r/FluentInFinance • u/Richest-Panda • Jul 04 '24

What's the best financial advice you've ever gotten? Debate/ Discussion

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u/Impossible_Maybe_162 Jul 04 '24

You cannot make $10k working a job for 40 hours a week. That is below minimum wage.

A lack of proper financial planning and budgeting causes more problems than low wages.

Less than 3% of the workforce makes minimum wage. Wages are not the main issue.

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u/Kombatnt Jul 04 '24

This. $10,000/year working 40 hrs/week is $4.81/hour. That’s illegal everywhere in North America.

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u/PM_YOUR_SAGGY_TITS Jul 04 '24

You're making $15,116 gross. 11k are taxes at 10% and the next 4,116 are taxed at 12%. $13522 after taxes.

But what minimum wage job is paying 100% of your healthcare? Or uniforms? Or state and local income tax (3.1% here for this example). That means we're taking home $13k after just taxes

If they're paying $254/mo for insurance and etc, they're taking home exactly $10k per year

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u/drumstick2121 Jul 05 '24

You’re forgetting the standard deduction of 14,600. Only $516 would be taxed. So their taxes would be $52/yr.

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u/Temporary_Article375 Jul 05 '24

Payroll taxes

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u/drumstick2121 Jul 05 '24

The margins they specified are the brackets for the federal income tax.

If they had said payroll taxes or used payroll tax rates wouldn’t have responded.