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Old 01-18-2007, 07:07 PM
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Default Re: Why be frugal???

Quote:
Originally Posted by ericmedem
Here is my way of thinking, I am sure most of you will disagree, but it is my way. I always ask my myself "self, are you willing to pay $90/hr to sit on the couch and watch judge judy", since my work time is worth $90/hr and I am either working or relaxing, taking away from one to put in the other. Putting a price on my time helps keep me doing high value activities when I do work, and when I dont then I try to do things that I would be willing to pay $90/hr for. If you could be making $15/hr working then time spent not working you are essentially paying $15/hr for.
The author uses a similar approach in "The Tightwad Gazette", a book I think most here have read. When doing a frugal activity, she calculates the hourly rate of savings that activity generates. If it isn't a certain level, it isn't worth doing. For example, if baking your own bread takes 2 hours but only saves you $4, is it worth it to give up that 2 hours of your time? Probably not, though everyone's answer will be different.

Personally, I earn $70/hour on the job. However, I value my free time too, so I disagre with your point that it's costing me $70 to watch tv for an hour. I don't WANT to be working during that time. I want to be relaxing with my family watching tv. Could I be working more and earning more? Sure, but that wouldn't make me nearly as happy as what I'm already doing.
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