Also why I don’t pick up dimes off the ground
Posted by yongeblood
This reminded me of this earlier post, being another way how people think they’re saving money when they’re not. (from xkcd.com)
Ever wondered what your time is worth? If you’re shopping for a product online, and you spend 3 hours online and save $20, was that really worth all that effort? I’m not even 100% sure it’s worth it (from an economics standpoint) if the item is relatively cheap (it seems less useful if you’re buying a car*, but is it?)
Anyhow, it makes more sense to think of your time as valued at your salary. If you make $20/hr, and you have work to do, any time spent saving money had better save you money at a higher rate. Taking three hours for $20 just wouldn’t be worth it.
If you’re just a busy person (with activities & tasks other than work), and free time is hard to come by, then it makes sense to value your time similarly. Think of it from this perspective: If you have work, taking your kids to soccer practice, your own social life, and necessary time to eat and relax, then if you can save yourself 3 hours of free time for only $20, wouldn’t you take that deal?
This doesn’t mean I’m advocating buying from the first place you find something, but if it doesn’t look promising after half an hour, the possible savings had better be worth it.
* we’re assuming identical products, so this isn’t the best example. Just saying I’m aware.