Minimum Wage Can’t Pay Rent

For folks who have a job that pays the federal minimum wage of $7.25, it's impossible to swing the monthly rent. Just think that out of that $7.25, state and federal taxes will be taken out and FICA, too! It's not $7.25 anymore, is it? Every year, the National Low Income Coalition releases their report, and every year it seems to be getting more difficult to make ends meet on minimum wage earnings.

The gap or in this case, the valley, between what minimum wage workers can afford to pay for rent and what their rent actually is, not including utilities, cable, phone and food, is jaw dropping.

Click on the NATIONAL CHART to see what one needs to earn in the different states to make the monthly rent. The best rule of thumb is your rent and utilities should only be 30% of your earnings. How much, percentage wise, do you spend on rent? If it's more than a third of your net earnings, you will understand the severity of this blog!