When the Fair Labor Standards Act which contains the federal minimum wage, was first passed decades ago the premise was to ensure that people would be paid a baseline according to the costs of maintaining a certain lifestyle.
Over the past few years with the rise and fall of the stock markets–housing or tech bubbles things have changed.A lot…
These days more and more people are putting their children through college, buying bigger homes with ever-increasing mortgages, and switching careers… Some are even quitting and forming their own businesses altogether.
So as the battle rages on for minimum hourly pay… have you asked yourself what amount of money will provide the life that you want?
The Era of the Gig Economy
Over the past five years, almost two hundred million people have decided to become freelance workers –exchanging their services for short-term work contracts. Many of these gigs were taken on due to the flexibility they provided, to increase savings, or as additional income sources for bill payment, debt repayment, or other financial goals. The number of opportunities above minimum wage out there is endless…
Location-Based Costs Of Living
As taxes have become increasingly high for some individuals –based on annual incomes, investment choices, and SALT caps…more people are opting for a lower cost of living area. That means… many people can live where they want…and if your salary matches your experience versus the state’s basic wage rate then …you fare a lot better financially.
Freedom Of Career Choice
When picking out your college major, you envisioned that it would be the career that you dedicate your life to. But these days .., times have changed. Many people feeling burnout from long office hours at prestigious firms or the high traffic commutes… You have the ability to change your career or job if it isn’t bringing you the satisfaction or wages you’d hoped it would… There’s reinventing the wheel…. or… maybe …reinventing yourself if necessary.
Some Businesses Will Shutter
Last year the pandemic knocked out tons of wealth…wiped out millions of savings accounts and shuttered businesses … You don’t have to be a business owner to know how much it costs to hire and maintain employees… Just look to the over 40 million layoffs last year as companies struggled to keep payroll while supporting other expenses. While everyone is entitled to their version of the American Dream … nearly doubling the minimum wage could flip the number of jobs available on its head… based on pure costs.
Fewer opportunities = Less money = Less financial growth!
Knowing Your Worth
“An ounce of prevention is worth a pound of cure”… but how much is your time worth? That can be determined by a number of factors like your ideal lifestyle, educational or financial background(debts),…but most importantly the value you place on your time… When you agree to work a job, contract, or perform a task … you are agreeing to do the work at that rate. That doesn’t make it your only financial worth or the only income source to choose from.
Everyone needs the basic tenets in life… and we all need some form of finances to ensure that we have those things… But, when it comes to “trading dollars for hours”, that’s the one thing you have the most control over. So if you need an extra gig. Get one. Higher pay. Negotiate a raise or take a new position in the company. There are many things that you can do to create the financial situation for the life you want. What dollar amount does it take to get it for you?