There is an age-old expression “Time is Money.” More recently, others have spun that around to form a similar expression “Money is Time.” Let’s explore the relationship between money and time and the change in meaning after flipping the expression.
Time and Money are Two Forms of Currency
It’s easy for most people to understand that money is currency, which could mean any of these things.
- Money has value
- Money can be traded for goods and services
- Money can be traded for time
- You can invest your money
- Money is freedom
If you replace the word “money” with “time” and vice versa in each of these bullets, each point still holds. So logic would have it that time is also currency.
What is Intended by the Expression “Time is Money?”
This phrase conjures up scenes from movies like Wall Street. Although I’m not sure that line was ever used in that particular movie, it has been used in many movies over the years. Most sources attribute the line to Benjamin Franklin. Some meanings could be:
- time is required to make money
- one must act in order to make money
- I am losing money if you waste my time
Note the emphasis is on money. Money is the goal.
How Does the Meaning Change When it is Flipped to “Money is Time?”
If you follow the suggestion that one is a means to an end, then the expression “Money is Time” means money is a means to earn time. It flips the emphasis on the end goal. Time is what we need for relationships and experiences. Time is what’s important, not the money. Money is simply a means to acquire time.
If Time and Money are Both Currencies, You Should be Able to Invest or Spend Both.
You can spend your time on pleasure (going to the movies), experiences (exploring a new city), relationships (mentoring a child). You can also exchange money for pleasure, experiences, or relationships.
Example 1: A job is an investment of time for money.
Example 2: A vacation is an investment of money for time.
Time and Money Are so Linked, the Relationship Could be Considered Circular
The simplest example is to pay for a vacation, where you trade money for time to relax, enjoy, and do whatever you wish. But how did you get the money to pay for the vacation? You had to work to earn the money. In other words, you had to trade time for money so you could then trade money for time.
What are Some Uses of Time that Yield the Best Financial Payoff?
You can create a personalized list of best-bang-for-the-buck uses of time for financial gain. This applies to financial gain personally and professionally. Here are some examples.
- Training and Education
- Networking
- Processes
- Refinancing
- Consuming podcasts during commutes
- Financial housekeeping or planning
- Getting a real estate license if you frequently buy and sell homes for your family
Time-Money Tip
Do a personal SWOT assessment. Then make money at something you are faster at than most people.
What are the Best Uses of Money To Earn the Most Time?
List all the activities you can outsource and the cost to outsource them. Then find your priorities – the things that suck up a lot of your time and cost little to farm out. Here are some winners for many people, but your list will no doubt be different. Naturally exclude whatever you enjoy doing or have a reason not to outsource.
- Housecleaning
- Shoveling snow
- Landscaping
- Bookkeeping
- Taxes
- Manual labor
- Clerical work
- Child care
- Research
- Web design
- Home improvements
Many people do not have the luxury to pay for these things. If they have more time than money, they will do as many of these things as they can rather than outsource them. If they don’t have the money or the time or the skills, these things are left undone or not done well.
What Are Some Great Uses of Money Besides Making More Money?
- Diversifying risk
- Social good – philanthropy
- Experiences – travel, dining
- Learn for the sake of learning
- Whatever makes you happy
What Are Some Great Uses of Time Other Than Making Money?
- Exercise
- Meditation
- Relationship building
- Social good – mentoring, volunteering, community activities
- Experiences – travel
- Learning for the sake of learning
- Whatever makes you happy
Is Passive Income a Lie, a Trap, or Something Else?
Passive income is not a lie. However, passive income is not a black and white proposition. Nor should it be a goal for everyone or every situation.
- Initiatives can range from slightly passive to very passive
- Nothing is 100% passive
- Many initiatives are time-consuming up-front and taper down on the time commitment
- Under financial pressure, quick income is likely to come from active versus passive pursuits
- Converting a type of income from active to passive, such as a business, takes time, skill and care
You don’t want to do that because you’re just trading time for money.
– every passive income guru
There’s nothing wrong with trading time for money. It’s the traditional basis of work. Furthermore, you will trade time for money with passive income.
Not all passive income is created equal.
Passive income is a great concept that needs to be understood by anyone interested in income. There are great passive income opportunities and there are passive income traps. I have several tools in the online store that compare passive income activities and uncover time spent that is often overlooked or discounted. These tools can provide a more complete picture when you assess, prioritize, and eventually track and re-prioritize income initiatives.
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