Apparently, you believe that everybody that makes 10 bucks an hour can forgo food and housing rents for a year and bank that money.

My recent post on Parade drew some comments including the one above.  In hindsight, I realize that my main point was clearly conveyed but that it was also probably overshadowed or at least muffled by my fairly harsh, aggressive and in your face tone in the intro.  I apologize for the overly harsh, in your face introduction.  To be honest, I reacted in frustration to several other posts and comments I had read and didn’t take the time to consider how my first sentences would sound.  I believe my main point still stands and that point is this:  You are capable and have the ability to change your situation.

Now, to address the quote at the top.  I feel for anyone who is financially struggling.  Ten, twenty or even thirty thousand dollars a year is tight no matter how you slice it.  In fact, I sat down and took the time to create a budget for myself using $10 an hour.  WOW!  I knew it would be tight, but I really had no clue about how tight.  I included my sample budget below, please provide comments on what could be changed to make it more realistic.  I made it as realistic as I could but I suspect your numbers may be different depending the cost of living in your area.  My hats off to those of you who pull off living life at this level.  That said, please consider the idea that with some changes you can make 2 or 3 times that much.  It will definitely take some work and won’t be easy but I believe you owe it to yourself to try!

A couple of additional stats I dug up while thinking about this.  According to the latest from the Census Bureau the average annual income for a person is $38,317^[1].  Additionally, the poverty level this year for one person is $10,400 unless you live in Hawaii or Alaska^[2].    If you’re earnings are near the poverty level or somewhere in between that and the average annual income, you will struggle.  I don’t wish for you to struggle, and my hat’s off to you for working so hard.  Again, my hope is that anyone who is struggling realizes that they can do something about it.  It will not be easy but generally speaking nothing in life worth doing or achieving is easy.

So, what would a budget look like for someone earning $10 an hour with a spouse and 1 child.

Here’s what I learned from the above exercise.  I’ve already referenced some of these things but here’s one last review.

1. It’s possible but it’s a very very challenging and very very tight. 
2. It’s only possible by doing a budget and determining to the penny where the money is going to go.
3. I have a lot of respect for those trying to make ends meet.
4. There is not much room for fun in this budget.
5. If I were in your shoes I would think hard about how I double or triple my income in five years if for the simple reason that it is so hard and challenging to live on 20k. 

If you are having trouble making ends meet, if you earn less than the national average, please oh please consider that you are your best chance of changing where you are at.   It will take hard work and planning.  You will probably have some long nights and days ahead, but you CAN do it! Change your life.  Change your future.  It’s in your hands!

References

1. U.S. Census Bureau, personal income, Age 18+
2. U.S. Department of Health and Human Services, 2008 Poverty Guidelines