Benjamin Franklin, one of the nation’s founding fathers and a inventive thinker, offered advice that endures to this day. In his 1748 essay, “Advice to a Young Tradesman,” Franklin wrote, “Remember that time is money.” This simple yet profound concept became the hallmark of Franklin’s storied success. He considered time to be equal to money, so wasting time amounted to wasting earnings.
The mantra “time is money,” coined by Franklin, has evolved into its present refrain, urging us not to waste time. In some cases today, however, the phrase has a more literal meaning.
Naval Ravikant, a modern philosopher and entrepreneur, embodies this principle through his ‘value your time’ mental model. Time if valued by assigning an hour rate to it. It is a form of opportunity cost, or the cost of choosing one action or activity over another. In the book, “The Almanack of Naval Ravikant,” Naval emphasizes the following:
“Value your time at an hour rate, and ruthless spend [money] to save time at that rate. You will never be worth more than you think you’re worth.”
Ravikant emphasizes the importance of setting a high hourly rate, almost beyond aspirational. He believes that you value 
your time and abilities more than anyone else. For Naval, even as a young, inexperienced man, he began his career by valuing his time at $5,000 – even though, eventually he would determine that a real value was closer to $1,000 per hour. Still, both are aspirational. He recommends applying this mental model broadly; throughout every area of life:
“Always factor in your time into every decision… if it’s going to take you an hour to get across town to get something, and you value yourself at one hundred dollars an hour, that’s basically throwing one hundred dollars out of your pocket. Are you going to do that? …If you can outsource something or not do something for less than your hourly rate, outsource it or don’t do it. If you can hire someone to do it for less than your hourly rate, hire them.”
Tim Ferriss, the author of “The 4-Hour Workweek,” subscribes to the philosophy of “time is money.” He emphasizes maximizing efficiency and outsourcing low-value tasks, focusing on high-impact activities. According to Ferriss, he outsourced most of his business operations to virtual assistants. Ferriss touts outsourcing with a slight axiomatic twist:
“Never automate something that can be eliminated, and never delegate something that can be automated or steamlined. Otherwise, you waste someone else’s time instead of your own, which now wastes your hard-earned cash.”
Setting an hourly rate for both personal and business life can transform how you manage your time. Everyday decisions can be made using Franklin’s mantra – Time is Money; Ravikant’s mental model – from household chores to professional tasks. You can make more informed decisions about where to invest your time by valuing each hour. If you value your time at $100 per hour, spending an hour on a $20 task is inefficient. By delegating or automating lower-value tasks, you free up time to focus on higher-value ones.
Moreover, this approach promotes a shift in mindset, where time is viewed as a finite resource that should be managed carefully. As a result, you can set boundaries and say no to commitments that do not meet your hourly rate threshold. By focusing on what truly matters an aligning your efforts with your highest values and goals, you can lead a more balanced and fulfilling life.
In modern times, Franklin’s principle of valuing time still influences productivity experts. The application of this concept can lead to greater efficiency and success on both a personal and professional level.