You can jigger with a few figures on here, but I think the overall point is still valid: this type of thing is why getting out of poverty can be so difficult.
From the get-go, this budget makes a lot of assumptions: that you can get 2 jobs with reliable hours that won't conflict with each other, that you can get a reliable car for $150/month*, that your $20/month health insurance will cover all your health expenses, that you won't have more than $1200/year of emergencies, that you don't have any childcare expenses. If any one of those assumptions doesn't hold up, the whole thing could so easily fall apart.
For the sake of argument, I can assume food comes out of daily spending money and heat is either included in rent or electric. But $20/month health insurance? Really? I mean, REALLY?!
Could they qualify for medicaid? I don't know the rules, but it doesn't seem like they make much money.
When my sister worked at McDs in HS, she got 1 free meal if she worked more than 4 hours. Could you imagine eating there 5+ days a week? Barf.
If your monthly income is $2k for a single adult, you almost certainly cannot qualify for medicaid unless you are pregnant, maybe. I think the cut off is 133% of the poverty line.
Could they qualify for medicaid? I don't know the rules, but it doesn't seem like they make much money.
When my sister worked at McDs in HS, she got 1 free meal if she worked more than 4 hours. Could you imagine eating there 5+ days a week? Barf.
Depends on the state. There are states where childless adults still cannot get Medicaid, I believe.
Also, it's really sad to me that this should even be a question for a working adult (directed at the world in general, not you specifically).
I believe Illinois is one of them. My sister loses her insurance when she turns 26 later this month and would only qualify for Medicaid if she got pregnant, and then I think she'd lose it once the baby was born (just what she told me, I haven't done my own research as it's not my problem).
Also, I think it sucks that taxpayers should have to pick up the tab for things like Medicaid, food stamps, rental assistance, etc just because companies choose to pay their employees a wage that isn't livable. But I know I'm preaching to the choir with that one.
Actually it is possible for one person to live on this - at least in a LCOL area.
Cell phone - prepaid would be less Electric is high - unless that includes heat 800 spending for food, gas, entertainment and misc.
More than one person would qualify them for government aid of several kinds which would lighten some of the expenses here.
I actually do kind of agree with Lys on this one - I used to live in the area she lives in, and I think I paid $20 a month for electric (most places didn't have central air and it was only super hot a couple of weeks a year). Any place I rented cost no more than $600 a month and included heat. It was a small area, so I filled up on gas maybe 1-2x a month so $800 for food and gas plus some extra for medical costs, misc, fun, etc would have been reasonable. Of course if I had a kid that would have thrown everything off, but for 1 person 2k would have been very reasonable and I believe I probably lived on less than that.
So if that budget was for an area like that, it would be fine. Unfortunately it's not a livable budget where I live now, and certainly not in the more HCOL places.
I find these numbers odd anyway though, honestly. How is it $100 for car/home insurance but only $20 for health? I currently pay $55 a month for car/renters insurance through State Farm. I guess if you have a bad driving record or bad credit insurance may cost more, but assuming you're responsible I don't see how it could be $100 a month with the type of car and home you'd afford with the budget lines for those expenses.
In Los Angeles, I lived in a few places that didn't have heat. And certainly not central heat, just an ancient gas heater. So my gas bill would triple in the winter, but be almost nothing in the summer.
There are also heat assistance programs in some states, but I don't thing someone with $2k in income would qualify.
I am sure I am going to get flamed for this but about 10 yrs ago I lived on a similar budget and I made ends meet. I do not think this is a sensible budget b/c a typical person working at McD would not have a car pmt, $600 rent or a cable bill.
My rent was $405 and yes I know that was 10 yrs ago but for shits and giggles I just looked up what my old apt cost today and it is $513. I also got state aid for my gas and electricity (the state of MD paid 50%) since my net income was under $2k per month.
I don't want to flame you, vigurl, but in many locations $600 for rent is low, and that is with roommates. When I graduated from college I shared a 5 bedroom apartment and we paid $600/bedroom, a 15 minute walk from the subway, in Boston. And that was 10 years ago. I don't think even $600 would be enough for rent in that HCOL neighborhood anymore.
In Los Angeles, I lived in a few places that didn't have heat. And certainly not central heat, just an ancient gas heater. So my gas bill would triple in the winter, but be almost nothing in the summer.
There are also heat assistance programs in some states, but I don't thing someone with $2k in income would qualify.
I think $2k/month of income would qualify for some programs.
This is one of the most famous ones in my area. It is "Joe for Oil" and there are commercials all winter long for it. It's Joe Kennedy.
Could they qualify for medicaid? I don't know the rules, but it doesn't seem like they make much money.
When my sister worked at McDs in HS, she got 1 free meal if she worked more than 4 hours. Could you imagine eating there 5+ days a week? Barf.
If your monthly income is $2k for a single adult, you almost certainly cannot qualify for medicaid unless you are pregnant, maybe. I think the cut off is 133% of the poverty line.
Pregnant is 150% of the FPL and children are 200% of the FPL. The expansion of Medicaid would include 133% for adults, but it hasn't been accepted in all states yet. I'm not sure if my state has expanded or not, but before the expansion non-disabled adults without children did not qualify for Medicaid regardless of income and the income cut off for non-disabled adults with children under 19 was 90% of the FPL.
I am sure I am going to get flamed for this but about 10 yrs ago I lived on a similar budget and I made ends meet. I do not think this is a sensible budget b/c a typical person working at McD would not have a car pmt, $600 rent or a cable bill.
My rent was $405 and yes I know that was 10 yrs ago but for shits and giggles I just looked up what my old apt cost today and it is $513. I also got state aid for my gas and electricity (the state of MD paid 50%) since my net income was under $2k per month.
I don't want to flame you, vigurl, but in many locations $600 for rent is low, and that is with roommates. When I graduated from college I shared a 5 bedroom apartment and we paid $600/bedroom, a 15 minute walk from the subway, in Boston. And that was 10 years ago. I don't think even $600 would be enough for rent in that HCOL neighborhood anymore.
True in Boston or NYC or LA that is a no go but what % of US residents live in such HCOL area. The figures I mentioned were in Baltimore so not an actual LCOL area.
In Los Angeles, I lived in a few places that didn't have heat. And certainly not central heat, just an ancient gas heater. So my gas bill would triple in the winter, but be almost nothing in the summer.
There are also heat assistance programs in some states, but I don't thing someone with $2k in income would qualify.
I think $2k/month of income would qualify for some programs.
This is one of the most famous ones in my area. It is "Joe for Oil" and there are commercials all winter long for it. It's Joe Kennedy.
There are also links on this website to other groups that provide heating assistance in the winter. I couldn't find any income requirements, though.
I cant speak for today but 10 yrs ago I did qualify for a subsidy program to cover 50% of my electric and heating costs all yr round b/c I was a fiamly of 1 bringing home less than 2k
FWIW, right out of college I was taking in about $2100/month after taxes. But that was for 40 hours. Later in life, I worked about 70 hours a week and made a similar amount. But I was young and dumb and had barely any savings or investments and no car payment. And clearly no heat. And no cable. I paid $40/month for internet and had a "dumb" cell phone.
This is neither here nor there, but when I was looking at insurance quotes a couple years ago, I could have gotten bare bones/extremely high deductible medical insurance for $25/mth.
Post by MadamePresident on Jul 16, 2013 15:18:43 GMT -5
I wonder how many non management full time employees a McD's has to begin with. My sister works fast food and she gets 4 hour shifts 4-5 days a week. I don't think she has ever gotten even close to a 40 hour week.
I wonder how many non management full time employees a McD's has to begin with. My sister works fast food and she gets 4 hour shifts 4-5 days a week. I don't think she has ever gotten even close to a 40 hour week.
When I worked at McDs in 2005, all of the morning shift was full-time and there were maybe 7 evening shift closers that were full-time. There were 3 upper level managers that made a decent pay (1 store and 2 assistant). I was a manager, but I only made $6.40/hr (min wage was $5.25 at the time).
I think there has been a big shift to part-time just in the past 8 years. I haven't kept up with McDonalds, but I know a lot of entry level employees that cannot find full-time work. I had no problem finding full-time employment when I was in college.
the first year h and I were married we had just under $2k a month. I look back and can barely fathom how we made it work, but we did. and we lived in Canada so at least mcol and we sure as hell needed heat!
But good luck with the $600 mortgage payment in SoCal! Let me know where you found your house if that's what you're paying, PITI.
My mortgage in SoCal is under $850 for a nice house built in the late 90s, 1800sqft. After the special assessment taxes drop off next year it will be in the $700s. I think we got lucky and jumped on everything at the right time. Granted I don't live next to the beach or anything but not such a bad deal.
I wonder how many non management full time employees a McD's has to begin with. My sister works fast food and she gets 4 hour shifts 4-5 days a week. I don't think she has ever gotten even close to a 40 hour week.
When I worked at McDs in 2005, all of the morning shift was full-time and there were maybe 7 evening shift closers that were full-time. There were 3 upper level managers that made a decent pay (1 store and 2 assistant). I was a manager, but I only made $6.40/hr (min wage was $5.25 at the time).
I think there has been a big shift to part-time just in the past 8 years. I haven't kept up with McDonalds, but I know a lot of entry level employees that cannot find full-time work. I had no problem finding full-time employment when I was in college.
With the upcoming health law changes, I'm guessing far fewer people will be offered FT positions.
The amount allocated to rent/cable/electric is definitely doable in a LCOL area. Here they could swing a 1 bedroom apartment for $790. A studio would probably be another 100-150 less. Now this is no way I would want to live my entire life, but it would be possible to scrape by.
the first year h and I were married we had just under $2k a month. I look back and can barely fathom how we made it work, but we did. and we lived in Canada so at least mcol and we sure as hell needed heat!
But there is a difference between two people bringing in that amount and one person working two jobs to the tune of 60hr/wk. to bring in that amount.
the first year h and I were married we had just under $2k a month. I look back and can barely fathom how we made it work, but we did. and we lived in Canada so at least mcol and we sure as hell needed heat!
But there is a difference between two people bringing in that amount and one person working two jobs to the tune of 60hr/wk. to bring in that amount.
I've done both. Worked two physically demanding customer service jobs that brought in just under 2k. 7am-3 five days a week, 4:30 to 9PM five days a week, and at least 10 hours more on weekends. Not fun. There was no line for health or disability insurance. Paid off car (clunker). Electric heat only. Basement apartment. No cable. Cheapest cell. Only kept that up for a year. Pure exhaustion doesn't even begin to describe the physical toll. At least i didn't have a kid!
While H was in school we brought in about 2200 and paid for his classes at the same time. State university, credits were cheap. Even with more expenses, having two people bringing in 2k is different because there's more of a security blanket if one person couldn't work. Also, there was a light at the end of the tunnel. We knew it wasn't going to be that tough forever. Can't imagine working like that and having no hope of a better future.
But there is a difference between two people bringing in that amount and one person working two jobs to the tune of 60hr/wk. to bring in that amount.
I've done both. Worked two physically demanding customer service jobs that brought in just under 2k. 7am-3 five days a week, 4:30 to 9PM five days a week, and at least 10 hours more on weekends. Not fun. There was no line for health or disability insurance. Paid off car (clunker). Electric heat only. Basement apartment. No cable. Cheapest cell. Only kept that up for a year. Pure exhaustion doesn't even begin to describe the physical toll. At least i didn't have a kid!
While H was in school we brought in about 2200 and paid for his classes at the same time. State university, credits were cheap. Even with more expenses, having two people bringing in 2k is different because there's more of a security blanket if one person couldn't work. Also, there was a light at the end of the tunnel. We knew it wasn't going to be that tough forever. Can't imagine working like that and having no hope of a better future.
I think that's key. When I was working 70 hours a week at two customer service type of jobs, I was in my 20s. I kind of wanted easy jobs that I didn't have to "take home" with me, so to say. But I also had a college degree. I knew I was kind of screwing around, but wouldn't be forever. So after a year or so, I was able to get a full time office job, and then I started grad school. Poof! One job, graduate education.
Working 2 jobs for low pay isn't the end of the world when you're young and your body can handle it and there's an end in sight. But plenty of people have to live like that forever.
When I was poor, 10 years ago, I paid $58/month for health insurance through the major corporation that employed me. It had a $10k per year max and was accepted almost nowhere. Maybe McD's extends their employees the same type of amazing coverage?
Yep, the "Mcsurance" link that ESF talks about their "insurance" plans. It's terrible, it's not really insurance, but McDonald's got a waiver that lets them count it as "employer-sponsored insurance" for Obamacare purposes for a few years.
Generally, able-bodied adults are not eligible for Medicaid. Maybe in some states they are? ETA starting in 2014, in non-trogolodyte states everyone under like 133% of FPL will be Medicaid eligible, but that's $14856.10 for a single person. At $2300/month in gross income, they'd pay according $133-190/month for real insurance, according to the Obamacare monthly maximum premium table put together by Vermont.
The sample budget is better than a swift kick in the crotch, but only slightly.
I mean, this is kind of silly really. Obviously McDonalds can't expect anyone to live on $400 or $600 a month. Those are not full time wages, even at minimum wage. I understand it's hard to even find a part time job in many areas, but unfortunately that's not McDonalds' fault - they can't give everyone a full time job just because it would be nice. I think the original budget was unrealistic, I think McDonalds should provide full time jobs to fewer people (i.e. instead of having 20 part time employees, hire 10 people full time), and should pay better - but if you're only working a handful of hours a week there is something larger going on that what McDonalds can really fix.
I mean, this is kind of silly really. Obviously McDonalds can't expect anyone to live on $400 or $600 a month. Those are not full time wages, even at minimum wage. I understand it's hard to even find a part time job in many areas, but unfortunately that's not McDonalds' fault - they can't give everyone a full time job just because it would be nice. I think the original budget was unrealistic, I think McDonalds should provide full time jobs to fewer people (i.e. instead of having 20 part time employees, hire 10 people full time), and should pay better - but if you're only working a handful of hours a week there is something larger going on that what McDonalds can really fix.
If they offer benefits and incentives to full time employees (I'm assuming they do but don't know) then that would mean they would have to offer it to the new full time employees under your proposed plan. Cheaper for them to have tons of part time people and not have to worry about benefits than to hire a few full time people. It would eat at their billions of dollars in profit. How could they ever afford that? ^o)
It's doable, but I wouldn't want to live like this forever. This was my budget during my first couple years in college (about 9 years ago though):
Income: ~$1250/mo (part time waitress, 20hrs/wk) Rent: $630 Electric: $110 average Gas: $100 Food: $100 Cable/Internet: $45 (I was really good at bargaining and the cable guy hooked up extended for me...not sure why ) Car Insurance: $150 (full coverage and I had 2 totals so my insurance was expensive at the time) Cell: $45
I think I'm missing something because I remember breaking even every month. Savings came from working extra during the summer. I had about $5k efund after my ex drained a few grand from me. Car was paid off. No health insurance.
ETA: I lived alone in a 2 bedroom apartment. I had a roommate twice for about 3 months total. Saving an extra $300/mo was nice but I couldn't live with another person because I'm apparently an "insane neat freak".
What bothers me about this McD's budget aside from the unrealistic $0 for heating...are the incomes. They said $8.50/hr which comes to $1360/mo gross. So ok...$1105 net. But the 2nd "part time" job at only $150 less a month? So this imaginary person is working about ~75 hours a week assuming $8.50/hr?