Want to buy something, but not sure if it’s truly worth it? To make better spending decisions, consider valuing an item in terms of hours worked.
Photo by Oxfordian
Finance blog Making Sense of Cents suggests pricing an item in terms of how many hours of work it would take for you to pay for it. First calculate your hourly take home pay, then calculate how many hours it takes to pay for the item.
Writer Michelle S uses the example of dining out: If a restaurant meal with your partner costs fifty bucks, you might initially think it’s worth the splurge. But when you consider it takes three hours of your hard work to pay for that meal, you might think twice about its value.
If you waver with spending decisions, this is a great, simple trick to help figure out the worth of something. After all, your time is valuable, too. Michelle offers two more interesting tips for making better spending decisions. Check out her full post.
Do You Value Items In Terms of Hours Worked? [Making Sense of Cents]
Comments
2 responses to “Price Items In Terms Of Hours Worked To Make Better Spending Decisions”
I’ve been doing this for years now. Its a great way to delay purchasing items that are a want and not a necessity. I normally delay expenses where possible until there is a sale on, or alternatively as for it as a birthday gift from my family (if theyre not intending to give cash).
I used to do this all the time when I was on minimum wage. It really makes you think about what something is worth