If you’re on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Credit Cards
Banks
Brokers
Crypto
Mortgages
Insurances
Loans
Small Business
Knowledge
by Emma Newbery | Published on Jan. 25, 2023
Image source: Getty Images
Walmart says it will raise minimum wages for its store workers starting March 2. According to a staff memo, the retail giant will increase its average hourly wage to more than $17.50. The company, which is one of the biggest employers in America, is also introducing several other staff benefits.
The move, which means Walmart's starting hourly wages will increase from $12-$18 to $14-$19, comes at a time when many people are worried about their jobs. In recent months, there have been dramatic layoffs in the tech and banking sectors and some analysts fear other industries could follow suit.
In part, however, Walmart's decision to introduce substantial wage increases could be viewed as a positive economic signal. "It suggests that Walmart doesn't think the economy will suffer a recession anytime soon, or that if it does, it will be a short-lived and modest downturn," Mark Zandi, the chief economist at Moody's Analytics told the New York Times.
It is also a reflection of the challenges of retaining employees, particularly as Walmart's hourly rates are still slightly behind competitors like Costco.
The jury's still out on whether or not the U.S. will enter a recession this year. Some senior figures in banking have been warning of impending economic doom for some time. Others still think it is avoidable. Either way, there's no harm in padding your emergency fund and paying down debt just in case.
That said, it isn't easy to save and build financial security if you're earning $17.50 an hour, particularly given the amount living costs have increased. Assuming a 40 hour work week and 52 weeks per year, it translates to a yearly salary of $36,400 and around $3,000 a month before tax.
Depending on where you live, a large chunk of that will go on housing. Median monthly rents crossed the $2,000 threshold for the first time last year, though they are starting to fall again. The more you can reduce your housing costs — say, by sharing living space or even moving to a lower cost area — the more money you'll have in your bank account for other essentials.
Here are some other ways you can stretch a $36,400 paycheck:
If you're using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.
Read our free review
Emma owns the English-language newspaper The Bogota Post. She began her editorial career at a financial website in the U.K. over 20 years ago and has been contributing to The Ascent since 2019.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Related Articles
Best Budget Apps
Best Cash Back Apps
The Ascent’s Definitive Credit Score Guide
Best Debt Payoff Apps
Best Budget Apps
Best Cash Back Apps
The Ascent's Definitive Credit Score Guide
Best Debt Payoff Apps
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 – 2023 The Ascent. All rights reserved.