Another quality thread from our occasional series drawn from the tumult that is Twitter, we do this so you don't have to!
Are you using that time wisely? THREAD: How to get more value out of your time.
1/ I heard about the time billionaire concept for the first time last week. @APompliano announced that he would be returning all outside capital from Pomp Investments to his investors. He cites the time billionaire concept as one of the main reasons why.
2/ Instead of making wealthy people even wealthier, he wants to: • Spend more time with family. • Continue educating the average citizen about personal finance, crypto, etc. How awesome is that? It sent me down a rabbit hole of trying to understand the value of time better.
3/ 1 billion seconds = 31.7 years The average human lives about 79 years. If you're 47 or younger, that means you're a time billionaire. You likely have 1 billion+ seconds left in your life. If you're 20, there's a decent chance you're a multi-time billionaire.
4/ But almost NOBODY thinks this way. Why is that? It's because our society places more value on being a dollar billionaire. We severely overvalue the dollar billionaire and undervalue the time billionaire. This is flawed.
5/ Warren Buffett is worth billions of dollars. No young person in their right mind would switch lives with him if they had to be in their 90s. Time billionaire > Dollar billionaire
6/ Time is the most precious asset in the world. Everybody has the same amount of time each day. You can't buy more of it. It's the only thing in our lives that we can't reacquire once it's gone.
7/ On average, here's how we spend it:
• Sleeping = 26 years
• Trying to fall asleep = 7 years
• Working = 13 years
• TV = 8.3 years
• Eating = 4.5 years
• Chores = 4.3 years
• Social media = 3 years
• Commuting = 3 years
• Grooming = 1.8 years
• Exercise = 1.3 years
8/ With an average life expectancy of 79 years that leaves us with 6.8 years of free time.
What falls into this bucket?
• Falling in love
• Going to concerts
• Time with friends/family
• Giving back to the community
Only 8.6% of our lives!
9/ How much of your 6.8 years have you already used up? What would you do differently with your time if you cut that number in half? Think about these questions.
Then ask yourself:
"How can I optimize my time in the other buckets?"
Here are some ideas 👇
10/ You spend 33 years in bed.
That's 42% of your life!
Getting proper rest will lead to a more satisfying life.
Learn to optimize for sleep here:
11/ You spend 13 years working.
Another 16% of your life. Don't waste it doing something you hate.
Find your Zone of Genius.
12/ You spend 8.3 years watching TV.
That's way too much.
If you cut your TV time in half each week, you're getting 4+ years back on your life. Seems like a no-brainer.
13/ Lastly, put a $ value to your time.
At a basic level, we all instinctually do this.
If someone offers you $0.05 to take an hour-long survey, you'd tell them to kick rocks.
If it were $50k, you'd accept in a second. Most of life's decisions aren't this easy.
14/ Here's a quick example of how to calculate your $/time value.
50 hours per week + 2 weeks vacation = 2,500 hours worked per year $100K salary / 2,500 hours = $40/hr Your job doesn't define you, though.
I say take that number and double it. Your time = $80/hr
15/ How to use this # in real life: You have two options: • Buy a direct flight for $300 • Buy a one-stop flight for $250 that adds 1 hour to your trip You save $50 on the cheaper flight. But you lose an hour (worth $80 to you). A -$30 choice.
Decision: buy the $300 flight
16/ If you put a high $ value on your time, you'll gain a greater respect for it. Most people spend the majority of their life trying to increase their financial net worth.
Don't forget to optimize your time net worth as well
17/ The inspiration for this thread comes from: @APompliano - The Pomp Letter: pomp.substack.com/p/focusing…@tferriss and @GrahamDuncanNYC on The Tim Ferriss Show podcast: tim.blog/2019/03/01/the-tim-…@JamesClear - The Value of Time (worth a deep dive 👇): jamesclear.com/value-of-time