Complaints about wages are rampant in the current news. The common wisdom is wages are too low for people to save for retirement or even pay for basic needs. Today I will dispel this common wisdom and prove 1.) Minimum wage, while not very much, is more than enough to live on; 2.) You can get a pay increase even if the boss refuses to pay you more than the minimum wage; and 3.) Early retirement is possible even at minimum wage and in fact you are more motivated to reach early retirement goals when you are locked at the lowest pay scale allowed by law.
I know I’m coming across as a dick to many people. But I’m right and you know it. I can and will deliver on all three points above in one short blog post. The problem with reaching these goals is you and your spending habits.
My dad grew up on a farm and started his own agriculture repair business back in the early 80s. He noticed his employees were no better off regardless what he paid them. Some were paid very well and still were flat broke.
I see the same thing in my practice among employees and clients. With a larger group to sample, my data is conclusive: Income is not the problem, spending is. Where you live has nothing to do with it. Nothing! Living in a high-cost area of the country usually means minimum wage is higher than the federal minimum wage. Since a few will refuse to believe me, I also included point #2. If you are so underpaid you should be excited to know I can guarantee you a pay increase on a regular basis. That means minimum wage will be history for you, my friend, and your employer can’t do a damn thing about it.