How to Survive on Minimum Wage

Can a person truly survive on minimum wage? Although it may seem difficult to do, there are people who actually live a comfortable lifestyle from their minimum wage paying job. In order to survive on minimum wage you must truly live within your means and follow a strict financial budget. You may not be able to drive a fancy car or live in a mansion, but you can surely pay your bills and have enough money for your basic needs. Fortunately, there are a few things that you can do to help you properly manage your money and survive on minimum wage.

INSTRUCTIONS:

STEP 1

Identify all of your bills and make a list of them. In order to live comfortably on minimum wage, you should begin by making a list of all of your bills and basic necessities (like medication, food and transportation expenses) and how much you normally spend towards each item. Be sure to prioritize the list in the order of importance. For example, you need to eat food in order to survive, but you don't necessarily need cable television or DSL Internet service to live. Therefore, you can list food towards the top of your list.

STEP 2

Create a financial budget to follow. Take a look at your current earnings and decide how much you can actually spend towards each bill. Be sure to use a chart or some type of organizer to document this information.

STEP 3

Eliminate unnecessary things from your life or make appropriate substitutions. For instance, try cooking meals at home instead of eating out at restaurants. You can also use coupons when shopping and try to carpool to work (or take the city bus) in order to save money on gas.

STEP 4

Look for a roommate. Let your family and friends know that you are looking for a roommate and find out if anyone wants to share an apartment with you. Having a roommate can help you save a significant amount of money on rent and utilities.

STEP 5

Check to see if you qualify for assistance from the U.S. government. There are a variety of benefit and government assistance programs for low-income households. If you are earning minimum wage at your job, then you may qualify for things such as housing and utility assistance, food stamps, Medicaid health insurance and other financial programs. Visit GovBenefits.gov for more information on the different types of government assistance programs.

STEP 6

Establish a savings account. Even if you are making minimum wage, you should still try to save a little money here and there. It is definitely a good idea to save some money because you never know when an emergency may arise and you might need those extra funds. Having an active savings account can also keep you from relying on loans and credit cards to pay your expenses. So, determine how much money you can contribute to your savings account from each paycheck and start putting some money aside.

TIPS

1. Always focus on your priorities and obligations.

2. Try to pay all of your bills in a timely manner.

3. Be sure to live within your means at all times.

4. Only purchase things that you really need and do not waste your money at all. It is okay to treat yourself
sometimes, but you should only do so if you have some extra money. Do not push aside your bills or
obligations for things that you can live without.

5. Be sure to review your financial budget every month and make any necessary changes to it.