How a Higher Minimum Wage Can Impact You Financially in 2018 | Refresh Financial

How a Higher Minimum Wage Can Impact You Financially in 2018

How a Higher Minimum Wage Can Impact You Financially

For those who are struggling to pay off debts, the news of rising minimum wages in Canada sounds very exciting. But are there any downsides? Read on for an in-depth look at how a higher minimum wage can impact you financially in 2018.

Depending on your news source, you may have heard lots of positive talk about raising the minimum wage. You might have also stumbled across some negative insights as well. Everyone has an opinion, and many statistics seem to conflict with one another. When you're looking for information on this topic, consider what your source's biases may be. Lots of reports coming out on this topic are the results of these biases, so take what you hear with a grain of salt.

So, what are the possible side effects of raising the minimum wage? How will it affect your life? What are the pros and cons? These are the questions you should be asking.

1. Higher Salary/Wages

An increased minimum wage can sometimes cause a bit of a domino effect. Wages across the board can see an increase. which means that if you earn more than the minimum wage, you might still see a pay increase. It can also be a great time to ask for a raise. Here are some pointers we came up with for you to ask your boss for a salary bump.

2. Higher cost of living

When businesses are forced to pay higher wages, it means the cost of their products and services can also increase. Ultimately this will cause an overall hike in the overall cost of living. So, although you might be getting paid more, life can become more expensive. Whether the cost of living will be more or less compared to your increased earnings can go either way. To prepare for an increase in the cost of living, check out this previous blog post.

3. Higher Potential for Job Loss

Small businesses are often hit the hardest by an increased minimum wage. The higher cost of doing business could mean layoffs. Some businesses may even close their doors. According to an article in the Toronto Star,  some analysts have projected Ontario will lose as many as 90,000 jobs.

Prepare for the Future

As you can see, there are both pros and cons to an increased minimum wage. It's difficult to know how these changes will affect you personally, but you can certainly prepare and set yourself up for success. To do this, you need to consider the possible outcomes and prepare for all of them. Start saving an emergency fund and prepare for the worst, but at the same time, make sure you capitalize on any opportunity for a possible wage increase.

What's your opinion? What do you think an increase in the minimum wage will cause? Let us know in the comments!

 

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