Buying Time Formula
Credit: Pictofigo I’ve written about the significance and value of time in a previous post , so this post aims to be more pragmatic, and will explore a decision making framework for time vs. money tradeoffs. Do you pay $20 to skip a 20 minute line at the airport? Many people would do the following math, take their hourly wage and compare it to the cost of the offer, and if their hourly income is greater than the cost, then it is a good deal. In this example, if you make over $60 per hour you would take the deal. Buying Time Formula v1.0 An offer is a good deal if, However, it is slightly more nuanced than that. Let’s start with the basics. The total number of hours in a year is equal to 365d * 24h = 8760 hrs/yr. But not all of those hours can be used because humans physically need sleep. Therefore, assuming an average of 8hrs of sleep a night, the average person has 5840 available hrs/yr. Some of those hours are for work in which you earn a wage, economists use the term “l...