Ramit Sethi made a post over at I will teach you to be rich that piqued my interest.
A couple of weeks ago, I went the entire week without spending one cent. I was really proud of myself. But then I realized that even when you don’t spend money, you really do. With car payments, rent, food, gas, etc, you probably spent over $60 today–even if you didn’t take your wallet out once. Now think how much you have to make every day to break even.
So I crunched some numbers and while it isn’t all that acurate, my monthly costs averaged out over 31 days comes to roughly $68.00
What does that mean for me? That means that I have to earn at least $68 a day to just break even on my recurring bills. I didn’t even include things like gas, food, etc… With those things included, it probably would raise to nearly $80. Assuming an 8 hour working day, I have to make $10 an hour just to break even.
What is your break even number? Are you meeting it? Or is it time to start cutting some costs.
An interesting thought. Thanks Ramit!