A Penny Saved

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!

Technorati Tags: break even, costs