If Time is Money, Then Money is
Time, Too!
By Tawra Kellam
www.LivingOnADime.com
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,
but 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 else to do a job than it would take them to do it
themselves. Of course, 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 with a family
of 4. 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
3-4 hours every 2 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. That is 40 minutes. 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 2-3 hours you had to work
to pay for it! This assumes 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 1-2 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, that 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 payments for 5 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 1 year and 4 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, too. 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!
Tawra Kellam is the author of the frugal cookbook "Not
Just Beans: 50 Years of Frugal Family Favorites." For
more free tips and recipes visit her web site at www.LivingOnADime.com.
In 5 years, Tawra and her husband paid off $20,000 personal debt
on an average income of $22,000 per year.
