If You Can’t Manage Time, You Can’t Manage Money
Summary
- If you can’t manage your time, you won’t be able to manage your money.
- Every day, we all have equal amounts of time, even though our lifespans can differ.
- Time is traded for money, and money represents time spent on tasks.
- As you get wealthier, the time value of money changes; for instance, $100 might mean 4 hours for some, but only 4 minutes for others.
- Regularly evaluate your calendar to see which activities can be traded for more money.
- Spending time with loved ones is important, but recognize the transaction cost of that time.
- Continuously aim to increase the value of your time to earn more each year.
Video
How To Take Action
I suggest implementing a few simple yet powerful strategies to optimize your time and money management.
First, regularly evaluate your calendar. Identify activities that can be traded for more money. For example, if you're spending time on tasks that could be outsourced for less than your hourly rate, consider hiring someone. This frees you to focus on higher-value activities.
Next, understand the value of your time. Track how you spend your hours for a week. Assign a monetary value to these activities. This exercise shows the real cost of seemingly trivial tasks, helping you make smarter choices about where to spend your time.
Don't overlook the importance of spending time with loved ones. Recognize that this has a transaction cost too. Budget your time to ensure you nurture these relationships, without neglecting your financial goals.
Continuously aim to increase your value per hour. Invest in skills or education that make you more valuable, enabling you to charge more or be more effective in your business.
By implementing these strategies, you can keep increasing your income and ensuring that your time is invested in the most valuable way possible. Achieving small changes in how you manage your time and tasks can lead to substantial financial benefits over time.
Full Transcript
if you never learn to manage your time you're never going to learn to manage your money all of us obviously have equal amounts of time that we're given not necessarily in life but at least every day and since all of us trade time for the money that we get then it means for each person money represents a certain amount of time and the wealthier you get the denomination of money represents less time for you $100 may represent 4 hours for a wealthier person $100 may represent 4 minutes and so it's a constant appraisal that you do on a regular basis looking on your calendar and saying what things do I have here that I could trade my time for for more money I'm not saying that you can't spend time with your girl but there is a transaction cost for that time and so over time if you continue to trade up how much time you invest for what it makes you you will always make more in your income year after year after year