October 22, 2020

Time is money. You’ve heard it a thousand times, you’ll probably hear it a thousand more. But, when it comes to saving money, this expression could change your life. 

Before your next purchase, think of the cost in terms of the hours you would have to work to afford the item. Putting the price in terms of time instead of dollar bills may help you better understand the full cost and appreciate the weight of your purchases.

For example, say you make $15/hour, here’s how much the following purchases cost in hours:

• Cup of coffee ($5) = 20 minutes of work
• New jacket ($150) = 10 hours of work
• New flat-screen TV ($800) = 1 week and 2 days of work
• New car ($25,000) = 7 months of work!

Thinking about money in terms of hours worked can help you realize how much of your work life goes into each purchase. 

If time is truly money, then we don’t buy things with cash, we buy them with hours taken from our life. Use this shift in mindset to become more selective about what you buy, grow your savings, or send extra money to your loved ones abroad who need it most.

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