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The relationship between time, money, and happiness
Wealth: an abundance of time
When we notice the relationship between money and time, we realise that wealth isn't necessarily an abundance of money, but an abundance of time. When you gather a lot of money, you collect a large store of time which you can use as you want.
Financial independence is then geared to having saved enough, so you're no longer required to work for money. Yet, many people spend so much time gathering stuff but don't set aside anything for the future.
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Money: a store of productive time
We're commonly told that money is a "store of value," meaning a storehouse of past effort to use for future purchases. Really, money is a store of (productive) time.
Material things and the value of time
An irony of modern society is that many people work more to have more money to buy more stuff, but because they have so much stuff, they need more money, which means they have to work more, which means they have less time. To escape this vicious cycle:
- Deliberately reduce your spending below the level needed to maintain your lifestyle.
- Spending less helps fund your future. Living with a lesser lifestyle means you don't need to save as much for retirement.
"Buying" time promotes happiness
Experimental studies reveal that using your money on time-saving devices promotes happiness. The effects of "buying time" have the greatest impact on less-affluent individuals.
If you don't want to cut back on your lifestyle or are not able to cut back, you can still use the relationship between time and money to increase your sense of well-being.
Frugality buys time
The relationship between time and money is this: When you spend less, you can work less. That means that frugality buys time. On a deeper level, frugality buys freedom - financial freedom, freedom from worry, freedom to spend your time as you wish.
There's a balance, and it is different for everyone. You have to decide how much time you're willing to spend on the present comfort and how much you want to put away for the future.
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Frugality
Frugality means resisting the temptation to spend more than you earn.
Discipline
Self-made millionaires choose moderation over extremes. They often buy used cars, don't live in the most expensive houses and don't try to time the investment market.
Hard Work
A defining characteristic of many millionaires are their willingness to work hard and stick it out in high-paying careers until they are financially independent.
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Characteristics Of The Wealthy
- They live in homes just large enough for their needs and drive used cars.
- They have affordable interests.
- They don’t worry about having the highest credit scor...
Rich And Wealthy
By making wealth your priority now, you could be both later. Establish a strong financial foundation that will give you financial security and peace of mind moving forward.
Living paycheck to paycheck is a guaranteed way not to build wealth.
If you’re just starting on your personal finance journey, it might not be time for you to start acquiring these assets yet.
How To Become Wealthy
- Investing in stocks is simple if you avoid lucky stock picking. Keeping long-term perspective, invest early, especially in low-cost index funds.
- Rental properties.
- Small business ownership.
- Delaying gratifications.
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Smart retirement planning boils down to a few simple truths.
- Time is on your side. The earlier you start saving money, the more time you give compounding to work for you.
- Take risks when you're young. Althoug...