How much is your time really worth?
When you buy something, you're trading hours of your life to acquire those goods and services.
So, is it worth hiring a housekeeper or a gardener to try and hang to a bit more of that time? What about a dog walker or a painter?
Well, it all depends on what you figure your time is worth and how important you view the task.
Economists have labelled this the “comparative advantage” dilemma and it’s worth thinking about – particularly if you and your partner find yourself with different priorities.
One way to do this is to simply look at your hourly wage. If you make $20 an hour and the item you’re considering costs $40, you can figure that it takes two hours of your life to pay for that item.
If you're salaried, simply knock off the last three zeros on that annual stipend and halve the result to get a ball park number. So $68,000 becomes $68, which comes out to something like $34 an hour, assuming you clock a few hours of unpaid overtime each week.
Of course, using gross pay overstates what you really make since you’re ignoring taxes. Try using an average tax rate of 25 per cent to get an approximation. In other words, you really need about $26 an hour to clear $20.
These calculations don’t account for the fact that paying for a service may be worthwhile if the task is one you don't do particularly well. A good painter may cost you the same per hour than you could net at work, but that's money well spent if you're actually a danger around the house.
Once you’ve got an approximate number to work with, start with the tasks that create the most strife around the house. Then see where you can make a few tradeoffs. In exchange for hiring a housekeeper or maid service, for instance, perhaps you might eat out less often or take the bus a bit more.
Where do you draw the line on hiring out? Have you been able to free up time to build your business or career?
By Gordon Powers, MSN Money
Posted by: corry116 | Mar 17, 2022 4:07:27 PM
I dont know why ive been feeling like this but lately ive been watching news casts and listening to world debt and for some reason i feel that gold is going to do something drastic either go up or way down ive been feeling like this for awhile dont quote me on this buit i think something is going to happen i guess we will wait and see
Posted by: corry116 | Mar 17, 2022 4:27:23 PM
sorry to post my unrelated comments here but again i will
looking at news reals about juan going up that means that gold is on the rise so if your a lucky person with money buy buy buy
Posted by: corry116 | Mar 17, 2022 6:00:58 PM
wich means the yen is going up because they think it is worth more once the countries stop going off of the us dollar for value the only thing left is gold
Posted by: corry116 | Mar 17, 2022 6:01:55 PM
its only a matter of time before it skyrockets
Posted by: JOrser | Mar 18, 2022 4:28:05 PM
Of course, using gross pay overstates what you really make since you’re ignoring taxes. Try using an average tax rate of 25 per cent to get an approximation. In other words, you really need about $25 an hour to clear $20
--Do you have a math department? At 25% tax you need $20 to clear $15 or $26.67 to clear $20
Posted by: gonz | Mar 18, 2022 5:48:30 PM
Joser...
Sounds like you should be an accountant.
Posted by: Steve | Mar 18, 2022 11:00:33 PM
This is also grossly miscalculating a person's hourly 'worth'. One needs to factor in commuting & preparation time, time and financial investment for education (12-20 years), apparel costs, etc, etc, etc. One should also factor in life expectancy into the equation; If you work at a desk in a bank trying some weekend logging carriers a much higher potential cost than if you're a logger & you are going to attempt to do you maids work.
Some life calculations can only be made in hindsight (helping your child learn to read or paying an illiterate person to teach them)
Best to follow corry116's advice from above & buy gold from him (or shares in BreX :-)
Posted by: Gina | Mar 19, 2022 11:24:30 AM
I am a housecleaner by profession. I have been told all the reasons for not hiring me to hiring me.
Since we are talking about maidwork, I do it better than you. More detailed and thorough.
I would hire that banker who sits at a desk or that logger because they do it better than me.
A person's hourly worth varies from one household to another. Variety of reasons too numerous
to mention. A person's view or opinion is also contrasted from one household to the next.
Posted by: Jennifer | Mar 21, 2022 12:47:37 AM
First, I'd like to say that most of your comments have nothing to do with this article, WE LIVE IN CANADA/US. Gold or the Yen has nothing to do with the worth of our personal time! As for spending on services you probably don't need, WELL, what are you doing having children, if you are a workalohic/both of your work long hours? What's the point on having a dog if you can't spend time with it? Yeah the cost of goods means something, but, only if you are a shopaholic and not a good spender! I was raised in a middle class family and live in a higher middle class life now. Some things are worth the cost like quality clothes or a good diet, but, really don't buy what you can't fix yourself. Your time with your family is most of the time more important than your overtime at work. It is our personal time that keeps us grounded and happy, unless your job is entertaining. But, without that personal/family time and learning "how to" on your own; you will always need a shrink or substance to make you happy and those are expenses, we really shouldn't have to pay!
Posted by: Sam | Mar 21, 2022 6:49:21 AM
"Dost thou love life? Then do not squander time, for that the stuff life is made of."
-Benjamin Franklin