Time is our only real currency.
Work out the value of your time and you’ve got it made.
Sure, you may have been hit by a few extra bills this month. You may have had an accidental shopping spree during those two hours you had free in the city – but this rule still applies.
Let’s say the bus home is $1, and the train is $3. Riding the bus, it will take you approximately one hour to get home. Taking the train, on the other hand, you will be home within twenty minutes.
What had you planned to do when you get home? Do you want to spend some quality time with the kids, work on an independent project, or simply wind-down and relax?
Sure, by taking the bus you’re saving $2, but by taking the train you’re saving forty minutes. How much is forty minutes worth to you?
People often try to rationalise small savings by quoting the amount you would save over a week, or even a month.
If you were to take the bus twice a day over a five-day work week you would save $20. In exchange for that $20, by taking the train you would save 6 hours 40 minutes. Over a one-month period you would save approximately $80 by taking the bus. In exchange for that $80, taking the train would save you 26 hours 40 minutes.
A WHOLE DAY.
This is just an example – real prices and time frames have not been used, and for all I know your bus journey to and from work may be the most productive part of your day.
The rule still applies.
What is your time worth to you?
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{ 14 comments… read them below or add one }
Exactly the post I wanted to read about! Glad someone thinks like this.
It’s all about that saying. Time vs Money.
If you save A LOT of money, more time is recommended.
If you gain A LOT more time, using a bit more money is recommended.
The question is: Where’s the cut off?
I personally find the best way to work out my cut-off point is to simply say to myself “Would I happily pay x-amount to do x-thing now”.
For example, if you’re having a dull day at work and your boss came up to you and said “If you give me $2, you can leave 40 minutes early” you would jump at the chance because the offer is stated clearly and to the point.
It’s slightly harder to pick out the details from the bus vs. train debate, but it is essentially the same question. It’s just an issue of being able to recognise them as one and the same!
Good way of putting it but things get harder once the variables are different.
This is my question to you personally: What x rate of time to y rate of money would it take for you to change your decision? That line would be different for everyone!
My example: $40 for 12 hours of train vs $120 for 1.5 hours of plane. (The longer journey is more time but the scenery and relaxation if there is no rush.)
$80 difference for around 10 hours of times = spending $8 per extra hour.
There’s no right or wrong. Simply, will that extra time be used well to merit the extra $8?
Or would relaxing on a train watching scenery, or whatever else be worth the $80 savings?
Let me know your thoughts. This post intrigues me a lot.
I know it’s a bit of a weak answer, but I think it would be totally different for each individual person for each individual occasional at each individual point in that persons life.
And that’s only looking at the monetary side of it. When it comes to planes and trains, like you said there are so many other factors to be considered, like whether you would enjoy watching the scenery, or maybe even if you have work you could be getting on with, and you’d rather do so with beautiful scenery in the background (on a cross-country train) rather than arriving at your destination twelve hours earlier, and doing that work in a small windowless office.
Personally, right now I am trading money for time (I’d take the train, in the example in this post) but it is only in my best interest when I use my saved time wisely. Some days I procrastinate and generally waste my time, which makes a mockery of the whole thing. Thankfully it doesn’t happen too often any more, I’m working harder each day!
I hope that answers your question.
Not a weak answer at all. Just wanted to add that point that there are many variable which will change the time vs money scale.
Many thanks for the great post and insight.
I love this Ben and I couldn’t agree more. My time is definitely the most precious thing I have – which is precisely why I’m currently planning to give up my well-paid job so that I can have those precious 12 hours a day back – in the beginning I may get a lot less money for those hours doing things my way but for me it’s totally worth it. This is something that I only came to realise lately and this post just reaffirms that belief so thanks for yet another great post!
I look forward to hearing more about the plan! I’m really happy you’re going for it, let me know if you need any help!
I had to be forced to experience this (via redundancy) to be able to truly understand it. Now I would choose less money and more time to do with as I please every time.
We don’t need as much money or material items as we like to think. If you evaluate your situation properly there would be no dismissing the idea of being able to live life your way.
I totally agree with you Kerry. I especially like your last point, about evaluating your situation properly. People need to realise they can ask for more out of everything, rather than going along with what they assume to be their ‘lot’.
I should have said…..properly = looking at the facts and detaching the emotion for a second. Makes everything easier!
“People need to realise they can ask for more out of everything, rather than going along with what they assume to be their ‘lot’” - Indeed!
Nice short article.
I appreciate that my time is more valuable, but i am happy to take the bus. It is a great opportunity to do some reading, or sit and think.
It’s not the time we have, it’s how we make use of it.
Absolutely. Sometimes (even on longer train journeys) I use the time very well, others I just waste it. Sometimes I sleep, which I think falls in-between the two ;)
Thank you for your great questions! Really appreciate it mate.