Should you choose time over money, or money over time? It’s a crying shame there isn’t a simple formula that would help us determine which one would bring more fulfilment. Polls indicate that 64% would prefer to have money over the 46% that choose time. Despite this, research points out that people who value their time are happier than those that value money. So, how does one go about approaching this seemingly endless dilemma?
We all make that painful sacrifice at one point or another. Do you take the lavish two-week holiday with family, or work overtime for a bonus? When should you go back to work after having a baby (if at all)? Is a large bank balance more important than valuable experiences with the nearest and dearest? The time/money tradeoff rarely represents itself in simple ways. Having more time isn’t what makes people happier, though - it’s all about the ability to value time more than money. Make sense yet?
Time is limited. You can get more money, but you cannot get more time.
Reflecting back on your life, you’re likely look at your achievements, your time spent with family and friends as well as your legacy - not how much money you made. It’s important to figure out how you define success and what kind of validation you’re after.
Is there really a point in having loads of money if you don’t have time to enjoy it?
If you have a lot of time, you want more money. If you have the money, you want more time.
Try to strike a balance: the ultimate dream is to earn enough money and achieve your goals without having to sacrifice an unreasonable amount of of your time.
We can bet your bottom dollar (pun intended) that saving (more) money was one of your financial resolutions for 2017. We all have our reasons to save - whether you’re after a new car or a deposit for a house, saving helps us reach those goals.
Sure, saving money sounds somewhat arduous, but it needn’t be hard. According to Harvard Business School professor Peter Tufano, "the most interesting ideas - indeed the oldest - try to make savings a fun or satisfying experience". What he’s essentially saying is that there isn’t a one-size-fits-all approach to savings - you may be surprised to find there’s a bunch of unconventional ways to save money.
Let’s take the prize-linked Premium Bonds account as an example. A premium bond is a savings product where the interest is decided by a lottery. Yep, you read that right! Bonds are issued by NS&I and offer savers protection against principal loss and liquidity. You need to purchase a minimum of £100 (or £50 for monthly standing orders) and the maximum amount you can hold is £50,000. In essence, you don’t lose out - you either get a small return, or, if you’re lucky, a large, life-changing return! These so-called prize-linked products have been extraordinarily effective in generating savings over many centuries. Why don’t you give it a go?
THE BIGGER PICTURE
Childcare as an investment, not an expense
There is no right or wrong when it comes to determining your work-life balance post-baby. We know all too well how difficult it may be to weigh up the pros and cons of working vs. staying at home, but one thing is certain - it’s important to do what feels right for you and your family. There are a couple of things you should keep it mind when it comes to the financial aspect of working after having kids.
Childcare is notoriously expensive. When you look at the cost of hiring a nanny or sending a child to nursery, you may think there’s simply no point in doing so. Is there any financial incentive in returning to work whilst paying for childcare? Read the full article on Vestpod.
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We are not certified financial advisers! The articles and information made available on Vestpod are provided for information and educational purposes only and do not constitute financial advice. You are advised to consult with an independent financial advisor for advice on your specific circumstances. Read our Disclaimer here.