Friday Reading: How Much Is Your Time Worth?

By Harry Sit

How much is your time worth? I faced this question yesterday as I attempted to participate in Microsoft’s Windows Phone Challenge. Microsoft was promoting mobile phones running its mobile phone operating system. If you can’t prove your phone is better than theirs, they will offer to swap your phone for theirs.

When I went to the Microsoft Store near me, there were probably 150 people in line. Winning the challenge is of course not the point. Everybody wanted to lose because they just wanted a new Windows Phone for free.

The line moved very slowly. I left after waiting for about 1 hour. Considering that a new no-contract Windows Phone is worth about $400, even waiting in line for 4 hours would earn $100 per hour, tax free (you can sell the phone on eBay if you don’t want the phone). That’s way above most people’s wage rate. Would you wait in line for 4 hours to earn $400?

Do I make more than $100 an hour after tax for going to work? No. Why would I go to work to earn less per hour but not wait in line to earn more? Was my decision irrational?

Now it’s time for our weekly roundup of noteworthy articles around the web.

If you haven’t watched this 1943 Disney clip about Donald Duck and the income tax, it’s really funny. Via NPR Planet Money: From Abe Lincoln To Donald Duck: History Of The Income Tax

*****

After learning my Political Quotient (45, slightly conservative, within margin of error from middle-of-the-road moderate), I came across another quiz that supposedly measures how much your live in a bubble, away from the life of an average American. I scored 25, which says "A first-generation upper-middle-class person with middle-class parents. Typical: 33" (the lower the score, the thicker the bubble).

I don’t take the theory quite seriously. I agree with this article from The Atlantic: Why Are Your Neighbors Just Like You? The life bubble quiz is interesting nonetheless. Do the quiz and see what your bubble score is.

*****

Smart Investing Is Easier Than You Think by Timothy B. Lee at The Atlantic

A great article in the mainstream media about how a simple Vanguard fund beats new-fangled service Betterment.

*****

Asset Allocation and Risk Tolerance by Mike Piper at Oblivious Investor

An adapted excerpt from Mike’s update book Investing Made Simple. It explains the the concepts very clearly.

*****

Making Money With Nuts and Bolts by Andrew Hallam at AssetBuilder

Andrew Hallam is the author of a book Millionaire Teacher that says how one can become a millionaire on a teacher’s salary. I haven’t read it yet. This article explained why he didn’t invest in Apple stock but chose the stock of a mundane company Fastenal which makes nuts and bolts. There’s a huge flaw in the article though. See if you can spot it.

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Software picked, likely related posts:

Posted on March 30, 2012 under News. Keywords: , , .

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Comments

6 Comments on Friday Reading: How Much Is Your Time Worth?

  1. Arthur Shunk on March 30, 2012
     

    Would I wait in line for four hours for $400? Absolutely.

    Would I wait in line for four hours for a $400 phone. Not likely.

    I would not likely use a smart phone because it would require a data plan. The cheapest plan is about $35 a month just for the data. My dumb phone(which actually can access the internet and email but I do not normally use those features) cost me $15 to $20 a month. So, I am not going to triple my monthly cost for a cell phone, free or not. Especially when 90% of the time I have access to a PC, Ipod or Kindle Fire with free Wi-Fi to do what I need online.

  2. Alex on March 30, 2012
     

    How much free time you have matters a great deal in this calculation. Between work and non-leisure family commitments, my actual leisure time is way too scarce and precious to spend 2-3 hours for a one-time $400 bonus.

  3. Jeffrey on April 1, 2012
     

    What’s the opportunity cost of waiting in line four hours for the smart phone vs going to work? For me, I’d risk serious reprisals for being late … so I’ll take a stable job at $20-30 per hour over a one-time $100 per hour incentive any day of the week! Stated another way, investing my time in a lower paying job pays off greater in the long run at least in this scenario.

  4. TFB on April 1, 2012
     

    It was after work, 6pm. That’s why the line was long. Everyone went after work.

  5. Financial Advice for Young Professionals on April 2, 2012
     

    I was in the exact same situation last week. I went in to the Microsoft Store on Tuesday, waited for around 30 minutes and left. I came back on Thursday and waited about an hour and a half and got a rain check for the HTC Titan. So I ended up with the $400 phone and I’m glad I did it now, but was definitely questioning the value of my time while waiting in line.

    I posted that clip also, funny that it was nominated for an academy award..

  6. White Coat Investor on April 3, 2012
     

    Hmmm…..scored a 43. First generation Middle Class. Don’t think that’s quite accurate, but for a doc, I get out a lot I guess.

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