When you spend money or use your time, you make trade offs. Hopefully the trade offs you make reflect your priorities

18 June 2016

Whenever you spend money, there are opportunity costs. You are using money that you could have saved or spent on something else.

The same goes with time. When you spend time on one thing, there are many other things you could have done.

When you spend money or use your time, you are making trade offs. You may not be conscious of this, but you’re doing this every day of your life.

It is easy to act based on inertia, or get caught up with the moment and what is in front of you and easy right now. Because we are human, this will happen, and it’s important not to beat ourselves up.

But when you step back, it’s important to be mindful about how we spend money and how we use our time. Because if we’re not, we can find that the decisions we make about time and money don’t reflect our values.

If we’re not mindful, we can spend our money and time on things that aren’t important to leading a life we truly find meaningful.

When you spend a dollar, you might get something in exchange. But you will not get that dollar back. When you spend your time, you will never get that time back. 

Decisions might seem miniscule at the time. But when they build up, and compound over time, we find that these decisions are reflected in the outcomes we achieve in life.

With any luck, the decisions you’ve made reflect your priorities and the things you truly value.


About the author 

Sonnie Bailey

In his spare time, Sonnie likes telling people that he’s a former Olympic power walker, a lion tamer, or that he is an orthodontist. He is none of those things. In reality, Sonnie is a financial planner based in Christchurch. Through his business, Fairhaven Wealth (www.fairhavenwealth.co.nz), he provides independent, advice-only, fixed-fee financial planning services. Sonnie is a “recovering lawyer”: he has specialised in trusts and personal client work. He has also worked as a financial services lawyer for many years.

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