Why time is this money?
Hello, dear readers!
Today's article will be about communication and money. We figure out why it is believed that time is the money from where this expression comes from and who is the author of the phrase, and most importantly, as specifically you can earn on time.
Very often in our life you can hear the phrase "Time - Money". This expression is used in a wide variety of situations for a long time. What really means this phrase and where did it come from?
The Americans were strong in the economy even three centuries ago. And, Benjamin, definitely turned out to be right. Even in terms of theory.
Money temporal value concept
Long before the American revolution and the birth of Franklin, the Italian scientist Fibonacci completely defined one of the classic rules of the business. The amount obtained today is greater than the same amount obtained tomorrow.
This statement is true for two reasons:
FirstlyToday, money can be investigated (at least to the bank) and tomorrow to get them with percentages.
Secondly, tomorrow, any product can cost more than today. And, it means on the same amount today you can buy more than tomorrow. Simply put, it's about.
I think we will not find fault with the words and clarify that under abstract "today" and "tomorrow" you can understand any deadlines and periods: day, week, month, year, and so on.
By the way, it happens that inflation is negative and the goods do not rise in price, but get cheap. This situation, for example, is now in Japan. But this is the result of the government's intervention in the market economy. Roughly speaking, in fact, the prices are growing all the same, but the authorities compensate for this rise, and they also pay. And all for the sake of support for production.
I will give an example approximate to real conditions.:
Suppose you have a million rubles. At the same time, you want to buy a good foreign car, which is now standing exactly a million.
Also, assume that real inflation in the country is 1% per month, and the average rate on bank deposits is 0.5% per month.
It turns out, now you can easily buy the desired car. But what if the money does not appear now, and after half a year?
Then, for a million car can no longer succeed, because the manufacturer is likely to raise the price at least the amount of inflation. The same car will cost 1.06 million rubles. In addition, a missed benefit will appear, because if the money came half a year ago, they could be put at least contribution.
In our example, it turned out that 1,000,000 today is equal to at least 1,030,000 in six months. That is, time is money.
Time, Money and Mathematics
Now a little boring theory. ????
In modern financial management there are many ways to predict and take into account the connection of money and time. This is especially true with long-term financial planning.
Mr. Franklin will not teach bad (click to enlarge) The most common way to correctly calculate the cost of money in time is discounting. Depending on the necessary accuracy, financiers take into account all possible factors and receive the discounting coefficient.
Most often, these factors, just, is inflation and the average banking rate. In addition, the specificity of the region, the specificity of the industry can be taken into account.
Discounting underlies the construction of any cash flow. That is, any good financial manager not only knows that time is money, but also understands which money. ????
So, it is possible to evaluate how many bricks will cost for the construction center in three years (the calculation of the future cash flow). Or, we can, for the sake of interest, count, since our great-grandfather bought bread.
Another busy study was produced in Britain. On the basis of a long collection and analysis of various phenomena, the local professor Yang Walker counted that the average British minute is equivalent to 12 Penny (British kopecks).
Professor brought such a formula: V \u003d (W ((100-T) / 100)) / C,
where V - cost per hour, W is the hourly wage of man, T is the tax rate, and C is the local cost of life. Using the formula, you can, for example, to evaluate:
- does the stove stand and spend time on cooking, or cheaper will cost a ready-made lunch in a cafe, or a restaurant;
- whether to use a taxi / car (to save time) or bus (in order to save money)
Such examples can be brought a lot. But the main goal of the professor was to teach people to appreciate their time.
How to make money on time?
In most cases, the salary is charged for spent time. In the Russian Labor Code, a similar type of labor relations is even fastened by a separate section and is called, timeless payment of labor.
Let's look at what else there are options to make money on time.
Earn on antiques
The first thing comes to mind is antiques. Than old things, and what they are rarer - the higher their price. That is, again, the more time passed from creating things, the more money it costs.
Collectors and intermediaries are ready to seriously surpose for different old. Especially if the subject represents cultural value and for him more than a hundred years.
There are cases when antiques were sold for millions of dollars. Moreover, antiquaras are laid out with enviable constraints.
I note that certain skills and knowledge are needed to earn antiques. And in some cases, it is necessary to earn a reputation for good income.
How to make money on antiques:
Time and real estate
Real estate is one of the traditional investment options. On this topic, some time ago, we were dedicated. However, I consider it important to say a few words about the relationship of real estate and time.
Unlike antiques, real estate over the years is only cheaper. But, in general, the connection between the age of the construction and its price is not linear.
As a rule, at the design and construction phase, home is very cheap. The closer the commissioning date is the more the price becomes. In the first three or five years from the construction, the price of the square meter is maximum. Then, the more age - the lower the price.
Many houses do not live even before their first century anniversary. And those that have survived, or represent cultural values \u200b\u200band are not sold, or dilapidated and, by themselves, do nothing.
Thus, as applied to real estate, the more time passed - the less money.
Sale of hours
You can't buy time. But you can buy various devices that measure time. And you can make money on it.
Business for the production and sale of hours and cost-effective, and prestigious. No wonder some of the most popular watches are successfully working for centuries.
Everyone knows the masterful Swiss watchmakers. This is expensive brands. This is good money. And by the way, .
It is the clock manufacturers that we owe urgent results in sports. Modern chronometers without problems record time up to ten thousand seconds, both at the Olympics and Formula 1.
For scientific purposes, the clock can refuse time with even greater accuracy. Moreover, not only on Earth, but also in space.
In recent years, the clock becomes not only accurate, but also high-tech. In the usual wrist devices, it is easy to introduce not only an hourly mechanism, but also a pulse meter, navigator, telephone. Or, even payment chip. 
Microsoft Band 2 - the most high-tech watches 2016
By the way, traditional watchs are also very valued. Especially if they are handmade. Especially if the clock is made using and stones.
To make money on the clock, it is not necessary to organize expensive production. You can simply open a small watch shop. Or even become a distributor of hours without binding to a specific trading point.
In practice, the start of this business will cost only 3-5 thousand dollars. Or 10-15 thousand, if you open a stationary interior for the sale of hours. Then, at the same time, you can organize the clock repair service.
I know an example of people earning hours. By the way, one of them is my colleague. He earns and be proud of his work. A, in his free time, he also invests and also leads the blog.
Some philosophy
Time is the final resource. No matter how we wanted to change it, but each person has only a fixed volume of time. You can not add or multiply the time. You can only save it and try to distribute.
As a rule, the largest income is those people who are more efficiently disposed of their time. Whether it is salary, business revenues or investment.
Therefore, at the end of the article, I want to wish you (and myself too), appreciate your time and, if possible, spend it with benefit.
I would be grateful to any of your issues or your opinion in comments.
I wish all profitable investments!
08.11.2016 10.11.2016
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