Earn 10% More
Waste 10% Less
Cost of Living
Think about the resources you use every day and estimate how much money it costs just for you to live for one year.
If you add up all the costs for a year, then divide total by 365, you will know how much it costs you per day to live. When you
understand the Cost of Living, then you will understand how much you need to earn to sustain your lifestyle.
The resources that you use may include:
Food & Drink
Electricity & Gas
Sport or Hobby
The Government may deduct taxes direct from your income, and you may have pay other indirect taxes on items which you buy. You need to read your Pay Slip , to understand how pay cheque is calculated.
What do you want out of Life?
Maybe you want to buy a Computer, Travel, Study, move to City to work, start your own business or get your own place to live.
Knowing what you want, and working to make it happen, are the first steps to getting what you need to survive and enjoy life.
What are your short term goals that you want to achieve in next 12 months.
What are your Long Term Goals that you want to achieve in next 5 or 10 years.
Write down your top three Goals, and beside each Goal, write down the reasons that are preventing you from achieving your Goals.
Lack of money is a common reason why people can not achieve their Goals. But if you make a plan to earn more money and to save money, this may help you achieve your Goals.
Attitude to Money
Why waste 10% of your Life
A typical working career spans 40 years from age 25 to 65. If you are not careful with your money, you will probably waste at least 10% of your income over your working life of 40 years. That means you could waste 4 years salary. Why waste 4 years of your life working hard for money, that you just waste ?
If you only have basic skills, you are likely to be paid just the minimum wage. The more skills and experience which you have, the higher the salary you are likely to earn. Having an education qualification increases your lifetime earning potential and helps avoid unemployment. Experience can come from being involved in activities such as Sports, Music, part time work, Volunteer Organisation or other group.
In Britain minimum wage is £3.72 per hour for workers aged 16.17, £5.05 per hour for workers aged 18-20 and £6.31 per hour for workers aged over 21. If you work 40 hours a week at minimum wage of £6.31 your weekly pay will be total of £252.40
In America the Federal Government has set minimum wage at US$7.25 per hour, but in some States such as Washington minimum wage is US$9.32 per hour.
US 2015 Census found education Dropout typically earns circa $21,023, High School Graduate earns $31,613 and college degree Graduate will typically reach earnings of circa $58, 613 as they progress in their career.
If you want to Waste 10% of your money, here are some ways to do it:
1) Smoking – 20 cigarettes per day amounts to 7,300 cigarettes per year. A packet of 20 cigarettes in Britain costs GB£8.45, multiplied by 365 days, equates to GB£3,085 per year, which is more then 10% of average salary of GB£26,500. If your working career is 40 years and you spend GB£3,085 per year, you will waste GB£123,000 during your career.
2) Alcohol – Many adults in Britain spend an average of GB£750 per year on Alcohol, which amounts to approximately GB£50,000 spent on alcohol over their lifetime from age 20 to 75.
3) Expensive Loans. Buying goods on Credit Card and incurring late payment 20% interest penalties. Payday Lenders charge around 50% interest or potentially up to 200% interest on small loans.
4) Throw Away Society – Surveys show that average Household in Britain throws away 24 meals per month, wasting about GB£60 per month, or GB£720 per year wasted on food that is purchased and then thrown in the Bin.
5) Lazy Shopper — You could make an effort to shop around and to check out the price and quality available from other suppliers. This is called Comparison Shopping, but many
consumers are lazy and do not bother to make the effort to source the best deal.
6) New items such as a Car, fall in value they day you buy them. You can avoid wasting money if you buy Second Hand goods
7) Gambling through Online Poker, Betting on Sports Games or playing Slot Machines is a big waste of money. Each year British
Gamblers lose over GB£62 Billion and
American Gamblers lose US$115 Billion.
8) Failure to recognise Risk – Assume you will loose your Smartphone or Laptop or it may be stolen. Your Smartphone allows access to your Email accounts, your social media accounts and perhaps it is your mobile wallet and you may have stored private pictures or other confidential business documents on your device. Avoid waste and loss, by securing your money and assets safely.
9) If you look after your Health now by taking regular exercise and avoid becoming overweight, then you will enjoy better quality of life and minimise potential future medical costs. Life Insurance companies will charge you a higher premium if you are a smoker or if you are overweight.
10) Selling yourself short is a waste of money. Failure to negotiate your salary level regularly could result in you being underpaid between US$1,000 and US$5,000 every year, for next 5 to 10 years of your Career.
11) You need to invest money now to pay for your future lifestyle. But be sure you understand the Fee Commissions, Annual Management costs, Risks and expected Return on your Investment. Learn how to claim Tax Relief and Employer matching contributions on Savings and Investment products. Excessive costs and bad investments could waste over 50% of your hard earned money.
Store Money Bank Account
A Bank Current account is allows you receive payments of money and spend your money by taking out cash, using Debit Card and making electronic payments.
There are other money payments systems such as Western Union, Bitcoin, Alipay, Apple Pay and Google Pay.
A Bank Current account is useful for short term money storage.
But if you want to save money over medium term for 3 to 5 years, or save long term for 10 to 40 years, you should store your money in a Savings Account or a Pension Fund which can generate a return on your money.
Banks, Credit Card companies and even some Shops, may be willing to lend you money, so you can buy things now. But they expect you to repay the loan in the future plus pay loan interest .
Governments and Education Finance companies may be willing to lend you money to fund costs of your education now. But they expect you to repay the loan in the future.
In you are in default on your Loan, do not ignore Letters and Emails from your Bank. Consult with a Debt Counsellor or Financial Advisor and see if you can restructure the loan repayment terms.
Protection and Security
If you suffer serious illness, become unemployed or if you die your income will cease. You can take out private income
protection insurance which can pay you in the event that your income ceases. Governments in many countries have Social Security systems which pay Unemployment Benefits, Medical Care, Housing Benefits, Food Stamps and pays for Students to attend education courses.
You need to understand the various Government Schemes in your country, so you are aware of what supports are available. Most Governments an many private organisations provide Training, Mentorship and some financial support to help people learn new Skills or Start Own Business.