How much is your time worth? If you tend to believe time is money, I bet you have the “I’m already here” (IAH) mentality. So what exactly is the IAH mentality?
We’ve all been there. You’re out shopping and you spot an item you already plan on purchasing, but you remember seeing it on sale at another store a few miles away just a day earlier. Rather than taking the extra half hour to save money by driving to the other store to buy the item, you say to yourself, “eh, I’m already here so I might as well just buy it here.”
Sometimes the IAH mentality works to your advantage. Let’s do a little math. Imagine you’re out shopping and you spot an item that you know is $5 cheaper at another store. Let’s assume that if you decided to drive to this other store to purchase the item and save the $5, you would be driving an extra 40 miles compared to just buying the item at the current store and going straight home. Let’s also assume you drive a car that gets 20 miles to the gallon. With gas prices at around $3 per gallon, you would actually waste the equivalent of $6 in gas in your attempt to save $5 on the item of interest. Therefore, not only are you now out $1, but you’ve also lost about an hour worth of your time for the day.
To put all of this in perspective, all I’m saying is use the IAH mentality wisely. When you’re faced with one of the scenarios above, take a quick 30 second timeout to evaluate your situation and determine a plan of action which will be the most financially beneficial. If your IAH mentality works in your favor, congratulations! If not, and if taking the time to walk/bike/drive down the street will save you some much needed cash, quick being lazy and just do it!