SD CountyOur housing is very high (by choice) for our household composition (2 adults), so I can't really compare total expenses. Our transportation is also most likely atypical (i.e., lower than average).
So, comparing the remaining categories, using our 2015 numbers:
| Living Wage Calculator | Actual | Comments |
Food | 6612 | 5700 | This is with our eating out habit, whereas the calculator specifically states the budget is assuming all food prepared at home |
| | 4150 | This is what our extrapolated grocery budget, from actual grocery spending and assuming we eat out 12% of the time |
Medical | 4817 | ~3500 | A good chunk of that is regular chiropractic visits, which is definitely a luxury |
Other necessities | 3971 | ~1000-1500 | Rough estimate of clothes & personal care expenses, as I don't have exact numbers from DH's accounting side. Household supplies generally included in our Grocery category, so included in Food above. |
Overall, I think the Food budget is generous, as we don't scrimp on our meals. Hard to compare Medical budget as we only have minimal health premiums, which would be the only major cost for relatively young and healthy individuals.
I think the Other Necessities category is also quite generous, given that it's supposed to account for "(1) Apparel and services, (2) Housekeeping supplies, (3) Personal care products and services, (4) Reading, and (5) Miscellaneous."
Given that they also assume no deductions, it's also hard to take their Tax estimates seriously. Housing and Transportation seem fairly reasonable for minimum subsistence. However, I personally find the other categories to be a very generous estimates for what they claim they're calculating.
The living wage model is a ‘step up’ from poverty as measured by the poverty thresholds but it is a small ‘step up’, one that accounts for only the basic needs of a family. The living wage model does not allow for what many consider the basic necessities enjoyed by many Americans. It does not budget funds for pre-prepared meals or those eaten in restaurants. It does not include money for entertainment nor does it does not allocate leisure time for unpaid vacations or holidays. Lastly, it does not provide a financial means for planning for the future through savings and investment or for the purchase of capital assets (e.g. provisions for retirement or home purchases). The living wage is the minimum income standard that, if met, draws a very fine line between the financial independence of the working poor and the need to seek out public assistance or suffer consistent and severe housing and food insecurity. In light of this fact, the living wage is perhaps better defined as a minimum subsistence wage for persons living in the United States.