How Many Paydays Have You Got Left?
In Time is a 2011 science fiction film featuring Justin Timberlake and Amanda Seyfried. In a dystopian future about 50 years from now, people are genetically engineered to stop ageing at 25. Also at this point, a 12-month countdown clock starts on their arm. Once the clock reaches zero, the person dies.
People can increase their clock time - and as a result their lifetime - by transferring time from other people or by downloading time held in special Time Capsules. Time is, therefore, the universal currency. Poor people live day to day, trying to beg, borrow, steal or earn time to avoid dying. The rich are effectively immortal because they have massive time credits - or perpetually able to trade assets for it.
Money Can Buy Time
In the real world, we might not be able to buy more time and live forever. But money does give us the ability to control how we spend our time. It also enables us to have a better standard of living and to suffer less stress. Together with healthy lifestyle choices, these help us to maximise and enjoy the time we have left.
If you were like the people in the In Time film, with a countdown clock on your arm, would you live your life differently? Would you still make the same earning and spending decisions that you currently do? Would you have more of a sense of urgency to make your life count and get the most out of it?
Converting Earnings to Wealth
But let’s bring this time issue down to a more practical and relevant level. Thinking in terms of the number of paydays you've had, compared to how many you still have left, is a sobering experience.
I've had about 380 monthly paydays since I was 18. If I continue to work until I'm 60, that means I've already had 80% of my paydays. Which means I only have 20% left.
You’ll have a greater chance of building meaningful wealth if your future paydays are a larger percentage of your total working life. For example, a 25-year-old who has worked since they were 18, and who intends to work until 65, still has 85% of their entire paydays left to earn.
But if you have breaks in your ability to earn, whether due to unemployment, illness or periods spent being a full time parent or carer, then your remaining paydays will be curtailed.
If you've already had a lot of paydays, you can't buy more time. But you could choose to work longer if your health and circumstances allow, in order to improve the percentage of paydays you have left. For example, say I'm willing and able to work to 70, then my remaining pays go from 20% of my working life to 36%.
Money for the One Life We Have
The ancient Egyptians believed in life after death. So the Pharaohs were buried in enormous burial chambers along with all the things they might need, including their valuables. As we know from all the rediscovered tombs, they didn't need any of their riches after they died. And neither will you. But you will need some wealth to support your life between when you stop working and when you take your last breath.
By being intentional about how you spend your time and money, you can maximise and enjoy the time you have left, both while you are working and beyond.
Steve Jobs once said "Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life."*
You've got a lot of financial choices ahead of you. Just make sure that they are good ones.
Warm regards,
Jason
P.S. The film In Time is currently available to watch as part of Amazon Prime Video membership in the UK.
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*This quote comes from Jobs’ famous speech to graduates at Stanford University in 2005. The full speech Jobs gave - How to live before you die - is well worth watching in full.