Fun fact: minimum wage was created back in 1938 to try to stop uber-low pay. 🛑 It was supposed to set a baseline so workers could earn a living and afford all of their basic needs. Welp, it seems as though we’ve gone off the rails on a crazy train. 🤪🚂
Depending on which state you live in, minimum wage feels more like a slap in the face than a paycheck padder. 😔 And the proof is in this bowl of recent data pudding.
Here’s Five Fast Facts on wage gaps in the United States:
- 💸 Livin’ In America - Families in 25 states need to earn about $30/hr (roughly $53,000 a year after taxes) just to cover basic expenses. Hawaii tops the list, where families need $69.43/hr to afford necessities like housing, food, utilities and healthcare. In fact, in no state can a family of four get by on less than $20/hr.
- 😤 Wage Rage - Compare that to the federal minimum wage, which has been stuck at $7.25/hr since 2009. Even the highest minimum wage in the country this year ($17.95 in Washington, D.C.) is well below what many families actually need. That reality makes it challenging for households earning near minimum wage.
- 🌺 La Isla Bonita - Hawaii leads the pack at $69.43/hr (almost $111,000 after taxes) to cover necessities, including more than $62,000 in housing alone. Massachusetts follows at $54.25/hr, and California at $46.22. In all three, housing eats up the biggest piece of the budget pie.
- 🤠 Midwest Swing - Mississippi and Oklahoma have the lowest required wages to get by. Families in Mississippi need $25.35/hr to cover basics like $14,788 in housing and $7,541 in healthcare each year, while Oklahoma requires $25.65/hr. They’re the only two states where the required wage falls in the $25 range.
- 📋 Quick Fixes - If your budget feels stretched, don’t try to fix everything at once. Try cutting one overspent category by 20% this month and move on to another next month. Redirect your extra cash into savings. Check your budget regularly so you can see your progress…and keep going!
🔥Bottom line: Haters will tell people to just work harder and get better jobs, but that’s not a possibility for every American. Many are already stretched thin, don’t have time or money for a better education, and don’t have the means to pick up and move somewhere cheaper. It would be a lot cooler if minimum wage covered the basics, just like it’s supposed to! Want some good news? Depending on your tax situation, you might owe Uncle Sam less this year. Head over to this article to read all about it.
What’s the current minimum wage in your state?
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