Time Value of Money; Money value of Time

2012 bodes well for blogging, at least in the world I live in. Too much time spent on reading a lot of irrelevant stuff on facebook, strike that, too much time on facebook has only left me craving for more time on my own.

and blogging happens to be one of the things i would do if i werent on facebook.

so here i am.

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Time value of Money; Money value of Time.

For an entire year, we had been over our heads about this notion of time value of money. A dollar a year later is not the same as a dollar today. Simple stuff, really. But I started running an analysis of the money value of time just as part of a budgeting exercise. What is each minute of your life really worth?

For starters, I know every minute in your life is not worth the same; for example, the minute you realized you got the job you wanted is obviously worth than the minute where you were staring at the ceiling at home not knowing what to do next. But what I found more intriguing was the value of the minute after it had passed by. Lets take an example, one of my Tuesdays.

There are some anchors to my Tuesdays that I have to weave my life into,

Flight: 6:55 am

Meeting at work: 10:00 am

Class: 4:10 pm

Flight: 9:40 pm

Meeting at work on Wednesday: 10:00 am

I usually set my alarm for 4:15 am, knowing that I wont get up before 5:00 am. I have to be on the parking shuttle at 6:15 am, which means I need to leave home no later than 5:35 am. It takes me 30 minutes to get ready, so the 5:00 am wake up call is set in stone.

Now the value of my minute at 6:13 am; when I realize I wont make it to the 6:15 am shuttle is actually worth more than the minute at 4:13 am when my alarm is about to ring; actually worth $24 dollars more; the cost of parking at the short term parking lot is 33 dollars compared to the 9 that I pay instead.

The same goes for the minute at 7:58 am when I realize I wont make it for the 8:00 am shuttle from LAX to UCLA. That minute is worth either $60 dollars ,$40 dollars or $ 6 dollars depending upon the alternatives that I choose.

Make you think about money very differently. or even worse, your time.