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This article makes the mistake of equating the "cash value of time" with the real value of time. If you're Warren Buffett, a dollar when you were 20 years old
by jedwhite 16y ago
This article makes the mistake of equating the "cash value of time" with the real value of time.
If you're Warren Buffett, a dollar when you were 20 years old could have been worth $10m now. If you're building a startup, saving every penny you can on ramen noodles might give you an extra month you can survive with no funds.
Thinking "I'm worth so much more than this" because you could be charging $100 an hour for Java development to some enterprise while you're coding The Next Big Thing is a disconnect.
Time has no cash value. Productive output has cash value.
- muerdeme 16y agoI think I agree with the gist of what you're saying, but saying "Time has no cash value" is overly broad and a bit silly. Do you think interest rates only exist to hedge against inflation?? What is the value of angel investors??
- jedwhite 16y agoI think you're confusing the time value of money with the cash value of time :)
- Periodic 16y agoI'd go a little further and say that the actual gain is the value of your productive output minus what you had to pay for it. If you're producing $100 worth of value, but you spent $100/hr to get that time then you're not really gaining any ground (and you won't be able to improve your leisure time). If you produce $100 worth of value and spend only $10 to get that time, then you're producing value that can "spend" to enjoy life.