How to Escape Minimum Wage
CERB – Canadian emergency response benefit was providing those affected by the pandemic $2,000 per month. A household of two working adults could expect to receive $4,000 which is $48,000 per year which is $24,000/year. A lot of the news stories, as well as people I know personally, say they could not live on this amount of money for very long and many of their bills will go unpaid.
Minimum Wage – In Ontario is $14/ hours x 40 hours x 52 weeks is $29,120/year, 2 working adults this would be $58,240/year
Statistics Canada annual income study from 2016
We have talked about the advantage of being able to live on minimum wage but that doesn’t mean that your goal should be to earn minimum wage.
Employment Equilibrium: Employers will pay just enough so you won’t leave and employees will put forth the just enough effort to not be terminated.
At some point in your working career you need to earn at least an average income to live a comfortable life and have some life experiences.
With the economy very uncertain and a recession likely you may be forced to make a career change and quite often there will be educational incentives, so this may be a great opportunity to make a change
Benefits of a minimum wage lifestyle:
- Income replacement is easy
- You have the option of job variety
- You can work your dream job
- Generally less stressful
The problem with minimum wage:
- Limits your what you can do in life – money solves a lot of problems in life
- Living close to the financial edge can cause stress
How to escape minimum wage:
- Education – a little can go a long way, accelerated programs, apprenticeships
- Experience – volunteering, maturity leave
- Flexibility – seasonal employment – being flexible can create opportunity
- Change – your organization does not value your skills
- Networking – knowing someone on the inside can make a difference