lied like Benedict Arnold to their partners about money. It is safe to assume this statistic is no better with platonic relationships. There is also the possibility that you do not know
PUMP UP YOUR WALLET
by david auten and john schneider
how much money you truly make. That requires math! Sure, you know the figure your boss quoted when you were hired or when you recently discussed your 2013 performance. But after you factor in with- holdings such as Medicare, Social Security, state and local taxes, what you bring home is less than what your boss quoted. That money paid to the govern- ment was never really yours. Of course, if you take advantage of employer- sponsored benefits such as health and life insurance, retirement savings and Employee Stock Purchase Plans (ESPP), the net amount of your paycheck is significantly less than what your boss quoted. That money is yours, but it should be deducted when you review your monthly finances and then forgotten like New Year’s resolutions on February 1. This will ensure you have money when it comes time for you to retire. Knowing how much money you truly make is like
FOR MANY OF US, achieving the perfect body is a lifelong quest. Whether
skinny and wanting to gain muscle or husky and wishing to trim down, we know it comes down to calories in versus calories out. Being in picture-perfect financial shape is similar in that it comes down to money in versus money out. Too often, when striving for that perfect body, we are overly concerned with
burning calories on the treadmill or stair climber and not focused enough on the calories consumed from alcohol, food and sweets. Did you really need to drink that bottle of wine last night? Similarly, we are too often focused on how much money we earn and not concerned enough with how we spend the money we currently make. Maybe the better question is, did you really need to buy that bottle of wine last night?
FOLLOW THE NEXT THREE SIMPLE STEPS TO CHANGE YOUR FOCUS AND PUMP UP YOUR WALLET AS MUCH AS THOSE BICEPS:
1) Know how much money you make. You’re talking to a friend at a bar and you mention
that one of your 2014 resolutions is to make more money and they ask, “How much do you make?” What do you say? Do you inflate it? Do you include the bonus you aren’t certain to get? The reality is that most of us quote a larger number than we actually bring home. A Self Magazine and
today.com study found that close to 50 percent of people have, to some degree,
52 RAGE monthly | MARCH 2014
knowing how much you weigh. Whether you are try- ing to lose or gain, it is helpful to know your current weight. This can only be done by stepping on a scale. The same goes for money management. If you want to achieve a financial goal, it is helpful to know how much money you truly make. This is best done by calculating your net take-home pay. Ugh, math!
2) Know where your money goes. By Christmas, many of us no longer count calories
because it’s too hard. Why bother to count how many calories from wine you drank at the big holiday party when you don’t even know how many bottles you drank? It’s too depressing. It is even more depressing looking in the mirror before going out New Years Eve and realizing those new jeans are just too tight. “Muf- fin top” is a fun song, but not a fun look. The same effect happens with money. Not pay-
ing attention to where your money goes leads to a similarly depressed feeling when you don’t have any. You had some at one point, just like you could fit into those jeans at one point, but now it’s gone. So, where did it go? If you track your money, you can analyze the wisdom of how you spend. Granted, you may already know you spend unwisely, but do you realize how unwisely? Do a quick check up of your spending. Calculate
your total debt; include all your credit cards, auto, student and home loans and any other debt you have (yes, include that loan from your mother) and
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