Why time-based budgeting makes sense
Money is a limited Supply but time is even more limited. once you pass money you are basically trading your sentence for the commodity or services you bought. Changing your mindset to thinking about spending in hours instead of dollars forces you to evaluate whether the purchase is extremely worth the time you invested to acquire it.
For example let say you make $20 an hour. once you steal amp match of $200 place you not but disbursement money—you disbursement x hours of your spirit.
This approach leads you to ask, “Is this purchase worth 10 hours of my time?”.
How to calculate the value of your time
To start looking at your cost per hour, you first need to determine your hourly rate. Here’s how to do it:
Calculate the take-home bill:
Start with income, take-home after taxes, deductibles and other expenses.
Divide your total hours by:
Determine the number of hours you work in a week, then multiply it by the number of hours you work in a year. Divide annual take-home pay by total hours worked.
For example:
If your annual take-home pay is $50,000 and you work 40 hours per week for 50 weeks a year, your hourly wage is:
50,000÷(40×50)=2550,000 \div (40 \times 50) = 2550,000÷(40×50)=25
Your hourly wage is $25.
Account for Hidden Costs:
Consider using extra time to get to work, get ready for work, or deal with stress from work. This hidden cost lowers your “real” hourly wage.
The Emotional Impact of Thinking in Hours:
Calculating costs in hours brings emotional clarity that dollars alone rarely have. Let’s compare two situations:
Buy $5 coffee a day:
If your hourly wage is $25, each cup of coffee takes up 12 minutes of your time.Over a month, that’s about 6 hours of work spent just drinking coffee.
Buying a $1,500 smartphone:
At that same hourly rate, you would have spent 60 hours—more than a week of work—on the phone.
Rearranging expenses over time forces you to be flexible. Do you want to devote those hours to these things, or is that time better spent doing something else?
The advantage of calculating cost in hours
Improving cost awareness:
Spending time on shopping emphasizes unnecessary spending and helps you focus on what really matters.
Enhanced financial discipline:
You might want to think twice before spending money on just groceries when you realize how much time they represent.
Increased appreciation of your time:
Realizing the value of your time motivates you to use it wisely in your business and personal life.
Excellent work-life balance:
This approach often leads people to look for ways to make more money per hour, work fewer hours, and prioritize time over money.
How to apply this concept to everyday life
Review of major purchases:
Before buying big tickets, calculate how many hours you have to work to pay for them. If the number feels excessive, think again.
Monitor spending in hours:
Use a budget app or spreadsheet to track purchases and convert them into hours worked.
Prioritize sensible spending:
Spend your money—and therefore your time—on what meets your values and brings long-term satisfaction.
Reassess your income and goals:
If you feel like your time is undervalued, think of ways to free up time to increase your potential revenue or cut unnecessary expenses.
Final Thoughts
Time is your most precious resource—it’s not new and it can’t be replaced. Calculating costs in terms of hours rather than dollars gives you a powerful perspective, helping you determine your true financial choices.
