Tuesday, January 5, 2010

Value of time

One of the blogs of Life as a purse that I read today was talking about money versus time. It’s one of the finance topics very close to my heart.

I will always go for saving some time by outsourcing my chores. For example in real life, I have a house cleaning maid. I prefer paying them rather then doing these things on my own, simply because I know if I sleep that half hour in the morning I’ll be more productive rest of the day, which is worth way more then I am paying some one else.

In simple terms, this is how I perceive money-time relationship.

Time + Skill = Money

Time is a fixed part of this equation. Everybody on this earth have 24 hours to live. One has to include personal chores, social chores, money chores and skill improving chores all in this 24 hours. So, let’s use them most judiciously.

Next comes, Skill. If one will not work on improving their skills, it will be difficuthey will never be earning more money. So whenever it’s some chore that can be outsourced versus skill improving time, I personally prefer latter. Because I know more skill I’ll acquire, more market value in terms of money I’ll have.

That’s my simple equation. How about you? What’s your equation of time and money?

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