This Is Why Time Is MORE Valuable Than Money, According to a Financial Freedom Expert

This Is Why Time Is MORE Valuable Than Money

This Is Why Time Is MORE Valuable Than Money, According to a Financial Freedom Expert - So one of the biggest myth sin the entire money world is people thinking that time is money. We hear that from when we're a little kid. Money is time. Time is money, but time is actually not money at all. In fact with money, you can always go out and make more money. You can get a part-time job. You can start a side hustle, but your time,you never get back your time. You know, this moment is really all there is and so that's one of the things.

If you always think that you need to trade your time for money, you are going to making trade-offs,like spending more time with your family,that you really shouldn't be making. So that's one of the keys in the book,trying to think about money as something very different. You can always try to make more money. It's a lot. It sounds like this is a lot about your emotional well-being as well as your financial well being. It's true Yeah absolutely, better you kind of know yourself and what makes you happy.

Read Also: 2 Travel-Planning Apps to Help You Save Money

That's one of the things too. A lot of the things that tend to make us happy are pretty inexpensive or actually free. So, how do you build your life to maximize the time to do those things as apposed to just trying to more and more money. Exactly. So one of the things I wanted to show you is that a lot of people actually make,unfortunately, less money than they think.

So when you start thinking about money in units of time,you want to calculate how much money you're actually making. The average person in the United States,they work from nine to five but in reality, you have to get up, say at 7 a. m. for your job. You'd probably sleep in if you didn't have to work for money and so the average American actually instead of working a nine to five,they work a seven to seven schedule because they're commuting.

Say you're making, or your family's making,$60,000 per year, instead of calculating your wage based on that, you look at how much time you are actually spending, so 12 hours a day. You're spending 12 hours for every eight. Exactly because you have to commute and you have to come home and you're tired and you lounge out. You spend your time very differently then if you don't have to work for money. So when you actually do that calculation,you're actually making about $13 per hour.

That's when it really starts to add up because when you start looking at something like let's say a vacation. We all love vacations, right?It's really cold here in New York. We want to travel, so a $2,000 vacation, you think,oh $2,000, lot of money but I have that. When you take that say $13 that you're actually making per hour and you factor it in, this vacation is actually costing you a month of your life.

Wow! A month of your life It's just like, is it worth it?Being more mentally aware of what you're spending your money and how much money you're actually earning. And you're actually trading your time for it. That's when it gets really crazy because if you think, okay, yes it's worth it to me to take this $2,000 vacation. I'm going to take it but if you invested that $2,000 instead,that's when things start to get a little crazy.

When you actually look at this calculator,I call it the price of freedom calculator,and you do a calculation, you know remember when Oh cool we can follow right here. Yeah, we're looking at money in units of time not just units of money. Let's say you have $25,000 saved in your retirement account and your retirements are going to grow at about 7% per year and inflation's about 2. 5%, let's see how much that $2,000 vacation actually costs us.

Look at this. $2,000 would buy you 654 days of freedom 654 days, that's like two years. So, look at this. This vacation cost you one month of your life to work to get the money. But if you had invested it,If you had invested it, you're actually going to have to work,It would have given you,Yeah, two years Two years Two years of freedom.