Time Equals Money

You know the old saying, "Time equals money." It's been used so much that we usually say it without giving any thought to the meaning. But if you really think about it, this expression is so true, especially when budgeting and beginning to live on your own after college. Here's an example: you want to live close to work in the city. This usually entails rent more expensive than what you would usually pay. However, you save money on transportation and on going to work every day, which equals money.

Another example: you decide to buy a great dress or suit that's on discount. It looks a little cheap and unsturdy, but that won't be a problem since you're getting it on sale. Two weeks later, it falls apart, and you have to spend either time getting it repaired, or money and valuable time buying a new piece of clothing to replace it. How can you make these types of scenarios work for you when you're planning monthly expenses? There are several ways.

1. Get a second job. It doesn't have to be anything major-several hours a weekend at a store in the mall or coffee shop, or offering your freelance services (writing, photography, computer repair) skills on craigslist. If the job isn't too time intensive, you could be making $15 an hour instead of watching TV, which you can use to supplement your current income.
2. Put your money to work in a high-yield savings account. Instead of letting your money sit around at your bank's 1% rate, put it in an Internet bank like HSBC, ING, or Emigrant Direct. They offer much higher rates and will create wealth for you much faster.
3. Plan ahead. If you are going to the movies, buy candy ahead of time and take it in with you. Why pay outrageous movie theater prices? If you're going to the beach, buy suntan lotion at your local Rite Aid instead of waiting at stores at the shore. Not only will it cut down on searching and standing in lines, things in your hometown will most likely be substantially cheaper.
4. Get higher education. This is an instance that actually costs more money in the beginning and costs more time, but will pay off more in the end. Depending on your school and choice of subject, you'll end up making up your student loan debts faster and being able to use those expenses towards more of your other financial goals.
5. Do a cost/benefit analysis for your decisions. You may not be able to do this for every decision you make, but it helps to put things in perspective. For example, you are saving for a house. You decide that you have a craving for Starbucks today. Think about how much time it will cost to make up the money lost for your morning joe. If you earn $20/hour and your coffee costs $4, it would take you 1/5 of an hour, or 12 minutes to make the same amount of money to put aside for your house. So, if you went three times a week, at a cost of $12, it would take you 60% of an hour, or 36 minutes to make up the same amount of money every week, setting you back an hour every two weeks towards your goals.

These are all very simple thought exercises, but they all add up to help you gain control of your finances.