Hour Power and Income Flashcards
Hour Power and Income
Have you ever heard of the Hour Power Philosophy?
It’s an old union philosophy that all the benefits are based around. It says each member should set aside 1 to 2 hours of their weekly wage to adequately protect themselves, their family, and set them up for their future - and do so without affecting their budget. Let me explain a bit better:
Say you went to work this week and you got paid ONE extra hour - would you buy yourself a new vehicle or book yourself a Caribbean cruise? - Probably not right!? lol
Now, if you went to work this week and they let you off ONE hour early and you got paid one hour less - would you have to start selling off your belongings to pay your bills?
No, exactly, because one hour either way doesn’t make a difference in anyone’s lifestyle, but when something happens and you lose all your income, which has devastating effects on a family.
Absolutely! - and any financial planner will usually tell you to put away 10-20% of your income, but with the 1 to 2 hours, it’s only 5% which makes it comfortable for everyone without affecting their budget.
Taking $5 out of every $100 to protect the other $95 is just being responsible. Isn’t it great how they made it affordable for everyone to have permanent coverage?
IMPORTANT:
Do you get paid hourly or salary?
If hourly - Okay! So, would it be uncomfortable for you to set aside XX per week?
If salary - Okay! So that would break down to be about XX hourly.
Makes sense right?
