Time is Money

Whether you like it or not, the concept of time is money related strongly and linked to your finances. Repaying a loan is done in monthly installments. Saving is done through regular payments. Want to use your money to invest? Consider the investment horizon. And if you want to one day “get rich”, get used to the idea that it will not happen overnight.

The notion of time is therefore important to understand and integrate into one’s own strategy as an essential component of it. And the expression “Time is money” is the -almost- perfect summary. Let’s take a look at the different aspects of this quote and the insight it can give us on our own financial situation.

The rigidity of these structures is their undoing. Efficient work is about getting things done — often in the moment. And the processes in and away from your office should reflect that.

If you complain about not having enough time, fix it. If you’re the leader, you shouldn’t allow a structure that steals your time.

Time is money – This expression comes from Benjamin Franklin, wrote it in 1748

Make It About Moments

The toughest business to run is “running” a family — you never know what drama will happen next with one of the kids. A bleeding knee, a lost toy, a nasty breakup? No matter what, caring parents always find that magical moment when time seems to stand still and the only thing that matters is taking care of a loved one. So when you’re short on time, make it about those magical moments that really matter:

• Moments of Yes

Questions with one-word answers shouldn’t require entire emails. If someone needs to sign off on something, let that person give approval or denial with a single smartphone tap. You’ll eliminate thousands of hours in wasted time by simply going mobile and avoiding a cumbersome system.

• Moments of Reach

My job is to communicate with everyone in the organization, and when my lines of communication shut down, it inhibits my ability to function. If not everyone has access to the same lines of communication — for instance, if many employees work remotely — that task is even more laborious. Without clear lines of communication, the whole system bogs down.

Today, reach is no longer an issue. You can reach everyone where they always are: on their smartphones. Turn your announcements, instructions, and processes into mobile moments, and you’ll save countless hours while keeping everyone informed.

• Moments of Truth

Business is about information. Communicating key figures such as the forecast, inventory, or any other metrics should be as easy as reading about last night’s game.

Turn those key figures into moments of truth on your smartphone, saving people hours of digging through emails or staring at that huge dashboard with overwhelming information.

• Moments of Productivity

None of this is really magic; it’s all about empowerment and engagement. If you’re short on time, don’t look for more. Use the time you do have more productively. Turning all your approvals, communications, and key figures into small magical moments cuts wasted hours and boosts productivity — leaving time for the things you care about most, whether that’s an extra brainstorming session or an extra hour with the kids.

Always ask yourself, “If I had just one more moment, how would I make that moment count?”

What does the phrase “time is money” mean?

In reality, Benjamin Franklin’s version is slightly longer. Indeed, in his booklet, he writes, more precisely:

“Remember that time is money.”

Giving advice to those who want to go into business to perhaps one day become a millionaire, Benjamin Franklin explains that a single half-day spent without working can cost a lot more than the half-day’s salary because expenses related to this inactivity.

In other words, for a trader, there are incompressible costs (production costs or storage costs, for example) which will affect his profitability if the work is not done. In short, if you want your business to be profitable, you have to roll up your sleeves.

Since then, the expression has acquired its letters of nobility and has been greatly enriched depending on the situation. For example, it can also be taken as the opposite of Franklin’s idea. In this case, it can mean that if you use your time in the right way, it can end up saving you money.

However, the formula is not entirely linked to the financial question or directly linked to the fact of making money. Indeed, it means that time itself is a precious commodity – “money” therefore – and that you have to know how to use it. In other words, time is precious and should not be wasted.

Take action for your finances

Unlike energy, time should not be wasted because it is a commodity that flies, even if you do nothing! Indeed, if you stay on your sofa, you will reduce the energy consumption that your body will need…. But time will run at the same speed.

For your finances – because we are still on a site that deals with money – it is important not to let this time slip away because it will be wasted.

But in the end why do we say time is money?

There is a fundamental principle in science which can be stated as follows: the effect cannot precede the cause. In other words, an event cannot occur if the events causing it did not occur themselves.

If it is applied to the question of your money, then it is first a question of taking action. It is obvious that if you are looking to achieve financial independence, invest, or even simply save for your next vacation, inaction will not change anything and will not allow you to achieve your goals.

In fact, by not taking care of your finances immediately, you are already wasting precious time. Even building passive income will still require action on your part. So what are you waiting for? Tell yourself that financial procrastination makes you waste time and therefore money at all times.

But taking action does not mean that your effort will take all your time… On the contrary, there are ways to “hack” time!

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Time and your money

One of the first reasons why you should not waste time and take care of your money as soon as possible is that it will allow you to accomplish efforts for a shorter time.

Let’s take an example:

Start earlier (first case)

Caroline at 20 years old. She decides to take care of her finances a little to prepare for the future. She decides to set aside $ 100 per month to build up regular savings. This effort, she will continue it from the age of 20 to that of 30 – that is to say 10 years – for a capital saved of $ 12,000 therefore –. If, from the start, she invests this money at 4% per year at age 60, her capital will then be $ 47,577 40. That is a profit in interest of $ 35,500 ! Not bad for $100 a month!

Now, let’s take the case of Harry who will make a greater effort -$ 200 every month – with an investment with a higher return – 8% per year – over the same period, 10 years. You will tell me that Harry will obtain a better result than Caroline since the savings effort and return are doubled… Well not really!

Start later (2nd case)

Indeed, Harry only started to take an interest in his finances very late: when he was 50 years old. At 60, he will therefore only have $ 36,034 85 in capital with $ 2,024 in interest. He will have lost all the time during which his savings could have grown the most and made him earn more money.

That’s the magic of compound interest and it’s the best way to hack time: make an effort in the short term but let the money work in the long term.

The earlier you start, the better!

The icing on the cake, now imagine that Caroline (our first case) continued to save, patiently, $ 100 per month throughout her career. In the end, she will get $ 116,106 38 with more than $ 68,000 in interest. Thus, she will not have worked for the money but let her money work for her!

The close relationship between time and remuneration or salary

It is crucial to change the situation. Being an employee is not necessarily the best way to turn your time into money. If you want to be rich (in every sense of the word) or in any case earn a lot of money, you cannot limit yourself to a limiting thought of the style “an hour of my time is worth so much”.

While we’re not telling you to quit your job to start your business, you have to admit that being an employee is giving your time to someone else’s projects. So wouldn’t it be better to also devote yourself to your own projects?

Investing is not just about investing in the stock market. It also means investing as much time as possible in the projects that concern us. In other words, it is also about controlling YOUR personal time.

Your time for money or your skill for money?

And this can, indeed, go through another way of monetizing your time: making you pay directly for your skills and not simply for your working time.

Because yes, they are two different things. Take, for example, an employee paid at minimum wage on the basis of 35 hours per week. Is he paid on time or for his skill.

You are going to tell me that there are salary grids that allow you to establish a salary according to a skill. In this case, ask yourself the same question for a… consultant!

Let’s talk about utility now. Well, we end up with the same type of questioning. For example, who should be paid more in relation to their usefulness: a nurse or a digital marketing expert?

If you scour the sites on financial independence you will often find the idea that, if you want to earn a lot you must first invest in yourself, that is to say in your skills. In reality, if you invest in yourself without going beyond that you will not earn more!

Your skill, and the resulting income, will depend on how you monetize it. It is possible to resell it very expensive and be employed or work for a personal project so that it brings in money.

In any case, it is important to dissociate your skill from the associated working time. Put this in mind: sell your skills and not your working time. It is then a question of transforming the expression “time is money” by “competence is money”. Which brings us to the concept of value.

Tips for applying these principles

“Time is Money” and “Use What You Have” are two common sayings that highlight the importance of efficiency and resourcefulness in achieving success. Here are some tips for applying these principles:

Set priorities: Identify the most important tasks and focus your time and energy on completing them first. This will help you to be more productive and make the most of your time.

Delegate tasks: If possible, delegate tasks to others to free up your time for more important tasks. This will help you to be more efficient and make the most of your resources.

Avoid distractions: Minimize distractions and focus on the task at hand. This will help you to be more efficient and get more done in less time.

Plan ahead: Plan your tasks and activities in advance to make the most of your time. This will help you to avoid wasting time and ensure that you are using your time effectively.

Use technology: Use technology to automate tasks and streamline processes. This will help you to save time and be more efficient.

Examples of applying these principles include:

Amazon: Amazon is a master of efficiency and resourcefulness. The company uses technology to automate processes and streamline operations, allowing it to offer fast and affordable shipping to customers.

Google: Google is known for its innovative approach to problem-solving. The company encourages its employees to use what they have and come up with creative solutions to challenges.

Elon Musk: Elon Musk, the CEO of SpaceX and Tesla, is known for his ability to get things done. Musk sets ambitious goals and focuses his time and resources on achieving them, often working long hours and delegating tasks to his team.

Walmart: Walmart is known for its efficient supply chain management. The company uses technology to track inventory and manage logistics, allowing it to offer low prices and fast shipping to customers.

Tim Ferriss: Tim Ferriss, the author of “The 4-Hour Work Week,” is known for his focus on efficiency and productivity. Ferriss encourages his readers to use technology, delegate tasks, and focus on the most important tasks to make the most of their time.

Source: CleverlySmart, PinterPandai

Photo credit: nattanan23 via Pixabay