Time has a monetary value to you. That is, money and time can be traded for one another in lots of circumstances, and there are prices that you are willing to take and prices you are not. Hopefully, other things equal, the prices you are willing to take are higher than the ones you aren’t.
Sometimes people object to the claim that time has a value in terms of money, but I think this tends to be a misunderstanding, or a statement about the sacredness of time and mundanity of money. I also suspect that the feeling that time is sacred and money is in some sense not prompts people who believe that money and time can be compared in value in principle to object to actually doing it much. There are further reasons you might object to this too. For instance, perhaps having an explicit value on your time makes you feel stressed, or cold calculations make you feel impersonal, or accurate appraisals of your worth per hour make you feel arrogant or worthless.
Still I think it is good to try to be aware of the value of your time. If you have an item, and you trade it all day long, and you don’t put a consistent value on it, you will be making bad trades all over the place. Imagine if you accepted wages on a day to day basis while refusing to pay any attention to what they were. Firstly, you could do a lot better by paying attention and accepting only the higher ones. But secondly, you would quickly be a target for exploitation, and only be offered the lowest wages.
I don’t think people usually do this badly in their everyday trading off of time and money, because they do have some idea of the trades they are making, just not a clear one. But many other things go into the sense of how much you should pay to buy time in different circumstances, so I think the prices people take vary a lot when they should not. For instance, a person who would not accept a wage below $30/h will waste an hour in an airport because they don’t have internet, instead of buying wifi for $5, because they feel this is overpriced. Or they will search for ten minutes to find a place that sells drinks for $3 instead of $4, because $4 is a lot for a drink. Or they will stand in line for twenty minutes to get the surprisingly cheap and delicious lunch, and won’t think of it as being an expensive lunch now.
I agree that time is very valuable. I just disagree that you should avoid putting values on valuable things. What you don’t explicitly value, you squander.
It can be hard to think of ways that you are trading off money and time in practice. In response to a request for these, below is a list. They are intended to indicate trade-offs which might be helpful if you want to spend more money at the expense of time or vice versa in a given circumstance. Some are written as if to suggest that you should move in one direction or the other especially – remember that you can generally move in the opposite direction also.
Continue reading →