Spending habits 1

Spending Habits

Some people say “time is money” others say “money is time". What is money to you?

While some people say “time is money” others say “money is time”; the difference in both phrases lies in perspective. Some people translate the phrases to mean that wasted time could be better spent generating income, while others think of it as the monetary value of time since time is required to make money.

How much do you earn per hour? If you don’t know this number to the nearest naira, execute one of the following to arrive at it:

1. At the most simplistic level, income per hour can be calculated as income/hours at the office (income earned over a month divided by hours spent at the office or place of business).

2. A more intricate way is net income/hours dedicated to work, (where net income = income – expenses associated with work e.g. fuel, clothing etc and hours dedicated to work = hours at work + hours traveling to and from the office + hours spent

preparing for work etc). For the purists, you can also amortize hours spent at University and or other work/business related training over the life of your career and apply other permutations as desired.

Congratulations!!! You now know how much an hour of your time is worth. Once you arrive at your income earned per hour; then calculate the number of hours of your life you spend earning the amount of cash required for you to purchase essential and non-essential items. The benefit of this exercise is that you will become very careful about what you spend your money on and be apprehensive about wasting your money or resources.

However, for essential items/projects such as the acquisition of relevant education and assets to generate further income, you should compare the cost with the associated benefits or future income streams. It is nevertheless important to note that these investments require large sums of money that can be accumulated only through discipline and systematic savings methods.

Fortunately, there is a special GTBank account that offers high interest rates to aid customers who would like to save for specific purposes. Be sure to ask your friendly GTBank Account Officer or visit www.gtbank.com for more details on the GT-Target account.