Can You Live A Decent Life on Minimum Wage?
Discussion
I was wondering if I found myself in a position where I was working Monday to Friday on minimum wage, could I live without relying on the state. I set myself some rules; 5% pension contribution, single, no shared houses, no state help at all (tax credits, etc...), a life, not just surviving.
£11,856.00 Annual Gross Income (37.5 hours per week)
(£757.64) Income Tax
(£450.89) National Insurance
(£592.80) 5% Pension Contribution
£10,054.67 Annual Net Pay
£837.89 Monthly Net Pay
Monthly Recurring Costs (Based on Trafford area)
(£350.00) Private Rent for 1-Bed Flat
(£6.00) Contents Insurance
(£64.00) Council Tax (inc. 25% reduction for single person discount)
(£20.00) Gas utility bill
(£20.00) Electricity utility bill
(£20.00) Water utility bill
(£12.00) Television Licence
(£110.00) Groceries (Based on £3 per day for food, plus £20 for cupboard items, cleaning supplies, toiletries, etc...)
(£10.00) Medical (Medicines, Opticians, Dentist, etc...)
(£55.00) Monthly Bus Pass
(£667.00) TOTAL Monthly Recurring Costs
£179.89 Monthly Remainder to choose how to split on;
- Savings
- Phone & Internet
- Household items (furniture, electrical, repairs, etc...)
- Clothing
- Haircuts
- Entertainment
- Presents
- Holidays
I was a bit surprised really, my expectation before doing the calculation was that there would be a bit more left than that, possibly enough to swap the bus pass for a car, but that looks unlikely without serious scrimping in other areas.
I suppose in reality most people don't live by themselves, overtime is often available and you'd get some working tax credits.
Was this ever different in the past, could people in the 60's, 70's or 80's have a decent life on the lowest payscales?
£11,856.00 Annual Gross Income (37.5 hours per week)
(£757.64) Income Tax
(£450.89) National Insurance
(£592.80) 5% Pension Contribution
£10,054.67 Annual Net Pay
£837.89 Monthly Net Pay
Monthly Recurring Costs (Based on Trafford area)
(£350.00) Private Rent for 1-Bed Flat
(£6.00) Contents Insurance
(£64.00) Council Tax (inc. 25% reduction for single person discount)
(£20.00) Gas utility bill
(£20.00) Electricity utility bill
(£20.00) Water utility bill
(£12.00) Television Licence
(£110.00) Groceries (Based on £3 per day for food, plus £20 for cupboard items, cleaning supplies, toiletries, etc...)
(£10.00) Medical (Medicines, Opticians, Dentist, etc...)
(£55.00) Monthly Bus Pass
(£667.00) TOTAL Monthly Recurring Costs
£179.89 Monthly Remainder to choose how to split on;
- Savings
- Phone & Internet
- Household items (furniture, electrical, repairs, etc...)
- Clothing
- Haircuts
- Entertainment
- Presents
- Holidays
I was a bit surprised really, my expectation before doing the calculation was that there would be a bit more left than that, possibly enough to swap the bus pass for a car, but that looks unlikely without serious scrimping in other areas.
I suppose in reality most people don't live by themselves, overtime is often available and you'd get some working tax credits.
Was this ever different in the past, could people in the 60's, 70's or 80's have a decent life on the lowest payscales?
When you factor in other costs such as clothes, furnishing a flat, haircuts, a basic broadband package & pc, along with the odd electrical good, I think you'd quickly be down to much less than £179 spare a month. Providing your single and willing to live a very frugal lifestyle I'm sure it could be done.
MrPeters said:
It's all very well writing things down on paper. My parent's combined income (after tax) was <£12k per annum for several years, and we did all right. (2 kids under 10, mortgage, one car, one yearly holiday). But then we're from opp north, so we probably don't actually exist.
Yeah, but't bowl o' gravel and some roofin' slate for breakfast don't cost much. 
Seriously though, I guess if you're really careful, you can live on next to nothing. When I was growing up, we had times when we had everything we needed or wanted, holidays, cars, toys, you name it. Then that changed and we had pretty much nothing, down to coming within an ace of being homeless, which was pretty tough.
I've also been a very, very skint student, when my parents couldn't afford to support me, and I had to get by on practically nothing for a few months. Accommodation paid for by student loan, so all bills paid, but it left me with £15 a week to live off, food, laundry, everything. I managed to eat on about £10 a week, basically on the blue and white striped stuff.
Wasn't particularly tasty, but I didn't go hungry either, and always made sure I had a (cheap) treat, something like a 19p bar of value chocolate or something.
Ten years of working like an idiot has started to pay off, and I am thankful every day that I'll never have to go through that again.
If you were single, then you could have more disposable income if you house shared in Derby.
I rent a large single room for £160 plus 1/3 bills which average about 100 a month.
Mind you I'm only here 4 nights a week as I have a mortgage and a wife and family in The Northwest
This week I've just spent £12 for enough food to last me til Friday.
One of the guys I share with is on £25K a year, his large double room is £230 a month and he reckons to save £800 a month.
I rent a large single room for £160 plus 1/3 bills which average about 100 a month.
Mind you I'm only here 4 nights a week as I have a mortgage and a wife and family in The Northwest
This week I've just spent £12 for enough food to last me til Friday.
One of the guys I share with is on £25K a year, his large double room is £230 a month and he reckons to save £800 a month.
Its doable, but with discipline. Spend less on accommodation, scrap TVs and licences and eat frugally.
Ensure every tax deduction that can be claimed is, and any benefits likewise.
It is easier to find a job when you already have one, so spend the time looking for a better job. Work at it and it happens.
Ensure every tax deduction that can be claimed is, and any benefits likewise.
It is easier to find a job when you already have one, so spend the time looking for a better job. Work at it and it happens.
think your monthly elec and gas costs are a little too high.
but then again it depends on the state of the house, how well insulated it was and how efficient some of the fixtures and fittings were.
For example though, my flat is a new build and i hardly ever have the heating on. Being on the middle floor and surrounded on 2 sides by other flats, I rely on the next door neighbours for heating hahaha (or rather providing at least a zero temperature gradient) . Most of the stuff is electric so the gas only gets used for cooking and filling the small sink with hot water. So the gas bill is pretty minimal. Im a bit lax with my electronics though so my electricity bill is something closer to £40 a month, so I guess it evens out. But certainly there is room to improve and not spend that much.
but then again it depends on the state of the house, how well insulated it was and how efficient some of the fixtures and fittings were.
For example though, my flat is a new build and i hardly ever have the heating on. Being on the middle floor and surrounded on 2 sides by other flats, I rely on the next door neighbours for heating hahaha (or rather providing at least a zero temperature gradient) . Most of the stuff is electric so the gas only gets used for cooking and filling the small sink with hot water. So the gas bill is pretty minimal. Im a bit lax with my electronics though so my electricity bill is something closer to £40 a month, so I guess it evens out. But certainly there is room to improve and not spend that much.
The premise is pretty flawed. If you are on so little per hour then why on earth would you be working so few hours? Sixty hours per week is perfectly manageable, and would bump earnings up significantly.
Seriously, if you are only doing the equivalent of three days work in seven then it's hardly going to beva surprise if money's tight.
Seriously, if you are only doing the equivalent of three days work in seven then it's hardly going to beva surprise if money's tight.
I'm not quite as low as minimum wage but it's not much, and I just about get by.
I try to keep costs at a minimum, don't go out on the piss every week, and run my Alfa, but my bills are covered every month and I'm happy enough.
Will be better when I can get myself promoted at work though.
I try to keep costs at a minimum, don't go out on the piss every week, and run my Alfa, but my bills are covered every month and I'm happy enough.
Will be better when I can get myself promoted at work though.
George H said:
I think you could survive, but it wouldn't be a decent life.
And there we have it... People can have by their terms a decent life on "our" dime so to speak. The genuine achievers in this life would do what the OP outlines and work their ass off to better that, do two jobs, more hours and climb whatever ladder was available.Our issue, we have bred a generation or two if not even three who simply have had WAY much more than this handed to them on a plate and have no desire, ability or the self respect enough to even attempt this!
Murph7355 said:
Define "decent"...
Enough spare income so you could actually have a social life, a car, etc.£180 a month spare cash would not be enough to have an average lifestyle, which is what I assume the OP means when he says decent life.
Edited by George H on Monday 6th June 22:47
George H said:
Enough spare income so you could actually have a social life, a car, etc.
£180 a month spare cash would not be enough to have a comfortable lifestyle, which is what I assume the OP means when he says decent life.
180's enough to have a social life.£180 a month spare cash would not be enough to have a comfortable lifestyle, which is what I assume the OP means when he says decent life.
Granted, it's unlikely to be enough to run a car. But I'm not sure running a car should figure on a list of things those on the minimum wage should be able to expect to have....if you want those things, you need to do more (as someone mentioned, any notion of a 35hr week goes out the window). And some people won't be able to. Life is not "fair", but that is not to say it cannot be enjoyable without the fripperies.
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