How much is your life worth? Part III

(This is part 3 of a series.  You can find part I here.)

Previously we calculated how much we are really worth per hour and how it is far less than we thought. Now I hope to pull it all together into a usable concept. Believe it or not, figuring your true hourly wage is all about debt. Doing this exercise will help you get, and stay out of, dept forever.

The reason we all go into debt is to overcome some unhappiness in our life. We use debt to live a life we really can’t afford. Very rarely do we use debt to pay for some catastrophic expense like medical bills. And even when credit was used for these things, it’s usually because we spent too much money trying to be happy and didn’t plan for emergencies with insurance and savings.

Think about the things you’ve used credit for; vacations, cars, eating out, etc. All of these are luxuries including the car. Do you really NEED the car you drive or is it possible you could have gotten by with something less expensive?

So how does the above exercise help with debt? If you’ve done the exercise as I’ve suggested, every time you make a purchase, you’ll ask yourself if it’s really worth it. You’ll remind yourself that you make $X per hour and will have to work Y amount of hours to buy that thing.

That thinking will dramatically change what you spend money on. You’ll only buy things you’re willing to exchange your life, for your money, to get.

You’ll remember that in order to buy that thing, you’ll have to spend X amount of hours away from your kids, your spouse, or whatever you enjoy doing, to afford it. You’ll make better buying decisions and get far more pleasure out of life.

Be sure to check out Adam Baker’s amazingly transparent example valuing time vs debt on his site


Photo: paolomargari


Did you enjoy this post? If you’d like more like it, please share it through your favorite social media by clicking the buttons below to let me know.

Please share your experiences and ideas by posting comments below.


3 Replies to “How much is your life worth? Part III

  1. The clients perform in the great way and believe that quality is thhe best and
    main point out progress industry value. Investing inside a training program that will not suit your
    needs could be damaging part for a career.
    PC repaur in Washington DC is a huge business as on an averaghe there
    is several laptop per person therefore if the usage is a bit more correspondingly
    the organization of PC repairs is additionally widespread.

  2. Admiring thhe hard work you put into youir blog and in deth
    infformation you present. It’s good to come across
    a blog every once in a while that isn’t the same out of date rehashed information. Wonderful read!
    I’ve bookmarked your site and I’m including your
    RSS feeds to my Google account.

  3. Hey there! This post could noot be written anny better!

    Reading this post remindss me of my old room mate!
    He always kept chatting about this. I wil forward thi page to
    him. Fairly certain he will have a good read.
    Thank you for sharing!

Leave a Reply

Your email address will not be published. Required fields are marked *