Changing The Price From Dollars to Work Hours When Shopping
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Time is the most precious and limited commodity in the world. The amount of time we have left is limited but the amount of money we can make is close to unlimited. When we get ourselves up every morning to head to work, we are trading our time, labor, and expertise for a salary. The money earned is spent mostly on living expenses but for some people, it is mostly spent on unnecessary luxuries.
After starting work in Midtown NYC, I found that a regular meal could cost an average of $10. I kept thinking to myself, “Wow, that’s almost equivalent of one hour of work”. That has been the reason for my frequent visits to fast food chains so that I get to keep more of what is left of my on hour’s work. My hourly wage is about $13 per hour and if I went to enjoy a tasty $25 lunch during my lunch break, my stomach was full at the cost of 2 hours of my time. The rule of thumb I like to follow is: the cost of your lunch shouldn’t surpass your one hour’s pay.
Time is money. Money is time. Now applying this mentality to everything else we buy, it could serve as a leash against impulse spending. It would be a good idea that shoppers ask, “How many work hours does this item cost me?” along with the famous “Do I really need this?”. Adding another weapon to your arsenal of smart spending tactics can only mean a happier wallet.
In the event that your salary became much like that of Bill Gates’, which is more than $460 per hour, your $200 lunch at a 5-star restaurant may be worth your time (although I don’t believe it is, no matter how good the food).
This is not to say you cannot spend on what you want. Each person has their own price for their time. With my recent purchases of an iPhone and PS3, I figure I spent about 53 hours at work to afford those two items. I admit I did have some hesitations before getting these guilty pleasures. My excuses would be that I had been saving for them all summer and that I also have money saved in the bank after spending some.
No one can tell another person that something isn’t worth their time. Thousands of people in the world devote their time to things with no direct rewards to themselves. Only you can determine whether the time spent at work was worth whatever you are paying for.
Photo credit: swanksalot
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9 Comments on this post
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JoeTaxpayer said:
This concept is brilliant.
I used the ‘hours per’ to demonstrate how median home prices when normalized for both hours and payments (which dropped as rates fell) really showed little indication of the bubble. I maintain that’s how Greenspan missed it as well.
But for other discussion, such as cost of a car, suit, food, etc, it’s great. The hours have fallen steadily, it’s our desire for more stuff that just keeps rising.October 7th, 2009 at 8:41 pm -
ctreit said:
I have used a similar concept for services I buy. For example, when I decided to have my grass cut by somebody else, I see how much this service costs me. I compare that price with the time it takes me to do it myself. If the dollar value of the service per hour is less than the money I make per hour, I give the job to somebody else. Otherwise I do it myself.
October 8th, 2009 at 10:16 am -
Jerry said:
You’re absolutely right. No one can tell you how and when you can spend your money and time. We all have a limited amount of time on earth and no amount of insurance can change that fact. And, while a PS is not something that is of value to me it obviously leads you to feel happiness and satisfaction. Who am I to say that you wasted your money? Good post.
JerryOctober 9th, 2009 at 1:37 pm -
Angie said:
Great post!! I’ve been doing this for years.
October 12th, 2009 at 10:05 am -
ZLWO said:
I think everybody would make it like ctreit. We all want save money. But I am a selfmaker. I make every thing on my own. So I save a lot of money and learn something new.
October 15th, 2009 at 4:11 am -
June Hardy said:
Great Information. You’re good and you obviously know what you’re talking about!
Keep up the good work
October 15th, 2009 at 11:12 pm
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