Mom23boys
01-08-2003, 10:58 AM
Time is Money - Money is Time
by Tawra Kellam
Enjoy life
When people ask me about getting out of debt, they often ask
"Doesn't it take quite a bit more time to be frugal?" Of
course, doing work yourself does mean you spend more time
doing certain things. It also means that you will spend a lot
less time and money working to pay someone else to do it. Many
people work more hours to pay someone to do a job than it
would take them to do it themselves. If you make a million
dollars a year and have no manual dexterity, this article is
not for you.
Here are some examples, based on my own experience of a family
of four. Because your household income is probably not the
same as mine, some things that make sense for me will not make
sense for you. I suggest that you read my examples and
consider your actual costs.
Example #1: BUYING CLOTHES - One great way to save on clothes
is to go to garage sales. This seems very time consuming to
many people, but it really isn't. In the summer, I usually
spend three to four hours every two weeks going to garage
sales. That may seem like a lot, but if you compare that to
how much time the average person spends shopping at the mall,
it really isn't any longer.
Example #2: MEALS - I usually average an hour and a half each
day preparing and cleaning up from meals. Compare that to
going out to eat: It takes the typical person 20 minutes to
drive to the restaurant and 20 minutes to return home. Then
you spend 15-20 minutes ordering and waiting for your order.
You are now up to one hour. If you plan an hour for eating,
you are up to two hours total. Don't forget the two to three
hours you had to work to pay for it! This is based on an
income of $30,000 per year and a $40 family meal.
If you go to fast food restaurants instead, you could cut your
time down to 40-50 minutes and one to two hours working to pay
for it.
If you stay home and cook, it will cost you 15-30 minutes
preparing the meal and less than $5 paying for it. I'm not
saying that you should never eat out, but if you do it
regularly, it will cost you a lot more (in time and money). Is
it really worth it?
Example #3: BUYING A CAR - If you buy a new car with $500 a
month payment for five years, you pay $30,000. Let's say you
earn $30,000 per year at your job. If you assume 25% income
tax, you must earn $40,000 to pay for your $30,000 car. This
means that you have to work one year and four months for no
other reason but to pay for that car. Is it really worth
working over one year just to pay for a new car? If you
decided to buy a $7500 car instead, you could afford to take a
vacation from work for a year. Haven't you been saying you
need more free time? If you didn't get that, get out your
calculator and do the math. This is important.
Always consider the hidden costs. Would you feel more inclined
to buy a security system for that $30,000 car? How much will
that cost? Are the parts more expensive for the $30,000 car
when it breaks down? Trust me, your new car will still break
down almost as much as a used car. Ask my brother...
Be very careful when you start saying things like "Doesn't it
take too much time to be frugal?" or "I can't seem to find
time to be with my husband or children" or "I don't know where
to start saving." Often, those are excuses that you have
created to ease your guilt. If you think about it and do the
math, living simply will give you more free time. If you'd
rather not, you can always keep spending money and wishing you
had more family time. It's your choice! But take heart. If you
have read this far, then you get and A+ for taking the first
step and trying!
by Tawra Kellam
Enjoy life
When people ask me about getting out of debt, they often ask
"Doesn't it take quite a bit more time to be frugal?" Of
course, doing work yourself does mean you spend more time
doing certain things. It also means that you will spend a lot
less time and money working to pay someone else to do it. Many
people work more hours to pay someone to do a job than it
would take them to do it themselves. If you make a million
dollars a year and have no manual dexterity, this article is
not for you.
Here are some examples, based on my own experience of a family
of four. Because your household income is probably not the
same as mine, some things that make sense for me will not make
sense for you. I suggest that you read my examples and
consider your actual costs.
Example #1: BUYING CLOTHES - One great way to save on clothes
is to go to garage sales. This seems very time consuming to
many people, but it really isn't. In the summer, I usually
spend three to four hours every two weeks going to garage
sales. That may seem like a lot, but if you compare that to
how much time the average person spends shopping at the mall,
it really isn't any longer.
Example #2: MEALS - I usually average an hour and a half each
day preparing and cleaning up from meals. Compare that to
going out to eat: It takes the typical person 20 minutes to
drive to the restaurant and 20 minutes to return home. Then
you spend 15-20 minutes ordering and waiting for your order.
You are now up to one hour. If you plan an hour for eating,
you are up to two hours total. Don't forget the two to three
hours you had to work to pay for it! This is based on an
income of $30,000 per year and a $40 family meal.
If you go to fast food restaurants instead, you could cut your
time down to 40-50 minutes and one to two hours working to pay
for it.
If you stay home and cook, it will cost you 15-30 minutes
preparing the meal and less than $5 paying for it. I'm not
saying that you should never eat out, but if you do it
regularly, it will cost you a lot more (in time and money). Is
it really worth it?
Example #3: BUYING A CAR - If you buy a new car with $500 a
month payment for five years, you pay $30,000. Let's say you
earn $30,000 per year at your job. If you assume 25% income
tax, you must earn $40,000 to pay for your $30,000 car. This
means that you have to work one year and four months for no
other reason but to pay for that car. Is it really worth
working over one year just to pay for a new car? If you
decided to buy a $7500 car instead, you could afford to take a
vacation from work for a year. Haven't you been saying you
need more free time? If you didn't get that, get out your
calculator and do the math. This is important.
Always consider the hidden costs. Would you feel more inclined
to buy a security system for that $30,000 car? How much will
that cost? Are the parts more expensive for the $30,000 car
when it breaks down? Trust me, your new car will still break
down almost as much as a used car. Ask my brother...
Be very careful when you start saying things like "Doesn't it
take too much time to be frugal?" or "I can't seem to find
time to be with my husband or children" or "I don't know where
to start saving." Often, those are excuses that you have
created to ease your guilt. If you think about it and do the
math, living simply will give you more free time. If you'd
rather not, you can always keep spending money and wishing you
had more family time. It's your choice! But take heart. If you
have read this far, then you get and A+ for taking the first
step and trying!