Why time is an important variable in finances

`Time is money´. Most likely, you’ve heard that phrase more than once and that is because there is a lot of truth in it. However, when it comes to analyzing time as a variable regarding money, most people do not take into account the time that takes not only to generate income but also the cost of spending it. That is why you should be aware of time when it comes to planning how to use money.

When it comes to personal finances, more often than not, the cost of an object or good is assessed according to its benefit and usage after buying it. That is how you know if it is worth acquiring or not. For example, it is inevitable to shop for goods because as human beings we need food to keep living: it is an investment for survival.


The 24 hours that a day has do not come back, therefore time is a resource that has no return. Knowing this, spending money without thinking about what the product gives us, it means is a waste of the time invested to receive that income that buys that good. If you work 8 hours, 5 days a week, that effort you made to work is not well used when you spend your money on goods that have no benefit nor value for you.

Of course, people work to survive but also to reach those things that give them some kind of long-term pleasure. You can finally buy that barbecue that you were saving for and that you are going to use every weekend but you can also spend your money on a piece of clothing that you are going to use only once a year. For both cases, you have to be aware of the time invested to work and earn that money because there are hours that aren’t used for leisure or to be with family and friends.

Therefore, there is an emphasis on using money wisely and manage finance correctly. When looking at the account’s movements, you will learn a lot about the behaviors which affect your finances, such as your consumer’s habits that show how you are investing your money. If you learn to control your spendings that do not provide any benefit -beyond a momentary satisfaction- you will also feel the joy to know that you are not wasting your time.

At the end of the day, when you are buying a product you are not only investing money but also you are investing the time that you worked to earn that income. Now, before buying a product, not only you should think about the price and what brings to you but also think about the time that it cost you to have that money in your pocket.

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