With the fast pace of today’s world and goods being provided so cheaply, we often replace items with new ones, throwing the old ones into landfill. Sometimes the items aren’t even broken. For those who don’t remember the saying, placing one stitch now to repair your clothing saves you the time of doing 9 stitches in future.
Bringing this into today’s world, before replacing something, get at least two quotes to either repair or replace. If it takes you 2 hours to shop around (by internet & phone of course) and this saves you $100 using after tax dollars, that’s a gross saving of over $65 per hour. How does this compare to your hourly rate of income?
Remember to think of purchases in after tax dollars (eg a $10 pack of cigarettes may be costing you half an hour of work if your hourly rate after tax and superannuation / 401K deductions is $20 per hour). Now think abut the larger expenses (ie one fifth of your working week goes to paying the mortgage / home repayments if it is 20% of your income).