How Much Is Your Time Worth?

This morning, I found an insightful post on salaries and the value of our time, from the Get Rich Slowly blog. In it, the author argues that higher salaries do not necessarily, better jobs make. As I've always said, time is much more valuable than anything else we have, because no matter how much money we make or amass, we cannot buy ourselves more time.

Of course, this is the basis of the author's argument that we should, "start to make decisions based around the quality of your overall life experience, not just the numbers that show up on your bank statement every month." And I must say, I couldn't agree more. 

It would benefit many of us, myself included, to stop wasting time on things that do not matter, and thus, do not add to the quality of our lives. Where there are times when we don't really have much of a choice,  I suspect, if we sat down and looked at how we use out time, we'd find those times are fewer than we think. Whatever the case, once we don't need to do that simply waste our time, we can stop doing them, and start making better use of our most valuable resource. 

Here's an excerpt from the original post by Joel Runyon.
When you value your time, you begin to evaluate your decisions through a completely different lens.
Take the choice between two very similar jobs. Maybe at one you can make $40,000 working down the street from your house, and at the other you can make $50,000 by working somewhere that’s half an hour away. Most people would think it’d be a no-brainer to take the $50,000 job simply because of the pay increase. After all, everybody has a commute, right ? Besides, it’s $10,000, and we all know that more money is better, right? Well, maybe
Let’s do the math. If you have a 30 minute commute, every day you’ll spend about an hour in the car (five hours every week).
With 50 weeks in the year (assuming you take your 2 weeks of vacation that most Americans don’t take advantage of), you’ll spend around 250 hours every year in the car — just over ten days — not counting any traffic delays you might have.
If you value your time at $25/hour (~$50,000/year salary), over the course of the year you’ll be spending $6250 worth of your time commuting, most likely being stressed that whole time. When you add the wear and tear on your vehicle, the trade-off begins to sound very different than it did at first.
This isn’t even factoring that the average American spends almost $4,155 a year on gas alone. Even if you only can attribute 60% of your gas costs to work, that’s still $2,493 in gas you’re spending just to appease the $50,000/year job requirements (namely, showing up).
However, if you took the job closer to home, you would save $6,250 in the value of your time as well as $2,493 in gas over the course of the year. So, while the perceived pay gap is $10,000 at first, the actual pay gap between jobs when accounting for the value of your time and added gas would be about $1,257/year. This $1,257 is 2.5% of your $50,000 salary. With that in mind, the question becomes much, much different. (And keep in mind that we still haven’t discussed the opportunities to create additional revenue from the 250 extra hours you’ll have every year!)
Are you wiling to take a 2.5% pay cut to spend more time at home? To do more of the things you enjoy while spending less time getting being stressed? Or, to put it another way: Is a year’s worth of time, stress, and sanity worth $1,257?

Read the entire post HERE.: