My Finance Blog

I’ve been asked this question not too long ago. Can a person live earning below the minimum wage? Not the minimum wage of any particular country but the minimum wage in general. Let’s see…what does a human “need” in order to live? Let’s strip off all the icing from the cake and look only at the nitty-gritty. There would be food, water, shelter and clothing. I’m pretty sure I’m missing another element, but let’s go with these four. Earning minimum wage, one could afford these most basic needs. After all, how much do you think the plainest food and clothes would cost? Water could be free and with shelter, you could take on the most miserable abode. So do I think living below the minimum wage is possible? Of course. In short, I think the question needs to be rephrased.

The question should be — can a person live comfortable and decently earning below the minimum wage? Of course, it all depends on one’s views of what “decent” and “comfortable” are as they are both subjective terms. But let’s assume “decent” and “comfortable” living means being able to afford more than just the basic needs without having to borrow from other people.  My answer would still be “yes” but I would also ask, “for how long?” As you grow as a person, get married, have kids, your cost of living rises. So, my advice would be, if you are earning below the minimum wage for now, scrimp and save up. What you’re able to save, put into investments. There are many to choose from — time deposit, stock investment, forex trading, mutual funds, ETFs, etc. Seek ways to make your life better and don’t just be content being at the bottom of the barrel. Don’t be afraid to take risks or else, life might not improve for you for…well, forever.

Filed under: personal finance