People like to say that "time equals money," which I would argue is more true in the reverse. Time is the fundamental unit being measured; money is just a way of representing it. But the bigger question is: what should the exchange rate be? That depends on who is willing to pay you, to do what. I have been fortunately enough to have more work available to me than I am able to or willing to do, so it is fairly simple to establish a value for my time. I have to calculate the time consumed when doing something for the purpose of saving money, because I could have been working instead. This is especially significant for tasks I could hire someone else to do for me. (As opposed to things I have to do for myself, like sleeping.) Unless I enjoy doing a particular task, it would probably be cheaper in the long run to be working instead.
If one is having trouble finding people willing to pay them for their time, it is a bit more complicated. Time "wasted" on tasks couldn't necessarily have been converted to revenue, so it makes more sense to do things for yourself. Some people are limited to 40 hour weeks, or even fewer based on when their employer schedules them. Entrepreneurs are at the mercy of their potential customers, as far as how much money they have the opportunity to earn. Anytime they can spend saving money on their expenses, is less money they have to find a way to earn. “A penny saved is a penny earned,” but how long does it take to earn it?
In the process of rebuilding my house, I will probably "make money," in that if I sell it when I am finished, I will probably get more back than all of the money I spent on it combined. But if I factor in the amount of time I will have spent on it, compared to how much I would have made spending that time at "work," I will most certainly come out behind. But I will have spent that time in NorCal, doing something new and exciting, and learning all sorts of new things. So how much is that worth to me? And it is also nice to have something tangible to show for your work at the end of a long hard day. It is easy to see the progress we have been making on the house.
I also have many people helping me on various aspects of that project. (At least seven this week) Figuring out the value of their assistance is an interesting challenge. Some people are helping me based purely on our existing relationships, while others specifically owe me a favor. One will be trading his construction time for my video editing time. Others are being given things, or opportunities, in return for their support in this process. Eventually I might even have to pay someone. But the barter economy is an interesting process to be a part of, and we all are, whether we are conscious of it or not. (Unless you are by yourself on a deserted island.) Those other people all have to figure out how to value their time, but in a way that others are willing to accept. So how much is your time worth to you?
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