Apr 14, 2022

Our insights

“Time is Money” is a tried and true observation credited to American writer, scientist and statesman Benjamin Franklin.

Both have been the source of endless exploration by literary artists for centuries.

But which do you value more?

There is no limit to how much money we can make. But no-one has an unlimited supply of time.

That alone should make every second more precious than every dollar.

How you manage both will inevitably play a big role in achieving your goals and ultimately your happiness.

The time/money paradox

Time and money are inextricably linked. We need time to make money.

The paradox for many is they spend so much time making money that they don’t have any left to enjoy it.

That’s why it is so important to get the balance right. 

A humble but wise man once looked around at his fat cat friends with the big houses on the hill and the expensive cars and claimed he wished for none of it, declaring he “worked to live” rather than “lived to work”.

The lesson is he valued time more than money but in the right measure – because without enough money, he could not enjoy his time.

How much is your time worth? 

Have you ever tried to quantify your time and calculate what it is really worth to your employer?

If Jacob earns $100,000 a year working a 40-hour week, he is earning just over $48 an hour.

If his friend Will does the same job for the same pay but puts in extra hours because he is a “hard and diligent worker”, let’s say 50 per week, he effectively devalues his time.

Will earns just $38 an hour.

In addition, Jacob has an extra 10 hours per week for himself. With that, he could enjoy some down time or use it to moonlight on other projects and make more money.

Next time you are considering a big purchase, say a new colour TV worth $2000, consider how many of your work hours it is costing you.

It is clear that the typical way we exchange time for money doesn’t serve us as well as it should, from both a happiness and financial perspective.

Work smarter, not harder

So we’ve established time is precious. And while we can’t make time like we can make money, we can save it, or free it up to use in ways that are more beneficial.

Hence we need to work not harder but smarter.

A simple way to start is to use tools in your working life that save you time.

Streamline your job (whatever it may be) as much as possible using all the hacks at your disposal. 

You can free up even more time by: 

  • Waking up earlier 
  • Stopping checking social media or your email all the time – it’s a time killer 
  • Paying to have groceries delivered to your door
  • Catching an Uber home instead of taking the bus or train
  • Hiring a Nanny to look after the children while you take the night off 

Think outside the square 

Here are some other ideas to maximise your time and money.

Fly by night – Generate income streams that make you money while you sleep. Working with an expert adviser to build an investment plan that may include shares and property is an essential approach. While there are newer creative ideas available to just about anyone, driven by the internet age, that can become passive income generating assets – such as writing an eBook or starting a YouTube channel.

Learn how to say ‘no’ – Everyone is always asking for your time, be it extra projects at work, meetings or maybe volunteering. Too often we say ‘yes’. Sometimes it’s better to say ‘no’.

Automate your admin – Manually paying bills regularly takes up precious time you could be using doing something better. Set them up to be paid automatically out of your accounts.

Plan ahead to save time – It’s incredible how much time a little forward planning can save, whether it’s a multitude of tasks or simply driving from A to B. Think for a few moments about how you are going to do something rather than diving in without any organisation.

Take shorter holidays but more of them – Research suggests taking shorter breaks but more of them rather than one longer holiday is more beneficial for our happiness. That is partly because much of the joy around holidays revolves around planning them and the expectation of going.

Get advice today

If you feel like you’re stuck in the rat race and not sure how to escape, you need a wealth strategy to break you free from the grind.

At Calder Wealth Management, we work with you to create the future you really want.

Contact us today for a no obligation discussion about your needs.

Written by Aaron Doig.

The information contained on this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on Calder Wealth Management’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.

Calder specialises in wealth management with a focus on advice, investment, sustainability, insurance and finance.

Contact us now.