Wednesday, July 31, 2013

The mcbudget

 The Mcdonalds budget is a joke to make that budget you would have to work 40 hours a week and receive $12.88 an hour. Who works at Mcdonalds makes $12.88 an hour or gets a full 40 hour week?  Yet, if you look closely the Mcdonalds budget shows 2 jobs in the income calculations. Well that makes the budget a little more reasonable or does it?  Let's bring some reasoning into this budget to see what going on.   You have income from job 1 at $1,105 and income from job 2 at $955 making a combined income from both jobs $2,060.  Let’s assume that at both jobs you make minimum wage $7.25/hour.  For job 1 the weekly income is $276.25, and for job 2 the weekly income is $238.75   At $7.25 an hour to get to $276.25 at job one you have to work 38.10 hours that is 276.25/7.25 = 38.10(rounded to nearest hundredths) for job 2 you do the same thing 238.75/7.25 = 32.93 The average workweek is 5 days (particularly at McDonalds. If you are lucky enough to get that much work. )  for job1,  38.1 hours per week divided by 5 days equals 7.62 hours a day. For job2 32.93 hours a week divided by 5 days equals 6.59 hours per day. If you work at both jobs each day you have a 14.21 hour work day. Now if you are a hard worker and Fast food happens to be the first job you go to in that day by the end of your word day you are sure to have some body odor going on so you must shower in between jobs and change from one uniform to another that is if you hope to keep your jobs for any length of time. Drive time between jobs plus the extra trip of going home for personal hygiene, let’s assume you are super-efficient and can do all this and make it to your second job in 1 hour your work day is no 15.21 hours. Again let’s assume you are graced with luck and both your jobs are within 15 min drive of your home we must then add another 30 min to your workday making a 15.51 hour work day. Now we have another addition to our day prior to going into work you need to shower, shave, make a restroom run, and possibly eat sometime.  So maybe that takes about an hour so now your day is 16.51hours subtracted from 24 hours a day if you leave work from job 2 and go to sleep the exact second you get home you will get 7.49 hours of sleep. Sounds reasonable, but hope you are doing absolutely nothing else to get out of this work yourself to an early grave cycle like going to college and trying to get good grades you will never sleep.

I will venture another assumption let’s assume that all this is completely doable and sustainable could you still survive? The McDonald’s budget makes some serious mistakes.  Car and home insurance is set at $ 100 a month that is about half of the actual numbers if you are lucky.   So we already have to add $ 100 dollars to the Mcbudget. The mcbudget shows monthly expenses at $1,310 well with the $100 dollars we discussed it is now $1,410.  Another fallacy in the mcbudget is $20 dollars for health insurance, that’s a gross underestimate by about $160 for “OK “coverage. The absolute worst coverage I could find was around $100 dollar average so let’s go somewhere in between at $130. So now we have to add another $110 to the mcbudget bringing total expenses to $1,520 Car payments $150 a month in the mcbudget is great if you have the credit score and you are going for that absolute worst unreliable junker at the lot. Real car payments for the working poor is around $300 so we have to add another $150 to the mcbudget making it now $1,670. Let’s assume that the “other” category in the Mcbudget includes fuel costs, water bill, toiletries, and vehicle maintenance costs.  If you drive a total of 45 miles a day and you get 30 mpg and you only drive on days you work at $3.60 a gallon its $108 monthly. Water bills are only about $35 monthly, and toiletries (toilet paper, soap, and shampoo) are only about $20 a month. AAA averages around $0.20 per mile ware on a vehicle which is about $180 monthly needed for repairs/ maintenance that a bit high but since you need your vehicle for work in most cases it good to be safe add all this up and we get $343 that needs to be in the mcbudget's “other “category so we add the difference which is $243 and our new budget is $1,913. What else is missing from the Mcbudget? Well assuming you are human and you actually have a chance to eat given your 17 hour work days the US dept. of agriculture puts the average thrifty cost of a nutritional diet is $172.35 per month. We add this new number into our budget we are now at $2085.35. The original mcbudget puts monthly income at $2,060 so they are pretty close with only a $25.35 deficit. However compared to the original monthly expenses the mcbudget was off by $775.35 So to survive with the mcbudget you only have to reduce your monthly spending by $25.35, barely sleep and hope that you can keep up that pace your entire life with Zero saved for retirement so you must work at that same pace till you die. Sounds like a great life and the real American dream work and no life, and nothing to show for it except that you worked 70 hours a week until you just die and can’t do it anymore.

Now we can assume I am wrong about all of these calculations and this is not a reality. What does real life dictate here? In real life with the job market in its current state of despair can a person really get 2 jobs, or do they have to rely on that mcjob as the only means of survival? The average mcjob is minimum wage and minimum hours. You can only expect about 30 hours a week pre-obamacare 24 hours post-obamacare. So at the average between those two you have to actually survive on 27 hours a week at $7.25 an hour which is   $783 a month.  Now since we are assuming all my budget numbers are wrong we shall assume that the mcbudget is right so your monthly expenses by that is $1,310 which is a deficit of $527 a month.  It is also argued that your mcjob is only a starter job. With the unemployment numbers the mcjob is some peoples only hope for income. One more note to the 2 jobs idea.   In the state I live in there are 277,000 people without a job and there are 50,000 jobs available. If every job is filled there are still 227,000 people jobless. A budget requiring Two jobs…… really!!!!!! How does that math add up?   

2 comments:

  1. Hours are dropping for fear of obama-care. So, you would actually have to work two jobs to make the same as one job prior to the new care plan 0_o It's already started and getting worse. ignoring it will not make it go away! Besides, would like to see the total on how many ppl are in min-wage jobs since it is 'temporary' and not intended as a way to support anyone. BS.

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  2. It is good to see posts that give truly quality information. Your tips are extremely valuable. Thanks a lot for writing this post. Thanks a lot for sharing. Keep blogging.

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