Minimum in Montana

My previous blog focused on the challenges of what a person living on minimum wage faces.  I'm continuing this theme by examining the issue from our own Montana perspective. It would be great if living wages were higher and people were not forced to exist on the lowest amount possible, but that is simply not reality.

Again, this is not an article advocating for increasing the minimum wage in the United States. There are several people on both sides of the issue who can make sound arguments and I will leave the debate to them. Instead, I am simply going to give some tips on how a person can live on minimum wage because there are thousands of Montanans doing this every day.

A full time minimum wage worker in Montana working will earn $322.00 per week, or $16,744.00 per year. Montana's minimum wage rate as of February, 2015 is $8.05 per hour. So, here you go... Some practical tips dedicated to cutting expenses when every single nickel counts.

1. Find a place to live within walking or biking distance to your job and for less than half of your income. This means a living situation where rent and utilities cost no more than $500 a month. Being able to get to work reliably and for free will contribute significantly to your income stability, both by cutting costs, and by making sure you don't lose hours due to car problems or missed buses.

2. Consider going rural. There are many small towns in Big Sky Country where you can find a room to rent for $100 a month and a small apartment to rent for $200 a month. These areas often have lots of jobs for minimum wage workers – look for an area with lots of "help wanted" signs around these towns and notices inside of town halls and gas stations looking for workers.

3. Spend no more than $200 USD a month on household necessities (food, toiletries, cleaning supplies, etc). The only way to pull this off is to cook pretty much everything yourself (buy raw ingredients instead of pre-prepared food), or get government assistance. If the store isn't within walking or biking distance, or isn't reachable by public transportation, shop only once a month.

4. Limit leisure spending and learn how to live within yourself means. Perhaps buying clothing at a thrift store can save a great deal of cash. Have discipline and strengthen your character because the more money you can save for a rainy day, the better. Always look for free alternatives. Libraries provide free entertainment in the forms of books, music, and internet access. There are parks, recreational activities, and other things even in the smallest of rural towns. Take advantage of Montana's beauty.

5. Cut cellular and cable costs. Cellular plans usually cost about $30 a month. If you don't use all the minutes in your cell plan, a prepaid or pay-as-you-go phone may save you a lot of money. Or, consider not getting a cell phone at all, if you can function without one. Cable TV often costs at least $20 a month and goes unused. Consider dropping your cable subscription altogether and instead watch TV on free online streaming services. Use the internet in libraries to save money.

6. Save for medical and other emergencies. It is generally difficult to get health insurance through a minimum wage job. These steps leave you with about $170. That's enough for an individual monthly health insurance premium if you're in very good health to begin with, and if you choose a high deductible. But if you have a medical emergency, you'll still have to pay out of pocket until you meet that deductible! This is extremely important because even a small medical emergency can cost a lot of money that you don't have, and make you miss some work.

7. If you're in debt, try to pull the money to pay it off from other categories. Do not use this money for anything other than medical emergencies. That's the only way it'll build up. If there's something else you need (e.g. furniture, appliances) budget for it out of your leisure or food money.

8. Save automatically. Keep some of your money in a checking account sufficient for paying bills, then go to the library and use the internet access there to set up an online automatic savings plan there to withdraw periodically from your main checking.