Time is Money: How will you spend yours?
Apr 17, 2023, 00:00
by
Zachary Simon, CPA
The phrase, time is money, has been repeated with great frequency. It is meant to spur us to efficiency. I like to consider my time a currency that I exchange for goods and service. Rather than consider how much money an item or service will cost, I equate the purchase to hours or days I must work.
The phrase, time is money, has been repeated with great frequency. It is meant to spur us to efficiency. I like to consider my time a currency that I exchange for goods and service. Rather than consider how much money an item or service will cost, I equate the purchase to hours or days I must work.
A $40,000 dollar vehicle may have the features I have always wanted. I have enough for the down payment, and I can easily make the monthly payments. Then I consider how many hours/days I must work for the purchase.
Between sales tax, federal income tax, state income tax, and social security taxes I would need to earn roughly $60,500. This is assuming I make $20 per hour and 30% of my money goes to taxes. This doesn’t take interest on a loan into consideration. That equates to 3,025 hours or 379 workdays.
Suddenly, the car of my dreams doesn’t seem so appealing. Some of us will weigh the cost and determine it is worth the time, some of us will choose a different option. We can always make more money. We can’t make more time. How will you spend yours?
By Zachary Simon, CPA, RFM Group
Time is Money: How will you spend yours?
Zachary Simon, CPA | Apr 17, 2023
The phrase, time is money, has been repeated with great frequency. It is meant to spur us to efficiency. I like to consider my time a currency that I exchange for goods and service. Rather than consider how much money an item or service will cost, I equate the purchase to hours or days I must work.
A $40,000 dollar vehicle may have the features I have always wanted. I have enough for the down payment, and I can easily make the monthly payments. Then I consider how many hours/days I must work for the purchase.
Between sales tax, federal income tax, state income tax, and social security taxes I would need to earn roughly $60,500. This is assuming I make $20 per hour and 30% of my money goes to taxes. This doesn’t take interest on a loan into consideration. That equates to 3,025 hours or 379 workdays.
Suddenly, the car of my dreams doesn’t seem so appealing. Some of us will weigh the cost and determine it is worth the time, some of us will choose a different option. We can always make more money. We can’t make more time. How will you spend yours?
By Zachary Simon, CPA, RFM Group
