A typical 30 day month has 5,040 hours in it. Our lives are consumed with many things during this time. Most people likely have jobs that occupy the bulk of their time, followed by hopefully sleep. Have you ever considered how much time you dedicate to managing your finances? I’m sure you allocate time to your personal care by going to the barbershop, hair salon, gym, massage parlor, dentist and even the doctor. Self care should be high on your list but where does the management of your finances rank on this list?
The average amount of time spent on leisure for the average person is around five hours per day. This does not take into account any time set aside for handling your money. I understand that it does not take a boat load of time to pay your bills each month. However, more involved tasks such as setting budgets, allocating money to emergency funds, managing retirement accounts and setting financial goals need exclusive time if you are going to reach your ultimate financial goals.
The best way to improve your money managing habits is to start by setting aside an hour for management the night before you get paid. It is crucial to do this the day before you are due to be paid so that you have a plan for your money. Many people get into trouble when they fail to plan. So if you are paid bi-weekly that is 2 hours per month and 4 hours if paid weekly. The more frequent you are paid the more guidelines you must have in place for yourself. Be sure to focus on your budget while allocating 10% for an emergency fund. If you can not afford 10% start with 5% and work your way up. There is no reason why we spend such a great deal of time on so many other things in our day-to-day lives but neglect our finances.