Minimum Wage: How to Save on a Minimum Wage

by Bruce on May 3, 2012

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How to save on a minimum wage was written because for a long time I felt I didn’t earn enough to save.  Perhaps you can relate to that. In which case read on and be enlightened as it is not only possible to save on a minimum wage but it is also possible to become a millionaire on a minimum wage.

In my post When things go wrong Big Style I recount the story of how I got here. But as a brief re-cap. I was holidaying in the Philippines, 14 months in Paradise and I got ill which resulted in having to have a pacemaker fitted. Which should have been paid for by the insurance company, however so far they have declined to pay and cancelled the insurance. Which left me with a big bill and no insurance. So back home to the UK.

I’ve been really blessed with friends and family which have made it possible.

The minimum wage in the USA is $7.25 an hour, so working 40 hours a week gives an income of $1,072 per month.

Now that income is very similar to the income which I receive from my MLM business The great news for me is that I don’t have to work for that money, which leaves me free to do what I desire.

It only operates in the UK but if you would like to know more click the link to make money.

So how do you save on the minimum wage.

The most important thing is mindset.

To save our mindset has to be positive. If you say to yourself as I did ‘I don’t earn enough to save’ Then even if you earn more than the president that will be your experience as it was mine. You won’t earn enough to save.

If however you think. I’m Saving for my future. So I can have what I desire. Save you will, and it will be easy too.

I’m saving because I have an amazing finacee in the Philippines and we want to be together again

To save put saving first

A great target to be aiming for is 25% or more so of your $1,072 put $300 into a saving account first. That leaves you $772 to spend as you want.

Accommodation

Allow 25 to 30% of your income for the accommodation. That figure needs to include Rent, rates, Taxes, Heating, Water etc. Here in the UK $300 per month is quite a small  budget for accommodation. A flat/condo would likely to cost $750 of which taxes heat, light water would be nearly half. However with a good bit of searching I have been able to locate a couple of rooms with a shared kitchen in a good area of Birmingham, next to two parks which is awesome.



Insurance

I have good life and critical illness cover which cost $63. In the Uk we have the NHS which covers medical expenses and dentistry.

Broadband and phone

My supplier Utility Warehouse does mobile Broadband with a phone for just $17.93 a month, including all local and national calls.

Kids

As I have been out of the UK for the past 14 months my relations with the kids is not as strong as it was. And they live currently either with their Mum or at University. However I still support 2 with phones which costs. $57 a month.

Cell/Mobile

I have just bought a Nokia 100 which makes calls and texts and cost me $20. I am then getting 500 minutes of calls and unlimited texts cost me $16 a month with Utility Warehouse.

Food and Household goods

Food is much more expensive in the UK than the US, it costs about the same in £ as it does you in $. So my budget for that is $163 a month plus laundry at $25

Transport

Car ownership is n’t environmentally friendly and not economically wise on a minimum wage, especially when you’re trying to save. Broadly it costs $400 a month to run a small car and a further $300 either in depreciation or finance so $700 a month in total. I can get a bus pass to allow me unlimited travel throughout the midlands for $100 a month. Which is what I’m doing.

Entertainment

I have $65 a month for entertainment. I’m looking forward to catching a few movies which I didn’t see in the Philippines. And the occassional meal out.

Investment

That gives me $326 a month to save and invest. 1/3 of this $100 a month I’m investing in two of my business to boost my income so I can save more.

How to save on a minimum wage shows how I’m saving on the minimum wage and has given you insights as to how you can too can save on the minimum wage.

If you like to see other ways you can save money check out Save a Lot of Money

Live in the moment it’s a present

Love Greatly and Unconditionally

Laugh at Life, funny things and Self.

Bruce

Ps. If you have a dream and would like to give it life check this tool out and live the life of your dreams.

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