Showing posts with label retirement. Show all posts
Showing posts with label retirement. Show all posts

Thursday, December 13, 2018

Time and Money relationship

                                                                        *worldatlas.com

On reviewing insights into a time and money relationship curve, based on information from the internet, I came to some startling conclusions. Let me caution, these are my own thoughts and may not be correct.

In a lifetime of approximately 80 years (remember today’s world average is already over 70), we essentially live it in three periods:

Pre-adulthood (25 years)
Regular work period (35 years)
Retirement (20 years)

Breaking down the above 80 years into broad activities:

Sleep (30%)
Work  (27%)
Drudgery, exercise, playing, eating, health (21%)
Own time (12%)
Spirituality/religiosity/conscience work (5%)
Miscellaneous (5%) 

'Disposable available money' during the three periods, as a percentage of a whole lifetime, is skewed dramatically towards the retirement period. This happens because you earn little in the pre-adulthood period; have many commitments in the work years; and build up a savings bank just pre-retirement (which is normally a period of less commitments/higher earnings). This is then available as disposable money during the retirement years.

Divide 'disposable available money', in terms of the spending on above named activities. The 'drudgery, exercise, playing, eating, health' activity takes more than 50% of disposable available money; ‘Miscellaneous’ over 40% (in retireiment our expenditure narrows, as our activities narrow).  So the following fascinating conclusions occur.

A) we do not have money most of our lives, while striving to obtain it - i.e. the first 60 years.


B) when we do have money, we are old, unable to use it, and a large portion is spent on health maintenance or recovery. Not on using the available money for enjoyment.

C) 40% of our money is spent on an amorphous/ambiguous ‘Miscellaneous’. This ‘Miscellaneous’ in time spent proportion, is only 5% of our lifetime and that too mostly in our later years. The conclusion derived from this statement is, that ‘Miscellaneous’ spent is either wasted or left as a legacy for our progeny. 
D) so the real question is, why do we struggle, take stress and spoil our health to get money, when it does not benefit us at all?


I am, to say the least, flummoxed.