Final Project: Monthly Budget

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by chelsea Hemry3 views·Updated Jun 5, 2020
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  1. Within this presentation, I will be discussing a monthly budget
  2. and options for living on a minimum wage salary.
  3. Through my research, I have considered how difficult it is
  4. to maintain a level lifestyle on $9 an hour for
  5. a 40 hour work week for groceries and food assistance.
  6. I based my information on the grounds of eligibility in
  7. the state of Michigan.
  8. Ah, person making over $15,000 a year is ineligible for
  9. food assistance in Michigan.
  10. Taking this into account.
  11. A person who works a 35 to 40 hour work
  12. week making minimum wage would not receive food assistance from
  13. the state because they go over the requirements by as
  14. little as $100 to $2000 a year.
  15. This creates food and security among low income workers because
  16. they have to budget in groceries on top of other
  17. necessities. They don't have the safety of an E B
  18. T card to aid in the purchasing of food.
  19. According to the U.
  20. S Department of Agriculture in 2019 the average cost of
  21. a monthly thrifty groceries plan is $170.
  22. Ah, $170 is 1/8 of a minimum wage workers monthly
  23. salary, leaving them with just a little over $1000 for
  24. other monthly expenses.
  25. Transportation is a necessity for most to get to and
  26. from a variety of destinations, including their place of work,
  27. the doctors, retail stores and home.
  28. Depending on the motor transportation.
  29. Transit may not be the most crucial to a budget,
  30. but for most there are not.
  31. Many options do the due to the fact that I
  32. am basing the majority of my information on Michigan standards.
  33. Owning a car would be nearly impossible for a single
  34. minimum wage worker with no other source of income.
  35. Living in a no fault state would make owning a
  36. car extremely difficult for someone who isn't financially stable.
  37. The minimum cost of car insurance and Michigan is $440
  38. a month.
  39. That already reduces the minimum wage.
  40. Workers into come to just under $1000 for other expenses.
  41. Adding a monthly car payment can average about $400 for
  42. a used car.
  43. Other factors can take to take into account our gas
  44. prices, annual tune ups and additional expenses towards damages and
  45. repairs for public transit.
  46. The average price for a single bus passes $2 a
  47. 30 day past can cost upwards of 85.
  48. But in the state of Michigan, low income workers can
  49. qualify for reduced fares, which then allows a 30 day
  50. bus pass to cost $29.
  51. The opportunity for reduced fare makes public transportation of much
  52. more practical options.
  53. Compared to the price of maintaining a car, it's much
  54. easier to budget in $29 to compared to 800 for
  55. insurance and car payments for other options.
  56. Walking and biking are by far the cheapest options.
  57. But maintaining the bike and repairing any damages that may
  58. be necessary can create added expenses.
  59. This option is also not the most feasible for a
  60. person who lives far from their place of work or
  61. other establishments they would need to get to for housing
  62. and Michigan.
  63. The average monthly rent for a studio apartment is $540
  64. but running the house could go for as little as
  65. $300 a month, depending on the location of the house
  66. and who was renting it out.
  67. The average American renting an apartment should budget about $100
  68. to $150 for utilities, including electricity, water and natural gas.
  69. So listen the cost of housing.
  70. Having a roommate allows the renter to split the cost
  71. with someone else and cut their housing payments in half.
  72. All the entrance and Michigan is about $380 without a
  73. subsidy, taking that into account and maybe lower, depending on
  74. the situation.
  75. A subsidy would offer low income workers government assistance when
  76. paying for insurance.
  77. But most health insurance, especially the most basic plans, don't
  78. cover dental.
  79. This also doesn't factor in the amount needed for copays
  80. and other expenses.
  81. Insurance don't always cover other small miscellaneous expenses throughout the
  82. month can add up quickly, such as toiletries, which can
  83. accumulate to be about $60 a month.
  84. But necessities like shampoo, conditioner, toothpaste and toilet paper could
  85. be purchased in bulk to reduce monthly spending.
  86. Clothing is situational and depends on the person's needs at
  87. any given month.
  88. It's not always necessary to buy a new clothing every
  89. month, and they're also secondhand options to reduce spending.
  90. The smaller expenses convey Ari due to sales in the
  91. brands that the people purchase from after researching the options
  92. available to a person living in Michigan.
  93. It seems that the most feasible way to budget $1400
  94. a month would to be to spend the majority on
  95. housing and utilities as well as health insurance.
  96. This would ensure the most basic needs while also leaving
  97. room for other necessary purchases, such as grocery.
  98. After all, it would be nearly impossible t to sustain
  99. a livable lifestyle after all of the necessary out of
  100. expenses while working on a minimum wage.
  101. Even using the cheapest resource is could cause a person
  102. of all shore and land in debt.
  103. This fear could cause could compromise a person's mental ill
  104. due to the lack of financial security.
  105. Minimum wage does not allow ah backup plan.
  106. There are no extra funds to use as a safety
  107. net. All of it is used during the month to
  108. keep the person housed and fit.
  109. These expenses do not take into account sick days and
  110. other emergencies as well.
  111. A ZX well, a ZX.
  112. Whether or not PTO or overtime would be offered