“If saving money is wrong then I don’t want to be right”
I like to think about my bank account or more specifically my wallet as a tea bag.
While I am sleeping my wallet bleeds money. During the day regardless of whether I spend coin, bills or electronic credit money is leaving my bank. It feels like a penetrated levy where small unpatched leaks become torrents and if unmanaged the entire embankment might burst emptying the entire contents.
To keep on top of this one of the things I like to track is my bleed score.
There are very complex ways to calculate the daily haemorrhage.
I prefer simple.
Each quarter I calculate my net income after any tax (if I volunteered to pay).
Using a calendar I calculate how many days there were in the quarter.
Then I calculate my total savings over the period.
I subtract this figure from my net income to get my expenditure and then I divide this figure by the number of days in the period.
This is my average daily bleed.
My goal has been to try to reduce this figure quarter by quarter by quarter.
At first it is easy to halve, quarter or even decimate. After only four quarters of effective action this number becomes very hard to impact with status quo thinking. Only radical questions and experimental behaviour can continue to bring the $$ bleed down.
The process reminds me of a very popular guy on Youtube. He has a channel with several million subscribers. He says he is a passionate environmentalist and that he wants suggestions from his audience to reduce his carbon footprint. The first two suggestions were that he could reduce his carbon footprint by 50% if he cut out air and car travel and if he stopped eating animal products.
His reaction was that that the suggestions were ridiculous. He has money and freedom to travel and he likes meat. Clearly he likes the idea of feeling like he is environmentally conscious, but he really isn’t an environmentalist because he isn’t willing to take massive effective action.
Saving is a lot like that. People say they want to be rich. They talk about saving and investing, but unfortunately many like the idea of being rich more than their willinness to do what is necessary and make uncomfortable decisions and save massive amounts to free oneself from work in the shortest time possible.