Spending time on your spending might just pay off...

What proportion of your day do you spend on your income compared to your expenses? 

These last few weeks have been some of the busiest and most stressful I've had since starting Elephant. Hearing hardship stories from some of my clients puts life into perspective. COVID19 does not discriminate; it has affected multiple industries, businesses small and large, and people of all ages. 

It also brings to the forefront how fragile our financial situation can be, especially when your income is rattled. Which had me thinking, of the 168 hours per week we have, how many do you spend on your income, and how many do you spend on your expenses? 

Many of us started working the traditional 9 to 5 and, over the years, have transitioned to 8 to 7, which can mean 50 to 60 hours per week excluding the occasional weekend or late night. When working these types of hours, it doesn't leave much time for anything else, let alone reviewing your expenses. 

The question is if you are spending 50-60 hours a week on your income, how long do you think you spend managing your expenses? 

 I know, I know. You are probably thinking that it's not worth it for saving $50 here and there, but let's go through the numbers by looking at what a $20k increase in your wage does for your weekly take home. 

 Your pay and weekly take home:

• $80k pa salary = 1,169 per week 
• $100k pa salary = 1,413 per week (+244 )
• $120k pa salary = 1,648 per week (+235)
• $140k pa salary = 1,882 per week (+235)
• $160k pa salary = 2,117 per week (+235)
• $180k pa salary = 2,352 per week (+235)
• $200k pa salary = 2,555 per week (+203)
• $220k pa salary = 2,758 per week (+203)

As you can see, it ranges between $240-$200 per week at each $20,000 increment. Think about how hard you work, day in day out for that promotion, that change in job, and that additional $20k, especially in an economic environment that has slower wage growth. 

Now let's think about how easy it is to go through $100 a week (or $200). That Uber Eats, those 2nd or 3rd coffees for the day, the Sunday brunch at a trendy cafe. When you take the time to think about it, you'll see how easily it all adds up. It goes to show how important it is to spend time managing your expenses. Think of the extra cash as an income promotion between promotions. Over time it becomes second nature, and your bank balance will thank you for it. 

So how do you actually do it? I used to manage my expenses in excel exclusively. However, I have found two apps that I think provide huge benefits and hopefully, you will too 

• Money Brilliant (https://www.moneybrilliant.com.au/) and
• PocketBook - (https://getpocketbook.com/)

It's all well and good to be working 60 hour weeks and hustling for that next promotion, but the extra dollars you're pining over might already be in your bank account, keeping them there that might make all the difference.