Time and money are always significant. Look at this scenario.
You can either do your own yard work or you can pay someone to do it for you.
You find that it takes you about 50 minutes to clip, mow, and otherwise clean up your yard each time you do it.
You do it four times each month.
Also, once a month you need to maintain the lawn equipment. That takes about 49 minutes in addition to you clipping, mowing, etc.
All of the maintenance and lawn work must be done on a Saturday because of your typical work schedule.
You are paid $ 18.75 hourly and get time and a half on weekends.
Alternatively, you can pay someone $ 50 monthly to do the work for you.
(a) Assume that your off-time has value at the rate you are normally paid. What is the monthly cost of your lawn care when you do it yourself and have no chance for weekend work?
(b) Assume that you have the option to work the weekend time you need to spend on your yard. So you must pay someone to do the yard work.
You should assume your overtime rate applies here.
What is the net gain to you to pay someone to do the clean-up for you?
To calculate the monthly cost of your lawn care when you do it yourself and have no chance for weekend work, we need to consider the time and money you spend on doing the yard work and maintaining the equipment.
(a) Monthly cost of doing yard work yourself:
1. Total time spent on yard work per month = 50 minutes per session * 4 times = 200 minutes = 3 hours and 20 minutes.
2. Total time spent on equipment maintenance per month = 49 minutes.
3. Total time spent on both yard work and equipment maintenance = 3 hours and 20 minutes + 49 minutes = 4 hours and 9 minutes.
4. Hourly rate = $18.75.
5. Cost of your time spent on yard work and equipment maintenance per month = 4 hours and 9 minutes * $18.75 = $77.81.
So, the monthly cost of your lawn care when you do it yourself and have no chance for weekend work is $77.81.
(b) Now let's calculate the net gain to you if you pay someone to do the clean-up for you and use your weekend time for work.
1. Total time spent on yard work and equipment maintenance per month = 4 hours and 9 minutes.
2. Hourly overtime rate = regular hourly rate * 1.5 = $18.75 * 1.5 = $28.125.
3. Cost of your time spent on yard work and equipment maintenance per month = 4 hours and 9 minutes * $28.125 = $116.76.
4. The cost of paying someone to do the work for you is $50 per month.
5. Net gain to you = Cost of doing it yourself - Cost of paying someone = $116.76 - $50 = $66.76.
So, the net gain to you if you pay someone to do the clean-up for you and use your weekend time for work is $66.76.
In summary:
(a) The monthly cost of your lawn care when you do it yourself and have no chance for weekend work is $77.81.
(b) The net gain to you if you pay someone to do the clean-up for you and use your weekend time for work is $66.76.