Author: Edeh Kelechi
Most people agree with one thing: time is money, and money is time. Money is commonly defined as a medium of exchange in which prices and values are expressed. Therefore, we can say that money is a store of value – meaning that it’s a depository of a person’s past efforts, which can be used for future purchases. With this point, one could also argue that money stores productive time.
After reading this article, you’ll understand how time and money relate to happiness.
The Relationship Between Money and Time
To fully grasp the link between time and money, you’ll need to understand that wealth isn’t an abundance of money; instead, it is the abundance of time.
Because money is a store of time, when you accumulate a considerable sum, you’re collecting a depository of time to use as you please. And that is one of the reasons why the financial independence movement continues to gain traction today, where you have enough money saved and don’t have to work anymore.
Relationship Between Time, Money, and Happiness
Time, money, and happiness are all intertwined. Time helps you accumulate wealth, which you can use to purchase the things that make you happy, whether material or non-material.
Because of their relationship, many people become trapped on the hedonic treadmill, a never-ending cycle of working to make money to spend on the things that bring happiness.
Because you’ve spent money on these things, you need to work harder to make more money – almost as if the more things you buy, the less time you have.
Here are some tips to help you break out of this cycle:
Live More, Spend Less
One of the most effective ways to remove yourself from this cycle is to reduce your spending to a level below what you need to maintain your lifestyle.
By reducing the amount required to fund your lifestyle, you’re buying yourself time to live more freely.
Suppose you make $65,000 annually and end up spending it all; you’re putting yourself in a bind should something go wrong, like losing your job. If you spend $50,000 instead and put the rest into savings, you’re working towards financial independence and funding your future.
If you like your current lifestyle and don’t want to reduce spending, you could try buying time to promote your happiness and wellbeing. That means spending your money on things that help save time.
In an article published in the journal of the Proceedings of the National Academy of Sciences, researchers suggest that people who spend their money on time-saving services have greater life satisfaction. Also, it helps reduce the time-pressure effects on life.
Furthermore, you could buy time to promote happiness by paying for housekeeping or yard maintenance services or app services that help you save time.
Finding a nice balance between time, money, and happiness is critical. Treating time as money will help you understand how to allocate your dollars and hours. Furthermore, by spending less money, you are purchasing financial freedom and thus the freedom to spend your time as you see fit.