As you are setting your clocks back an hour this Sunday, remember that time is always money, although you may not realize it. The way you spend your time directly affects your money and spending habits. If you spend your time the right way you could increase your wealth! But if you are wasteful of your time you may also be wasting your money. Here are five simple reasons why your time is your money, and what you can do to make both of those go further.
Productive Time vs. Unproductive Time
If you have goals to pay off debt or save for the future, it’s worth assessing if you’re spending your time in the most productive way. Unproductive time definitely isn’t making you money, and depending on what you’re doing, could be costing you. When you spend time wisely and productively, it grants you the opportunity to further your income and more strategically budget and spend your money.
The Beauty of Compound Interest
Compound interest is one of the best ways to develop a long-term savings plan. It can be thought of as “interest on interest.” This type of interest makes your deposit grow at a faster rate than simple interest. The power of compound interest is that you are investing earnings on an investment back into that investment. This clearly shows that you don't need to be rich to invest and make money. You just need to be persistent about saving and have the patience to let it grow. Start a savings account that gains a compound interest today! Several years down the road when you see how much money you’ve earned just from compound interest, you’ll be happy you did.
Time Catches Up with You
Before you know it, you’ll be graduating college and it’ll be time to start paying off those loans and support yourself. If you aren’t prepared for the real world and how to successfully manage your money you could be in real trouble. Time keeps moving and it’s important to keep yourself prepared for what’s coming next so you can always make the most of your money.
Fees, fees, and more fees!
Late fees are everywhere. If you don’t pay your phone bill, car insurance, tuition, etc. you’ll be charged a late fee. These fees add up and if you’re frequently late on payments you could end up putting a significant amount of your money into paying all of those late fees. Avoid paying any of your bills late. Be on time with your payments because the more time you wait, the more money you’ll owe.
Spending Your Time vs. Spending Your Money
Begin looking at your time as a commodity. Each hour of your day can be given a monetary value. When doing this, you realize just how much money is wasted through wasting time. For example, housework. Is it more practical for you to spend the entire day cleaning your apartment or house when you could instead, pay someone to do it and spend the day working on a job or homework? It’s important to know your availability and evaluate your time.
Make the most of your time and your money! In the words of Benjamin Franklin, “Don't put off until tomorrow what you can do today.” Start managing your money more wisely today. Develop a budget, start saving, and prepare yourself for the future. It’ll pay off!