I’ve recently decided to make a switch in my yoga routine by attending a new studio. It’s much closer to my home and workplace and offers a fresh approach to my practice, which has honestly become a bit stale as of late. While it may seem like a no-brainer decision, the monthly cost difference for unlimited classes is significant: the new studio, we’ll call it Studio B, is $47 more per month than my old studio, Studio A. I can attend unlimited classes at Studio A for $60 per month, or pay $107 per month for unlimited classes at Studio B.
To help justify the switch, I calculated the cost of fuel to get to/from Studio A vs. Studio B. The average cost of fuel in my area is $3.79 per gallon, and my car gets around 25 miles per gallon. I attend class twice per week, or eight times per month. Given all that, it costs me about $39 to get to/from Studio A (33 miles RT) vs. $18.19 per month to get to/from Studio B (15 miles RT). While it costs twice as much in gas to get to Studio A, I’m still paying $25 per month to attend Studio B when you add membership costs.
Another factor in all this is the cost of my time. I’m on the road 25 minutes longer per class with Studio A, or two hours and 40 minutes longer per month. Putting a dollar amount to each hour of your free time is not an easy task, which is why I turned to a survey at ClearThinking.org to help me. It asks a series of questions to help you determine the unique value associated with an hour of your time. If you’ve ever wondered about the monetary value of your time, I highly recommend the survey (it’s free, but it will take you about 15 minutes).
After taking the survey, my results concluded that I value my time at $45 per hour. Since it takes about 50 minutes round trip to get from work to Studio A and back home again, it costs me an equivalent of $37.50 each class. Multiply that by twice a week for a whole month, and the added cost to Studio A’s monthly membership is $270. It takes me about 25 minutes round trip to get to Studio B from work and home again, amounting to $18.75 each time. My time adds $150 to Studio B’s monthly cost.
Adding the value of my time to the total monthly cost to attend each studio, including membership fees and gas charges, gave me a more accurate picture of just how much I’m spending on yoga between the two studios. It will cost $369.04 per month to continue classes at Studio A, while Studio B will cost me $275.19. That’s a savings of $93.85 per month.
While the monetary value of my time is subjective at best, this exercise does a good job illustrating the necessity of factoring in your time when making a decision. Even when I calculated all this using my hourly rate at work, I still come out on top by joining Studio B.
Do you consider the monetary value of your time when making a decision?
Disclaimer: I suck at math, so if you notice any flaws in my calculations, please break it to me gently.