80

You can easily estimate the value of your own leisure time. Just ask yourself how much you'd need to make per hour in order to take a second job :-) PS: On further thought, though, I realize that it's more complicated than that, because the value of money to me isn't fixed. That is, the first $X that pays for food &c is pretty darned important, the $Y ...


48

In one sense, we cannot really gain or lose time by converting with money. We all have 24 hours per day and no amount of money can change that. It's all about how we use our time. And, rarely is time completely wasted. We have a wide variety of human needs and wants. A balanced life involves many things that have no immediate connection to money, such as ...


11

Your/mine/everyone's time is monetarily worth nothing, period. However, the actions which you perform during your time can have a calculated value. If our time had a concrete value then volunteer work wouldn't exist and you would never do anything for yourself but rather everyone would be doing everything for everyone. Would you say that a top athlete who ...


9

Stop pretending your time is valuable and get a hobby. Your time, actually, is not valuable. You have some skill-set that an employer will pay some amount of money to you in exchange for you to perform that service to your employer's benefit and it's very common for employers to purchase that service in blocks of time. Your time is not valuable, your ...


6

Agree with RonJohn. Only other thing I would add is that you need to value the errand itself accurately as well. e.g. Presumably you need clean clothes, if you go and do laundry and view that solely as a cost you need to account for what the alternative would be-- are you hiring a laundry service to collect your clothes and wash/dry and fold them? What about ...


6

Curing your OCD is probably off-topic for Personal Finance & money, and I'm not sure I can do it anyway. However, I propose redirecting your thoughts. When you're running that errand, and start "thinking about however much money (you) could have earned in that time", ask yourself instead: "Would I actually be at my money-earning job if I weren't ...


5

You can never know the unambiguous value of time because no liquid market exists where it is traded as a commodity. The best you can do is estimate. Given this, we can discuss the relative accuracy of different estimates and discuss how they can be improved. Simply taking your annual wage, dividing by 2000 and getting an "hourly value" is a very rough, ...


5

Don't put a money value on leisure time at all. You work to get money, the time is a write off, the money is the focus. When you finish work, leisure is the focus, money should be the write off. If you measure time as money, then in theory you cannot spend nothing. Going to the movies costs you 40 bucks that will require X hrs to replace. As many do not ...


4

The question focuses on a personal philosophy rather than something objectively and universally correct. It's akin to pondering the meaning of (a timed chunk of) your life. But I do want to raise some counterpoints here. I can't give you a universally correct answer, but I do want to show you other ways of looking at it, because your stance seems to heavily ...


3

As much as this may be an unpopular opinion on PF & M, you need to make sure you're managing your thought process based on what's important to you as a person - and that may not be money. Ultimately, money is a means to an end, not the end itself. Many people place a lot of focus on finances - and while that may be arguably better than the opposite (...


3

To assess the value of (potential) leisure time, you have to make specific comparisons between your options. It's not just "have constant fun doing whatever you want" versus "complete waste of your life". If I take on a secondary job that I happen to really like, I'm giving up a lot of leisure time, but the effective cost of that 'lost' time is low because I'...


3

The question is interesting, but not likely to be answered the same by any 2 people. Which really makes it "opinion-based." First, to address the examples you offered - If gas is 15 minutes away, that's 30 minutes round trip, and $10 worth of "time" wasted. Either way, you offer the premise that people look at their wage, performing such calculations, and ...


2

However, taking this into account, how do you work out what your time is worth? $0. Your time has no value. Your employer isn't paying for your time it's paying for a task. An artisan making leather goods alone is being paid for goods produced, not time. No one cares how long it took you to make that wallet the wallet is priced to the market for ...


2

Opportunity cost can be an important factor in decision making. Decisions generally involve trade-offs. Even a "free lunch" costs your time of attendance. However, the cost is not always monetary. There are non-monetary opportunity costs as well. When you are at work, you are not doing other activities.


1

I use GNU Octave for problems like these: octave:1> A=1000 A = 1000 octave:2> N=10 N = 10 octave:3> B=200 B = 200 octave:4> k=1.08 k = 1.0800 octave:5> A*k^N + sum(B*k.^[1:N]) ans = 5288.0 Here I invested 1000 EUR for 10 years at rate of 8% = 0.08, and 200 EUR every year for 10 years at the same rate. At this rate, it will be 5288.0 EUR....


1

You have not defined risk. For cAPM, only systematic risk, or beta, is rewarded. If one investment has a high idiosyncratic risk and low beta while another has the same standard deviation, low idiosyncratic risk, and high beta; CAPM would assign a higher expected return to the latter despite having equal standard deviations.


1

There is no single number. If I can outsource an hour of chore A for $40 and an hour of chore B for $50, I might choose to outsource B despite being more expensive. I might dislike doing B more than I dislike doing A. Similarly, I would pay more to save an hour of waiting in line while on vacation than while at home. While on vacation, the hour in line ...


Only top voted, non community-wiki answers of a minimum length are eligible