The Federal Minimum Wage increased on July 24, 2008 to $6.55. This raised the minimum wage by $.70. Approximately 2 million Americans make minimum wage. This results in approximately an additional $5.60 a day, $28 a week and $112 a month for a 5 day work week. An additional increase will occur next year and raise the minimum wage to $7.25 an hour.
Twenty-three states including the District of Columbia have a minimum wage higher than the new federal requirement which affects approximately 60% of American worker and are: Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Illinois, Iowa, Maine, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Vermont, Washington and West Virginia.
The low-income and middle class are greatly affected by the current recession. The minimum wage increase unfortunately is not enough. Many Americans are struggling just to make end meet and to buy basic necessities and have to use credit cards just to buy food and gas.
The average family is spending approximately $4,655 more on basic necessities such as food, housing and gas. Child care costs have also increased for those with children under age 5 to $1,508 a month and for after-care with older children to $622 a month.
Food prices rose more than 4% from last year. According to Money Magazine the cost of prescriptions drugs has increased, pharmacy co-pay prices have increased 25%, the cost of milk has increased by 14%, the cost of college tuition by 6%, the cost of eggs by 31%, the cost of bread by 14% and the cost of gas by 21% since last year.
Americans will have to find additional ways to reduce expenses and make their dollar stretch further. If you like to eat steak for dinner substitute it for chicken or fish, beans and rice for dinner or breakfast food for dinner. Fix tuna casserole, or other types of casseroles, stews or soups for dinner to save money on food costs. You can also shop at wholesale stores, buy items or sale, use coupons, carpool to work, shop at thrift stores or discounts stores such as Costco, Walmart, Ross, Marshalls or J.C. Penny.
Cut expenses in every area you can. You will have to make sacrifices to make ends meet but it is possible. Think of creative ways to save money by reusing items, holding a yard sale or bartering services with others who have businesses. It will take a lot of hard work and discipline to make it through these tough times but if you make it through you will know that you are a survivor. Good luck to you.
Harrine Freeman is owner of H.E. Freeman Enterprises, a speaker, personal finance expert and the author of, “How to Get Out of Debt: Get an “A” Credit Rating for Free Using the System I’ve Used Successfully with Thousands of Clients.
H.E. Freeman Enterprises is a personal finance services company that helps clients restore their credit and learn how to manage their finances. She is a member of Credit Professionals International, the American Association of Daily Money Managers, SPAWN, Toastmasters, AAUW, National Association of Women Writers, and the Women Network.
For more information on how to get out of debt or to buy her book please visit http://www.hefreemanenterprises.com She can be reached via email at hfreeman@hefreemanenterprises.com.
Calling Out – HOV
