by John Mckinsey

Created on: June 04, 2009   Last Updated: June 05, 2009

Life on minimum wage can be brutal, nearly impossible to bear. The federal government established minimum wage to prevent the exploitation of sweat shop employees. These employees were typically women and children who were working to supplement the household income. As a supplement, it can be beneficial and effective. However, for the many people out there who depend on their minimum wage full time job as a primary source of income, things can become difficult.

The current federal minimum wage is set at $6.55 and hour. Forty hours a week at 6.55 comes out to a monthly salary of $1,048, and that's before social security, federal and state taxes are taken out. For those who have to live on $12,576 per year, every penny counts. A strict, and very frugal, budget will be a key part of life. It is a requirement to strip down spending to only the very basic necessities.

So, the first thing to do is make a list of all of the regular bills. The rent, car payment, insurance, phone, cable, internet, utilities, loans or credit cards if any. Then determine which bills are necessities. If you can live without cable television or internet do it. It's always possible to go to the public library to get books, movies and free internet. Maybe you could shut off the cell phone or house phone if you don't really need both.

Once the fixed expenses are minimized, move on to the daily expenses: food, transportation, clothing, entertainment, etc. This is when creativity can come into play. It will be necessary to clip coupons, buy on sale and buy smart when shopping for groceries. Although food is the most important and most necessary expense, it doesn't have to be the most expensive. Being frugal means not eating out often, cooking as much as possible and as cheaply as possible. Buying smart also means buying in bulk when it makes since and buying seasonal fruits and vegetables. Also, buying generic or store brands. Saving every nickel and dime can add up quickly. When shopping for clothes you want to buy nice clothes but not brand names. Discount stores and outlets can help you get the names and styles you're looking for at a much lower price. Saving money on transportation can be helpful in other ways. Walking or bicycling to work can be healthy exercise. If you live too far from work, a bus pass or metro card is typically much cheaper than the gas it would take to commute. And last but not least, think twice about your entertainment expenses. Don't go to the movies, or clubs, or theme parks unless you have extra money to spare.

Think twice about credit cards. Credit is usually a very comforting safety net. In the event of an emergency you know you can afford to get the car fixed, or become ill. However, credit cards can become a mess very quickly. Using the card to go to the movies when your friends invite you, but you can't afford it; it may sound like fun but then your paying 10% interest or higher and your credit card balance is gradually rising to the point that you lose your safety net and have an extra expense, its not worth it.

All in all, life may be stressful, painful and humble, but it is possible to live on minimum wage.

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