Four Tips for Surviving on Minimum Wage

Could You Survive on $7.25 Per Hour?

That’s exactly what 701,000 adults in the U.S. who earn the federal minimum wage have to do. It’s challenging to say the least, given the basic costs of living in this day and age. In addition to trying to make ends meet, earning the minimum wage limits your ability to save, putting you at risk in case of a financial emergency.

However, while you may not be able to live comfortably on $7.25 per hour, you can help keep your finances in check through dedication and careful planning. Check it out:

1. Consider Shared Housing

Housing tends to be the biggest monthly expense for most people. And with limited take-home pay, finding a place to live on your own that’s safe and affordable may prove to be impossible. Instead, try sharing an apartment with roommates, or see if you can find a family with a spare room or finished basement for rent.

2. Slash Transportation Costs

Whether it’s insurance, gas, or loan payments, the costs of driving can quickly drag down your budget. So if you live near public transportation, ditch the car. Even if you use it every day, the bus is most likely more affordable than your ride. Of course, if you live close to the places you need to go, walking is an even better solution—bonus exercise benefits!

3. Cook at Home (and Plan Your Meals)

While it sometimes seems like the easiest option, eating out is expensive. The best way to avoid the temptation to hit up restaurants every time your stomach growls is to make a meal plan at home.

Once you decide on food for the week, buy the ingredients (preferably in bulk for bigger savings) and make as many of your meals as possible ahead of time. Then just re-heat them when it’s time to eat.

4. Find Free Fun

Just because you live on a limited income doesn’t mean you can’t have any fun. Many museums have free hours or days during the week, and in the warmer months, it’s not uncommon to find free outdoor concerts. For year-round fun, have game or movie nights with your friends, host a potluck, or start a book club.

BALANCE
April 2018