Assuming they didn't have much debt other than mortgage and car payments; I'd say as long as they were careful with their budget his show would probably be at least a livable wage. It wasn't anything big, but it was a state-wide show (and during the show they did expand their viewership to some other markets like Milwaukee, Columbus, and Chicago. I would say his salary was in the ballpark of $50,000. Sure that's not a lot to support a whole family, but it's manageable. And don't forget this show was in the 90s, and even then the cost of living was lower than it is today.
Now I will agree that it is a bit ridiculous how Tim always seemed to have plenty of money for just about anything he wanted, but I'd say that's just a typical suspension of disbelief situation that many shows (especially comedic ones) use as they please. Heck, look at a show like Simpsons for instance. There were some episodes where they talked as though they were just barely above the poverty line, but then others it sounded like they could afford virtually anything they wanted. Now of course Simpsons isn't meant to be half as serious as Home Improvement, but the point remains the same.
If you don't want to be spoiled, you shouldn't be here in the first place.
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