Live on my own making minimum wage

[greenapple]

So, this past year has been like a crash course in life in the real world. Basically I'm finally done with school (for good, as far as I know right now) and have to go and make and start a career and manage my life without the structure of university keeping things in place. It's been sort of a failure, to be honest.

The first job I had this year paid 35k, which I figured would be more than enough for my living expenses (2200 a month). I quickly moved into my own place, but the 750 rent turned out to be a much bigger chunk of my income than I expected it to be, and basically I was not good at managing the rest of my pay. So I was not able to maintain the quality of living I expected and still was for the most part living paycheck to paycheck. Living that way stressed me out, on top of being completely miserable at my job, so I quit the job, broke the lease, and moved back to my parents home.

I now have another job (I have not been unemployed at any time this year since acquiring that first job) and even though I think it's a good jumping off point for the experience I want for my career, the pay is only minimum wage. They claim there is usually a promotion after six months but I am not banking on that. I'm not afraid to take on a part time night job if I have to (I have worked one or more jobs all throughout my secondary schooling) but I obviously don't want to have to do that. At the same time, I don't want to be in my parents home forever, and really would like to move out as soon as financially possible.

The problem is I wonder if that will be possible at all with my current pay (about 18k). I am thinking if I can find a roommate or a place where I'd only be spending around 300$ for rent, I might have a fighting chance. But I went into my last venture with the same half baked thinking and it didn't work at all.

So my questions are:

Do you think it's possible for me to live on my own with such small pay?
Have you ever successfully done this or know of any stories where someone has?
What should I be mindful of if I attempt to do this?
What should I do before I move (while I still have no expenses) to try to compensate for the expenses I will occur (other than try to save as much as I can, obviously)?

[SavingSweetOneL]

Hi GreenApple,

I really feel for you. At least you are learning things early.

Do you think you could find work, or freelance something, that wouldn't take more than 8 hours a week. I have no clue what your talents are, but, if you get Richard N. Bolles, 3 Boxes of Life book, it could uncover things within you, that you never even thought of as talents. Ask for it at the local library.

Also, shelter should only be 25% of your income. So, plan accordingly. Gail Van-Oxlaide on her website, might be able to explain it better, how to divide up your income. For sure, there is Shelter, food, clothing, and transportation. Also, just a budget for money to spend, if you don't have the money in the budget that you don't have to account for, you will take it from the other catagories subconsciously. Or the car will break down at the wrong time, or toilet overflow and ruin something, etc.

It is just the way it is.

Also, check out Mr. Bolles book: "What Color is Your Parachute?" The library should have the curent edition. The past editions have valuable information in them, as well.

And, most basic of all: Keep the faith that things will work out for you and that you can make good choices for yourself, and create the habits that will keep ypu productive, and moving forward in your life.

I hope others will respond.

Keep us posted on how things unfold for you.

SweetOneL

[Ramose]

The first job I had this year paid 35k, which I figured would be more than enough for my living expenses (2200 a month). I quickly moved into my own place, but the 750 rent turned out to be a much bigger chunk of my income than I expected it to be, and basically I was not good at managing the rest of my pay.

The problem is I wonder if that will be possible at all with my current pay (about 18k). I am thinking if I can find a roommate or a place where I'd only be spending around 300$ for rent, I might have a fighting chance.

You now earn approximately 50% of what you earned in the old job.
The rent is expected to be 40% of what it was before.

If you haven't learned how to cut back on expenses then you will have the same problems. Your living expenses (2200 a month) are $26400 per year, this is more than you earn. How much do you think you can cut down by living with a room mate?

Maybe you should wait until the time you are supposed to get a promotion? Have you considered looking for another job like the one you left?

[snafu]

If you aren't paying room & board, you could benefit by putting proposed sums for rent, food, utilities, cell phone, clothes in a savings a/c and see how you manage with the balance as you pay your current day-to-day expenses.

[UnknownXV]

It's most definitely possible. You have to change perspectives on what you feel is necessary in your life to be happy. What you "need" to live.

This is my budget:

Income:

Pay - $519 x2
Government GST credit: $22

Total: $1,060

Expenses:

Rent: $350 (Living with two roommates)
Transport: $75 (Metro and bus pass) - During the summer you can commute by walking or biking to work
Food: $200 (I cook most of what I eat).
Play money: $30

Total: $655

This leaves me with an extra $405, of which I sock every penny away.

Going by this budget, you could even afford to live in a small apartment on your own if you'd prefer. You wouldn't be saving much, if anything, but it's most certainly doable.

Oh and by the way, this is part-time. 27 hours a week at $10 an hour.

[Nika]

Dear Greenapple,

Yes, it is possible to live on low salary, people like UnknownXV manage. What it requires is planning and great impulse control. From your history this has been your problem.

Roommate is not a great idea in this situation. The odds of getting a responsible roommate are low, it is a lottery. You might get one like yourself, who will get fed up or annoyed and break the lease leaving you on the hook for the entire property you can't afford.

Quitting a job, one should have a plan in mind. If your main problem is "salary can't support my expected standard of living" than the plan is to line up a better paying job before quitting.

I would first try the hardest to get above the minimum wage, than consider moving.
In the meantime, try a practice run -- figure out what your rent, utilities, gas, insurance, food and all other costs would be while living on your own, and save that amount (since you are not spending it each month). If you can do it, maybe you can pull off moving out (and you will have first month rent/security and emergency fund saved up).

In any case, a written budget will be a great help and an eye opener.

[greenapple]

Quitting a job, one should have a plan in mind. If your main problem is "salary can't support my expected standard of living" than the plan is to line up a better paying job before quitting.

Thanks for the advice, but my main problem was not "salary cannot support my standard of living." My main problem was the job was damaging to my peace of mind followed by lack of budgeting skills. The salary I made before was entirely adequate if I had been able to control my spending.

The reason why I took a minimum wage job is because I am more concerned with my career trajectory than a dead end job that paid more at the outset but had no opportunity for growth. Additionally, having the safety net of my parents means I don't HAVE to be in any particular rush even though ideally I do not want to be partially supported by my parents forever.

In the meantime, try a practice run -- figure out what your rent, utilities, gas, insurance, food and all other costs would be while living on your own, and save that amount (since you are not spending it each month).

This is great advice, I will keep this in mind while attempting to get together my savings plan.

[SavingSweetOneL]

You'll make it GreenApple. Have ypu been checking out the other threads and forums here?

What is your experience with that?

SweetOneL

[Ramose]

The reason why I took a minimum wage job is because I am more concerned with my career trajectory than a dead end job that paid more at the outset but had no opportunity for growth. Additionally, having the safety net of my parents means I don't HAVE to be in any particular rush even though ideally I do not want to be partially supported by my parents forever.

You should make sure you have a higher paying job before you move out, this could mean promotion or a job change. That way you know you can afford it and you might have a good chance at building up savings.

[Gailete]

After graduating college the first job I found was only part time minimum wage and with that I was on my own. Found a family that my mom knew and paid them room and board, walked a mile to work in all kinds of weather and walked a mile home after standing on my feet at the job. Wasn't long until I was full time, but still at minimum wage. I was fully self supporting and saving money. The secret is being willing to look for alternative solutions, not think that you need everything that everyone else has (such as a car), be careful with what you spend, and save all you can. It is doable, but I think too many kids get out of school and expect to have the same life-style as their parents right off the bat. Only once in my life did I pay more than $700 for housing and I was making $35K at the time. Find an apartment you can afford and yes, it will probably be crappy as long as it is in a safe neighborhood, you should be okay. Don't expect to be able to afford, cable, netflix, top of the line cell phones and all the other gadgets. At this point in life your main goal is to get yourself self-supporting, learning what life really costs, how to live on a budget and saving NOW towards retirement as well.

[Ramose]

At this point in life your main goal is to get yourself self-supporting, learning what life really costs, how to live on a budget and saving NOW towards retirement as well.

Great advice, I think people often forget about retirement until it is too late.