'Days working for bank' ratio
I just realized that a whole week of last month we were working just to pay interests!
We took the interest portion of all my last month debt payments and divided by our net income (wife and I) and the result was 24%.
If you multiply this percentage by 30 days, you can estimate how many days you are working just for banks. In our case, 7.2 days. That's depressing and challenging!
Can you share your number too?
It gets better over time! Not counting our mortgage, our total interest each month is about an hour of my time, an hour of my husband's side hustle, or 3.5 hours of my husband's day job time (I'm freelance, so my hourly rate is high, but I don't get paid for about half my work--admin stuff, etc.).
Including interest on our mortgage, it's about 12% of our money that goes toward interest (hooray 30-year mortgages that we're only 5 years in to paying off), or 3.6 days of work.
Using your formula and nolesrule average number of work days per month (multiplied by number of hours in my work day), I am on the receiving end of 1.3 hours income per month from the bank. 🙂 It's certainly not very much, and it's only looking at interest from liquid savings accounts and not taking into account any long-term retirement investing, but I'm receiving and not paying......
......which explains the frequent attempts by my bank to alter the paradigm by offering me credit cards, increased credit limits, lines of credit, car loans, and mortgages; they just don't want me on the payroll.