I have a job offer for you: The pay is about $240 an hour, tax-free. You can set your own hours, work from home, and you don’t have to quit your day job. Are you interested?

This lucrative new job is called clever spending, and you’re the boss. The work you’ll put in is real, and so is the money you’ll save.

Let’s look at four examples of this fantastic hourly rate in action and then discuss why saving money can be more effective than earning money.

Example #1 – Curbing your cell phone bill

If you have a traditional cell phone plan, it’s easy to save $40 a month or more by switching to a prepaid plan. Take AT&T, for example. Their current “Unlimited Starter” plan is $65 a month, yet they have a prepaid plan (8GB of rollover data and unlimited talk/text) for $25 a month. You can also achieve similar savings on the other major networks, like Verizon and T-Mobile, by switching to their prepaid plans. Alternatively, you can take your business to a virtual network operator (Mint, Cricket, PureTalk, etc. – these companies each piggyback on one of the major networks but offer cheaper plans).

Let’s say it takes two hours of your time to change plans, including researching your options, getting your new account set up, canceling your old plan, etc. In just the first year, you’ll save $40 per month x 12 months = $480. $480 of savings for 2 hours of your time works out to $240 an hour! Of course, the savings will continue long after the first year.

Get the e-book

Cell phone service doesn’t have to be expensive! My short e-book will teach you everything you need to know to switch to a low-cost carrier. Learn why the service is just as good and how to find the plan that's right for you. I also teach you how to take control of your phone and get a good deal on your next one!

Example #2 – Buying the open box

Imagine shopping for an item and finding it sells for $100. Rather than immediately clicking ‘Buy’, you take five minutes to look at barely-used or refurbished options and find you can buy it as an open box or in like-new condition for $20 less. $20 for five minutes of your time is an hourly rate of $240!

In reality, it often takes much less than five minutes to pick a used option, especially on Amazon, and in many cases, you’ll save much more than $20.

Example #3 – Doing a project yourself

Got a home improvement project? While some jobs are best left to a licensed professional, you’ll often save half the cost or more by picking up a screwdriver or hammer yourself.

For example, I recently installed sliding pull-out shelves in my kitchen cabinets to create more space. I found a company that manufactures such shelves to your specifications and ships them to you for self-install. The cost was $600 for ten. Before placing the order, I called a couple of local cabinetmakers for quotes, and it would have cost at least double to have someone do it for me. It took about two and a half hours to do the install, which works out to $240 an hour! As a bonus, it was also extremely satisfying.

For more examples of do-it-yourself savings, check out my Clever at Home series of posts.

Example #4 – Playing the credit card game

Credit cards are a part of our economy. Taking advantage of sign-up bonuses is a great way to earn some extra money (or, more cynically, recoup some of the credit card fees we’re all paying on every transaction). Let’s suppose you find a credit card that comes with a $1,200 bonus. To earn this money, you’ll have to put in some effort to make sure you follow the promotion’s rules, pay the card on time and in full to avoid interest, and correctly redeem the reward for maximum value. Many people throw their hands up at these schemes, but if figuring it out takes five hours of your time over a few months, guess what? That’s $240 an hour.

Saving money is work

Saving money takes time and effort. It’s always easier and faster to click ‘Buy’ and move on, just as it’s easier to pay someone to do something for you. It can feel tedious to review your expenses and scrutinize each purchase to see if you’re getting the best deal. If saving money sounds like a dull, unglamorous chore, chances are you may have trouble staying motivated. If you think of it as a high-paying job instead, you may find you’re a lot more excited about it.

There’s an old saying that a penny saved is a penny earned. It’s worth making sure you fully digest this idea because what’s at stake is far more than pennies. Saving money and ultimately your path to financial independence comes down to this: money in minus money out. When people wish they could put more money into savings, it’s all too common to focus on how to earn more. But whether you make an extra $500 this month by working or save $500 by spending more wisely, you’re in the same financial position. At $240 an hour, the saving money route will almost certainly be faster, more sustainable, and more satisfying.

Saving money and earning money are two different skills. If you’re only just starting to develop your money-saving muscle, it will take some time and effort. The good news is you’ll also have an abundance of opportunities, including reigning in out-of-control major expenses like that cell phone example. As you get into the habit of saving money and get better at the process, it’ll take less of your time and become more automatic.

Final thoughts

Notice that the four examples above don’t even require any meaningful sacrifice or life adjustment, like going out to eat less or buying fewer things. Of course, simply reducing your consumption will save you money as well.

Also, naturally not every money-saving opportunity will work out to $240 an hour. Sometimes your savings rate might be a ‘mere’ $50 or $100 an hour. Even when the stakes are lower, the more often you make choices that keep money in your pocket, the more natural and habitual it will become.

Finally, you may find it helpful to keep a little notebook or spreadsheet handy to jot down every time you save money on a purchase by doing something clever. You’ll soon have a long list of savings to look back on, and you’ll see how quickly it all adds up, all without increasing the money you’re earning in the first place!