Everybody knows their annual salary. It’s the magic number that played a part in convincing you to take your current job or the amount you masterfully negotiated up to during your last review. But what about your daily salary? A new post at PT Money says that figuring this out can help you put your finances into perspective and assist you in reaching your financial goals.
Your daily salary is exactly what it sounds like: the amount of money that you make each day. If you get paid every two weeks, take your paycheck and divide it by 14 and there’s your daily salary. If you get paid once a month, divide the amount of your check by the number of days in that month. Someone who makes $1,600 every two weeks would have a daily salary of about $114.
Once you know this number you‘ll have a better idea of how each transaction you make affects your overall finances. The author of the PT Money post says that having a daily salary helped him realize the ridiculousness of a $37 overdraft fee. Sure, a one-time charge of $37 doesn’t look that bad when compared to your annual salary, but what about when you compare it to the $114 you make each day?
Keeping track of how much you can spend each day encourages you to avoid unnecessary expenditures such as bank fees (which, believe it or not, are avoidable). Also, those impulse purchases that may look enticing and innocent at first may end up looking a lot less appealing.
Do you put yourself on a daily salary? If not, do you think doing so would help you better track your spending?