The True Value of Your Time: Why Saving $18 Might Actually Cost You More
At our office building, there's a salon called Sterling's that charges $42 for a haircut. During a conversation at our in-building gym, a fellow member mentioned he drives 12 minutes each way to save $18 by getting a $26 haircut instead.
Let's break this down:
- Time spent driving: 24 minutes
- Time finding parking: ~3-5 minutes
- Total time investment: ~30 minutes
- Money saved: $18
Understanding Your Time's Worth
The Basic Math
- At $125,000/year = $60/hour
- 30 minutes = $30 of your time
- Saving $18 while spending $30 worth of time = $12 loss
The Higher Stakes
- At $500,000/year = $240/hour
- 30 minutes = $120 of your time
- The "savings" become even more costly
Where Is Your Time Actually Going?
Common Time-Wasting Activities
- Grocery Shopping
- Driving to store
- Walking aisles
- Checking out
- Driving home
- Carrying groceries
- Meal Preparation
- Planning meals
- Shopping for ingredients
- Cooking
- Cleaning up
- Various Errands
- Home improvement store runs
- Car maintenance
- General shopping
Smart Solutions for Time Management
Outsourcing Options
- Instacart for groceries
- Meal delivery services (Thistle, Freshly, etc.)
- TaskRabbit for errands
- Local service providers within walking distance
Communication Management
Instead of "just-in-time" communication:
- Designate specific times for email (3x daily)
- Morning review
- Pre-lunch check
- End-of-day wrap-up
- Phone call management
- Silence phone during focused work
- Batch call returns
- Let non-urgent issues resolve themselves
The Long-Term Impact
Time Is the Great Equalizer
- Everyone has 24 hours
- The difference lies in how we use it
- Small daily choices compound over time
The Five-Year Perspective
That saved 30 minutes could be used for:
- Professional development
- Content creation
- Strategic planning
- Business growth activities
The Compound Effect
- 30 minutes daily = 3.5 hours weekly
- 14 hours monthly
- 168 hours yearly
- 840 hours over five years
Key Takeaway
When evaluating cost-saving opportunities, calculate the true cost of your time. Often, what seems like savings actually reduces your earning potential and productivity.
