Living Off The Daily Wage for a Better Life | Living On The Minimum Wage

How Daily Wage workers live for better life. Living Off The Daily Wage for a Better Life

Daily Wage

Half of the world’s population survives daily payments (daily wages). They don’t have full-time paying jobs but have to live by day-by-day income. It’s pretty challenging to live on a daily salary. You need to cater for house expenses, children’s education, and other necessities. The majority of people I have come across feel neglected by their governments. Some say monthly jobs are a guarantee of better pay. However, I have met one Mr. John, a daily wager, with a positive view of daily finances.

Am a financial advisor for 14 years, I have helped families and individuals plan their financial goals. However, in my line of work, I have never met a daily wager. Most of the clients have monthly incomes or are prominent business people in society. However, it’s exciting to see one person taking things positively despite the awful stories behind daily wagers. Mr. John is a construction worker in Chennai for more than four years. He has a lovely family of two children and a wife (stay home mum). This means he is the sole breadwinner and has to work harder to meet the daily needs.

Living on the Minimum Wage

Mr. John approached my office one fine morning with a financial planning need. This was quite different from what I handle, and I felt I should tell the world. My client receives a daily wage of $9.50 every day. He says it’s difficult to split the amount to meet all household needs. The money limits your thinking to save. Since it gets used up, and have to work again to get more. However, he wants new life to start a business, save money to purchase a home, and improve his family’s life.

On my part, I wasn’t sure what to advise about or on. There wasn’t any solid base to start the matter. However, his determination was so moving, and we had to come up with a solution. These had to involve his family, where I visited their humble rented apartment in town. First, we wrote on all expenses and much is required to survive. From the expense, we checked on the money coming in every day. The expenses were higher than the amount paid to Mr. John, meaning nothing is left to save.

Daily Wage Earner

The family had to sacrifice some needs to ensure we have amount to start the journey. Together we agreed that $3 would be deposited in a fixed account every day for one year. This slashed the house budget in the quarter, meaning some needs won’t be met. Mr. John was to put a business (popcorn selling and water) for the wife to compensate for that. The first $3 for the week, they managed to buy the popcorn machine and start the small business. This boosted the house needs though it took a few weeks to pick up.

Mr. John’s saving was directed to a saving account which we open the same week. He would deposit the money without fail and used the rest for school fees and children’s needs.The wife’s business generated $7 per day, almost equal to the husband’s daily salary. The two again visited my office, where we agreed they would save $7 per day since the business could cater for most home expenses.

The two have maintained the trend, which has to raise their saving and catered to family needs.After one year, the account gained quite a considerable sum which could pay for a house down payment.The couple went to the bank and presented their mortgage request. The saving trend was a good boost as they were granted a loan against their savings. Mr. John’s family acquired a three-bedroom house in Chennai. They now pay the amount ($7) to the bank daily to complete the house mortgage loan. The bank agreed to pay $5 for the loan and $2 as savings. This means they still have emergency funds.

The popcorn and water business manages to keep the family needs sorted. The wife has also managed to save in different women saving schemes. They have received more popcorn machines, a boost from government schemes; this has increased the finances to help educate the children and buy personal effects. Mr. John’s income from construction work only goes to the bank and savings until the house is entirely theirs.

How Daily Wage workers live for better life

There are challenges as the construction work is not permanent. Nonetheless, Mr. John ensures to get jobs around and outside Chennai to fund the loan. He wishes to clear within two years and start a new project. The couple has challenged my think and many people. I have seen new daily wagers visiting for advice and financial planning. It’s possible to purchase a home or save using daily salary. However, it requires some sacrifice and teamwork for the couple. This doesn’t limit individuals as they can save half of the wage and target to build or purchase a home with a year or two. One needs discipline to help the bank follow your saving habit and offer a good loan.