What Makes Us Happier—Time or Money?
In her book, Time Smart, behavioral scientist Ashley Whillans examines the interesting relationship between time, money, and happiness.
While making more money is an easier goal, Ashley's research shows that prioritizing time ultimately leads to greater happiness. Time Smart outlines the strategies needed to do this, as well as the tactics needed to save time and buy back time.
It's one of life's classic dilemmas; What would make us happier—more time or more money? Ashley's research confirms that what makes us happiest is time. She found that money, happiness, and time are factors that influence each other, and she explained this in her book.
One of the central themes of the book deals with how we are more likely to seek to earn more money with an incentive greater than our quest to gain more time, and this is because of three reasons:
- Money in general is a necessity in our society.
- The common saying is that money and success are synonymous.
- It's easier for us to keep track of money and feel good when we have it psychologically. Having $500 in your bank account is objective and tangible, while earning three hours of time one day is not tangible.
That is why we give up our time more easily than we give up our money, but losing time has its consequences. Ashley notes that it's important for us to value our time as much as we value our money. According to her research, people who say they put time first are happier, less stressed, and more satisfied with their social relationships.
People who value time more than money also tend to be more productive and creative because they allocate enough time to build new relationships and restore energy. These are tangible, positive results we get when we make time a top priority.
Using Time Smartly outlines a range of helpful strategies for how to start prioritizing time over money. It is worth noting that many of these tactics cost nothing because they debunk the myth that only wealthy people can prioritize time. These strategies fall into two categories: tactics to save time and tactics to win back time.
Tactics to save time
It's about dealing with time bumps in a practical way. Imagine phone notifications and how they disrupt our free moments. This technological speed bump is tearing our precious time into a thousand fragments, which Ashley calls “time scraps.”
Time bumps are also caused by the urgency effect, a phenomenon that causes us to prioritize things that are urgent but not important, like checking your email nonstop instead of spending time with your family.
To save yourself time, try to:
1. Organize time in advance
Allocate part of your time to focus attention on important work that does not have to be urgent. Spend thirty minutes at the beginning of each week, setting aside two two-hour blocks of time to focus on your important tasks.
2. Focus on small daily decisions that prioritize time
Living your day more mindfully is one way to save time. When we make the decision to leave work early, put a demarcation between family life and professional life, or treat the upcoming weekend as a vacation, we choose whether to prioritize time or money. Reflect on your daily decisions, overcome the urge to check your email, and spend time with family or friends instead.
Tactics to win back time
Reframe the value associated with time and happiness. Since money is a metric we all understand, Ashley developed the concept of “happiness money,” which places a tangible value on the benefits of happiness that arise from making decisions that prioritize time. These values were calculated through various surveys where people expressed their level of happiness in relation to different activities.
Think about it this way:
- People who say they value time more than money earn an extra $4,400 each year.
- Outsourcing the task you hate is equivalent to making an extra $10,000 every year.
- It turns out that social interaction more than usual with others makes us happier, which is equivalent to making twenty to $30,000 more every year.
Interestingly, one way to encourage people to spend money to make time for themselves, such as by hiring a virtual assistant, is to reframe it as a decision that benefits others. By delegating your work, you have more time left to spend with family or volunteer in your community. Focusing on time is not selfish.
Choosing to prioritize time over money boils down to mindfulness. As Ashley says, “Living a life that prioritizes time may lead to greater happiness and a better life, but we must consciously decide to pursue this path.”