Today’s Financial Message Just for you, {{ first name | friend}}
Back in the day, you could spend three hours trying to hook up your Nintendo to the old TV with rabbit ears - or just ask Billy, your tech-savvy friend to come do it in five minutes.
Fast forward to your 40s and 50s and it's just a grown up version of the DIY decision process—sometimes your time is worth way more than the money you'd save.
If you're billing $50 an hour at work and it takes you three messy hours to save $30, you've actually lost money and a Saturday.
The real trick is knowing which battles to fight… Continue Reading
“This is definitely NOT Blood Orange!”
When Is It Not Worth It to Save a Buck?
We've all been there: staring at a leaky faucet, the 90s level-of-ugly kitchen counter, or an IKEA furniture box with instructions that might as well be written in ancient hieroglyphics.
And since Gen X grew up knowing how to pinch pennies and figure stuff out on our own, we’ll still ask ourselves:
"Should I do it myself or pay someone else to do it?"
Two questions should pop up:
How handy are you?
How much is your time worth?
How Handy Are You?
The folks at Porch.com ran a survey on how the different generations match up when it comes to home repairs and DIY projects. And no surprise, Gen X thinks they’re pretty handy around the house…
(Also - even though Millennials said they’re handier than us, they were the least experienced at fixing a running toilet and patching wall holes.)
So what about you - even if you ARE handy around the house - is it always a given that you try to save money and fix it yourself? Or is it smarter to pay an expert and keep your valuable time?
When DIY Makes Sense
You Enjoy It: If you love gardening, cooking, or tinkering with your car, the enjoyment factor might outweigh the time cost.
You're Learning Valuable Skills: Sometimes, the knowledge gained is worth more than the time spent.
The Quality Matters to You: If you're particular about how something is done, DIY might be the way to go.
It's Significantly Cheaper: If the cost savings are substantial and you have the time, DIY can be worth it.
When Paying Makes Sense
Time-Consuming, Low-Value Tasks: Think grocery shopping, house cleaning, or laundry.
Specialized Skills Required: Unless you're a hobbyist electrician, some things are best left to the pros.
Time-Sensitive Situations: When you're under a deadline, paying for help can be a lifesaver.
Your Time is More Valuable: If you could be earning more by working during that time, outsourcing makes financial sense.
5 Strategies for Smart Decision Making
Calculate Your "Personal Hourly Rate": Take your annual salary and divide it by 2,080 (40 hours/week x 52 weeks). This gives you a rough idea of what an hour of your time is worth.
Use the "Two-Minute Rule": If a task takes less than two minutes, do it immediately rather than outsourcing or procrastinating.
Batch Similar Tasks: Grouping similar activities can make DIY more efficient. For example, meal prepping for the week in one go.
Invest in Time-Saving Tools: Sometimes, spending money on tools or appliances that save you time in the long run is worth it. Think robotic vacuum cleaners or programmable coffee makers.
Value Your Free Time: Don't just consider your working hours. Your leisure time has value too. Would you rather spend your Saturday mowing the lawn or enjoying time with family?
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Go Deeper
Can you save more by growing your own food? Read a few more Wealthy Thinker articles:
Money Mindset Message
Tom Hanks and Shelley Long clearly never binged HGTV before they bought a stinker of a mansion. (The Money Pit, 1986)
Did you know…
On this day in 1985, various mega music stars gathered to record a charity record “We Are the World” raising more than $60million for African famine relief. In monkey-paw fashion, 35 years later, celeb colab “Imagine” was released undoing all of the previous good will.
I’m not trapped in here with you, you’re trapped in here with me!