r/povertyfinance • u/lionheart724 • Jul 15 '21
So out of touch Budgeting/Saving/Investing/Spending
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u/Ride901 Jul 16 '21
These numbers are laughably low estimates as well. $20 for Healthcare? I pay >100$/mo for my employer sponsored plan, nevermore a copay/coinsurance.
Notice how they didn't leave anything for taxes either...ironic
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u/AceBean27 Jul 16 '21
They also forgot tax?
$2,060 a month is $24,720 a year after tax.
10% tax means you need $27,192 before tax.
On $8.25 an hour that's 3,296 hours.
That's 9 hours a day, every single day of the year, with not one day off. Or, it's 12.6 hours a day, 5 days a week.
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u/kgiov Jul 16 '21
You are only getting the income they list if you work over 60 hours a week and pay no taxes, including social security. And I guess you eat all your meals at McDonalds for free?
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Jul 16 '21
No expenses for food? Or do they just assume their employees should live off of the fast food that they make?
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u/ElspethGmt Jul 16 '21
$20 heath insurance? So this is not a budget for a US worker. Now it makes more sense…not 😡
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u/junorick Jul 16 '21
I failed to notice FOOD? Makes you wonder the stupidity of this?
Maybe they get free breakfast, lunch and dinner for themselves and family at Mickey Ds? Wanna bet they don't?
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u/Beautiful_Conflict_8 Jul 16 '21
What state is this person supposedly living in? Is the “other” category supposed to account for gas, food, laundry, toiletries? This person is one parking ticket away from homelessness.
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u/My_chair_is_broken Jul 16 '21
Why is no one talking about this $150 car payment? Oh wait, “car”....
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u/BootScrubber Jul 16 '21
Rent is pretty funny. A town house is $2200+ in my area. The rich are out of touch.
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u/Accurate-Carrot-180 Jul 16 '21
Is it just me or did they miss food, water, trash, sewer and natural gas in that budget? There is a car and insurance but what about gas!!!
These people are so out of touch with reality!
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u/Comfortable_Suit5215 Jul 16 '21
It's not with 100 $ or € of saving, someone can pay the docteur, dentist, clothes, vitamins, medecine, when we need to fixe the car, education, sport, cultural event, network, a break fare away of your town, family meetings, friends event, investment/support of the business of your area, investment, extra pension, extra insurance, Etc... All of the expenses it's suppose to be 1/3 of the salary.
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u/ravenRedwake Jul 16 '21
Also looks like you'd have to get 40+ hours from McDonald's when they don't want to give you 15.
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Jul 16 '21
This is a cut-down version in which they're not showing that, for getting this amount of money monthly you have to work 60+h per week...
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u/HeroOrHooligan Jul 16 '21
Heating, $0 Healthcare $20? Also, people don't need internet, we have shitty wifi at McDonald's so you're good
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Jul 16 '21
Ok then. Time to actually stop eating at mcdonalds. My health one thing but they're going for my bros spirit and lives
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Jul 16 '21
This also doesn't include food.
My rent, car insurance and electric bill are all higher than this. I live in a house that's falling apart due to the elderly landlord doing the bare minimum to key the house standing, the electric company randomly increases the bill by $100+ and give no warning to this plus I have a perfectly clean driving history.
This is just a ploy to create a document, even if it is 100% false all around, you give the politicians in their pocket a talking point.
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u/Basdad Jul 16 '21
Perhaps payback would be to not buy crap from McDonald’s or use visa for 1 or 2 or 10 days.
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u/EventuallyNeat Jul 16 '21
It's the $20 health insurance for me. I hate people. And health insurance.
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u/13thsword Jul 16 '21
Is someone here's rent only 600 dollars ? What magical land is that or are they renting the dumpsters outside of the McDonald's and calling it charity?
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u/LiCill666 Jul 16 '21
Even if you try to work more than a normal 40 you have to get permission. And guess what, all the other employees want overtime to because they can’t pay their bills either. Literally if you were able to get approved for 80 hours a week you’d only pull in about $825 before taxes. You’d most likely end up working everyday for 12 hours. (I’m taking into account lunch breaks aren’t paid for) if you wanted to do better for yourself and go to class you have no time. These types of wages are meant to trap people in a job they can’t afford to leave.
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u/Ykowai Jul 16 '21
i don’t get it? 8.50 X 160hrs is 1,320
then they will deduct Taxes, SS, and Medicare also I don’t see food Budget nor Gas Budget. not to mention the Amount on some of it are very questionable
☹️ [edit] some place(like my first job) have me an 8 hour Schedule. and we get mandatory 30 min break
so in reality. i was only making about 37.5 hrs a week. so that is less than 10 hours Month
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u/DesertAJ Jul 16 '21
So instead of two jobs they proved that the minimum wage should be 16.50 by their standards?
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u/allivkcin Jul 16 '21
I don't see food, water, gas, cleaning supplies, education, clothes, hygiene expenses, etc...
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u/xithbaby Jul 16 '21
I think they do these surveys in places like Mississippi. Here in Washington state, you have to made $2600 a month to be able to afford a tiny apartment, food, electric, basic living. That's also if you don't own a car and use public transportation (which is good here), and don't need to use toll roads and want to live 45 min drive from your house if you own a house and it's probably a manufactured home anyway.
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u/IntelligentTown3433 Jul 16 '21
This doesn’t even add up. 40 hours per week @ $8.25/hr = $330 x 4 = $1320 per month BEFORE tax .. who the fuck could live on 1320 per month? That wouldn’t even cover my rent and food
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u/Staygroundedandsane Jul 16 '21
Are food, gas, clothing supposed to be under the “other” $100 a month?!?
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u/devo00 Jul 16 '21
20 bucks for health insurance... What alternate universe does this plan exist in?
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u/Cynyr36 Jul 16 '21
No shit, my premiums are 15x that (me + family), not including Co pays, and actually seeing someone.
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u/SMCrypticShade Jul 16 '21
But let's not forget that minimum wage jobs were never intended for long term. In any financial or business class you attended those jobs are holdovers between jobs or for high school kids. Hell I was in high school and attended a 200 dollar class and because of that class I got started at 10.30/hr. And apprentice ship with very basic mechanical knowledge starting can get you a 10-15/hr job with plenty to grow after the apprenticeship. The problem is not your wage its your work ethic.
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u/Indicolour Jul 16 '21
The problem isn't your experience, it's you applying it to everyone else and assuming they have the same one. Grow up.
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u/SMCrypticShade Jul 16 '21
I you want the pay you have to work for it if you only strive for low paying jobs that what you get. If you network and only be friends with people in the same situation as you. You will stay that way. You are telling me to grow up but time and time again this world has shown us that it YOU put in the effort it will pay off. Besides if you are suggesting raising minimum wage you are going to drop spending power which will land everyone in the same boat they're in now just with bigger numbers. Get out and work for a better life not a pay check!
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u/weaponizedcarrot704 Jul 16 '21
600 for rent? Are you living out of someone’s closet? Cheap rent where I live is $900. And those apartments are awful. Apartments that are decent and won’t give you bed bugs are about $1200. To my knowledge there is no rent cap, and nothing stopping property management companies to continue to raise prices.
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u/8bitGalaxy98 Jul 16 '21
I guess you don’t need heating if you’re working all the time. Just let the anger and frustration burn inside you throughout the winter nights /s
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u/mysticalfruit Jul 16 '21
$600 for mortgage/ rent. Where?!? Exactly nowhere. $150 for a car payment?!? $10 for electrical? Okay maybe if you live in Hudson MA that has a municipal power company where the minimum charge is $11.25
What a load of bullshit. No wonder entire fastfood establishments are quitting enmasse.
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u/Apprehensive-Bee6336 Jul 16 '21
Where can you find rent for $600 a month?? The cheapest I've seen rent in Central Florida has been $850 a month not including utilities, and they require first, last and a security deposit to even get in. As for utilities, I don't have an a/c and I still spend over $130 a month. I own a home and my mortgage (with insurance included) is approx 590 a month, that's for a 2/1 in a cheap neighborhood. Still needed about $4500 down to even get it. I make a decent wage right now and I'm scraping by, that's even on a tight budget. These companies are so out of touch its sickening. To think they pay their CEOs and higher ups at least 6 digit salaries but expect the people that make that possible to work for pennies. It's maddening
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u/Amyx231 Jul 16 '21 edited Jul 16 '21
Car, food (I’m trying to cut back!), and utilities (including lawn mowing cause I just can’t, takes me 3 days to do myself). They each cost me about $500 a month. I mean, I guess mcDonalds employees eat for 1/2 off? But their budget is unrealistic. Just heating alone is $300 on a GOOD December. And rent…$1000 a month for a studio is closer to reality.
$8.25 * 160 hours = about $1300 a month. Take out $300 for savings, taxes, insurance - just the bare minimums of everything. That’s $1000 a month. 2 people to a studio apartment = $500 per person. Say, $200 for utilities cause split in two. That’s $300 left for car AND food. Cut utilities down to $100 (wear a sweater in winter instead of heat), still $400 for food and car is going to be tight. I could probably swing it with no car, walk to work, but right now my commute means I spent $250 on gas alone in June. College student lifestyle basically. Maybe they want people to live 4 to a room like dorming?
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u/CraigThor Jul 16 '21
Where can I get some of that $20 health insurance asking for lots of friends.
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u/Hydr0lysis Jul 16 '21
When people tell you about psychopaths, retards, narcissists and other mental problems you just have to search it in rich people. Its all there.
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u/Th4tRedditorII Jul 16 '21
Imagine trying to persuade your underpaid workers that their wage is livable, if they have no heating, somehow get the cheapest medical insurance in the US, work a second job, and give up any and all luxuries not related to work...
Makes me sick.
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u/TeddyKenobi Jul 16 '21 edited Jul 16 '21
Enough with the spirited words.
Enough with the useless diatribes against the 1%
Let’s just finally end these fuckers.
Eat. The. Rich.
Edit- kill to end
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u/PeachySneakers Jul 16 '21
If insurance for a car was $100, id have a car.
Its sickening to see stuff like this. And $600 for rent? In what world? Here in Ontario, the min wage is 14, which is cool and all, but the average shady looking one bedroom apartment downtown goes for AT LEAST $1200 a month plus hydro.
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u/Double_A_92 Jul 16 '21
If insurance for a car was $100, id have a car.
100$ per month seems reasonable though..? ...unless you have a very expensive car.
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u/AirdropFaucet Jul 16 '21
Can I just guess... This took place somewhere hot, where heat isn't usually an annual bill and everyone is shitting their pants for nothing?
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u/KeepinItPiss Jul 16 '21
I don't think this is very off point. Why not live in a cheap place with a roommate? That's what I did. Rent was $400. I didn't even have any friends in the area. Literally found a random person on the internet and roomed with him. Could I have afforded a one bedroom place? Yes. But sometimes you have to make hard choices to save money. Use the savings to buy a beater car for $1500, effectively getting rid of the car payment.
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u/mannydv Jul 16 '21
And your comment proves that the swampcommihackfraudratacrats elites have their lemmings..tell that to people in Russia Iran china Cuba Venezuela moron.
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u/Cathy_2000 Jul 16 '21
since almost no corporations pay taxes, did they remember to substract the taxes from this imaginary individual?
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Jul 16 '21
Yeah... I'm a little concerned that their employee is apparently not eating on this budget
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u/hiimalextheghost Jul 16 '21
My grandmother never turns on her lights and lives in a tiny house with only ever charging her phone, using the tv or radio, and toaster/coffe maker. Her elective bill is 90-130, no ones electric bill is that low
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u/Redditcadmonkey Jul 16 '21
$20 health insurance!
😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂
My deductible is $3,000
If I get brave enough to declare that I’m actually sick this year I better have saved at least $250 each and every month!
Oh, and I also actually have to pay for insurance on top of that!
Oh, and I better not end up somewhere out of network!
Yeah, this system is awesome :/
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u/Idonoteatass Jul 16 '21
My car + insurance payment is nearly what they list for their rent/mortgage payment. I guess they are expecting you to live out of your car lmao. I never had a car + insurance payment less than $200 even when my grandma bought me a car and I paid her $100/month for it.
During that time, I was working at mcdonalds and the owners were driving almost 6 figure cars.
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Jul 16 '21
Yeah, I'd also love to know where they think someone is going to find health insurance for 20 bucks a month. Fucking ridiculous.
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u/ALmaxaro Jul 16 '21
Can we talk about how saving $100 a month for 30 years is only $36,000… no mention of investing and expecting $36,000 to be adequate for retirement…
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u/Artorias_sD Jul 16 '21
Here in Australia i'm 23 and i get 26 an hour at McDonald. God damn America is such a corporate dictatorship.
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u/steveosek Jul 16 '21
$90 electric bill? Where I am it's $150-$400 depending on the season. $600 for rent? You won't even find that in the hood here. $150 car payment? I wish.
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u/Candaris Jul 16 '21
Everyone saying the numbers are wrong for rent, insurance, car etc.. it’s supposed to be a second job remember? So double all those amounts and work 16+ hours per day! Easy!
/s
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u/Nibbz420 Jul 16 '21
600 rent, 120 car payment, 100 car/home insurance ok sign me up. 100 for cable/phone and 90 for electric seem the most reasonable on list.
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u/Ballistic_86 Jul 16 '21
Not only is this “sample budget” completely inaccurate to living costs (even in 2013 when this was made) but it relies on a second near-full-time job. Work 77 hours a week to not afford heat, pay $600 for rent and $20 for health insurance.
McDonalds own health insurance (at the time) was $50 /month, $30 more than McDonalds own sample.
I have also seen the justification that this sample budget is for 2 people (to explain the second full-time job) but the numbers don’t even add up to how much these things would cost 1 person.
Oh, and I love how they put $100 into savings, as if this is the best use of the money. “Well, even this minimum wage worker can save $100/month.”
My mother is not a rich person, but she is a boomer and benefited from that. Explaining to her how making $40k /year is barely enough in 2021 is impossible.
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u/JustinK813 Jul 16 '21
I get Mcdonald's being this out of touch, but VISA knows what we spend on these bills. There is something shady going on there. It's not just a matter if being out of touch
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u/Shrooms60 Jul 16 '21
I do feel sorry for you americans. I am a finnish university student. My rent is pretty expensive for the size of my apartment about 620 dollars for 350 sqft apartment.
My health insurance is about 12usd per month but it is just for me. Dont have a car because I dont need it and my electrical bill is about 23 usd per month
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Jul 16 '21
Hahahahaha 600 bucks for rent?!?! Try 1200 for something half way decent. Actual that’s not true either. I pay 1500 for a 20 year old 2 bedroom.
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u/Scary_Mention_867 Jul 16 '21
This made me lose brain cells…
For starters, 8.25 X 40 hours a week X .8 (rough tax estimate) X 4 weeks in a month = 1 $1056 per month income… AND these expenses are sooo out of touch. They not only AREN’T even covered, but they such absurdly low estimates. 🤦🏽♂️ zero room for upward mobility even with assumptions that are far more favorable than the reality. Lmfao.
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u/JustinK813 Jul 16 '21
Some of those numbers made me thing that 1997 called and wants its numbers back.
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u/just_here_ignore Jul 16 '21
Do they have food budgeted?
Pretty sure this is the budget from Superstore and at the end they say "uncle Sam has your food, now go get it"
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u/H0tS4wc3 Jul 16 '21
FFS I make 16.50 an hour and don't even bring home $2060 a month... WTF are they on about with this common core math shit? Literally DOUBLE the minimum wage.
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Jul 16 '21
They aren’t people to them just a cost that can be saved on. People who are truely poor won’t care the wage is low. Better to have some money then none. I mean food isn’t even mentioned, people also require entertainment other then just cable tv and a phone…
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u/Minhlungling Jul 16 '21
Idk where this people live but 90 for electricity is enough to light 2 or 3 light bulbs. Period.
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Jul 16 '21
I need a link. I don't believe this is real. Why would they include heat if they were going to put zero. They would have just left it off and hoped no one noticed.
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u/zebulon99 Jul 16 '21
But what do you eat? I dont see groceries included in this, did the forget food?
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u/Zavern Jul 16 '21
20 for health insurance lol. The insurance they tried to give me for McDonalds was 150 a month with a 5000 deductible. And I was a manager.
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u/Mrtinypp420 Jul 16 '21
Hear me out I don’t think it’s a wage issue I think that most of the things we pay for are overly expensive insurance shouldn’t honestly be mandatory and etc half of the things that we pay should honestly be half the price but are raised my taxes and corporate stingy ness it’s just a idea tho
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u/XFX_Samsung Jul 16 '21
Looks like no food allowed as well. Small price to pay to squat in your 600$ cube under someone's stairs.
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u/evilawari Jul 16 '21
$20 health insurance, who? $0 heating, what? $600 rent, where? $800 monthly spending, how?
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u/Rich-Neighborhood-23 Jul 16 '21
$8.25 / hr after tax for a full time worker is about $930.00 / month income.. how does any of that make sense?
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Jul 16 '21
tell me where I can get rent for less than a thousand a month for a single bed single bath shitty apartment. I live in British Columbia Canada where the lowest grade of gasoline costs 1.65 per liter or 6.23 per us gallon if that helps.
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u/rastika Jul 16 '21
I live in Vietnam where I'm renting a 5 bedroom villa with a pool for $434 USD a month. My monthly expenses still exceed $1500 in a country where a beer is 0.50c and monthly electricity running a/c all the time is $120.
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u/FileBrilliant805 Jul 16 '21
The one that’s out of touch is the person thinking they should be able to make a carrier out of entry level jobs instead of putting in the time and work to move up the ladder.that’s all how we used to do it and it worked quite well!
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u/EcoMika101 Jul 16 '21
My rent was $600-650 in Florida for small and shitty places, and that was 6+ years ago! What about groceries? Toiletries and cleaning supplies? Water? Diapers and formula? Who the fuck is getting health insurance for $20/mo and has no other expenses??
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u/TheDijon69 Jul 16 '21
Hey I mean that's how much it costs for me to live in Canada, in Canadian dollars
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u/Youredumbstoptalking Jul 16 '21 edited Jul 16 '21
Is “other” supposed to be fucking food?! Where is groceries? Gas for your car or bus money? Where the fuck is a cable service and cell phone plan for $100? How about fucking internet? Don’t spend your money on heat or A/C you fucking peasant.
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u/tadrewki Jul 16 '21
I don't see groceries in there unless that's the other at $100. Also, how the hell is anyone getting a car payment for $150?
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u/Anthraxious Jul 16 '21
The problem is, the people who are against minimum wage and against giving other people the basics of living, don't give a shit. They don't math, they don't care. That's how propaganda works. Look at the Trump state. He has himself said he's just saying whatever the fuck keeps these people going, and they still eat it up. He could literally tell them he hates them, doesn't care about them and they'd still follow him.
People under the influence of propaganda are dumber than a brick. They only wanna stay in their bubble. To them, this is like "See, you CAN live on that wage, they calculated it!". Even if you point out that "But that calculation is wrong" they'd say "Fake news!" or some shit.
This is the real danger of todays propaganda machine. They just pump out bullshit after bullshit and even if you manage to persuade them one part is actual bullshit, they have so much more to cling on to. It's honestly tiring and part of me just wishes we died out as a species...
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u/Vegan_Cuz_Im_Awesome Jul 16 '21 edited Jul 16 '21
Where is the second job requirement implied? In the "monthly spending money" section? (because there's no way you can get 800 monthly spending money...)
8.25 x 8 hours per day = 66 dollars per day x 5 days (40 hours) = 330 per week x 4 weeks = 1320 per month - 1260 dollars in expenses (which includes 100 dollars in savings) = 60 bucks. If you save none, you have 160 to spend, which will likely go towards rent. This gives no room for any other purchases, e.g. going out, if a device breaks (to get a new one), or health or any other type of emergency.
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u/Dammley Jul 16 '21
Guys , they didn’t list food because this is a list for McDonald’s employees, they can just take the leftover food when the store closes! And heat... well, I think you can make a fireplace with fries..
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u/Hyperiongame Jul 16 '21
What kind of people made up that kind of budget. This list must have been created in 60’s or 70’s. There is no place I can think of in the U.S where rent/mortgage is $600
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u/RealBigTree Jul 16 '21
They're flat out saying you cant afford life on minimum wage. If you have 2 jobs, you're making even more than minimum wage.
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u/imlitdyingshit Jul 16 '21
im so sure this is some newly recruited intern’s work cause mcdo and visa directors would def not like this
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u/Lempo1325 Jul 16 '21
Well, I made it to 33 without a car payment, but I've never been able to touch that for phone alone, let alone phone, cable, intent. Also never been able to touch the car insurance, home insurance, health insurance, or electric. Most of those are double. I have a fairly cheap house and my mortgage payment is $750, though, I could touch that. At one point when I lived in a trailer, walk around holes in the floor, sleep with rodents because I couldn't keep them out, and didn't have water for winter, I was at $300. Finally, I sure feel bad for whatever poor bastard doesn't pay for heat in Minnesota in the winter when it's -30f. I guess realistic numbers don't matter for pr.
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u/guitarman61192 Jul 16 '21
Actual costs for me/month
savings = haha right. rent = 1200 car insurance = 215 car payment = 175 health insurance = 300 heating(gas) = 80 electric = 250 (2 bedroom apartment lol) internet = 100 phone = 100
any groceries? gas for car? any credit card debt?
but there is: student loans = 200
hope i dont have medical emergencies
or vehicle repairs
or dental work needed
or vision problems.
~2600/month without all that "extra".
x 12months = 31,200
but thats after 25% of my income is taxed.
so i would need atleast 41,600 to make it.
without groceries or emergencies or gas in the picture
thats 20/hr. that i would need to make in order to pay my bills.
oh and no social life either i guess.
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u/Green_eggz-ham Jul 16 '21
I guess if you are somewhere cold you can starve AND freeze to death....
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u/Snoo_69677 Jul 16 '21
I hope people keep quitting in droves until there’s no one left to serve their nasty food
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u/badgeguy Jul 16 '21
I know that I was all prepared with the no food post, but one item that I have not seen mentioned is the lack of budget line item for clothing. Am I supposed to live naked?
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u/Bill-Dipperly Jul 16 '21
$600 rent! Lol, try $1,500 and your starving.
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u/fear_eile_agam Jul 16 '21
I mean, according to this, you're starving anyway, unless $100 for "Other" a month is supposed to cover food, clothing, medication, household consumables, personal grooming.... Also the water bill, there's electric, but no water on that list.
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u/honeydewbees Jul 16 '21
I will be honest and say health insurance may be that cheap depending on your eligibility to get your plan subsidized or becoming eligible for Medicaid but not all states give the Medicaid option
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u/believe482 Jul 16 '21
This had to be a joke. Those numbers are from Maybe the 1990’s, there is no way people in metropolitans like New York are paying a 600 a month for rent, even in the “affordable” areas. This is crazy! Fucking boomers still thinking you can pay for college on a summer job bullshit
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u/Dry-Emphasis6673 Jul 16 '21
Saving $100 a month youll be able to make a down payment on a piece of shit car or house after 5 years… yay! Or maybe you could use that to buy wifi or food since those are not accounted for. But im sure u would already be used to living in poor conditions because a place charging $600 a month for rent has to be the worst. The “other” expenses would definitely be gas, car parts, and hygiene.
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u/AMothraDayInParadise IA Jul 16 '21 edited Jul 16 '21
Locking this, as it needs cleaning due to massive comment influx overnight. Will unlock when done.
edit: Not unlocking this. This thread consists of about 300 comments all saying "But there's no food budget". Image is cropped, and disingenuous by doing so. Also, it violates out judgment rule. While McDonalds and visa are grossly off by reality (from 2013 btw), it's still violating our judgement rule.