I often hear EA/ rationalists saying something like ’it’s not worth spending an hour to save £20, if your hourly rate of pay is over £20/ hour. I think this is wrong, but I might not understand the argument.
It could be understood as a hypotherical argument, you COULD earn this much in an hour, as a reference point to help you understand the value of your time. This hypothetical reference point isn’t really useful, when I have the very real figure of my total balance, and upcoming outgoings to consider, and the factor of whether I can afford to spend on things I enjoy, if I don’t save money now.
So, it could be a suggestion that I actually could work an extra hour for money. But I (and almost everyone I know) don’t get paid hourly. I have a fixed amount of hours, she working over that doesn’t gain me more money. To gain more, I’d need to set up a freelance/ side business, and there’s all sorts of initial costs with getting that setup and advertising my services, and reporting my income for tax, and so on and so on.
Lastly, ‘you could work an extra hour’ doesn’t factor in my enjoyment. Working an extra hour would have a negative effect on my mood. I don’t want to work more than i already do. By contrast, walking an hour to save an Uber fee would be good for my mood, and health.
Objections to ‘value of my time arguments’
I often hear EA/ rationalists saying something like ’it’s not worth spending an hour to save £20, if your hourly rate of pay is over £20/ hour. I think this is wrong, but I might not understand the argument.
It could be understood as a hypotherical argument, you COULD earn this much in an hour, as a reference point to help you understand the value of your time. This hypothetical reference point isn’t really useful, when I have the very real figure of my total balance, and upcoming outgoings to consider, and the factor of whether I can afford to spend on things I enjoy, if I don’t save money now.
So, it could be a suggestion that I actually could work an extra hour for money. But I (and almost everyone I know) don’t get paid hourly. I have a fixed amount of hours, she working over that doesn’t gain me more money. To gain more, I’d need to set up a freelance/ side business, and there’s all sorts of initial costs with getting that setup and advertising my services, and reporting my income for tax, and so on and so on.
Lastly, ‘you could work an extra hour’ doesn’t factor in my enjoyment. Working an extra hour would have a negative effect on my mood. I don’t want to work more than i already do. By contrast, walking an hour to save an Uber fee would be good for my mood, and health.