The money value of time

[Collin Li]

http://www.betterbudgeting.com/articles/homebusiness/moneytime.htm

You have, no doubt, heard the phrase "the time value of money". It means that a dollar in your hand today is worth more than a dollar in your hand a year from now. Why? Because of what you can do with that dollar over the next year.

You can invest that dollar in an interest bearing account and have $1.05 at the end of the year. If you decide to take your buck in a year, your opportunity cost (foregone investment) will be five cents. Not to mention what inflation will have done to your purchasing power in the meantime.

As interesting as the time value of money is to economists and financial planners, if you're anything like me, you probably find the whole subject just a little short of riveting. So here's something more interesting to think about. The money value of time. Your time, that is.

Why do you need to think about the money value of time? Because, quite simply, once you truly understand what your time is worth, in dollar terms, you will work your business more productively and efficiently than ever before.