REVIEW: Minimum Wage, and Why It Keeps You In Poverty

I'm going to do something I haven't done in a long time. I'm going to give a lesson in finances, economics, money, and minimum wages. I hope you find this article informative. If you don't, please pass it on to your kids, because they're not teaching this in our schools.

REVIEW: Minimum Wage, and Why It Keeps You In Poverty

The Federal Minimum Wage is $7.25 per hour. Some states have higher minimum wage rates, but let's stick with the Federal minimum for right now.

If you're working 8 hours a day on a "minimum wage" job, your "gross" paycheck for the day (before taxes) is only $58.

You can make more than that if you just got out and mowed a few lawns every day...

But, I digress.

Let's continue: if your average tax rate is 25%, your "take home" pay is only $43.50 per day.

8 hours X $7.25 = $58

$58 (gross) minus an average of 25% taxes ($14.50) leaves you only $43.40 (net take home) per day.

Now, let's look at that on a weekly basis...

Let's say you only work 5 or 6 days a week. Multiply your net take home by the number of days you worked in the week, and you'll see that you're living BELOW the poverty level.

• 5 days at (net) $43.50 = $217.50 per week.
• 6 days at (net) $43.50 = $261.00 per week.

On average, there are 4.3 weeks to a month: that's taking into consideration that some months have 30 days, others have 31, and February has 28, except Leap Year, which is 29 days (every four years).

If you take your weekly net and multiply it by 4.3 on a 5 day work week, you only take home $935.25 per month. (Heck, folks... even Social Security pays a better "minimum" than that!)

But, let's move on...

Let's say you're working 6 days a week (on one job): using the same formula above, in 4.3 weeks calculated to the month, your "take home pay" for the month is only $1,122.30

This is just an average...

Some people will have different tax rates depending on their marital status, the number of kids they have, and a whole host of other factors depending on their deductions.

So, what do you do to get out of the Minimum Wage Trap?

You can do 2 things:

1. Go get a second (or a third) -- part time or full time -- job.
2. Or, you can start a small business that would give you some tax advantages.

I'm not going to go into detail about how to set up a small business, whether it's "home based" or an internet "online" business, because most people have been brainwashed to think everything online is a scam anyway, so I'm not going to bore you with the details of doing anything like that.

So, you can buy a lawnmower and print flyers, and pass them around the neighborhood, advertising that you will cut their grass for $XXX...

Or, you can start another "labor oriented" business.

Or, you can go find another job in addition to the one you have.

Minimum wage was NEVER designed to be a "liveable" wage. Get used to it. Stop buying into the Liberal mantra of a "living wage". There is no such thing as a "living wage".

If your income increases one hundred fold, I can assure you that you're probably going to spend as much "percentage" of your expendable cash as you do now. You're still going to find $11,223.00 a month just as difficult to live on as you do with $1,122.30 a month.

Why?

Because you're just going to find more shit to buy that you couldn't buy when you were living under the poverty line.

The reason why most lottery winners end up bankrupt after winning a big lottery is NOT because they didn't have money, but they didn't know how to manage the "little" money they had.

So, naturally, when they hit the jackpot (literally) of the "big money" -- they didn't have any idea how to manage that either.

When people don't know how to MANAGE money, they will go find additional jobs -- a second, a third -- a part time, or even a second "full time" job...

But they will always be pushing the envelope of poverty because...

...they never learned how to manage money!

• Money is a tool.
• Learn how to master it and it will MAKE YOU MORE MONEY.
• Let it master you... and you will always be broke.

How do you fix your money problem?

*** At each instance in the video above where Frank mentions the $18 "ONE TIME" startup cost, the actual price has only increased by another $10 for a total of $28 ONE TIME. The $10 increase was four years after this video was made, and was necessary to cover the cost of the website servers and cost of operations. ***

For starters, if you're young and you're just starting out in the labor force, or you're trying to raise a family, you'll need to educate yourself how to manage your finances. This is something is not always taught in school.

By the time you graduate, and you're thinking of either college, or a trade, you probably haven't been given the proper education in finances, money, and how to use it as a good mechanic, or a good carpenter, uses his tools.

Need an education if the mastery of finances and money? Sign up with Four Corners Alliance Group, learn the business of finance and money, and make money at the same time.

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