A living wage

How much does it cost to live? I mean, how much money do we need to really live? I suppose that really depends on the definition of "live". The answer is how ever much money it takes to feed one's self and sleep. That sounds fine to me, but i suppose some might call me rather frugal. Others would argue that the monetary needs of a life include entertainment, a well maintained reputable home, a meal plan that extends beyond ramen, and a generally above average standard of living.

$33 a day
Recently I came across an interesting article that talked about a woman who is trying to live on a mere $12,000 for the entire year of 2007. You may have heard about it on MSN Money and thought (like many individuals) it’s just another The Pursuit of Happiness rip-off that we won’t remember come March. While this sentiment might carry a little weight, there have also been many responses from around the internet which not only applaud Ms. Donna Friedmens efforts, but testify to its accessibility.

One gentleman’s response to this venture noted that it was possible to live on $10,000 for 3 years. He gives 20 tips and tricks to help endure this asserting that “You’d have to give up everything that wasn’t absolutely essential.” While this might sound like a justified statement, The American consumer has no idea how much we can still have with such a small budget.

But really, $12,000?
12 grand may seem like nothing at all, but - for a single individual - it is around two grand more than the poverty rate within the United Sates. The above mentioned people are not novel, they just have made the choice (mostly) to go to school and not work to While poverty is a loaded word which evoke thoughts of cardboard lean-tos and drive by shootings, there are a number of things one should remember.

• In 2005, 37 million people were living in poverty in the US. That’s 12.6% of the population. That’s a lot of people to be classified by the federal government as impoverished.
• Forty-six percent of all poor households actually own their own homes. The average home owned by persons classified as poor by the Census Bureau is a three-bedroom house with one-and-a-half baths, a garage, and a porch or patio. I guess I didn’t expect that many would own houses.
• Seventy-six percent of poor households have air conditioning. By contrast, 30 years ago, only 36 percent of the entire U.S. population enjoyed air conditioning. Shoot, my private college dorms didn’t even have air conditioning.
• Only 6 percent of poor households are overcrowded. More than two-thirds have more than two rooms per person. I guess it doesn’t have to be a lean-to.
• The average poor American has more living space than the average individual living in Paris, London, Vienna, Athens, and other cities throughout Europe. (These comparisons are to the average citizens in foreign countries, not to those classified as poor.) Who needs living space anyway?
• Ninety-seven percent of poor households have a color television; over half own two or more color televisions. Seventy-eight percent have a VCR or DVD player. Yeah, but yesterday’s technology is cheap nowadays.
• 62 percent have cable or satellite TV reception. I don’t have cable…

Additionally for all the mothers out there who think that some people trade food for tv:

"As a group, America's poor are far from being chronically undernourished. The average consumption of protein, vitamins, and minerals is virtually the same for poor and middle-class children and, in most cases, is well above recommended norms. Poor children actually consume more meat than do higher-income children and have average protein intakes 100 percent above recommended levels. Most poor children today are, in fact, supernourished and grow up to be, on average, one inch taller and 10 pounds heavier that the GIs who stormed the beaches of normandy in World War II."

Where have all the Cookies Gone?
As i gathered the w2's and efiles and turbo taxcuts to do my taxes this year i notes the encome for my 'household.' I guess I was surprised to find that our income was right around double the poverty income level. We did save a portion of our income, but overall I find myself thinking (not in an accusatory or angry way) ‘where did it all go? I look around and I notice a few things in the room that we didn’t necessarily need, but not a large number. As I reflect I realize that there are a number of things that seem to stick most of us.

Sailing the High C’s
So here is the list of things which I feel suck a lot of the money out of lives that we could easily get rid of or at least downplay. For all you southern Baptists outhere I have alliterated them all with c’s so you may better recall them next Sunday.

Cars – The car is perhaps the simplest way to watch money go down the tubes. Eventually, it all adds up: gas, oils changes, insurance, loan payments, and repairs can cost a small fortune. The solution is to utilize public transportation. Although it is not always the most convient method of movement, it just makes sense. It’s cheap, allows free time for thinking, easier on the environment, and keeps you from frequenting the store too much. If this doesn’t seem like a viable option, invest in a bicycle or even a scooter.

Connectivity – I often feel I am a victim here as well. It seems that Americans must be connected in everyway possible to as to create no time where one is not aware of and receptive to information pertinent to ‘everyday’ life. I’m talking about cable, phones, cell phones, internet, and the like. The problem is not that we want to have our cake and eat it too; the problem is that we want to bake three cakes and eat them all. As I stated before, I don’t have cable. I gather entertainment via my low-band internet connection and broadcast channels. I don’t seem to b in want. As far as phones go, perhaps we should spend more time talking to people in person. Really, though, you shouldn’t need more than one phone line. I understand all of the safety advantages to having a cell phone, but why wouldn’t a prepaid cell phone do the trick? Or, if the need isn’t so urgent, how about two quarters to call someone who cares?

Cookies – I chose cookies here because it starts with a C, but really I’m talking about food. I read a great piece about eating for a month on $10.17 and both staving off hunger and malnutrition. It was a truly enlightening work. I thought the first tip on the page was very pointed: don’t eat out ever. Furthermore, I think about the amount of food that we purchase here and I start to think about how so much is of it either brand name foods I can get cheaper or junk that I shouldn’t eat anyway.

Conclusion
Overall, I will not be living on $12,000 this year, but I do think about cutting down on my spending more and more. It seems like everyone is in the same situation – if we only had a few more hundred dollars a month, then things would be perfect. But salaries eventually go up and things aren’t perfect. Rather than striving for more and more, I would be interested to see more people who strive for the most simple life they may achieve.