Re-valuing value

Here in the culture of the pursuit of happiness, we have lost our ability to value. Not that we have necessarily lost our values, but we have lost the ability to assign value. We can put dollar amounts on some things, but even that does not impart value, in and of itself. In these dire economic times, we need to learn HOW to value.
Current examples of not knowing how to value things are abundantly obvious. Part of the problem with the “credit crunch” is that there is now all this property available that is not worth what is owed on it. How much is a house worth? The simple answer is – whatever someone is willing to pay for it. You may own a beautiful zillion dollar beach property, but if you need to sell it and no one is willing to buy it, it is worth zero dollars.
We have Wall Street executives receiving multi-million dollar “performance bonuses.” First of all, if these bonuses are truly tied to performance, and the performance is pitiful, why are they still getting bonuses?
While a common explanation (or more accurately, blame) is that greed is at fault, I believe that our inability to value goods and services is also a factor.
There’s a book I recommend, called Your Money or Your Life, by Vicki Robin. She and Joe Dominguez developed a program that has a very interesting formula to help determine value. In this formula, you take your wage and determine your “real” wage. Divide what you make by the hours that you work. Then subtract out commuting time and other variables that detract from your earnings. For example, if your commute is an hour each way, then your 8-hour day turns into a 10-hour day. You also subtract the gas money, wear and tear on your car, etc. Once you figure out how much you actually make, then you equate that to your life energy. To make the math easy, let’s say your real wage is $10/hour. For every $10 you make, you have traded an hour of your life energy for that $10. For every $10 you spend, you have traded an hour’s worth of life for whatever it is you purchased.
When explaining this to clients, I draw the difference between spending $5 at a fast food joint versus $10 at a nice sit-down restaurant. For me personally, the half hour I trade for a fast-food meal is not worth it. However, if I truly enjoy the meal and the restaurant, the hour I trade may be worth it. If your house (or rent) payment is $1000/month, then you trade 100 hours of life energy for your dwelling.
Contemplate this. What if we only spent our life-energy on things that give and support life? Spending $12 on a picnic lunch at the park with your kids may give a much greater return on your investment than $12 spent at the nearest fast-food joint. Renting movies that provide true entertainment rather than just an escape from the grind of life and give energy back. Reading books that engage your brain gives life.
Think about not only what you value, but how you value things and experiences. Invest in things that give you life.