1 00:00:03,200 --> 00:00:06,400 Speaker 1: Welcome to Before Breakfast, a production of I Heart Radio. 2 00:00:09,080 --> 00:00:13,560 Speaker 1: Good Morning, This is Laura. Welcome to the Before Breakfast podcast. 3 00:00:14,320 --> 00:00:17,239 Speaker 1: This week, we're gonna be talking about money and how 4 00:00:17,280 --> 00:00:20,599 Speaker 1: it intersects with the topic of time. Time and money 5 00:00:20,640 --> 00:00:24,279 Speaker 1: are both limited resources. They can often be exchanged for 6 00:00:24,320 --> 00:00:28,040 Speaker 1: each other. When you work, you're generally exchanging time for money. 7 00:00:28,760 --> 00:00:31,200 Speaker 1: You can also pay money to free up time, both 8 00:00:31,240 --> 00:00:34,960 Speaker 1: at work and at home. Because time and money can 9 00:00:34,960 --> 00:00:37,159 Speaker 1: be exchanged for each other, I think it's helpful to 10 00:00:37,200 --> 00:00:40,320 Speaker 1: have a reasonable sense of what your time is worth, 11 00:00:41,200 --> 00:00:44,920 Speaker 1: though this isn't as straightforward a calculation as it might seem. 12 00:00:44,960 --> 00:00:47,640 Speaker 1: Today's tip is about how to think about the value 13 00:00:47,640 --> 00:00:51,600 Speaker 1: of time holistically. When you ask people what their time 14 00:00:51,680 --> 00:00:54,560 Speaker 1: is worth, they probably calculate about what they earn per hour. 15 00:00:55,480 --> 00:00:58,160 Speaker 1: Someone who earns eighty tho dollars a year working about 16 00:00:58,280 --> 00:01:00,760 Speaker 1: two thousand hours a year so standard full time job 17 00:01:01,280 --> 00:01:04,720 Speaker 1: is therefore earning forty an hour. So that person might 18 00:01:04,760 --> 00:01:07,640 Speaker 1: say that his or her time is worth forty an hour. 19 00:01:08,520 --> 00:01:10,959 Speaker 1: If something costs less than forty an hour to chuck, 20 00:01:11,280 --> 00:01:14,920 Speaker 1: it might be wise to outsource more than that. Probably not, 21 00:01:15,920 --> 00:01:19,240 Speaker 1: but it's not really that simple. For instance, much work 22 00:01:19,240 --> 00:01:20,959 Speaker 1: that people do is hard to put a price on. 23 00:01:21,760 --> 00:01:24,679 Speaker 1: Let's say that a family features one way journal and 24 00:01:24,760 --> 00:01:26,800 Speaker 1: one partner who stays home to raise the kids and 25 00:01:26,840 --> 00:01:30,000 Speaker 1: take care of the home. By the normal calculation, the 26 00:01:30,280 --> 00:01:34,559 Speaker 1: non wage earning parties time is worth nothing. But most 27 00:01:34,560 --> 00:01:37,440 Speaker 1: people don't actually believe that. If that were the case, 28 00:01:37,480 --> 00:01:40,000 Speaker 1: it wouldn't make sense to pay money for anything that 29 00:01:40,080 --> 00:01:42,560 Speaker 1: the non wage earning party could do by him or herself. 30 00:01:43,240 --> 00:01:45,320 Speaker 1: But in such families, to stay at home parent usually 31 00:01:45,360 --> 00:01:48,040 Speaker 1: doesn't sew all the families clothes or turn their own 32 00:01:48,080 --> 00:01:51,120 Speaker 1: butter or things like that. We recognize that this person 33 00:01:51,200 --> 00:01:53,320 Speaker 1: has other valuable things that he or she is doing. 34 00:01:54,040 --> 00:01:58,240 Speaker 1: Time is still worth something in the absence of wages. Now, 35 00:01:58,280 --> 00:02:00,920 Speaker 1: my turn your own butter example is for specious. But 36 00:02:01,000 --> 00:02:03,000 Speaker 1: what I'm getting at here is that the question of 37 00:02:03,040 --> 00:02:06,200 Speaker 1: time and money and outsourcing is often as much about 38 00:02:06,240 --> 00:02:09,200 Speaker 1: what we perceive as normal as it is about what 39 00:02:09,240 --> 00:02:12,120 Speaker 1: people could earn per hour. A lot of people view 40 00:02:12,200 --> 00:02:16,280 Speaker 1: hiring a cleaning service as indulgent, but we all outsource something. 41 00:02:16,880 --> 00:02:19,760 Speaker 1: We don't grow our own wheat, we don't drive our 42 00:02:19,800 --> 00:02:22,280 Speaker 1: own letters to Wisconsin or wherever it is they're going 43 00:02:22,800 --> 00:02:25,800 Speaker 1: we outsource that to the post office. Really what we 44 00:02:25,880 --> 00:02:27,640 Speaker 1: choose to pay to get off our plates as a 45 00:02:27,639 --> 00:02:31,200 Speaker 1: matter of degree, norms and preferences, and what seems efficient. 46 00:02:32,160 --> 00:02:34,080 Speaker 1: So if that in mind, I think the question of 47 00:02:34,080 --> 00:02:36,960 Speaker 1: when to exchange money for time should be less about 48 00:02:37,040 --> 00:02:40,919 Speaker 1: exact income per hour and more about what we enjoy 49 00:02:41,080 --> 00:02:43,840 Speaker 1: and what we don't, and what we can uniquely do 50 00:02:44,280 --> 00:02:47,280 Speaker 1: and what others can do just as well or sometimes better. 51 00:02:48,320 --> 00:02:50,840 Speaker 1: Money is a tool, and like any other tool, it 52 00:02:50,840 --> 00:02:54,720 Speaker 1: can be used within reason to do useful things. Given 53 00:02:54,720 --> 00:02:57,800 Speaker 1: that time is ultimately limited, it might be worth paying 54 00:02:57,800 --> 00:03:00,079 Speaker 1: more than forty dollars an hour to offload something in 55 00:03:00,080 --> 00:03:03,360 Speaker 1: our eighty thou dollars a year worker truly hates. On 56 00:03:03,400 --> 00:03:06,160 Speaker 1: the other hand, if she loves doing something, it doesn't 57 00:03:06,200 --> 00:03:08,000 Speaker 1: matter if you could pay a mere five dollars an 58 00:03:08,000 --> 00:03:10,200 Speaker 1: hour to get rid of it. We should generally try 59 00:03:10,280 --> 00:03:13,000 Speaker 1: to boost the amount of happiness in our hours, even 60 00:03:13,040 --> 00:03:16,280 Speaker 1: if the economic calculation doesn't support it in a most 61 00:03:16,280 --> 00:03:19,200 Speaker 1: straightforward way. I see this all the time and the 62 00:03:19,280 --> 00:03:21,919 Speaker 1: choices people make. For instance, when I've looked at the 63 00:03:21,960 --> 00:03:25,920 Speaker 1: schedules of incredibly busy people, I've often suggested freeing up 64 00:03:25,919 --> 00:03:29,040 Speaker 1: space by getting groceries delivered. If you live in an 65 00:03:29,040 --> 00:03:32,280 Speaker 1: area served by the major grocery delivery services, this is 66 00:03:32,320 --> 00:03:34,960 Speaker 1: often incredibly cheap. I mean, you might pay less than 67 00:03:35,000 --> 00:03:37,880 Speaker 1: ten dollars for the delivery plus a tip. Given that 68 00:03:37,920 --> 00:03:40,920 Speaker 1: it takes time to drive to the store, produce the aisles, 69 00:03:41,280 --> 00:03:44,080 Speaker 1: pay for your groceries, load them in the car, and 70 00:03:44,120 --> 00:03:48,680 Speaker 1: transport them home. Almost everyone's time is worth more than that. Indeed, 71 00:03:48,720 --> 00:03:51,160 Speaker 1: if you're like me, you might save money with delivery, 72 00:03:51,440 --> 00:03:54,080 Speaker 1: since I know I'm less prone to impulse purchases online 73 00:03:54,400 --> 00:03:56,880 Speaker 1: than I am when I'm smelling those lovely bakery items. 74 00:03:57,640 --> 00:04:00,480 Speaker 1: But a lot of people really resist this suggestion. And 75 00:04:00,520 --> 00:04:04,080 Speaker 1: when I explore this, I realized that many people truly 76 00:04:04,440 --> 00:04:08,640 Speaker 1: love grocery shopping. They love seeing the cool foods displayed, 77 00:04:08,680 --> 00:04:11,920 Speaker 1: they love smelling those bakery items. They love feeling guilt 78 00:04:11,960 --> 00:04:14,920 Speaker 1: free about spending money because hey, everyone has to eat. 79 00:04:15,680 --> 00:04:17,760 Speaker 1: Sometimes it's a chance to get one on one time 80 00:04:17,760 --> 00:04:19,440 Speaker 1: with a kid that you take to the store, or 81 00:04:19,680 --> 00:04:22,960 Speaker 1: it's something that a couple does together fantasizing about great 82 00:04:22,960 --> 00:04:26,559 Speaker 1: meals to come. Maybe in its excuse for one party 83 00:04:26,600 --> 00:04:28,520 Speaker 1: to get a little solo time on the weekend while 84 00:04:28,600 --> 00:04:31,760 Speaker 1: still doing something productive. If this is the case, then 85 00:04:31,800 --> 00:04:34,159 Speaker 1: this can be a great way to spend time. On 86 00:04:34,200 --> 00:04:36,520 Speaker 1: the other hand, I often hear from people, and probably 87 00:04:36,560 --> 00:04:38,400 Speaker 1: not the same people as the grocery lovers, but still 88 00:04:38,440 --> 00:04:41,440 Speaker 1: plenty of people that making dinner on weekday nights is 89 00:04:41,480 --> 00:04:44,760 Speaker 1: incredibly stressful for them. I mean, you're tired after work, 90 00:04:44,760 --> 00:04:48,919 Speaker 1: and everyone's cranky because they're hungry. You just want it done. 91 00:04:49,720 --> 00:04:52,440 Speaker 1: There are lots of ways to solve this problem with cash, 92 00:04:52,880 --> 00:04:55,760 Speaker 1: from having a standing order for delivery from reasonably healthy 93 00:04:55,800 --> 00:04:59,400 Speaker 1: restaurants to a meal delivery service, or even hiring someone 94 00:04:59,480 --> 00:05:01,320 Speaker 1: to come make inner twice a week with enough for 95 00:05:01,400 --> 00:05:04,760 Speaker 1: leftovers on the other nights. But people kind of resist 96 00:05:04,800 --> 00:05:07,640 Speaker 1: that suggestion to particularly the last one, I think, because 97 00:05:07,640 --> 00:05:09,560 Speaker 1: they assume you'd need to be a billionaire or something 98 00:05:09,600 --> 00:05:12,960 Speaker 1: to hire a chef. The economics are far more reasonable 99 00:05:13,080 --> 00:05:15,880 Speaker 1: than that, But even if it is pricier than doing 100 00:05:15,920 --> 00:05:18,800 Speaker 1: it yourself, it might be worth it if the result 101 00:05:18,880 --> 00:05:22,000 Speaker 1: is more peace after work, fewer fights about whose turn 102 00:05:22,080 --> 00:05:25,120 Speaker 1: it is to make dinner, and better dinner table discussions 103 00:05:25,160 --> 00:05:28,960 Speaker 1: because no one is seething with resentment. In any case, 104 00:05:29,040 --> 00:05:32,000 Speaker 1: if you are truly hard up life involves very tough choices. 105 00:05:32,080 --> 00:05:34,440 Speaker 1: I get that. But if you've gotten to the point 106 00:05:34,480 --> 00:05:38,120 Speaker 1: where you have some disposable cash, then thinking of money 107 00:05:38,160 --> 00:05:40,559 Speaker 1: as a tool can help with seeing the value of time. 108 00:05:41,360 --> 00:05:43,560 Speaker 1: If you are to devote a little bit of money 109 00:05:43,880 --> 00:05:47,200 Speaker 1: to solving some particular pain point in your schedule, what 110 00:05:47,279 --> 00:05:50,720 Speaker 1: would that be? How could you make that work? What 111 00:05:50,760 --> 00:05:53,560 Speaker 1: would you do with the time instead? If you've got 112 00:05:53,560 --> 00:05:57,080 Speaker 1: an answer to that question, this could be smart. Whether 113 00:05:57,120 --> 00:06:00,440 Speaker 1: the straight up calculation happens to be or not. What 114 00:06:00,520 --> 00:06:03,080 Speaker 1: have you paid to get off your plate? Please let 115 00:06:03,120 --> 00:06:06,120 Speaker 1: me know it. Before Breakfast podcast at I heeart media 116 00:06:06,200 --> 00:06:10,680 Speaker 1: dot com. In the meantime, this is Laura. Thanks for listening, 117 00:06:11,120 --> 00:06:20,400 Speaker 1: and here's to making the most of our time. Hey everybody, 118 00:06:20,600 --> 00:06:22,719 Speaker 1: I'd love to hear from you. You can send me 119 00:06:22,760 --> 00:06:26,400 Speaker 1: your tips, your questions, or anything else. Just connect with 120 00:06:26,440 --> 00:06:30,840 Speaker 1: me on Twitter, Facebook and Instagram at Before Breakfast pod 121 00:06:31,520 --> 00:06:35,880 Speaker 1: that's b E the number four then Breakfast p o D. 122 00:06:36,720 --> 00:06:39,560 Speaker 1: You can also shoot me an email at Before Breakfast 123 00:06:39,640 --> 00:06:43,200 Speaker 1: podcast at iHeart media dot com. That Before Breakfast is 124 00:06:43,240 --> 00:06:46,000 Speaker 1: spelled out with all the letters. Thanks so much, I 125 00:06:46,040 --> 00:06:54,120 Speaker 1: look forward to staying in touch. Before Breakfast is a 126 00:06:54,120 --> 00:06:57,360 Speaker 1: production of I heart Radio. For more podcasts from my 127 00:06:57,480 --> 00:07:01,279 Speaker 1: heart Radio, visit the i heart Radio app, Apple Podcasts, 128 00:07:01,560 --> 00:07:03,440 Speaker 1: or wherever you listen to your favorite shows.