Looking at stuff in terms of how many labor hours it costs

by Jen (April 1, 2008)

Spotlight Post: The Real Cost of Financial Clutter on the Road to a Remarkable Life

Let’s say the true value of your time came out to be $5 an hour (it can easily be this low, even at a “good” job). You’re at the store and you’re lusting after buying a Nintendo Wii - it’s $270 after taxes. That’s 54 hours of your life spent working for someone else so you can buy something else to clutter up your home. Even better, that’s $270 - or 54 hours - taken away from your big dream.

Not necessarily a new idea, but a very detailed twist on the concept. He gives you a formula to estimate how much you really earn per hour from your work so you can get some perspective on making purchases in terms of how many hours they cost by that wage.

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Posted in Frugal, Personal Development
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