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Your Money: Part 2 - Time and Money

By Edited Nov 13, 2013 0 0

Your time is valuable. You do not have to be the CEO of a large corporation, a media figure, or a head of state. You are a living, breathing, and functioning human being. As such, your time is also limited. It is a commodity that cannot be replenished through hard work or extra hours. Actions such as these may in fact quicken the aging process and prematurely end your time altogether.

How then do we relate time and money? A person spends time to make money. Money can be spent, earned, gifted, replenished, saved, and compounded. Time does not have these luxuries. Time always marches forward. Time is only spent or, if you would prefer, invested. Every minute, day, and year that passes means that the time we have left increases in value because we have less and less of it. This is supply and demand.

Think of time spent from the perspective of work for pay. A person is, in a sense, selling their time. They may sell it by the hour, the day, the month, or the year. An employer offers a worker $15.00 per hour worked and the employee offers their time in the amount of 40 hours per week. The deal is struck and the commodities traded. The employee's time is sold for $15.00 per hour and purchased for the same amount.

This would be a fair trade if a person only valued their time at such a low price, but I don't believe people often think in this sense. If investigated further, I believe people might find that time is incalculably more valuable than money. If they realize this, they might feel as though they have been wronged. This feeling would be incorrect because the trade was accepted by both parties. It is a mutual agreement. There is no other person to blame other than self.

There is a flip-side to this coin as well. Because time was spent in the attaining of money, the money we control from time spent should become more valuable as well. It represents a monumental trade.

Think of this fact the next time a purchase takes place. It may change the outlook we have on the things we buy and their worth. Let me use an example.

Let us say that the same employee working for $15.00 per hour decides to buy a new television. This new television costs $600. This purchase equates to a trade of 40 hours worked for the purchase of a television ($600 hours divided by $15.00 per hour = 40 hours).

This of course does not include taxes and insurances being deducted from the paycheck which would make the time needed increase.

This person traded a week of their unrecoverable time for a television that is obsolete, technology wise, shortly after purchase. Unfortunately, it doesn't stop there. In order for any enjoyment to be had from the television it needs to be fed electricity, perhaps cable for channels, and the purchase of movies for viewing. All of these added extras cost more money and thus more time. Whether or not this was a good trade is an entirely subjective argument. One person might think it was well worth it while another would think this was a colossal waste. That is for the individual to decide.

Both the time and money we have in our control are ours to decide how to use best. Every minute we spend is time that we will never get back. Therefore, we should use it as wisely as possible. Money is generated by the expenditure of valuable time. Therefore we should also use it as wisely as possible.

Devote some thought to the value of your time. If you find that you have not yet been able to demand a higher price for your time due to lack of knowledge or a skill set, then I encourage you to expand yourself in these areas. If you have the good fortune of being highly compensated for your time, then maybe you should focus some energy on reclaiming your time for yourself instead of spending so much of it on your money. Maybe starting a business is for you. If that is the case then your time and money are dependent entirely upon you thus giving you more control over both your time and money.

There is a proper balance and both time and money can be used efficiently. Remember, of the two, only time is unrecoverable. How are you spending your time and money?



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