Which is more valuable, time or money? Many people will answer time, because with more time you can make money. While this is true, time could also cause you to lose money. We often don’t give much more thought to this question past our initial response. You may not realize it but every day we put a value on our time. This is called a salary or wage.
Recently I watched the movie In Time. The main premise was that each person had a set amount of time to live, evidenced by a clock that was built into their arm. Instead of dollars, the society in this movie used time as their currency. Wages were paid to employees in hours instead of dollars. The poor were continually fighting to get just a little more time to get them through until the next day by working any job they could find. The rich had hundreds if not thousands of years to live and used their excess time to buy anything they wanted. While the movie was entertaining, I caught myself reflecting back to the reality of this world and the concept of time and currency.
Unlike the movie, our currency is in dollars; however isn’t the real value our time? Most people trade hours for dollars on a daily basis. This is really nothing more than putting a value on time. Each day you wake up and without knowing it, you decide the value you will exchange for your time at your job or business. Truly understanding the value of your time allows you to strategize how to make more money and increase your net worth. You have two choices; you can increase the value of your time or create more time. Most individuals work very hard to increase the value of their payable time (PT). This is demonstrated by earning degrees, continuing education, obtaining certifications, etc. By doing these things the individual is able to work the same or less amount of hours and make more money. This happens because the value of their payable time (PT) has increased and now an employer is willing to pay them more for the same amount of time. The other way to make more money is to create more time. This may sound like crazy talk but it’s really rather simple and happens all around you daily.
Creating more time is all about one thing: leverage. By leveraging the time of others you can create more PT to accomplish what you need, thus creating more earnings. When you form a business and hire others to do a job, you have created more PT. This time costs you money in the form of salary and wages, but if your business is running well you will make money from this created PT. By hiring 3 employees at 40 hours a week, you have created 120 hours of PT that has the potential to increase your earning. This is 3 times the amount of PT you had before hiring these employees.
The use of real estate is the ultimate creation of PT. While many individuals work their whole life to increase their earned income by means of increasing the value of their PT, real estate allows you to gain unlimited PT. This is accomplished by maximizing your passive income in the form of rental cashflow. Passive income is earned with little to no daily effort. This income is earned 24 hours a day, even while you’re sleeping or vacationing.
Increasing the value of your PT or creating more PT through leverage and using passive income streams, such as real estate, will give you the ultimate payout! MORE TIME! Not only payable time, but time to focus on what matters most to you, time with your family and time to do what you have always dreamed. So this brings me back to the original question: What is more valuable time or money?