Tuesday, October 30, 2007

TCS: How to transform time into money

Let's make an assumption: If you wanted to, you could work 168 hours a week. This isn't exactly true on several levels, but let's take it as a fact for now. Let me convince you. You might say: "But I have a 40 hours a week job, I can't do overtime". To that I would say that you could find another job, I'm sure the nearest fast food are in need of people, or you could start your home business. I don't know, you could assemble Ikea furniture for elderly people? Buy and sell stuff on ebay? Here's one anyone could do: farm gold on World of Warcraft. Thus, every time you want to do something that doesn't involve making money, you have to factor in the opportunity cost of not working.

If you think you could be making 10$/h and you decide to go see a movie instead, it's really costing you the 10$ entry price plus your time, 10$/h x 2h = 20$, so 30$ overall.

We've now established how every hour in your life could be transformed into money, proving the good old adage time is money. We'll get into how every hour aren't born equal pretty soon.

(Photo by lortica)

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