Intelligent frugality tip #2 - valuing your time.

Do you know what your time is worth? I see so many thrifty individuals proudly wearing their deal seeking badges, but some times I shake my head at their efforts when they forget to factor in the tangible value of their time.

I had a friend the other year, who's annual income is over $100,000, brow beat a consignment store for 30 minutes on a dress that cost $20 down to $10. As she told me the story, she was quite proud of herself until I pointed out that she's paid roughly $50 an hour, so that 30 minutes cost her $25 to save $10. Not intelligent frugality as far as I'm concerned.

What's the real cost of that deal? A family member of mine drives all over town and miles to get the "best" price on gas. He too wears his barging finding skills as a badge. As a very successful business owner, I calculated that his hourly wage is about $98 an hour and he'll often use up 40 minutes in traffic to save a few dollars at the pump.

Watch for discounts even after you buy! One case of intelligent frugality that impressed me was that of a friend's son. He was a student and had some extra time on his hands. He saved up for a big screen TV to the tune of about $2,000. When he bought it, he asked if it went on sale, would he then get the sale price? The manager told him that yes, if it dropped down within 30 days after he purchased it, they'd refund him the difference. It only took a little time to pay attention to the flyer that came in the mail and this fellow found a sale price twice in the month and the cumulative refund was over $150 which he then used for a lovely dinner out with his girlfriend. Even if he had been earning a sizable hourly wage, the few minutes it took to keep an eye on the flyers which came in the mail anyway and the relatively small hassle of revisiting the store for the refund is well worth a sizeable savings.

Hire it out! A smart spending decision, even in a recession, is to consider that you can hire out. You might think hiring a cleaning company for your home is extravagant, but consider all you could do if you had a couple of extra hours a week? If you're earning say $30 an hour and a cleaner is $20 an hour, this could be a wise spending decision. You could use the free time to upgrade your education, have more time with your children or take a much needed break. If you're not earning enough to justify the cost, start a networking group with your friends and see if you can swap services that the other despises. You might love cooking and making a little extra each week to prepare frozen meals for one friend that would enjoy returning the service by painting your deck could be a winning proposition.

Remember to know your worth and value your time - it's just as precious as money!