Some decisions are not just for a moment but continue to provide long-term benefit. This makes larger one-off expenditures a valuable use of your discretionary income when they provide benefits (i.e. save time) on an on-going basis.
With our example VDT of $4/hour, saving 10 minutes is only worth $0.66. But saving 10 minutes every day is worth $4.66 if it lasts a week, $20.27 if it lasts a month and $243.33 if it lasts a year. Consider something as ordinary as a dishwasher machine. If it lasts for three years yet saves an average of 10 minutes per day (versus washing dishes by hand), it would be worth spending up to $740 on one – although there is no need to spend the maximal amount. If increasing our time truly drives happiness (as per our first post) then – whilst it might not be immediately apparent – purchasing domestic appliances can impact your overall wellbeing. Potentially more than a stereotypical impulse purchase. Furthermore, investing in more advanced appliances may be justified when considered over the long-term. For example, a more expensive robot vacuum cleaner might be justified if this obviates the need to spend time using a manual vacuum cleaner. Even something as simple as a small surcharge for an automated ice maker in a refrigerator/freezer could be worthwhile for someone who spends a lot of time filling up ice cube trays. That said, our focus is on saving time – not effort. Just because an appliance makes something less effortful does not mean it saves time. An electric whisk might save time if it gets the job done quicker but might just take same time (but with less effort) than using a hand whisk. We help you value your time. Your effort is another matter! So large purchases can show we value our time. Let’s now look at when large uses of time are a valuable option. |
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