Author Topic: Your Money or Your Life: help me with this math  (Read 4487 times)

SavingMon(k)ey

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Your Money or Your Life: help me with this math
« on: September 26, 2013, 08:33:04 PM »
Ok, I'm reading Your Money or Your Life (library copy, yay!) but either there's a misprint or I need to go back to 3rd grade, 'cos I don't get this calculation. On page 62 (2008 edition) is the table where they show Life Energy vs. Earnings. I get the idea, makes total sense. But at the bottom of the table they come to the conclusion that "every dollar spent represents 15 minutes of life energy." If after factoring in the adjustments for time/money spent on job related activities the hourly wage is really $6 (70 hours and $420/week), wouldn't every dollar represent 10 minutes of life energy?

For some reason I have a feeling there is a smart mustachian here that will send me straight back to 3rd grade...

arebelspy

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Re: Your Money or Your Life: help me with this math
« Reply #1 on: September 26, 2013, 09:10:37 PM »
I don't have a copy of that, but yes, if after all adjustments the real hourly wage is $6/hour, then $1 = 10 minutes.

$1 for 15 minutes would be a real hourly wage of $4/hour.

Probably a typo.
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SavingMon(k)ey

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Re: Your Money or Your Life: help me with this math
« Reply #2 on: September 27, 2013, 08:57:05 AM »
I don't have a copy of that, but yes, if after all adjustments the real hourly wage is $6/hour, then $1 = 10 minutes.

$1 for 15 minutes would be a real hourly wage of $4/hour.

Probably a typo.
Ok, that makes me feel better. Also, reading on, the example continues by mentioning a product that costs $12 dollars and they say that would equal 120 minutes of life energy, so that would be $1=10 minutes.

LOL. I love that someone on the MMM forum found a typo in the arithmetic of one of the most popular frugality/personal finance books in the world.

The typo is both in the table AND in the text!

MgoSam

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Re: Your Money or Your Life: help me with this math
« Reply #3 on: September 27, 2013, 09:32:53 AM »
It's likely that a previous edition had different numbers and the editors didn't spot it. Good catch!

SavingMon(k)ey

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Re: Your Money or Your Life: help me with this math
« Reply #4 on: September 27, 2013, 11:08:40 AM »
It's likely that a previous edition had different numbers and the editors didn't spot it. Good catch!
I had the same thought.

Maybe this is a good sign that I'm watching ALL my little green employees to make sure they add up everywhere.

worms

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Re: Your Money or Your Life: help me with this math
« Reply #5 on: September 27, 2013, 03:06:03 PM »
Not seen the book, and perhaps I mis-read the point... but rather than a mis-print, is it possible they are suggesting that you should really be placing the value on your spare time, essentially using an inverse of your working hours? So if you work 70 hours for $420, that is the price you pay for having the remaining 98 hours of the week as free time and a $ is then worth 14 minutes?

Or perhaps you can use the same maths on the basis that you work to fund your spare time, so if you are spending money and getting less than 14 minutes worth out of every dollar then you are overspending?

It's not necessarily an intuitive way of looking at life, but I can see an element of logic in the approach.

arebelspy

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Re: Your Money or Your Life: help me with this math
« Reply #6 on: September 27, 2013, 05:45:15 PM »
Not seen the book, and perhaps I mis-read the point... but rather than a mis-print, is it possible they are suggesting that you should really be placing the value on your spare time, essentially using an inverse of your working hours? So if you work 70 hours for $420, that is the price you pay for having the remaining 98 hours of the week as free time and a $ is then worth 14 minutes?

Or perhaps you can use the same maths on the basis that you work to fund your spare time, so if you are spending money and getting less than 14 minutes worth out of every dollar then you are overspending?

It's not necessarily an intuitive way of looking at life, but I can see an element of logic in the approach.

Nope.  Typo.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

SavingMon(k)ey

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Re: Your Money or Your Life: help me with this math
« Reply #7 on: September 27, 2013, 07:50:38 PM »
Not seen the book, and perhaps I mis-read the point... but rather than a mis-print, is it possible they are suggesting that you should really be placing the value on your spare time, essentially using an inverse of your working hours? So if you work 70 hours for $420, that is the price you pay for having the remaining 98 hours of the week as free time and a $ is then worth 14 minutes?

Or perhaps you can use the same maths on the basis that you work to fund your spare time, so if you are spending money and getting less than 14 minutes worth out of every dollar then you are overspending?

It's not necessarily an intuitive way of looking at life, but I can see an element of logic in the approach.

This book is not complicated or barckward at all. It's a typo.