Understanding the True Value of Your Time | Time is Precious Use it Wisely

When we justify the value of objects that are purchased we look at the quality, the cost, and the useful life of the item. If the useful life brings a return that is deemed worthy of the cost then it may be beneficial. How do you value something that is extremely precious and finite? Something that once used never returns? Time is limited for everyone, it is a finite resource. One that we take for granted, regularly.

I was originally going to just discuss how to calculate the value of your time. It is simple to put into numbers when you look at the dollars: your hourly rate that you are paid, or the hourly rate you should be paid based on your worth.

Why the math?

Understanding the monetary value of your time can help put situations into perspective when making decisions. You can look at a situation that is frustrating you and easily put a dollar value on the time you waste each week while dealing with it over and over again. Then you can use this to determine if there is a more cost-effective solution.

In the office, you may notice that people are constantly asking you where items are located in the supply room. You are interrupted multiple times a day, and it is affecting your productivity for the tasks you have on your to-do list.

How much time is wasted each time you are interrupted, including the time it takes you to return your focus to the task at hand? Calculate the cost of that time over the course of the month. Is there a solution?

Is the supply room organized with defined locations for items?

Are there labels on the shelves for people to know where item “homes” are located?

How much time would it take to organize the supply room, and briefly explain the new setup to others? Calculate the cost of that time, and compare it to the wasted time you calculated before.

The cost difference will show you if there is a cost-saving in making that improvement at the office.

The same can be done at home if you want to compare the costs, but when it comes to the home you might want to consider other factors other than just the dollars.

Priceless Values and Experiences

When considering the value of your personal time you need to consider other factors within the situation. Factors to consider include the learning experience that someone will gain in doing that task, or the core value it will nurture in the person.

These experiences are the most precious commodities and are hard to place a value on time spent.

Consider the time spent cleaning the house. Is your time better spent doing something else, and paying someone else to clean it? Possibly. This is something you will need to weigh carefully.

For us, as a family, we chose to spend that time teaching our children the value of teamwork, compassion, and hard work when doing chores around the house. The money we saved by spending our time doing the chores, was used for other activities or family vacations.

Spending a few dollars on items that help organize a space, is money well spent for me. Wasting time searching for items, or sorting through clutter constantly is not a good use of my time or my family’s time.

How you calculate the true value of your time will depend on the factors you are considering. No one can make that decision for you and there isn’t a universal right or wrong. The decision is personal to you and your family.

You will learn over time that determining the true value of your time will be present in every aspect of your life, including how you maintain balance. Time is precious, use it wisely.