Good question.
I've been told by banks that your debt to income ration shouldn't exceed 36% including your home and utilities. If that is a measure to gage standard of living then lets do the arithmetic.
I live in a rural area. My house payment (mortgage + taxes + insurance) = $783 per month
Utilities (electric and oil, telephone, internet access, satellite TV) average = $702 per month
Total = $1485
For a 36% Debt to Income Ratio I must make AT LEAST...... $4125 per month
Of course that's pre tax income.....
Let's confuse the issue.... This $50000 a year supposed income is taxed at approximately 33% by all concerned with such things. That make a monthly take home of....................... $2763.75
and a net disposable income of ..........................................................................$1278.75
Of course this disposable income is needed to pay medical expenses, - $250
food - $500
gas - $200
clothing - $100
misc - $100
leaving a balance of .............. $128.75 PER MONTH
to go to savings, credit card debt, religious obligations and fun......
Not bad on $50K a year.
But that salary, based on a normal work week of 40 hours and getting paid for holidays = $24 per hour wages.
Unfortunately the median income for all occupations in Northern NY where I hail from is $26,770 which translates to ....................................................... $12.87 per hour.
Which means two people working at decent (not minimum wage) jobs, might be able to get by. Unless something happened to one of them. Or their wages didn't keep up with the actually increases in the cost of living.
More to follow.
4 comments:
Hi Madman. This is probably why the "Living wage" issue is so hot in Vermont, where I use to live. Things have changed for the worse when it comes to making a living. I can remember when I was young, my mom stayed home to help raise us. It was a good time growing up as mothers would create experiences at home for their kids to have and express imagination while the father was working and trying to make enough so that everyone could eat and be full.
Today, it takes both parents being away from home at a job, each working 50 hours a week with no time for the kids. That's what has happened because of globalization and "free trade". Free trade means to me that there is always someone in a country doing so much worse than us that they are willing to work almost for "free', compared to what we are willing to do the job for. Ah yes, that is so called progress.
Hi Madman. This is probably why the "Living wage" issue is so hot in Vermont, where I use to live. Things have changed for the worse when it comes to making a living. I can remember when I was young, my mom stayed home to help raise us. It was a good time growing up as mothers would create experiences at home for their kids to have and express imagination while the father was working and trying to make enough so that everyone could eat and be full.
Today, it takes both parents being away from home at a job, each working 50 hours a week with no time for the kids. That's what has happened because of globalization and "free trade". Free trade means to me that there is always someone in a country doing so much worse than us that they are willing to work almost for "free', compared to what we are willing to do the job for. Ah yes, that is so called progress.
check out my site.
www.minimumstandardoflivingvsminimumwage.yolasite.com
I am seeking to get a minimum standard of living bill going and people to follow me in making sure the 1040 form does not start at below the minimum set by us.
At the moment. It starts at $0-5.00
Who makes that? I want it to state a living wage or minimal amount that we can live on. I agree with you Mad Man..come join me and twitter me.
karlajordan2012@yahoo.com
Religious obligations? Do you owe the church of scientology some money?
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