I'd rather be outside…
The salesman said it.
The sales manager said it.
The finance lady said it.
Even the insurance company rep said it.
“Congratulations on your new vehicle.”
I wondered if it was part of the post-sale script, part of the plan to eliminate buyer’s remorse.
Do you have more time or money?
The correct answer is “money.”
Even if your balance is $0. Or -$278,000.
Because money is replaceable, time is not.
So if you can use money to free up time, it’s often the wisest course of action.
BUT, before you can apply this principle strategically, you need to establish a value for your time.
In a recent post I suggested that instead of putting away a few thousand dollars at low interest you might want to write a book.
That’s been one of the best investments I’ve ever made, both in dollars and cents and in personal growth.
Here’s something else I’ve done that has paid off in both areas as well:
Came across an article on savings and compound interest. The author’s intent was to encourage savings by showing the power of compound interest.
The chart in the article showed how a $200/month investment at 3.5% would lead you to save $24,200 over ten years, and gain an extra $4853 in interest, for a total savings of $29,053.
Underwhelming.
Didn’t make me want to save any more.
How about this:
Recently, I posted about some repairs to The Beast, my 2002 F150 pickup.
I used the story of a major repair followed by the need for a second major repair as an example of sunk costs and how to decide whether to keep spending or cut your losses.
The Beast now has a solid front end, a new (used) transmission, and runs beautifully.
Except that the transmission leaks.