But some frugal habits save so little, they take more time than they’re worth.
So how do you decide which habits are worthwhile and which aren’t?
Trent Hamm of The Simple Dollar suggests calculating the “time value” of your frugality.
We’ve talked before about how there’s more to finance than being frugal.
In fact, some saybeing frugal is a waste of time.
They argue that it gets in the way of more lofty financial goals, like earning more money.
Here’s how to start.
First, calculate your hourly take-home pay.
This is your hourly income, after taxes and mileage expenses and any other business expenses.
Then, calculate the “time value” of whatever frugal habit is in question.
For example, let’s say it takes you an hour to meal plan.
And meal planning saves you about $25 every time you go to the grocery store.
Is this amount higher than your hourly take home pay?
In other words, would you save more by meal planning than you’d make working for an hour?
If so, go for frugal.
It’s actually pretty simple, but he goes into a bit more detail in the full post.
If you’re looking for a good balance of frugality, this might be a good starting point.
Which Is the Best Path?| The Simple Dollar
Photo byMissMessie.
