POLITICIANS AND advocates have been rallying to get the federal minimum wage – currently $7.25 an hour – raised, and for a good reason. Though the minimum wage is higher in some states and cities, if you’re making the lowest legal wage and you don’t have monetary support from parents, a spouse or a partner, affording crucial living expenses, such as housing, food, electricity and transportation can present a challenge. Case in point: If you work 40 hours a week for all 52 weeks of the year – without a vacation – making $7.25 an hour, that adds up to $15,080 per year. If you have no spouse or child to support, that’s about $3,000 above the poverty line. According to the U.S. Bureau of Labor Statistics, the annual median income for a full-time wage or salary worker working 40 hours per week in 2019 is $46,800.
If you’re making the lowest legal salary and you want to live well on a stringent budget, consider these expert-backed pointers.
Here’s how to survive on minimum wage:
- Live frugally.
- Look for government assistance.
- Find a workforce development program.
Live Frugally
To cover the cost of living on minimum wage, it’s best to keep expenses as low as possible. Look for deals at the supermarket, and preferably at a discount grocer. Use loyalty cards and coupons, and if you have kids, look into available free or low-cost lunch programs. Consider getting your clothing at local consignment and thrift stores, or getting assistance from a church. There are many churches that have programs that provide everything from food to furniture and clothing to help those in need. If you’re renting an apartment, you might also want to consider living with a roommate to keep costs in check. The key is creating a monthly budget – and sticking to it.
If you don’t have much money, and you’re concerned you can’t afford something you need, remember there are resources available. For instance, if you require legal assistance for a problem, you may be able to get legal help by going to LawHelp.org. You can also get free tax help. The federal government has the Volunteer Income Tax Assistance program, known as VITA, across the country during tax season at places like libraries, schools and community centers.
Look for Government Assistance
If you’re struggling to get by on minimum wage, you may be eligible for government assistance. The Department of Health and Human Services issues poverty guidelines, depending on the size of your household. If you live alone, and you make $12,490 or less, and you live in in one of the 48 U.S. contiguous states, you’re considered at the poverty level, meaning you can receive government benefits and are eligible for government subsidies and programs. If you live in Alaska, the poverty level is $15,500 for an individual; if you live in Hawaii, the poverty level is $14,380. If you have a child or spouse you support and you live in a household that makes $16,910 or less, the federal poverty guidelines declare you impoverished.
If you think you are eligible for government help, be proactive and seek help. You can find the poverty levels at the U.S. Department of Health and Human Services website. It’s often “pretty much impossible” to get by without government assistance, says Laurel Kiesel, a Boston-based economics reporter. Because she is disabled and thus works “very part time,” as she puts it, she says that she often feels as though she is living on minimum wage.
Some programs you might want to consider applying to are Medicaid for health insurance and the Supplemental Nutrition Assistance Program, also known as SNAP, for food assistance. To confirm that you qualify for nutritional assistance, which is based on income level, go to Medicaid.gov, Kiesel says. You might also want to consider applying for Section 8, a well-known federal government program that assists low-income families, the elderly and the disabled to afford safe and sanitary housing. Generally, to be eligible for Section 8, the priority is given to the lowest-income families and those who are in need.
Find a Workforce Development Program
“Almost every metropolitan area is going to have a workforce development program,” says Janie Bordner, the managing director of the nonprofit Community Council of Greater Dallas. It’s an organization that works to help lift people out of poverty and make a living wage. There are nonprofits like this around the country, Bordner says.
Type “workforce development program” into a search engine, along with your state or a nearby city, to find one. “We do one thing, and that’s move families forward,” Bordner says. “All of our programs are based on getting people the skills, education and job connections they need to make a living wage and get out of poverty.”
For instance, if a single mother needs a certification to get a better job but doesn’t have the money for the training, the Community Council will pay for that, Bordner says. If child care is a barrier to someone getting a better job, they can probably help out with that, too, by paying for a babysitter, Bordner says.
The caveat: These types of organizations only provide assistance to those who are extremely impoverished. “All of our clients are 125% below the poverty line,” Bordner says.
With that said, Bordner urges people who may earn around the legal minimum wage and are still struggling not to assume that assistance isn’t available. Bordner says that the Community Council of Greater Dallas can generally always point people who aren’t eligible for financial help in the right direction and toward organizations that can help them. Ultimately, the best way to get out of poverty, according to Bordner, isn’t to merely survive minimum wage, but to actively work to make more than the minimum wage.
