Tuesday, 24 July 2012

The Clock's Ticking

As the old adage goes, time is money. So it goes without saying that money is time. Did I confuse anybody with that? I'm kind of hoping it did because it will make me feel clever (I know, I'm a bit strange). Anyways, since they are interchangeable, try this little thought experiment next time you go shopping. When considering whether or not to buy something, rather than thinking in terms of how much money it would cost you, think in terms of how much time it would cost you.

Let me show you what I mean. Take your rate of pay, for example, I make around $11/hr at my lowest paying job. Then next time you see something you want, divide the price by your hourly rate. If I wanted a nice shirt that was priced at $22, it would cost me $22. Obviously. However what did that $22 cost me? Time; I had to spend time working, so that shirt costs me 2 hours of my life.

I don't know about you but that kind of thinking has changed the way I spend my money. More than an hour of working to watch an hour and a half movie? 45 minutes of work for a burger and fries? I've passed on a lot of things after adapting this mentality. I've discovered that a lot of things are just not worth buying.

Obviously, if you make more money then each dollar is worth less of your time. So does getting a raise or landing a better job justify spending more money? I guess it does, but of course you still have to spend within your means. If your pay doubles, it doesn't mean you should be buying stuff that's twice as expensive. Then you're just in the same place you started before you got that hard earned raise in terms of cash flow. The only difference is that now you have lots of expensive stuff cluttering your house. Oh and you probably have to work harder now as well. Raises and higher paying jobs usually come with more responsibilities - your employer is well aware of the old adage that time is money which is why they expect more out of your time if they pay you more.

Looking at prices in terms of time will hopefully change your spending habits for the better because you'll realize how valuable your time (therefore your money) actually is. Time can't be bought or sold. You only have a limited amount of this resource. You can't save it for a rainy day (if only...then those final exams would be a piece of cake am I right uni kids?) so when you decide to use that time to earn money and then subsequently spend that money, make sure that whatever you're purchasing is worth the time you used.

What are you still doing reading this? Go earn some of that paper. Remember, time is money.

Tick Tick.

-the Paperboy

No comments:

Post a Comment