In today’s post, I want to hypothesize how to maximize one’s time value both in the short-term and the long-term. So let’s get right into it!
Each day, we have 24 hours to live, earn money, and create value. A back-of-the-envelope calculation provides the following:
24 hours = 8 hours of sleep + 8 hours of economic activity + 8 hours of family/friends/self time
So, in the short-term, we are spending about 8 hours a day (excluding weekend) or 40 hours a week to drive economic benefit for our lives. So if a person earns $4000/month, he or she is earning $1000/week, $200/day or $8.33/work hour.
So the person’s daily economic value is $200 and hourly value is $8.33. The more your salary increases, so does your ST time value.
It can further be enhanced with passive drivers such as savings and investment.
The remaining 16 hours of our day contributes to the long-term value of our time. Maintaining a regular schedule of healthy activities contributes greatly to the long-term value of time, including lifespan, and happiness. These 16 hours create a positive loop: if you are healthy, you are happy; if you are happy, you are healthy.
We can conclude that if person spends 8 hours a day to drive economic benefit, the remaining can be allocated to sleep, family, friend and me-time and still maintain his/her salary level and lifestyle.
The key is efficient time management and fungibility between each our hour of the 24 hours we are gifted each day.
Term “fungible” is often associated with gold and currency (by association, cryptocurrency included). If something, in our example time, is fungible, it can be traded for another unit of this substance and still bear the same value. If I borrow a $1 note from someone with serial number ending in 1, it still is worth $1 no matter what kind of medium I use to repay you. I can give a different note or coins or I can transfer it digitally.
Thus, if time is fungible, i.e. any 1 hour of my time is same as any other 1 hour of my time, the ideas represented in this post holds true.