Time or Money: Which is More Important?

It was only after having kids I realised how much time I really did have on my hands – I mean, what on earth did I do with it all!? Any spare time I now find myself with, I ask myself three questions:

  1. What needs to be done, and what would I like to do – Mowing the lawn, washing the car, or taking the kids to the park?
  2. What’s really important – time with my kids.
  3. Can I outsource the rest – yes.

For me, my family and kids are the most important thing in my life (after my health, because without it I can’t enjoy and provide for my family). More often than not I find that I somehow convince myself that I’ll get around to doing the other two things, such as mowing the lawn and washing the car because this time it’s different! Time and time again however, the grass gets longer, and the car get’s dirtier. Without exception, I give in. I’ll arrange for Victor the lawn guy to come over and do the lawn, and the car will be dropped off at the car wash whilst we’re at Westfield Shoppingtown. Inevitably, the cost of mowing the lawn and cleaning the car is always more expensive because I left it for so long and it got so bad. No brownie points even though I had good intentions.

Our time is so valuable, yet I think many of us don’t realise this. Realise it not intellectually, because I think most people understand the concept of finite time, but understand it emotionally.

We all have 10,080 minutes each week. Let’s say we sleep for 7 hours each day (2,940 minutes each week), we’re left with 7,140 minutes each week to do the things that are most meaningful and fulfilling. In one of his talks, Peter Attia poses the question:

I will be willing to bet that not one of you, if you were offered every dollar of his (Warren Buffett’s) fortune would trade places with him right now.

He goes on to say:

And you would all intuitively say no, I think, because you realise that time matters more than money. And I would also bet by the way, that he would be willing to be 20 years old again if he was broke.

The question Attia asks is incredibly thought provoking.┬áSure, I could have all the money and fame in the world. I could travel to anywhere I like, I could meet anyone I wanted to meet, and I could buy anything I wanted to have. Notwithstanding Warren Buffett’s fortune, there is no way I would be willing to trade places with him – would you?

Researchers at Harvard published a paper after studying the spending habits of more than 6,000 people around the world. Here’s what they found:

Despite rising incomes, people around the world are feeling increasingly pressed for time, undermining well-being. We show that the time famine of modern life can be reduced by using money to buy time. Surveys of large, diverse samples from four countries reveal that spending money on time-saving services is linked to greater life satisfaction. To establish causality, we show that working adults report greater happiness after spending money on a time-saving purchase than on a material purchase. This research reveals a previously unexamined route from wealth to well-being: spending money to buy free time.

In our everyday lives we outsource and spend money on so many time-saving purchases. From Friday night take-away, buying fruit and veggies from the market, to having our cars serviced. Not only do these purchases save us time, some of them require more skill and expertise than others – and we’re happy to pay a premium for it.

In the world of money management, the amount of time, focus, attention, and expertise that is required is enormous. Not only are the above factors required, the most underrated factor, I believe, that is required is having the ability to control human emotions.

Here’s how I think about time and money:

  1. Trade money for anything that is below your hourly wage.
  2. Trade money for anything that allows you to spend more time on things you find more meaningful and fulfilling.
  3. Trade money for memories.
  4. Trade money for anything you’re not an expert at – you’re likely to have no idea what and how to do it, if you do know how, you’re likely to take twice as long, make a mistake, or not optimise the outcome.

Never discount the concept of time and how a precious commodity it is.