Time is Money: Should You Pay For Convenience?
Time Is Money
I want to talk to you about something more important than money. This is time. The old saying that time is money isn’t far from the truth. Our challenge this week is to track time and see if it has a correlation to our money.
Let me explain:
I work as a Freelancer and I have more orders then I can handle so I could work 24/7 if I chose to. This means every hour I choose not to work costs me money in income I could be making.
Let’s say I make $45 an hour. I have the choice to buy my groceries locally which is $30 more expensive than if I drive to our nearest city and shop at Woolworths or Coles.
The drive to my nearest city takes at least 1 hour on a good day with no roadworks. That’s a whole extra hour I could be working if I wasn’t driving to town to save $30. Let me break that down.
If I shop locally it costs me about $30 more
If I shop in town the groceries are cheaper but I lose $45 in income so at the end of the day I’m $15 worse off if I drive to town to save money.
Let me share another example.
It takes me a long time to format an eBook because I don’t do a lot of it. I have to download guidelines, read them and format the book. It takes at least 4 hours.
I can hire someone to format the eBook for me for $5 on Fiverr. This means I have an extra four hours to work. This is a saving of $130 by contracting out a job that someone else can do cheaper.
Your challenge this week is to track how you are spending your time. It’s difficult to track every second so track only for activities that take an hour or more.
At the end of the week I want you to go through and analyze the results. What alternatives could you implement to save time? Is there anything you can outsource to someone else?
Update: I just discovered my supermarket does pre-chopped vegetables. I worked out that buying this way costs me an extra $12 a week but saves me two hours of prep time. With an average hourly rate of $45 that’s a saving of $78 plus I don’t have to cry over onion. Sometimes convenience is worth it!