Myquestions

Time is money! You cannot understand the  truth of this statement without  understanding a key concept: the time  value of money. It is the building block of  finance and investment; the foundational  principle on which credit flows; the basis on  which money invested yields interest, your  vehicle finance plan is determined, and the  extension of your shopping credit limit is fueled.

In very basic terms, the time value of money is  the value of your money today against the value  of your money in the future, if invested. Now, I  have come to realize that the principles that  govern money also govern time. I have explored  this comparison and coined a phenomenon I call  the Money Value of Time.  Allow me to submit this phenomenon to you.  Here is a simple question: how much is your  time worth? If you want a practical answer to  this question, simply take the income you earn  doing whatever it is that you do, and divide it by  the number of hours you spend doing it. For  example, if you earn R5000 and work 176 hours  to earn it (8 hours * 22 working days a month),  then your time is presently worth R28, 40/hour.  If you are anything like 90% of the workforce,  you’re likely not too happy whatever an hour is  really worth.

And understandably so. But there  is a solution to this state of affairs. Your time  does actually have a Rand value (professionals  who charge by the hour, accountants and  lawyers etc know this only too well!) and YOU  are the one who determines what that value is!  It is this value that I call the money value of time.  Simply increase the rate of your income and you  will see you hourly worth rise. Easier said than  done.  You see, when you invest money, you earn an  interest of money. The same applies with time;  if you invest time, you will earn an “interest” of  time. Whilst the growth of money is dictated by  interest rates and other economic forces, the  growth of time is not governed by such forces.  How you invest your time will dictate how much  of it you reap in the long run. It is this principle  that most top executives understand. As they  spend three days a week playing golf and take  vacations every other month, one assumes they  have plenty of time on their hands; “time to  waste” some even say. Although they do have  free time, the time is simply the interest earned  by investing their time wisely at an earlier stage.  Some invested their time building a business,  some getting a degree, some reading the right  stuff, and some simply invested their time just  learning from those who had already made it.

That investment of time in the past is now what  has yielded an interest of time in the present,  simply because their hourly worth allows them to  spend less time working and more time enjoying  life. By the wise investment of your time, you  create opportunities to increase your income,  thereby increasing your hourly worth.  Investment is sometimes defined as present  sacrifice for future benefit. This definition also  applies to your time. If you make a present  sacrifice of your time and invest it in something  that will yield an interest of time, you will never  regret such an investment. And it is important to  make the wise use of your time a conscious  lifestyle. Unlike with money, you cannot make  up for lost time. Money wasted can be reearned.  Time wasted cannot. Time is a given and we all get a standard quota: 24 hours a day.  How much time you have to enjoy life will be  determined by how much time you’re willing to  invest now, and exactly how you’re going to  invest it. Your time is precious. Don’t spend it -  invest it wisely.

Also see: The Entertainment Trap