Life as I Know It; Family; Lifestyle; and Healthy Living!
Would you consider her rich or poor...
Published on January 10, 2007 By foreverserenity In Blogging
Would you consider this woman rich or poor after reading her story?


Her name is Karen Datko. She once had a very good job and considered herself Middle Class. She lost her job because the company was sold, then when she moved out of state to get another job, she had problems with getting housing because of her 3 dogs. Because of her state of homelessness, by living at a camp site, she was fired! Her boss actually told her that her living situation was not a good image for her job! Wow!

I think she's making her situation work for her and she said some very insigtful things in her article. It's a good lesson for anyone.

_________________________

I make $6.50 an hour. Am I poor?
Here's how I slipped from the middle class into near poverty, and what I'm doing about it.

By Karen Datko

As a single professional woman, for years I sat securely among the lower rungs of the middle class.

Now I've fallen off the ladder.

In a matter of months, I went from a comfortable life with decent pay and health insurance to a $6.50-an-hour job with no insurance, no furniture and just enough resources to keep the wolf from the door.

I no longer buy anything unless it's absolutely essential. I spend $40 at the supermarket and make it last for more than two weeks. I never turn down a free meal. I've learned to graciously accept money, furniture, elk meat and encouragement from worried friends.

I am no longer proud.

I have no romantic notions about being poor. I'm not nobler than others, and I'm not a victim. But I am one minor medical emergency away from welfare.

Simply put, I'm in survival mode.

Here's my story in a nutshell: I lost my job as a managing editor at a small newspaper in Montana after the ownership changed hands. Six months later, I moved to Pennsylvania to take a similar job. My living arrangements fell through, and as I searched for a rental that would accept my three dogs, I lived in a campground. When it became clear that I'd be a campground dweller for a while, my boss fired me, telling me my living situation was "bad for business." I sold off my household goods -- everything from a sofa to pots and pans -- and drove back to small-town Montana.

I still own a house here. And I have a network of loving friends.

But now I know why most of my single women friends here work two or more jobs and think about the prospects of a bleak, impoverished old age. Good jobs with benefits are hard to come by here.

Life at $6.50 an hour
Once I got back to Montana, I started out my low-wage career working part time at a discount department store for $6.50 an hour (less than half of what I used to make) and part time as a salad maker and all-around kitchen slave at a local steakhouse, for the same low pay. But 13 hours a day on my feet and too little sleep were more than my 52-year-old body could handle. After a month, I quit the mind-numbingly boring shelf-stocking job.

The restaurant job isn't much better, making gallons of salad dressing, chopping lettuce and assembling relish trays. But it has its upsides. We can cook up "meat bits" on the grill and eat salad or baked potatoes. And the crew there is well worth the price of admission: Two of the servers bought me a gift certificate so I could afford to eat my birthday dinner there.

My take-home pay is about $660 a month. At $310, my mortgage takes the biggest chunk of that. Phone and Internet cost $70. Heat in winter is usually more than $100 -- it's Montana, after all.

Water runs $41 a month. The car takes $127. So, just about every penny is gone even before I buy gasoline or food for myself and the dogs.

Since I'm in the hole every month, I dip into my small savings to pay the difference, plus things like car insurance.

There is no room for error. At these wages, anything unexpected is a financial emergency. I worry especially about my health. I can't afford prescriptions, though I have used the county's health clinic rather than my own doctor.

Listing the wants and won'ts
Down to one job, I came up with new rules to govern how I spend:

When I think about buying something, I think about how many hours I have to work to pay for it. That's a sobering thought.
For instance, washing the steakhouse kitchen counters down with bleach water gave my fingers the consistency of coarse sandpaper. The gloves provided by the restaurant didn't help. My fingers began snagging the napkins and tablecloths when I folded the laundry.

The cost of good hand lotion? Three hours of labor. The cost of better gloves: a half-hour. But that's also $3 subtracted from essentials like paying the heating bill.

I try not to touch the small safety net I still have in the bank. It's there for emergencies, like a new transmission if my old van needs one or a new gas tank. The patches on the old tank have lasted far longer than anyone thought they would.
I will not touch my 401(k) and other retirement accounts. I'm better able to fend for myself now than I will be when I'm in my 70s.
I won't sell my house. It's cheaper than rent and provides more old-age security.
I have only one credit card and I use it only to purchase gasoline so I can monitor my spending on gas. I walk when I can, and if I have to drive, I combine several trips into one.
The programmable thermostat in my house is set at 63 degrees when I'm home, and at 60 when I'm not or I'm asleep. I sleep in pajamas and a flannel robe underneath a comforter and blankets.
I use half the recommended amount of laundry detergent and wash everything in cold water. I stopped using face cream and I buy the cheapest soap I can find.
I don't turn down free food. At a recent community gathering, people -- apparently noticing my dramatic weight loss -- gave me leftovers to take home.
I refuse to let my situation depress me -- most of the time.

It could happen to anyone
For Thanksgiving, I helped cook dinner at the home of the same couple I've shared the holiday with for five years. I looked at their kitchenware and wished I still had my own. Then I realized I was feeling sorry for myself.

When work at the restaurant is slow and I have time to feel the pain in my back, arms, feet and hands, I try not to think about what will happen if health problems mean I can't work. There's no sense in indulging such worries.

I remember there is no shame in being poor. Others seem to share that view. I was talking to one of my bosses about something I'd done in better times that involved spending money. I said, "I did that . . ."

". . . Before you were poor," she finished my thought matter-of-factly, without condemnation or pity.

The fact is, a fall from financial grace can happen to anyone. And in reality, I'm not really poor. The official poverty line for a one-person household is an income of $9,800 a year, and I'm still above that. And can I really be considered poor if I still have some savings, or still have my house?

I've decided that the only acceptable course of action, poor or not, is to consider this an opportunity. I used to wake up with the notion that my situation was temporary and that I'd somehow return to my "real" job. Now I have no illusions. But I do have solutions.

I've put in my notice at the restaurant in favor of a much better paying job at a new discount giant moving into town. The pay still will not be enough to live on, but it will do wonders to reduce my stress.

I've begun a pet-sitting business, taking care of pets in their own homes when their owners are away. I charge $10 to $15 a day, competitive with local pet boarders.

I volunteer my writing services for local nonprofits that I support. I've gotten active in community affairs that my previous occupation required me to keep at an arm's length.

I no longer define myself by what I do for a living. On the flip side, I won't base my identity on my income.


A number of readers have contacted us to find out how they might help Karen. Her response: "This really made my day. But I'm going to tell them to find someone closer to home who needs it more than I do." Karen hopes to deal with her circumstances through additional work and budgeting.

[Article from MSN Money, moneycentral.msn.com.]
___________________________

The parts of the article that stood out to me were:

"I remember there is no shame in being poor.. ."

The fact is, a fall from financial grace can happen to anyone.

And in reality, I'm not really poor. The official poverty line for a one-person household is an income of $9,800 a year, and I'm still above that. And can I really be considered poor if I still have some savings, or still have my house?

I've decided that the only acceptable course of action, poor or not, is to consider this an opportunity. I used to wake up with the notion that my situation was temporary and that I'd somehow return to my "real" job. Now I have no illusions. But I do have solutions."


And she's right, she isn't by any means poor. She's struggling yes, but she has choices and she's choosing the right ones for herself.

She has solutions and she's using them!

She used to wake up thinking that what is happening to her is only temporary and it wasn't until she 'woke' up did she start to make the decisions that would actually make her life better than it is!

The fact that she asks people who want to help her to help others in their own neighborhood is such a wonderful thing! I think that's great of her because she could be raking it in right now!

To me, she isn't poor at all, she's very blessed!"

Comments
on Jan 10, 2007

I saw the article via MSN's home page.  Interesting one, though I question some of her choices.  Why a campground in PA to begin with?  Why not an appartment?  There had to be something that was less offensive to her employer?

A few side comments here quickly - be careful in clipping the original materials, credit what you've clipped and be sure to clearly indicate what you've clipped from original sources.  All needed to avoid copyright issues for JU, Stardock, etc.   You've indicated the source, which is fine, but you could also just grab a few parts, highlight in them in some way to show their quoted materials, and then link back to the source.

Back on the subject, is the woman poor?  If she owns a home, or is paying for one, then I'd say no.  She's certainly not wealthy, and living on $6.50 is certainly not easy, especially if she was used to much more.  I applaud her for not touching her retirement savings and such, but she needs to be careful there too.  If she gets in debt too much, she may find herself forced to touch those funds.

I'd think she probably has been searching for jobs in her old field in other areas of the country.  If not, why not?  Certainly other areas of the country should have similar positions available.  Some with lower costs of living, some higher.

She could also choose to be an entrepreneur.  She seems to be taking that approach somewhat.  Good for her.  Perhaps she'll create a new position for herself that pays her much better than working for someone else did.  I hope so.

Finally, I really do applaud her for not just living off unemployment.  She's taken work and is doing what she can to keep herself going.  She seems to have faced the usual depression and is working through it all.  Again, very good.  I'm glad she's fighting for herself and trying to take care of herself and not expecting others to do it for her.

I sort of wonder why she didn't sell the mid-west home to begin with.  Certainly selling it should have gotten her money to use for housing in the new position, but again, maybe there were other factors (poor economy in her home area?)

on Jan 10, 2007
A few side comments here quickly - be careful in clipping the original materials, credit what you've clipped and be sure to clearly indicate what you've clipped from original sources. All needed to avoid copyright issues for JU, Stardock, etc. You've indicated the source, which is fine, but you could also just grab a few parts, highlight in them in some way to show their quoted materials, and then link back to the source.


Thx! I've been trying to fix it by going back and adding quotes but sometimes it doesn't show up. I appreciate the input!



She could also choose to be an entrepreneur. She seems to be taking that approach somewhat. Good for her. Perhaps she'll create a new position for herself that pays her much better than working for someone else did. I hope so.



yes, she does, and I think this will go well for her!


I sort of wonder why she didn't sell the mid-west home to begin with. Certainly selling it should have gotten her money to use for housing in the new position, but again, maybe there were other factors (poor economy in her home area?)


Yes, I thought the same thing too but she just doesn't want to sell, I guess it's her security blanket to her and she wont' even look at other options.
on Jan 10, 2007
Great article, hers and yours both.


Thx Whip!

I look back on those days as a good time in my life, believe it or not. I learned a lot, like bar soap can be used for bathing, hair, and dishwashing, but it sure sucked as laundry soap!


I think this is the time most people learn the best, from their experiences!


And she could cut her mortgage payment in half by taking in a boarder in similar circumstances.


Someone who likes dogs too!
on Jan 10, 2007
No, Forever, she is not poor. She is a survivor! Life kicked her in the teeth. But instead of playing a wounded duck, she is fighting back. She is what made America great.

She is the woman I will send my check to. Not the government, not some mega charity.
on Jan 10, 2007
No, Forever, she is not poor. She is a survivor! Life kicked her in the teeth. But instead of playing a wounded duck, she is fighting back. She is what made America great.


Exactly!
on Jan 11, 2007
That really makes me appreciate what I have. Thanks for sharing this.

It also reminds me of the days when I was supporting a family of three on the same amount of money. The very first thing I bought each payday was enough diapers and formula to last until the next payday. Thankfully those lean times lasted less than a year.
on Jan 11, 2007
That really makes me appreciate what I have. Thanks for sharing this.


Doesn't it though?! You're welcome! I thought it was pretty inspiring when I read it!
on Jan 11, 2007
When I took a sabbatical in Britain I was paid 6 pounds an hour for working in a car showroom on weekends. That is a disgusting wage for dedicated work. $6.50 an hour is scandalous. Problem is: Most countries do not pin the minimum wage to the COL index. Many people blame the Chinese for scandalous labour costs but we are not far behind. Do employers think they are doing us a favour?
on Jan 11, 2007
Do employers think they are doing us a favour?



Maybe they do because at least you have a job, is most people's thinking!
on Jan 11, 2007
Do employers think they are doing us a favour?


No, they are paying you for the value of your work that you produce for them. No favors involved. Simply put, that is all you are worth to them. Raise the wage artifically (as with a minimum wage), and they will use automation. $6.50 an hour beats 0 per hour.