Thriving on Minimum Wage

[kathryn d]

The circumstances where this is the case are pretty narrowly defined and don't include just the payment of "board" by anyone. Student boarding can be exempt as can be seen here but as can be seen in the link it's pretty hard to satisfy the conditions...

You may be right, I will not try to dispute it.
It still wouldn't be everything the head tenant collects , that would be taxable.They would still be able to deduct rent, utilities, furniture/supplies used by the others.

Oh..and I have just had 6 replies from many international applicants, wanting accommodation at $250 a room, and yes that is having 2 single beds in a room. I'm such a slumlord.
Unfortunately I had to reply that it was no longer available...and deleted the ad.
It's all in how you market a property.

 

[jaycee]

Update:
This is the second ad I replied to, also stating my intentions upfront concerning taking in boarders, and working 38+hrs on minimum wage.
Seems not every LL has these concerns. If the rent is paid 6 months upfront, as origianlly offered by the "head tenant"..and the rent collected from the boarders is saved ...right? ($250wk X 3)x 26 weeks=$19,500 less utilities.

The answer was :
hi
please contact 04xxxxxxx. Then i can arrange for inspection for you. Thks.

Cool, I think you've proved lots of stuff is possible....

Now people just have to decide for themselves if they believe that the sub leasing suggestions of yours is worth the effort vs the risk (There is risk to pretty much everything and it is natural for humans to assess this risk) to actually go through with it..

Hopefully we can at least agree that it is their life & up to them and all that...

The one thing I'm unsure of though with your example & the only way you've presented it.

If I am a minimum wage earner with no savings but wanting to get a head.,

How do I save up for 6 mths worth of rent and all the furniture etc required ? Actually scrap the furniture, what do you need a couple of cheap beds and what not which you can pick up as you have described form vairous places... but 6 months rent - I don't have 6 mths rent in cash now, I would have to take it out of loans and have more debt ?

Someone on minimum wage, and as per your suggestions they are not allowed to get another job, they can do this just on the minimum wage. How long will it take them to save 6 mths rent ? considering their current rent is over 50% of their income and stuff ?

I'm not having a go.

I'm seeing a what to me appears to be a real issue / concern and asking a question about it.

If I was the target audience for example, I would dismiss it as theoretically nice sounding but unrealistic cause I can't work out how long it would take to save that much money.

How long do you see the process taking from day 1 iof someone deciding "I don't want to live like this anymore, I'm going to start saving money to rent a bigger property & sublease it to make profit off it and save that money for a house".

I can't see what's wrong with someone doing that. But I also cant see what 's so wrong with working a few extra hours - at $25/hour that;'s $250 that could be automatically saved 100% - that's $13k pa... Is that not simple & effective enough to be another valid option ? People can do quite "unskilled" work to earn $25, but @6/hours is reserved for rocket scientists ...

 

[jaycee]

I'm glad you asked this jaycee.
I've explained it a couple of times, but maybe this will be better.

When the person decided they want to do this, they need to have 6 months rent upfront (or use as a buffer) How they obtain this, will take several months of saving.
I've been using $18 as minimum wage, but another poster pointed out it is more like $16 per hr.*Get paid 20% above what the actual minimum wage is. Minimum wage is $15.51 or $589.30 per week.
$16 x 38 hr=608 -taxes= $589 week take home

$589 take home-
-$125 week boarding somewhere cheap
-$25 week groceries (I've already shown this is very easy to do)
-$10 week miscellaneous
=$429 savings week

The 4 bedroom house I applied for, which is close to Moash University, medical center etc and had positive feed back ranged from $365-$450 per week. The cheaper one was unfurnished, the latter was furnished.
For this example I will use $400 week rent.
$10,400 6 months rent
$1600 4 weeks bond
=$12000 required.

$12,000 / $429= 28 weeks savings


How long ultimately will it take for a "head tenant" to buy a property, and not require boarders?
I have no idea. Too many vaiables.

If they do nothing?
They will be someone's tenant for life.

When I posted my ad on Gumtree,
it was $250 a room, which had 2 single beds, or could be combined to make a kingbed. Meals could be included for $50 per person, or the use of the food in a well stocked pantry.

Almost eveyone that applied, there were 2 people willing to share the room.
In one case, they wanted 2 rooms, because they were 4 friends.

Being flexible is the key.
With $400 a week rent, a head tenant could always have one room vacant, and still make a profit/break even after paying utilities.

OK Sure.......

But that bolded admission makes me not very much more convinced that this strategy of yours will work that much better, easier and less riskily than say getting off your butt and getting a new job that pays more, or as I said, doing a few extra hours and collecting more money ?

I know there's lots of things that people can do - cause they are already doing it whilst we are sitting here on hour high horses thinking we are the first people to have thought of these solutions for the poor lost ones (hope you can see what I mean)

 

[jaycee]

It would be like me asking you, how long before you will have a million dollars in your bank account.
Answer would depend on many things.

I have stated up front, this was not my idea.
It was from one of the first wealth building books I ever read "Wealth without risk for Canadians"
The author Charles J. Givens, did this when he and his young son were on their own. They lived in a 4 bedroom rental. Took in 3 boarders, and split the bills 3 ways (not 4) They lived for free, while getting back financially on his feet.

Increasing income, how ever you do it..is always a good choice.
No one ever disagrees with that.

And what we are saying, is the idea sounds ok... just not earth shattering.... and seems to involve a lot of extra work for not a lot of extra gain, compared to just simply doing a few extra hours unskilled work a week - no extra m4repsonsibility, no extra .. nothing really, just cash

You did seem to imply that was not as good a suggestion as the suggestion you were putting forward, hence the continuing discussion.

As the end of the day, we seem to agree that other people can do stuff.

 

[AlmostBob]

Again, thinking I cant, is the only reason I find I can't
$40k savings/year on minimum wage, I wouldnt kick it out of bed if it farted

 

[wylie]

If minimum wage is $30,628 (taken from Kathryn's post) how on earth can that person "save" $40K in a year?

You know what... don't worry about answering because if it involves this other extract from Kathryn's post -

-$25 week groceries (I've already shown this is very easy to do)
-$10 week miscellaneous

then I don't know ANYBODY who could live on $35 for a week, and do it week in, week out.

And... I know you can do it, but I think you are unusual.

 

[Alex P Keaton]

Weg,
If I believed that, there wouldn't be ads like this
http://www.gumtree.com.au/s-ad/heidelberg/other-shared-accommodation/looking-for-home/1000111138
Single man offering to pay $250 week for a room

This reminds me of a guy I used to work with. Quite the little entrepeneur! He was in his early 20's and living in his mums ip. He was subletting the other rooms and doing quite nicely. It meant he was living pretty much rent free because of it. He would grab all sorts of people backpackers included. He said his mum didn't mind.

 

[wylie]

Now you have an insight, into how I think.

I already had a bit of an insight .

 

[Ergophobia]

I guess it would also be good training for when they become LLs in the future

 

[Shaneelastic]

1) When you have kids it cannot work - you wouldnt want boarders in your house then
2) 25 bucks per week for food?? Your dreaming, $10 misc?? Good luck when you get sick.

I reckon people on the minimum wage are better trying to increase their wage, even going to the mines to work, doing this you will save about 100k p.a and live on about 800ish a week - that sounds better to me

 

[jaycee]

1) When you have kids it cannot work - you wouldnt want boarders in your house then
2) 25 bucks per week for food?? Your dreaming, $10 misc?? Good luck when you get sick.

I reckon people on the minimum wage are better trying to increase their wage, even going to the mines to work, doing this you will save about 100k p.a and live on about 800ish a week - that sounds better to me

This was suggested already as it could be less stressful just changing a job or working a couple of extra hours then it might be to change say their eating habits which up until the hypothetical person to $3/odd per day.

Besides sickness, is vacany factor/unpaid rent/damage/repairs something not taken into account as well ? I know there would be $ in the savings account, but that would reduce the savings.

I think the overall message is right, but the biggest problem is that people have to believe it can be actually done and not make their life more stressful in the process.

Nothing to stop adaptation of bits of both suggestions, take in boarders, earn more money from your job & use that in a smart way too....

 

[Shaneelastic]

Pennyk grew up with boarders.
We had boarders when growing up for a while (I was 5 yrs old) plus 2 older brothers
My best friend at school, had a boarder live at their home.

You can view the $25 week menu ..do a search
If you get sick..use some money for medicine.
It certainly won't be because of my "bad diet".

Yes, lots of people can make excuses.
Now I've shown it can be done, so there is no excuse.

I dont think it is safe for a "boarder" with young children around, yes most would be ok

 

[jaycee]

Pennyk grew up with boarders.
We had boarders when growing up for a while (I was 5 yrs old) plus 2 older brothers
My best friend at school, had a boarder live at their home.

You can view the $25 week menu ..do a search
If you get sick..use some money for medicine.
It certainly won't be because of my "bad diet".

Yes, lots of people can make excuses.
Now I've shown it can be done, so there is no excuse.

Not even 1 ?

 

[Shaneelastic]

I still think people should increase earning capacity than going down this path....its not hard in Australia, just get a cushy union job and work nights and wekends and youd be making 80k a year

 

[AlmostBob]

1) When you have kids it cannot work - you wouldnt want boarders in your house then

why not

2) 25 bucks per week for food?? Your dreaming, $10 misc?? Good luck when you get sick.

your <> you're
we do live on it, and have any part of $6K/week to pay unexpected bills,
and of course Minnie-Wa Jerner is previously established as working in a fast food restr.

I reckon people on the minimum wage are better trying to increase their wage, even going to the mines to work, doing this you will save about 100k p.a and live on about 800ish a week - that sounds better to me

there are mines in Melbourne?
which are you working at,

there is somewhere threads about our Journey, stay at home dad, minimum wage mum, with 4 kids, 3 at home, the fourth needing more assistance than the ones actually living at home

retired after 6 years

Obviously Absolutely can't be done,
what was that signature?
Oh yeah ↓ its ↓ down ↓ there↓ 'Doing something right, Retired LOR 40CF+CG+' , somebody did it, impossible

 

[AlmostBob]

re: excuses

Not even 1 ?

excuses are pathetic,
reasons are reasonable,

To find an excuse for "anything bad", irks, jerks my chain, etc
somebody who has a reason for the same "anything bad" deserves assistance

these 2 words rattle round in my head
for others, excuse and reason are synonymic

 

[Shaneelastic]

Don't take it so personal, and thankyou for pointing out my spelling errors.

I just don't think its the best environment for the kid to live in a household of boarders. Simple, its my opinion and Im allowed to express it.

Mines are not in Melbourne, they're in WA & QLD - Move state.

No I don't work in mines

Good luck to you retiring at 40, for me not interested in that, i would rather spend a decent amount whilst I'm still young enough to enjoy myself

 

[Shaneelastic]

Is that because you think someone on minimum wage shouldn't be able to do it?
We already know that someone on a higher wage can do it.

The point of this thread was to encourage the population on minimum wage, there is nothing stopping them either.

minimum wage earners arent reading this forum

 

[jaycee]

why notyour <> you're
we do live on it, and have any part of $6K/week to pay unexpected bills,
and of course Minnie-Wa Jerner is previously established as working in a fast food restr.there are mines in Melbourne?
which are you working at,

there is somewhere threads about our Journey, stay at home dad, minimum wage mum, with 4 kids, 3 at home, the fourth needing more assistance than the ones actually living at home

retired after 6 years

Obviously Absolutely can't be done,
what was that signature?
Oh yeah Vits down thereV 'Doing something right, Retired LOR 40CF+CG+' , somebody did it, impossible

Bob, again, you are the only person on this thread who used the word impossible.

Nobody said anything not be done, but we did question the literal $ and most are still not convinced of the total savings per year shown. And we have suggested our reasons for this.

Without stooping to calling kathryn names or what she suggested impossible, nor ridicule her suggestions like you seemed to do to shaneelastics last post.
I didn't read that shane said he worked in a mine in Melbourne. Did he say worked in a mine at all ?

It's great that you're retired, happy for you that you're happy with your life.

 

[AlmostBob]

I didn't read in forum rules where there is a minimum income limit for reading.

*are we allowed to discriminate based on income*, we cannot on race gender age or anything else* arent reading this forum

This forum is heavily google indexed
site:somersoft.com has 429000 results, implication is that keyword searches for income improvement thriving minimium wage etc will result in Somersoft threads and posts being returned to persons other than forumites as soon as the site is respidered

Jaycee may be memorialized by some absolute stranger getting that AHA moment from a post, who knows