Spending can be saving
Posted By: Dr. Frugal in Saving on 08/17/2007 at 08:28:51
Sometimes spending can be saving. My friend's family had a maid growing up and I always considered it a wasteful expense. Who can't clean up after themselves· Their family was decidedly middle-class and it seemed to me that if you're capable of doing something yourself, then you should be doing it. The more I thought about it though, you really need to determine what your time is worth. If I breakdown my salary at work it comes out to about $32/hr. Hence, I try to value my free time the same way. Is spending time with my family worth $32/hr· Absolutely. Is cleaning my house worth $32/hr· No, no it's not. By that logic, you can assert that if you can find someone to clean the house for less than $32/hr then you can use that time to be making money instead. There are some gaping holes in that logic of course, but if you can ascertain how much your personal time is worth in an actual dollar figure, you can likely figure out what jobs are worth hiring out.
No comments yet. Future commenting has been disabled.
Related:Building Your Savings
Time Is Money
The Joys of Inflation
Paying Yourself First
The Rule of 72