| It's the age old question asked by financial advisors, | | | | job-related costs. To know what your real hourly |
| "Can you really afford it?" Unfortunately, most | | | | wage is, add all the extra job-related hours to your |
| Americans, working as trained professionals in | | | | normal work week, and subtract the job-related |
| reputable industries, and filled with an innate sense of | | | | expenses from your pay. Now you know how much |
| entitlement, will answer that question "Yes. Of course | | | | you really make at work. A simple division problem |
| I can afford it." | | | | shows you how much money you earn per hour. This |
| And why not? Certainly after a 40-50 hour | | | | is the amount of money you trade for your |
| exhausting work week you should be able to afford | | | | time-your Life Energy. Keep this number in your head. |
| a decent wardrobe, your kid's tuition for summer | | | | Whether or not you find this number satisfactory |
| camp, and a nice family vacation. So why, when we | | | | (that is considered in another step of the program) |
| work so much and so hard, are Americans in debt? | | | | you are now equipped to ask the right question. The |
| Why do our salaries always fall short of what we | | | | next time you are at the check out counter don't |
| need to survive? | | | | ask if you can afford that new "gazingus pin." |
| The answer lies in the question. I don't mean to | | | | Instead, think of your new hourly wage and ask if |
| sound ambiguous. The fact is, if we base each | | | | this purchase is worth that amount of your Life |
| purchase we make on the question "Can I really | | | | Energy. For instance, let's say your adjusted hourly |
| afford this?" we set ourselves up for | | | | wage is $11 per hour. If your new gazingus pin is $67, |
| budget-breakers. Fortunately, there is a better | | | | that's equivalent to over six hours of your life! Is it |
| question we can ask ourselves that effectively cleans | | | | worth it? This question can be very sobering for |
| up our spending habits, and leave our dignity in tact. | | | | those used to saying "Sure I can afford it!" All of the |
| In their 1992 National Bestseller, Your Money of Your | | | | sudden, the question becomes, "Do I really want to |
| Life, Joe Dominguez and Vicki Robin lay out nine | | | | sacrifice that much of my life for this?" |
| steps that will transform your relationship with money | | | | Add to this question the subject of debt and buying |
| and achieve financial independence. In my experience, | | | | on credit. If you are making your purchase on a |
| step two is enough to break most bad spending | | | | credit card you are automatically paying a premium |
| habits. This exercise changes our mind-set by asking | | | | for time. And if you are struggling to pay off debts, |
| a question we may not have thought before. | | | | you must realize that you won't even have the |
| The exercise involves the concept of Life Energy. | | | | opportunity to work the six hours to pay for your |
| Life Energy is your time in hours traded for money. | | | | gazingus pin for several days, weeks or even years. |
| Some of us make an hourly wage. This is not quite | | | | By then it may be up to ten, fifteen or even thirty |
| the same as Life Energy, because it only includes the | | | | hours of Life Energy. All for this gazingus pin. Is it |
| time you punch in to the time you punch out. It | | | | worth it? Do you love this gazingus pin so much that |
| doesn't include the hidden hours we give to our | | | | five years from now, when you've paid your credit |
| employers: the time required for grooming ourselves, | | | | card down enough to reconcile this purchase, you |
| commuting, cooling down after a hard day, (not to | | | | won't mind throwing thirty hours in at work for it? Is |
| mention the vacations and entertainment we must | | | | your job so enjoyable? |
| have to maintain our sense of balance.) Nor does our | | | | Kind of puts paid employment into perspective, |
| hourly wage reflect the money we must spend just | | | | doesn't it? It also transforms our all-American sense |
| to have the opportunity to work for our employer. | | | | of entitlement. If we look at time as money, maybe |
| I'm talking about the expenses connected with | | | | we'll be a little less cavalier and a little more cautious |
| costuming, transportation, meals, and other | | | | about where we throw it. |