Unfortunatley, most adults spend the majority of their day at work. As a result, they don’t have much time or energy for the the truly important things in life, like the things money can’t buy!
You may not realize it, but time and money are connected. The way you choose to spend your time and money today, determines the way you’ll be able to spend both later in life!
For instance, if you choose to live above your means today, you will accumulate debt. In turn, you’ll need to spend more of your time earning money to pay it off before you can start building wealth. Whereas, if you decide to live more frugal with money now, then you can start investing sooner. Because of this tradeoff, you will end up having both more money and more free time in the future!
During the Industrial Revolution, people were working insane hours (sort of like today). It was common for workers to spend 14, 16, or even 18 hours per day on the job! Society grew tired of these long days and a social movement began to change the game.
Everyone wanted to live a more balanced life. One that included work, but also gave them free time to enjoy the money they made. Due to this, labor laws were passed which helped to split the day into 3 equal parts; eight hours to labor, eight hours to rest, and eight hours of leisure!
Eight hours of leisure per day?!?! Let’s talk about setting a new goal! What would you do with eight hours of leisure time per day?
When you accept a job you are paid a wage. In this exchange, you give your time and receive money in return.
According to the Bureau of Labor Statistics, the average hourly rate of workers in the United States is $28.52.
Imagine you want to purchase the latest iPhone and it retails for $699. If you divide the price by the value of time, 28.52 an hour, then you end up with 24.51 hours. So, it will take the average US worker 24.51 Working Hours to be able to buy the latest iPhone. That’s insane!
People are literally trading 3.06 working days for a gadget. This is 24.51 hours, which is 1,471 minutes, or 88,233 seconds of their working life!
For many people it gets even worse. Afterall, Apple will come out with a slightly upgraded phone next year and these individuals will buy it (probably using debt) and this process will repeat itself again!
It’s sad to say but this is how some people become handcuffed to their job and stuck living paycheck to paycheck. Most of them can’t control their impulses nor do they keep track of their monthly expenses. If that wasn’t bad enough, it’s unlikely they have a financial financial strategy in place that makes sure they’ll achieve their most important life goals!
Working 8 hours per day, 5 days per week, 50 weeks per year, for potentially the next 30+ years will be exhausting, too. It makes me tired just thinking about it!
Not only that, but how will your body and health hold up over the next few decades? Will you still have the energy and fitness to do the things you’ve always dreamed of doing?
Create a plan to manage your money. Track your spending and savings to meet your financial goals. Otherwise, you will be stuck in the continuous cycle of trading time for money.
When you stop and think about it, you spend more than 8 hours in work related tasks each day. Consider the time it takes to commute, get ready, and impulsively check emails before and after the work day. When you factor these in, the work day is closer to 10 hours, and for some it’s even longer!
Some friends of mine work crazy hours each week. Out of the 168 hours they’re given, 80 of them get spent in the office. If they get the doctor recommended 8 hours of sleep per night, it totals 56 hours for the week which leaves only 32 hours for play! I know these guys are ready to head back to the Industrial Age and get more leisure time!
Unfortunately, 10 is the new 8 hour workday for most. And I’m not telling you to skip the shower. (Please shower, your co-workers will thank you!) But, to point out how this affects your time and money – both of which have an impact on your future. Not just that, but also your health and sense of fulfillment in life.
Given that the typical workers spends 10 hours of their day doing work related activities, it’s important to remember that they’re only getting paid for 8 of these hours. So their actual hourly wages are less than what was reported by the Bureau of Labor Statistics.
Making $28.52 an hour and getting paid for 8, equates to $228.16 per day. And, if the worker spends 10 hours of their life for this daily amount, then their true value of time gets reduced to just $22.82 per hour!
In actuality, it will cost them 30.7 Life Hours ($699 ÷ $22.82) for the latest iPhone!
Now, we could go down a deep dark rabbit hole and calculate the time and money spent on buying items needed for your working life, too. Such as, the hidden costs associated with office work, things like nice clothing, gas, and vehicle depreciation for the commute. Not to mention, potential lifestyle creep from keeping up with the Joneses, too. But, that calculation gets complicated, plus I forgot my flashlight!
We all trade our time for money in one way or another. However, it’s important to realize that time is your most precious commodity. Once it’s spent, there is no way to get it back or make more of it. Therefore, as you make financial decisions that affect how you spend and save, you’re also making decisions that impact the way you’re able to use your time!
For instance, assume you want to buy something that you can’t pay for in cash. To get the item, you’ll have to buy it using credit or a loan which causes you to waste money on interest. If that wasn’t bad enough, you’ll also have to spend more time working in order to pay for it.
Even if you can pay for an item without going into debt, it’s important to realize that you used your time to earn the money. At this point, it’s a personal choice to determine whether you’re spending money wisely or not.
Time is money. So money must also be time. Therefore the only way to accumulate more time is to save more money.
Saving money is simpler than you think, too. You can start now by learning how to become a tightwad! With my help, you can reduce your expenses and learn to be more frugal with money. If you’re like most people, you’ll discover that you’re paying for things that provide you with little value or that you don’t even use!
Another way to save more time and money is by increasing your income. You can start by compiling a list of accomplishments at your current job and approaching your boss about a raise. If that doesn’t work, update your resume and begin looking for a new jobs on sites, like CareerBuilder.
It could also be the perfect time to start pursuing that side hustle you’ve always dreamed of or to investing in alternative assets, like real estate!
Time and money are closely related. You need one to have the other. Consequently, when you make a frivolous purchase means you’re deciding to spend your time working. However, when you choose to forgo these purchases, you’re banking time and getting more of your life back!
Spending and consumption are necessary parts of life. You need clothing, food to eat, and a place to call home. Still, the key is to spend your hard-earned money on things that are truly important to you and that add large amounts of value to your life. If not, then you aren’t just wasting money, but you are at risk of wasting part of your life!
Once you start sticking to your budget and saving, you won’t just create money, but you’ll have the time to enjoy it. You’ll have some degree of financial freedom which allows you to choose how you’ll spend both your time and money!
For most people, it will take decades to get to the point of retirement. But it doesn’t have to. You can achieve your dreams faster by taking one extra step.
Don’t focus on saving money alone. You must invest it, too! Putting your money to work is the fastest way to get out of the trap of trading time for money.
Track your spending, follow a budget, and save. All of these steps will give you the ability to invest and inevitably spend your time however you wish!
Start today. Use your time wisely. And take advantage of the Eighth Wonder of the World, compounding interest!
The next moment you find yourself at your favorite store getting ready to check out, pause for a moment and do some mental math. Calculate the number of Life Hours you are trading for that product and determine if your precious time is truly worth it?
There will always be ways to make more money. But not more time.
The choice is yours. How will you protect your time and money? Comment below.
Retirement and estate planning may seem like a distant concept for those in their 20s…
Who doesn't desire a life filled with joy, abundance, and freedom? However, many of us…
Are you feeling overwhelmed by unexpected expenses? Puzzled by the state of your bank account…
Many people think their friends are wealthier or don't experience the same financial difficulties as…
Most of us start our adult lives as consumers. We work hard for our money…
There's a myth that self-care is expensive. People think they need to drink expensive smoothies…
This website uses cookies.