Time Management-Pinching Pennies Is Expensive

Do you know people that do everything for themselves and save a lot of money but never get ahead?

Should you throw money away carelessly? Of course not. Should you consider paying for something even if you can do it yourself and save the money? Absolutely. Determine what your time is worth and calculate how long it will take you to do something yourself. If it doesn’t save you more money than you could earn during that same time…don’t do it yourself.

Let me give you an example. You are thinking about saving money by painting the fence instead of paying someone else to do it. It costs $200 to pay someone to do it and you make about $300 per day at your job. You could paint the fence in about eight hours and save the $200. The painter can paint the fence in two hours and earn the $200.

The first thing to throw out is the amount of time it takes for the painter to paint the fence. It’s irrelevant. Someone might say but that’s $100 per hour to paint. That’s too much. Once again it’s irrelevant how long it takes the painter. If you can work that day to make $300 and pay the painter $200, you come out $100 ahead and the fence is painted. By painting the fence you actually lose $100 if you could have worked that day.

Now some people are unable to work when they want because their boss does not allow them work extra hours. That’s different.

For the entreprener it would be a costly mistake to paint the fence unless you are doing it for the enjoyment. You are saving money and getting entertainment value. Watch this short video and tell me if I saved money or cost myself money.

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