only read once, then become garbage, why pay for more garbage?

Look for Alternatives

A person should seek out help where they live if, and when, they need it most.

The Food Bank. Never abuse this generous service, but if you need it, know that it is there for your use.

Start a Baby Sitting Service. If you work some hours, and find a parent who works different hours, perhaps you can work out an arrangement where you take turns looking after each others children when you are at work. Obviously screen the person well to make sure they are going to provide good care, and be willing to do the same yourself.

Look for Other Income Sources. If you have to sell stuff, sell stuff! There are pawn shops everywhere, or better yet, have a garage sale. If you can find a part time job, or ideally one that is working from home, take it.

Do you NEED It?  If not, don't buy it, or shop at second hand stores!

My Tale

My husband and I were fortunate in that we had purchased a home a year before he died, our monthly payments were much lower than renting a small apartment would have been, because we had saved up for years prior. We did not have cable television, cell phones, or the Internet, at the time of his death, so I did not have to give up those. The car was fully paid for at the time of its purchase. My daughter and I did eat a lot of meals that were soup, and I did go to the food bank twice shortly after his death.

My job was part time, minimum wage at an animal shelter, a job I loved. Nobody would have guessed we were living below what a single mother and child would have received on welfare. I never applied for additional funding through welfare.

A person can live on minimum wage. Not only did I manage to do so, but within three years I had saved up enough for her and I to fly to England for four weeks to see where her fathers ashes had been scattered. By then the widows pension and orphan benefit had kicked in, but it was just under $500 a month.