Tuesday, February 17, 2009

Time is Money

Tight wadding is truly a lifestyle change for many. When you are finding ways to save money it's important to remember the old adage that "Time is Money". This can be looked at from two VERY different perspectives. Most people have more of one or the other. When you have more money than time, the time becomes more valuable. However when you have more time than money, the money then becomes the valuable commodity.
The tasks that save money on a daily basis need to be evaluated based on how much money you are saving verses the time expended to save the money. This can be confusing, so I'll break it down for you…
For me to have Aaron's dress shirts laundered it would cost me approximately $4 each shirt. However for me to starch and iron them myself would take approximately 30 minutes for a handful of shirts. Let's say just for arguments sake that it takes me a full 10 minutes to starch and iron a single shirt, this means I could do 6 shirts in an hour making my "hourly wage" $24.00. Look at the savings!

It’s a good idea to compile a list of the activities that you pursue in order to save money, then figure out the rate of savings per hour. The second factor involved is the amount of satisfaction or enjoyment you get out of each of the activities. If the activity rates high on the list and they have a high hourly rate of savings they are worth your time. However if the activity is not one you enjoy and the savings is minimal, you know this is one you can skimp on every now and then!

Another aspect of the “time is money” adage is how you view items you are wanting to purchase. When working as a nanny I was making $12.00 an hour (before taxes). When I was in the store looking at something I wanted to buy I would calculate how many hours it would take me to pay for it. Often times the really cute sweater, didn’t seem as cute once I realized how long it would take me to earn it. How many hours are you willing to work to get what you want?
These are two ways to look at time and money, so while you are compiling your list of hourly rates and deciding what your hourly rate should be, here are a few time saving tips!

1. Daily details. Deep cleaning takes time, so keep up with the light cleaning so you don’t have to do it as frequently.
2. Mass production! This can be used in many ways but my favorite is with foods to be stored or frozen. Why make enchiladas once a month when you can make four batches at once and freeze them for future use!
3. Organize. When things are in order it takes less time for you to find things giving you more time to do the things you really want to do.

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