As I stated on another thread, I make $53K a year and I am single. (A company car + fuel) is paid for by my company. After paying for my portion of health insurance, my take home is $2300.00 per month.
That $2300.00 goes for:
- $1125.00 Rent (1 bdrm / 1 ba )
- 65.00 Water, garbage (Yes, as a renter I pay those fees on top of my monthly rent)
- 65.95 Cable w/ Internet access
- 39.99 Cell phone
- 29.95 Land line (required to have to "buzz" people in to visit me)
- 72.00 Pacific, Gas and Electic
- 328.00 Student Loan Re-payment
- 300.00 Savings Accounts ($100.00 each to vacation account, spending account, emergency account)
- 55.00 Dry Cleaning
- 19.00 Gym membership
- 200.00 Food (Includes groceries and dining out, cleaning supplies and toiletries)
I have no credit card debt.
...and that's my monthly expenditures for my salary of $53K a year.sidebar:
In 2007, I paid $8000.00 in Federal income tax, and $2000.00 in State income tax - so basically, I'm only making $43K a year.
Thanks for providing real info... I see now what you and Phil are talking about, WRT $25/hr being necessary for a 'reasonably livable' wage (no extravagant expenses, nothing in there for even dining out, and no transportation expenses - yikes! (yes I know that in the city you may not need a car, but... ))
First of all, you say that excluding taxes, your 'net yearly' is 43K... so given that your take-home is 27.6K, that means you are paying 15.4K a year in medical premiums?!
If that is even remotely the case, Rick, you ought to at least consider a Health Savings Account! You could take home at least 5k more a year and be socking away 5k a year in tax-exempt self-directed investment in your own medical account, and still get HMO and catastrophic coverage with effectively no deductible!
Still, how would that relate to a true 'minimum wage' (someone who probably doesn't have student loans, or go on vacation, or save for emergencies - although it would be nice if they could of course), even for the bay area?
First of all, most minimum wage jobs do not include healthcare, you're expected to use emergency services only... maybe they should, but they don't... let's assume the housing costs are the same, no cable, no vacation fund, combine savings and 'emergency' fund into one:
$1125.00 Rent (1 bdrm / 1 ba )
65.00 Water, garbage (Yes, as a renter I pay those fees on top of my monthly rent)
39.99 Cell phone (one or the other, not both)
72.00 Pacific, Gas and Electic
100.00 Savings Accounts ($100.00 to combo spending & emergency account)
200.00 Food (Includes groceries and dining out, cleaning supplies and toiletries)
150.00 Catastrophic Medical insurance or basic HMO
That's about $1750/mo, or $21K/yr take-home... I think that would be at least $28K per year before taxes, so that's about $14/hr... it seems Phil is spot-on for the bay area.
In contrast, here's my numbers:
I pay $700/mo PITI for my own 3br/2ba house, modest size (1200 sq ft, including basement)
$150 utils (heat, a/c, electric)
$35/mo internet (includes VOIP phone)
$40 cable TV (if I have it, which I don't right now)
$40 cellphone (no landline, other than VOIP)
$150 High-deductible catastrophic medical insurance (would add $200 for my health savings account contribution, but can't afford it right now)
$200 for food
$100 for car expenses, gas, insurance
$100 for misc (emergencies, house repairs, clothing, but honestly don't budget that except when I need it)
[Note: this WAS a 2br/1ba house, before I added a br and ba in the basement, so I could rent it out for $300/mo - so I sdhould reduce that by $300/mo, or $400/mo cost which is about right for an apartment around here]
So, the net is about $1200/mo around here... or 14.4K take-home, probably 18K gross. or $9/hr.
Of course, there's the question of whether this is a single person or a 'family of four'... I think the answer is obviously 'single', I don't judge how much value an employee brings to my business based on how big the family is... I think that falls under the category of 'family planning', literally! ...and I don't think we want the employer OR the government doing that!