In a time when everyone is pinching pennies and trying to figure out how to cut down on expenses, there is one expense that no one seems to be able to avoid because most people have a way of justifying it. This expense is the called the convenience expense.
The convenience expense is brought about by people’s assumption that they just don’t have the time to take care of tasks on their own. As a result, they spend money on goods or services that will take care of tasks for them. The convenience expense is based on the saying, “time is money.”
The problem with the convenience expense is that while it makes people’s lives easier in the now by giving them more free time, it actually wastes people’s money, making their lives potentially more difficult in the future. There is no way to justify the convenience expense especially when you watch the amount of money in your bank account inch its way down to nothing.
So what are som common convenience expenses people are guilty of spending their money on? Here are just a few convenience expenses and their estimated one time costs:
Chances are if you are short on time, you tend to utilize these convenience item frequently. However, there is a foolproof method to avoid having to use these convenience items. This method is called time management.
How can you manage your time to avoid the above expenses It’s simple. Let’s be generous and say you work 10 hours a day and sleep 8 hours a night. With 24 hours in each day, that means you have 6 hours each weekday to avoid paying money for convenience expenses. This equates to 30 hours a week. Is it possible to fit in tasks associated with the above convenience expenses in 30 hours?
Here is a breakdown of around how long it would take to do the tasks associated with the above convenience expenses:
Your total time spent each week on the above tasks? Just over 9 hours if you sit around in between loads of laundry. That leaves you 21 more hours during your workweek for fun and relaxation! Add that onto the 32 hours of awake time you should have on the weekends and you are looking at 53 hours a week of down time.
Still not motivated to cut out these expenses? Let’s do the financial math. If we calculate the bare minimum your convenience expenses cost you each workweek, we come out to around $195. This means you are paying almost $22 for each hour you would have spent doing a task yourself. That’s ridiculous!
The next time you are considering spending money on an expense that will give you a few extra minutes in your day, think twice. Convenience expenses may make your life seem easier, but in the long run they may end up costing you far more than you can imagine.
Guest post from:
Ashley Jacobs the editor of Cash Flow Sherpas, a personal finance blog from GreenSherpa about budget living, frugal spending, and tips for stretching your dollar. GreenSherpa is a web-based personal finance application that helps people make better financial decisions.