Ask HN: How can you save money while living on poverty level? | Hacker News Reader

Ask HN: How can you save money while living on poverty level?

8 pointsccdev9 comments

I freelance remotely, making roughly $1200 a month as a programmer because I only work 10 hours maximum each week (limited by my contract). I share the apartment with my mom, and It's a section 8 so our rent contributions are based on the income we make. My contribution towards rent is $400 a month.

Although I make more money than my mom (she's of retirement age and only works 1-2 days a week), while I'm looking for more work I want to figure out how to move out and live more independently on only $1200 a month.

I need to live frugally and want to know what I can cut more easily. I own a used car (already paid in full), and pay my own car insurance, electricity, phone and internet. After all that I have about $400 left each month which can be eaten up by going out or some emergency funds.

More recently I had to pay for my new city parking sticker so that's $100 more in expenses this particular month. I would be satisfied just living in a far off town paying the same $400 a month, I feel my dollars would stretch further since I now get 100% more privacy for the same price.

On top of that this job is a contract job so I need to put money aside to pay my own taxes. This $1200 is basically living on poverty level. Any ideas to make saving work? Is it very possible for people in the US to still save while on poverty?

That's not a living wage (or a full time job). There are lots of job search sites.

Spending some time on a good resume / CV / portfolio would probably be a good investment with positive ROI.

Is there a nonprofit that you could volunteer with to increase your hireability during the other 158 hours of the week?

Or an online course with a credential that may or may not have positive ROI as a resume item?

Is there a code school in your city with a "you don't pay unless you land a full time job with a living wage and benefits" guarantee?

What is your strategy for business and career networking?

From https://westurner.github.io/hnlog/#comment-17894632 :

> Personal Finance (budgets, interest, growth, inflation, retirement)

Personal Finance https://en.wikipedia.org/wiki/Personal_finance

Khan Academy > College, careers, and more > Personal finance https://www.khanacademy.org/college-careers-more/personal-fi...

"CS 007: Personal Finance For Engineers" https://cs007.blog

https://reddit.com/r/personalfinance/wiki

If you can do programming now, and you have a remote gig... then I'm guessing you can get more work.

You have a lot of potential to earn more income to do more of the same work you're doing already. That's probably the easiest and most efficient way to get (and save) more income.

How did you get the gig that you're working now?

Start with a budget to see where every penny goes. You need to make sure you're not wasting money on frivolous items. Going out and entertainment should be cut. You can have some on special occasions but you really can't afford it. Get a second job. Does not have to be in tech but you need to continue to look for a job that's in tech so you continue with your career. Goto to tech meetups to MEET contacts. Do not stay on the side by yourself. You need to make sure you make contacts.

Rethink the car, seems to me like you really can't afford it, now. You will in time.

Don't be afraid to be cheap. People criticize cheap people but those critics aren't ready to help with cash. They just criticize and never help.

Determine how much you can save and make sure you put that amount in the bank the moment you get your check.

Your best bet is to stay where you're at right now and put all your effort into finding a job. A full-time job in tech will earn you a good living. Don't move out until you have a full-time job.

I assume that you're healthy and you have a vocation that is in demand. Poverty is not an absolute but it can become a mindset that overpowers you. I strongly suggest you start reading self-improvement books that will let you see alternatives. Also, biographies of people you admire. I suggest Benjamin Franklin's. His autobiography is online. It's free. It's easy to read even though it was written 200+ years ago and it opens one's eyes as to what a person can accomplish, if you have the right prespective.

You are eligible for hud housing and Medicaid it is worth looking into that.

Looks like you are pretty resourceful and smart about your situation.

I like to checkout goodwill every time I go grocery shopping to see what they have. I usually find a pretty nice shirt or pair of dress pants. If you go often you can be selective. Sometimes I find cloths that still have price tags on them. One time I found a dollar bill from a pair of pants I bought.

At restore I picked up 7 cds for twenty five cents each. New they must have been more than 8 bucks each.

Thrift is how I do most of my “retail therapy”

Then when I get tired of it I just donate it back if it is in good shape.

When I had money I blew a ton of it on online shopping. So many times I would order something forget about it and four days later say wtf is this package. I could not remember what I ordered. Proof I didn’t need it.

30 usd a hour is not a fair wage for a programmer (considering 10 hours a week, 40 hours would be a different story) - you need to increase it. Please note your employer benefits from having an employee with decent living conditions. He knows, you know. If he's not willing to increase either your hours or rate I suggest to find something new.

The only reason I accepted is because the alternative is having no work. It's harder to bargain for a fair wage when you're unemployed.

When we were discussing rates, I proposed $60/hr which is perfectly passable in the city I'm in for a contractor with my experience, but they couldn't do higher than $35. I am seeking something new but I need a plan to live comfortably in the interim.

So why are you paying $25/hour to develop someone else's product for them?

I'm not trying to be facetious here. Imagine yourself a talent broker (even if that talent happens to be you). If the going rate is $60 and you're only collecting $35, you're paying the extra $25 to get the work done.

I get that you're in a tight spot. That sucks and I hope it gets better for you. But "I can't go higher than $35" should be firmly met with "I can't go lower than $60". If the product really isn't worth developing at that rate, it might be a product that shouldn't exist at all. At the very least, you should be bargaining to own about 29% of the completed work since you're subsidizing it.

It is harder to walk away from a subpar offer when you have no other job to fall back on.

You can't.

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