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"The more money we come across, the more problems we see" - B.I.G.

As a person who likes to write about consumerism and is committed to conservative personal finance, I’d like to think that I’m above the fray when it comes to Christmas and everything that retailers love to throw at us. Unfortunately, I happen to enjoy a couple of gear-intensive hobbies (camping/backpacking & photography), and I love to research gear online. There’s nothing quite like a shiny new toy to make me feel good and as if my hours spent traveling and in the office are worthwhile.

However, as my wife and I are sorting through the aftermath of the holidays, I’ve been struck with what I will call the true cost of Christmas, or really, the True Cost (TC) of Anything .

Everyone knows that the most precious resource anyone has is time. You never get any more of it, you can’t control the speed in which it is spent, and you can never be certain of when you will run out of it completely. That’s why I like to think of the TC being in terms of time, and not in terms of money.

Here’s some simple math to illustrate what I mean. Let’s say that I want to buy a new tent for backpacking. It’s a considered purchase because the cost for me is somewhat significant (likely several hundred dollars). For this, as for every discretionary purchase I make, I must:

1. Research & go shopping (on- or offline) – at least 3 hours
2. Purchase the tent- 15 minutes
3. Take the tent out of the packaging – 5 minutes
4. Read the instructions (maybe) – 20 minutes
5. Throw away the non-recyclable packaging (1 minute)
6. Recycle plastics and paper (1 minute)
7. Take cardboard to the recycling center (30 minutes)
8. Figure out where to store the tent when not in use (10 minutes)
9. File the receipts and other documentation and fill out the warranty card (10 minutes)
10. Maintain the tent (seam seal it, check for leaks, repair and clean as necessary) (unknown amount of time, depends on use)
11. At the end of its life, find a responsible way to discard it via another trip to the recycling center (30 minutes)

That’s over 5 hours of Total Cost for that one item, the better part of a full working day. This math works for gifts as well, except you subtract the time required to go shopping (unless, of course, you don’t like the gift, then you must factor in the cost of returning it AND shopping for something else).

Naturally, unlike money there are qualitative vs. quantitative factors to consider, and your mileage will vary. The tent will provide quality time for my family outdoors, which is important to me. I would have a greater quantity of time to spend outdoors without buying the tent, but I doubt it would be as qualitatively enjoyable on a rainy night in early spring.

Now this is what floored me: I have hundreds (perhaps thousands) of items in my home that each must follow most of the steps outlined above. Christmas gifts added a score more. The Total Cost of all of the items in my home is astounding! Add two children, and things really get out of hand. My wife and I regularly try to get rid of things we don’t use, but I’ve yet to find an effective way of dealing with all of our stuff, as we still seem to be adding more junk than we’re throwing away.

I would love to hear from all of you as to how you manage your Total Costs for everything in your home. Am I alone here? Crazy? A closet hoarder in desperate need of an intervention?