Yesterday I read a great quote. “If you can’t manage your time, you won’t have to worry about managing your money” — Dan Kennedy
“What money gives you is time. And time is really the most valuable asset at your disposal.” We’ve all heard many time before that if you want to manage your time effectively, put a really high dollar value on it.
In economics, there’s a concept known as opportunity cost. For example, the opportunity to cost of assembling all the furniture myself would be the time that could have been spent more effectively. Spending time with family & friends, writing, sending client Thank You(s) are a few of my higher priorities.
Let’s do some math to reinforce this idea. Say that your time is worth 200 dollars an hour, which comes out to 1,600 dollars a day. Say you decided to do a task that could bet outsourced (i.e. building a web site, admin work, Ikea furniture). It takes the whole day to do that task. Assume it would cost $200 to have someone do whatever you needed them to do. You decide to do it yourself and save 200 dollars. The opportunity cost is $1400.00
Sometimes we think we’re saving money by doing things like this ourselves. But we don’t take into the account the opportunity cost of doing things we’re not competent at.
Every one of us gets 24 hours and once that time is up we’re not getting it back. It’s a non-renewable resource. Say no to everything that’s not aligned with your essential priorities, plant seeds today for the person you want to be a year from now and 10 years from now, and use your time wisely. Spend it on things that add meaning and value to your life.
Time is the most valuable asset at your disposal.
Treat it accordingly.
The Eddie Cox Team