Making Smart Financial Decisions
This cost benefit calculator helps you justify a
purchase by framing its cost against time. It's a key online tool for
smart spending, frugal living, and
improving your personal finance. By calculating the
ROI of a purchase in terms of time, you can make a better decision.
1. Fill in the Details:
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Cost of Item: The full price of the purchase.
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Your Hourly Value: How much one hour of your time
is worth (the value of time). If you're salaried, a
simple way is
(annual salary) / 2080.
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Time Saved: The amount of time the item saves you,
boosting your productivity.
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Item Lifespan: How many years you expect the item
to last.
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Enjoyment Factor: How much you dislike the task the
item automates.
2. Understand the Opportunity Cost:
Every purchase has an opportunity cost – the other
things you could have done with that money or time. This purchase
calculator helps you see if the trade-off is worth it.
3. Analyze the Results:
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The Break-Even Point tells you when the item has
"paid for itself" in saved time.
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The True Cost reframes the price in terms of your
life hours, a powerful motivator.
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The Time Dividend is your total "profit" in free
time. This is the ultimate measure of its value.
Is It Worth It? (Real Examples)
People use this purchase decision calculator to
answer questions like:
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Is a Roomba or robot vacuum worth it? (Cost: $400,
Time Saved: 30 min/week)
-
Is a premium coffee machine worth buying? (Cost:
$500, Time Saved: 10 min/day)
-
Is a faster laptop worth the money? (Cost: $1500,
Time Saved: 15 min/day)
-
Is a gym membership worth it? (Consider time saved
commuting vs. home workouts)
-
Is hiring a cleaner worth it? (Calculate the value
of your free weekends)