Budget

How to Efficiently Budget on a Minimum Wage

With the globalization of the world economy, it’s common knowledge that the United States Dollar is a standard for measuring the monetary power of other foreign currencies. Our finances are the primary source of our sustenance, especially when we need to buy for supplies and services. Of course, being employed can ensure that we’re in a good position.

However, those that are working on a minimum wage is challenging this notion. As years have gone by, the economy has been waning and shifting. The value of the dollar as of the present moment could be quite different from what it was years ago, but workers will still have the same minimum wage. Usually, the minimum wage of workers is determined by the state the business is residing in. States like California will have a minimum salary of around $11.00. The majority of states will have a minimum wage of $10.00 to $10.50. Minimum wage can also vary in terms of cities, with the most specific areas having their minimum payment. For the most part, the common denominator at a national level is the federal minimum wage is, which is $7.25.

What Is the Minimum Wage?

To protect workers’ rights, the Fair Labor Standards Act was designed to ensure that companies wouldn’t be able to exploit workers from their labor.

Of course, an increase in workers’ wages can alleviate the living conditions of these workers. Most politicians and government entities believe that raising the minimum wage is the best program used to alleviate poverty.

Political discussions on stagnant wages are still in the spotlight for most US policymakers. Whether this is state-level or even at a national level, workers’ minimum wage will be a determining factor for much of the economy.

Does It Matter, and Should You Ask for More?

To make the long story short: yes, it does matter how much employees are earning per hour. There are several ways that it can affect the current state of the economy and aspects of the worker’s life.

Again, the minimum wage was designed to protect workers from exploitation, especially those that want to take advantage of desperate workers. That is to ensure that people can afford the necessary universal living conditions that need to be available for everyone.

But as decades pass, the central premise of the minimum wage has deviated from what it was initially intended for. The law did not account for factors such as inflation. If this law did consider the amount of increase on the original rate, it would result in the minimum wage being $23 per hour.

Asking for an increase in the minimum wage will be determined by several factors.

Professional Help

When you’re in doubt with your financial capabilities when it comes to budgeting, it’s logical to find a trusted financial advisor that can help you budget your finances.

Government Assistance

There’s no denying that individuals will be struggling to make ends meet with a minimum wage. But if you’re eligible for government assistance, then you must avail of it. As long as you meet the poverty guidelines and make around $12,490 in a year, or less, you are eligible for this type of assistance. However, this will also depend on the state that you live in.

For Hawaii, the threshold is making less than $14,380, while in states like Alaska, it is $15,500. For those with benefactors and running a household, it is around $16,910.

Workforce Development

computing expensesThese type of programs are for those that are extraordinarily impoverished and don’t have the necessary capabilities and skills to earn a minimum wage. Workforce development programs are quite prevalent in urban centers.

Search engines are programmed to find you the nearest workforce development program, which is tailored towards specific groups of individuals based on their skills, job history, and education.

Living Frugally

Lastly, you can live a more frugal lifestyle by spending on essentials and not on things that are not necessary. By doing so, it will be easier to keep expenses low. A variety of different retail businesses use marketing schemes such as discounts, promotions, and coupons to give customers discounts on products.

If you do have children, you can look into some free and cheaper lunch programs that are usually available in some states.

It’s also worth noting that there will be irregular expenses. These are the type of costs that are usually done for celebrations and holidays. You’ll need to factor in these holidays and festivals if you plan on celebrating it with your family and loved ones.

Budgeting on a minimum wage can be challenging, but it is still possible. By learning critical financial information and ensuring you know how to budget your expenses, you will be in the right place. There have been ongoing debates and talks that plan on raising the hourly rate for most states. Still, slowly but surely, the minimum wage of workers will be increased.

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