Financially Fit Post #2
I’ve been pushing for improving our transit, how we need it to grow our city and one reason why our young people go to big cities and don’t come back. I will demonstrate how people making minimum wage do better in cities with decent transit.
Minimum wage pays $15/hr; they rarely get benefits.
40hrs/wk x 52 weeks = $31,200/yr
$2600/mth gross about $1820 net assuming 30% payroll taxes.
In comparison City Manager Bob Nicolay makes
$1430/day before taxes.
(He gets $32,000 worth of benefits and Allowances for a total of $406,000. I’ve no idea what the taxes for that bracket would be. Even if he paid 50%, he’d still be living large.)
So, $1820/mth (about 3 day’s wages for Mr Nicolay)
In 2020 average rent for a studio apartment in Medicine Hat was about $730/mth, utilities included.
Cell phone $30
That leaves $520 for transportation, prescriptions, entertainment, clothes, electronics, etc.
They need a car to get to work. For new drivers insurance is often $200/mth for just PLPD, then you must add fuel, oil, tires, repairs, assuming the car is paid for at all. A conservative estimate would be $300/mth for a car, leaving $220 for fun.
In 2020, average rent for a studio apartment in Calgary was about $900. After paying all other bills, they’re left with $350 to spare.
Calgary offers discounted bus passes ranging from $54.50 to $5.45/month. They can go anywhere from 5:30am – midnight, 7 days a week. After paying for a bus pass, they have more money left at the end of the month for fun, nearly $80 more. That is mere pocket change to someone like Bob Nicolay but it’s a lot of money to many people.
And we wonder why our young people leave and don’t come back.
Simple, they want to be Financially Fit.
(This is the first house my husband Carl and I bought together - 640 sq ft on the main floor, up to 7 lived there.)