Maximizing Time as an Asset for Wealth Creation

If there is one resource that is even more valuable than money then it is time. It is scarce, that is, it is limited in quantity and once it is consumed it cannot be recovered. it is useful to think more consciously about how one spends his or her time and design it more effectively. Having a good Knowledge of the concept of opportunity cost is very essential while making such decisions.

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According to economic definitions opportunity cost is the value of the next best option not chosen when making a particular decision. That is, if people decide allocate their time to something, this means they no longer can allocate it to something else. This concept is especially significant in the case of time as this is the only tangible resource that cannot be earned or created but only managed.

For instance, you have the options of either watching a movie with friends or revising for an exam that is set to take place. if you prefer to watch a movie than to read a book, then the foregone pleasure is the reading fun you would have enjoyed had you been studying but opted to watch the movie. Therefore, the measure of cost in this case is that of opportunity, and the lost may be lower grades on the exam. Therefore, mastering this idea can enable people recognize how they should properly spend the time that they have at their disposal.

In order to avoid the problem of wasting time one must organize actions and focus on the primary tasks of the day. This premise comes as a result of us trying to establish what is most paramount to us, based on the amount of time invested in respective endeavors. This can consist in establishing goals and time-line by which it is possible to orient and prioritize and what we need to do in our lives

Another one of the most influential factors that should be taken into consideration regarding the choices of how to spend time is the values and the priorities. One must take time and think about what matters most and then make decisions that are in harmony with the same. For instance, if being with family is a highly valued goal, then other activities may have to be given up so that one can be with the family. Thus, by planning the time properly, it is possible to live a life that will be satisfactory and worthwhile.

Besides sorting the tasks based on their importance and deciding according to the values we have, we should also take into account the consequences of the time spent in the long-term perspective. It is possible that some activities can be fun and give an instant result but are not beneficial for the individual in the long run. In such a situation the issue arises as to what is the cost of present gratification over future gains.

Thus, one of the ways to estimate the opportunity cost of time is to use the return on investment. As with any investment, there are pros and cons to how one spends his or her time. For instance, if you are thinking of taking up a second job while holding another full time job, you have to consider the gains in terms of money against the costs in terms of time which will be utilized in other activities. Thus, when evaluating our options, we are able to define what we are giving up in order to pursue a certain course of action and make better choices regarding the allocation of our time.

Therefore, it can be stated that, in order to benefit from the time that is available to us, people need to make conscious choices regarding their time usage. Through the use of opportunity cost, one is able to weigh the priorities, values and long run consequences in order to arrive at decisions that are in line with the set goals and achievements. When it comes to time management, it is possible to make the right choices when it comes to priorities, values, and ROI so that one can live a meaningful life. It is said that time is money and this is true; therefore, it is our responsibility to ensure that it is well utilized.

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