We`ve heard this phrase many times.
But did we think about what that means for us? Are they connected somehow? What is the dependency, if any?

We asked these questions to one of our experts – a professional banker with 20+ years of experience in Finance.

This article will help you structure such categories and trigger positive changes in your life.

Here is his story:

I was a 22-year-old when I graduated from University with the highest grades, and my dream back then was to find a job in a Bank. Yes, I know, now it sounds boring but believes me or not, it was my dream (there were no freelance back at that time)
One lovely summer day, my dream came true – “your application was accepted by our branch”, and my career started.
My first salary as a bank clerk was $150 per month (and I swear to God – I was happy).
My salary allows me a relatively modest but overall good lifestyle (it was not only about money – Bank had a friendly office, but I was also wearing a formal suit and tie, met reach people, etc.). With my budget, I was even able to travel twice a year. What else do you need? Right – more money is quite a natural desire.

I took more responsibility, did my job as well as possible, and after 12 months, I got my first promotion and… sure, salary increase to $250 per month.
And at the same time, I came to a formula that helps me link money and time together – how much time should I work to maintain my current lifestyle? And next question – how to decrease the amount of time in the office without negatively impacting the quality of my life?
The answer was quite obvious – to make more money by spending the same amount of time.
So, my first annual salary of $150 gave me $1800 per year. After the salary increase, the new yearly budget was $3000. Let`s assume that my level of own comfort remains at the same level.
IB = $1800 (my basic annual income)
IA = $3000 (my advanced yearly income)
T = how much time I will save/earn

T = 12 – (12 / (IA /IB)= 12 – (12 / (3000/1800) = 12 – 7.2 = 4.8 month

You mean I have to work only 7.2 months with the new salary, so the other 4.8 months will increase my savings. Pretty simple. So, you can use this T to save money that could secure your lifestyle in case of any turbulence. Simply put, every increase in your income helps you to buy more time in the future.

This formula works well until your time is priced as the market average. Once your pay line goes up and crosses the market average mark, you will probably change your approach. What does that mean? You`ll be ready to pay for service/comfort (faster delivery, better user experience, etc.). This is another level of money-to-time transformation that we will explore in our following publications.