Day 17/18 - Living on a Pound a Day - Money makes the world go ...

As the UK economy shows signs of recovery, the media has been continually scrutinizing over executive pay and bonuses. Million pound salaries are met with million pound bonuses of banking corporations. Whilst public outcry has seen some of these CEOs reject this year's bonuses, one would suspect that those working the executive level are still managing to live a reasonably comfortable lifestyle. So what about people who live on the other side of the spectrum - those on the minimum wage?

The National Minimum Wage in the UK as set by the HRMC is broken down in three age brackets and as of 1st Oct 2009 are:
* £5.80 - the main rate for workers aged 22 and over
* £4.83 - the 18-21 rate
* £3.57 - the 16-17 rate for workers above school leaving age but under 18

For those unfamiliar with the term, the National Minimum wage serves to set a minimum level of pay in which an eligible working individual can be paid from an employer. While there are numerous arguments for and against setting a minimum wage, I thought it would be interesting to conduct an exercise in how someone like myself, might survive on the lowest income (no government assistance / working in central London).

Minimum wage - 5.80
Hours - 40 Hours a week
Gross Pay - 232 Pounds

Essentials
Accommodation - Flatshare for £50pw @ East Ham
Travel - Upton Park Z3 -> Central London Z1 - £30.20 (Weekly tube ticket)
Bills (Mobile) - £10
= Expenses - £80.2

So that leaves 151.8 pounds a week to cover food (~£30), household goods(£10), entertainment costs(£60). Breaking it down further, this would then leave £51.8 for further allocation into savings / European travels / consumer goods.

So what can you make from this? Whilst, it would appear that you could definitely survive, there is a real onus and burden on the individual to keep track on their budget constraints. It doesn't leave much contingency to cater for emergency expenses that can arise (medical expenses). Another variable to consider is the amount of time required to both travel further distances and the reliance of public transport to get you to required destinations. When maintenance takes place, the journey time is stretched considerably.
Social outings such as dinners carry restrictions based on what you may be willing to afford. And just when you need a break from it all, the holiday you worked so hard for, gets marred by the little volcano that could.

So while living on a pound a day may be considered admirable, it's a minor wonder to me knowing that there are people who make so many concessions to live so meagerly and frugally whilst still attempting to 'enjoy' a modern life.

Day 17

Breakfast: Toast
Lunch: Tomato Sandwich, Apple
Dinner: Tomato Sandwich, Orange, Mushrooms (Pre-drinks courtesy of JL)

Daily Spend: 0

Day 18

Breakfast: Toast
Lunch: Mushroom en Croute / Walnut Salad (Lunch courtesy of SD)
Afternoon Tea: Oatmeal Cookies
Dinner:

Daily Spend: 1.18 (Porridge, Margarine)
Budget Spent: 17.20