When Time is More Important Than Money

For most people that are affluent, there comes a time in their lives where time is by far a more precious commodity than money. Often they have either reached a point where they are truly wealthy  and will not need to work another day in their lives or they are very close to it.

At this point it is important to ask what it is that you truly enjoy. Is it your work or is it something else? Would you rather be volunteering or puttering around the house? Perhaps you have not quite reached the stage where you cannot decide to quit work entirely, but you could take a drastic cut in salary or income and decide to try consulting, part-time work or a new profession altogether.

But why would time ever become more important than money?

There is an important concept in economics known as the law of diminishing returns. It effectively says that an additional unit of X in general gives less satisfaction than the one before it.

To illustrate, think about the pride you may feel if you saved your first $100,000. Now imagine that you have already saved $1,000,000. Is the next $100,000 really as exciting as the first $100,000? If you are like most people, the answer is probably no. But $100,000 is still $100,000 isn’t it? Yes. But its relative usefulness has gone down.

Given that time is a finite resource (we each have 168 hours in our week), It is easy then to see if you already have all of the money that you need that time to do what one wants becomes more important than the additional money one may accumulate. It is important to recognize however that if one wants to fully get out of the “rat race” one have enough wealth to live the lifestyle one wants to live…

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