Track How Long It Takes to Buy Your Time to Increase Your Savings
For most of us, saving is what we do because we know we have to. Perhaps this is because we want to retire . However, the best way to think about it is to buy time. The more money you save, the more you can get your own time back.
As Dummitt notes on Save Money’s personal finance blog, a certain monetary threshold is required to live from month to month. If you do not have that amount of money, you will have to work for it. Saving money allows you to return time. Whether it comes in the form of a long hiatus or just the freedom to quit your job before you find a new one, the more you put off, the more you “buy” your future time.
How long will it take you to purchase per month? In other words, how long will it take for you to save enough money to cover your monthly expenses? The more you save, the more time you have left. While you cannot buy more time, you can buy the ability to get more time from it.
By thinking about it this way, you can better understand how to prioritize your savings. Setting aside an arbitrary amount based on your needs at retirement (which you may not know) may seem like a guess. Saving money so that you can afford a month’s worth of your time is now much more specific. You can set a goal for yourself to work on it tangible and achievable, rather than abstract and forgotten in the future.
Don’t buy things. Buy time. | Save damn money with Rockstar Finance