Karl Eggerss was interviewed on CBS by Sharon Ko discussing the correct amount of time everyone should be spending on their finances.
Sharon Ko: This morning, consider how much time you spend on your finances. Here’s how much attention you should be giving to manage your money.
How much time does the average person spend on their finances?
Karl Eggerss: Well, according to the fool.com, only about 3% of Americans even spend any time, intentional time, on their finances. But the ones that do spend intentional time on their finances, they spend about an hour a day. And you know, I don’t think there’s people watching that are going, “Wow, I don’t spend that,” or, “I spend two hours a day.” I don’t think there’s a right or wrong. I think the key though is are you passionate about this? Is this something you enjoy doing? Because if you don’t, then maybe you shouldn’t be spending two hours a day or an hour a day on your finances. But I think the key is to automate as much as possible. With technology the way it is today, with apps, with software and websites, we really should automate as much as possible so that we’re not having to spend that much time doing it.
But one other interesting stat is they say that people spend about 100 times as much time binge watching on TV than they do on their personal finances. And I think the key is you have to have some intentionality, right? You have to pay attention to it, otherwise the money’s going to leak out somewhere. And so whether it’s budgeting or assessing your allocation if you have investments, those are things you have to have intentionality. Otherwise, you’re not going to have any type of strategy or any type of plan. And so whether it’s 30 minutes for you or an hour a week, whatever it is, you might want to put that in your schedule so you do have some regularity with that.
Sharon Ko: Are there some areas to focus on, some main areas to focus on when you are spending time on your finances?
Karl Eggerss: I think budgeting is probably the biggest one. You know, what is coming in the door, what’s going out. If you don’t know that and you don’t have a handle on it, then you’re never going to get to where you need to go. I mean, if you really know, “I’ve got X dollars leftover at the end of the week,” every paycheck every month, then you can figure out, “Okay. When that happens, I have to have a plan of where that’s going to go in terms of saving or paying down debt.” If you don’t do that, it’s just going to get spent. There’s a lot of things out there that we can spend our money on, and if we don’t have a plan for where that money is going to go, it will get spent.