Things to ponder....

Very Valuable Member Joined : 12 Oct 2006 Posts : 460

"Calculate the value in life energy. If you’ve been a reader of The Simple Dollar for long, you know about how to calculate your true hourly wage. Keep that number handy, and the next time you want to buy something, divide the price of the item by your true hourly wage … this will tell you how many hours of your life you had to give up to buy that item. Sometimes the number of hours can be eye-opening, especially for more expensive items. Consider whether you really want to give up that much of your life for that item."

This is an excerpt from an article from thesimpledollar.com...and it really does make an impact, doesn't it?
Sometimes when I feel so worn out, burnt out, and dragging & dreading a day with "the kids", I think about how much I make per hour, and if I am feeling like I am (or not) making the most out of my income. Think about it!
Another quote from the same article:
"Keep the end in mind. It’s useful to have clear goals in mind at all times. What do you want to do with your life? Do you have financial goals that you’re trying to accomplish, in the long-term and medium-term? Keep your savings goals in mind, and know when you’re about to make a purchase how the purchase will affect your goals"
Do I really want to be working forever? Do I really want to be watching babies, toddlers, & preschoolers everyday at 65? Sure, they're cute...but it's hard work! I get exhausted! & my days aren't even that long!
The way I figure it, Hubby hopefully will retire at 67, I will then be 62 & I am definitely retiring at the same time as he does! Laughing

At this moment, I can't even really picture myself being a daycare provider at 62.. or 61, or even 60...well, maybe 60...maybe I should plan on retiring by the time I'm 60~ Laughing

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Subject: Re: Things to ponder.... Tue 15 Jul 2008, 5:31 pm

Wow good things to think about .
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Gayla

"They take great pride in making their dinner cost much; I take my pride in making my dinner cost so little."

---Henry David Thoreau (1817-1862)

Subject: Re: Things to ponder.... Wed 16 Jul 2008, 4:36 am

Cheapy,

I love thesimpledollar.com, and I have known how much I make per hour for quite some time : $11.00 after all the taxes, health insurance, social security, cost of driving, lunches, etc.

A computer professor in college made a great statement about what things cost. He stated that when you purchase an item, you are pretty much just trading time that you have to work for the item.

For instance, my $250 car payment every month "costs" me 23 hours of work at the office.

My mortgage costs me nearly 40 hours. Right there is 63 hours or nearly two weeks of work to just maintain two payments.

That sushi lunch that I love so much - cost me 1 hour of work. So it's like going to work, and losing an hour of wages.

It really does put things into perspective, doesnt it?

What would be ideal is to save up enough money where the interest you earn a month would be enough to pay your expenses. That is my goal. Remember this phrase? K-I-S-S?
Keep It Simple Stupid
That's what I am striving for.

If I can keep it simple for just a few years, Todd and I could quit our jobs that are killing us, and do part-time work doing something we love...or starting the business next year that we have been talking about.

There is no way that I want to wait until 60 for retirement.
I'm thinking by the age of 30. I will do whatever it takes to be able to CHOOSE what I want to do in my carreer, versus HAVING to do what I do because it makes enough money to pay the bills.

~M
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"It is not how much money you make - it is how you spend it."

Subject: Re: Things to ponder.... Wed 16 Jul 2008, 9:19 am

I never considered how many hours of my life is spent in order to buy something. Very interesting concept. Thanks, cheapy for posting this.

Subject: Re: Things to ponder.... Wed 16 Jul 2008, 10:04 am

I haven't read the article, but yesterday at Walmart I was considering buying something and thought to myself do I want to sew for an hour in order to have that? As a self-employeed seamstress I have working time that isn't included in my hourly wage for example meeting with clients and spending time advertising. So the $20 item was actually more than an hour's sewing.
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Dear Lord, help me remember how lucky I am on both the good and the bad days!

Very Valuable Member Joined : 12 Oct 2006 Posts : 460

m, after reading your post, all I could think was how incredibly intelligent I think you are & how proud & impressed I am of you & Todd...wow!
You are so young & you totally "Get it"!!! I wish my boys (22 & 25) "Got it"- Rolling Eyes

My hubby & I were great financial role-models for them as they grew up. We lived frugally yet always had fun, never deprived them (only of material "things"),great work ethic, stable home & family life, etc. But once they got their first jobs, all our lecturing & advice went right out the window! Rolling Eyes

In one ear & out the other as they say. So now, even though have both been working for a few years now, they both have nothing to show for it. Just recently my 25 yr. old son has been learning the importance of saving & such (yeah, sure, now that he wants to get married, own a house, his own garage,etc.)..he has a GREAT work ethic, very hard worker he is,and he's realizing that he should have dealt with his money differently YEARS ago. My 22 yr. old is clueless. I won't even "go there" with him~ Rolling Eyes

He thinks he knows it all, is broke all the time, and even though he's a good worker, still tries to find every excuse in the book to not show up (then always does). I don't understand him & worry about his future.
That's why I am so impressed with you guys, m!!! I wish you SO much luck in getting everything you want because you truly deserve it all!! Your clarity about your lives & future & finances just amazes me!!

Hubby will be 50 next year & I will be 45, so that's why 60 doesn't seem so long off for US Wink

We still did pretty well for ourselves with just a few minor stumbles & falls! We still managed to get right back up & just deal.
I raised 4 kids, we have a house that's almost paid for, and other than the house, no major debt (we just bought a used car last month, a 2004 corolla cuz we ran the "mother mobile" into the ground,meaning it was time to downsize & our minivan was old & needed too many repairs Laughing

).
I just worry about sending my girls to college now, we never saved tuition money for them & I really don't want to have to do student loans I keep hearing more & more horror stories about student loans!

I had a serious conversation with my 16 yr. old daughter today, about finances. She loves to converse & listen to my advice...no really!!! Hopefully she absorbed it & remembers it! She seems to have genuinely understood what I was saying, about saving & goals & such.
Talk is cheap! I want to see some action now. Wink

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Subject: Re: Things to ponder.... Wed 16 Jul 2008, 3:15 pm

Cheapy,
Thank you for the very kind words.

I have always been a "planner" when it comes to being able to get out of the rat-race. By that, I dont mean quit work completely, but be able to find a job that I love, even if it pays minimum wage, and be able to afford our lifestyle (not extravagent by any means; however, we do have alot of fun!)

When I met Todd, he agreed to let me take care of all of the finances. He has been very supportive of many of my "crazy ideas," and this is one that I am determined to meet.

Please note: We are in alot of debt. Though I "get it," we are not perfect. However, we are both still working toward a goal...and the most important part is that we are working toward it together.

Thanks again.

~M
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"It is not how much money you make - it is how you spend it."