Making ends meet on minimum wage, currently at $6.55 per hour is tough. As the numbers for a basic wage, tax and net pay breakdown show, there is not a whole lot left over after the “Tax Man” gets his cut. Just the tax on the wages earned come to just over 22% of gross wages and that’s not including the medical deduction if you’re lucky enough to have an employer who offers it. I distinctly remember working for minimum wage when my wife and I were starting out.
This month includes an extra deposit of $30.00 dollars. I earned this money from completing online survey’s from Pinecone Research. Each survey pays $3.00 per completion and I saved the checks up and sent them in all at once. This took roughly 10 weeks and the survey’s can usually be done in 5 to 10 minutes or so.
As the month of January draws to a close, it’s time to see how much interest I’ve earned toward my goal of ‘A Dollar A Day”. As the downloaded information below shows, I’ve earned 94 cents this month toward my goal of a dollar a day in interest.
Unfortunately, with the Federal Reserve reducing the overnight funds rate to 0 to .25%, the banks are reducing the meager interest they’re paying on savings in lock step. This process will take longer than anticipated if I stick to an all savings vehicle. So, I plan to transfer these funds to Scottrade when the amount reaches roughly $700.00 to buy dividend paying stocks to offset the drop in interest rate. More about the stock selection process later as the funds in saving grow closer to $700.00.
ONLINE SAVINGS: ######### (Acct number hidden)
Bank Balance: $457.98 Available Balance: $457.98
Last Statement: 01/27/2009 Interest Earned Year To Date: $0.94
Information as of: 01/28/09
Date Transaction Description Debit(-) Credit(+)
01/27/2009 INTEREST PAID FROM 12/28/08 THROUGH 01/27/09 $0.94
INCLUSIVE AVERAGE DAILY AVAILABLE BALANCE
01/26/2009 DEPOSIT FROM HSBC ONLINE-TRANSFER $30.00
01/20/2009 DEPOSIT FROM HSBC ONLINE-TRANSFER $14.00
01/06/2009 DEPOSIT FROM HSBC ONLINE-TRANSFER $14.00
A Deeper Look at Savings Rate
2 hours ago