When to use it
Use it when weighing whether purchases are worth what they cost you.
How to apply it
- Note your weekly take-home pay.
- Subtract work-related costs, such as commuting and work clothes.
- Add up all the hours spent on work, including commuting and preparation.
- Divide the adjusted pay by the total hours.
- Convert major purchases into hours of work before buying.
Tip: Use the result to prompt reflection, not guilt.