May 272017
 

A penny saved is a penny earned? WRONG. A penny saved is MORE than a penny earned. The money in your pocket is post-tax, but if you (legally) earn another dollar it is pre-tax income. Assuming you get taxed 30% that means a dollar earned is actually 70 cents earned. Send your eyes to the informative chart below:

$1 SAVED $1 EARNED
Pre-Tax Value $1 $1
Post-Tax Value $1 $0.70

 

To put it another way, one dollar saved is $1.30 earned. So start being a cheap bastard and save your money whenever you can! I have a good idea to get you started. Learn some DO IT YOURSELF skills.

via GIPHY
I’m going to debunk a few myths related to DIY work:

  1. I don’t have time
    • Everyone has “time bandits” that can be removed or reduced and replaced with more productive work. Some examples:
      • TV/Movies – I hate the term “binge watching”. Are you really so boring you can’t find any better use of your time than the most passive activity besides sleep? Try to keep it under 1 hour per day, and understand that your TV hour is burned time.
      • Internet – Reddit, YouTube, Facebook, news, email. I’m guilty of most of these. Falling into a Reddit or YouTube wormhole that I come out of 2 hours later with nothing to show for it.
      • Commuting – Hard to get around this one sometimes, nut why not replace listening to music or news with self-improvement audiobooks? Or, if you take the train, regular books?
      • Family/friends – Forget those guys they’ve never done anything for you! (that was a joke, don’t forget those guys) But be aware that socializing with friends often involves spending lots of money and time.
      • Reading blogs – Blogs like this one are totally NOT a waste of time and you should read everything I write here because I’m awesome.
  2. I’m hopeless with tools
    • No you aren’t, you’re just unwilling to learn. Literally everyone started from zero skills. Some people are fortunate enough to have a teacher, but for the rest of us there’s the glorious internet! Here’s how to find out how to do almost anything:
  3. I don’t want to mess up my things
    • Start small. Don’t try to fix your car’s transmission without ever looking at an engine. A toilet, however, is not that expensive or complicated. If you do end up messing it up? That’s when it’s time to call the plumber/mechanic

And now for my list of reasons why you need to start fixing things yourself (besides saving money):

  1. Learn a practical, money saving skill
  2. Impress the opposite (and/or same) sex
  3. Social bonding with DIY-buddy
  4. Mental exercise and greater understanding of how your things work
  5. Personal satisfaction through achievement

The thing you fix yourself will seem more valuable than the thing you just paid someone to fix. Human psychology assigns more meaning to objects that were created with our own hands. If you appreciate your possessions more you’re less likely to purchase new possessions furthering the saving money cycle.