Monday, September 12, 2011


This post is edited from The Simple Dollar, a worthy blog about money and frugality.

Money is something we choose to trade our life energy for.  

Point 1:  If you earn $15 an hour at work, you’re not actually trading an hour of your life for that $15.  In truth, you’re not earning that $15.  Some of it is going away to taxes.  Some of it is going toward buying your work clothes.  You’re also working some hours for free, including the commute time and so on.  If you start calculating the numbers there, you quickly get down to a rate of $8 or $9 per hour (perhaps a little better, perhaps a little worse) that you actually earn from your job that you get to keep.  

Point 2:  When you spend money, you’re actually spending time at work.  If you actually earn $8 per hour invested in your job and you buy a $2,000 television, you’re swapping 250 hours of your life working for that television.  Why not buy a $1,000 television and reclaim 125 hours of your life?  If you earn that $8 an hour and buy a $200,000 house on a 30 year mortgage, meaning you actually dump in $400,000 after the interest, you’re swapping 50,000 hours of your life for that house.  Why not live in a $100,000 house and reclaim 25,000 hours of your life?  That’s twelve years of working 52 weeks a year, five days a week, eight hours a day.

Some food for thought.  See full article Money

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