Your Finances

How much are you WORTH?

Time is money. You use your time to generate money. If your life is priceless, how much is your time worth? Once you generate this money, do you take into consideration “your worth” when spending your money? For instance, when spending let’s say $10 on a meal, do you think what did I have to do to earn that $10? If you are making $10 per hour, that is 60 minutes of your life. How many customers did you serve within that hour? How many products did you assemble within that hour? How many phone calls did you have to answer within that hour? How many files did you have to complete or errands you had to run just to earn that $10? Of course we all have to eat in order to survive but that $10 meal, was it really worth the 60 minutes of your life?

Now let’s use a bigger example. $100 pair of shoes. If you are making $10 per hour than that means you worked 10 hours (really 13-15 depending on how much tax is taken out 1st) to earn that $100. Even if you worked ten hours, what work did you perform to purchase that $100 pair of shoes? Could you have spent that money on something more valuable as far as “meaningful”?

Since I am located in California, the average cost of living is as follow

1. 1 bedroom apartment $1200

2. Monthly electricity $60

3. Monthly gas $50

4. Monthly Phone $60

5. Monthly SUBTOTAL expense $1370

If I was to make $10 per hour, 40 hours per week, 160 hours per month, my gross pay (before taxes) would be $1600 per month and my net pay (after taxes/take home pay) would be around $1300 per month. I would NOT be able to afford to live on my own. $1370 of monthly expenses does not include cable, internet, food, household products, hygiene products, transportation etc. have you ever heard an adult say why did I ever wish to grow up? What was I thinking? I wish I was a kid again. Adult = Responsibilities. Who wants that?

Cost of living. As the cost of living increases, the value of a dollar decreases. So the money you are making now, if you were to make that same amount 20-40 years from now would you be able to survive?

• How can you make more money in your future?

• What steps are you currently taking to make more money in your future?

• Investing (What, How, When & Why?)

• Budgeting for what?

• How can you budget when your expenses exceeds your income?

• What are you doing in order to survive?

• What bills should be paid first?

• Payment plans and what bills allows this?

• What is your budgeting technique?

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If you would like to learn more about this topic, please feel free to take our Managing Finances Workshop.