Time or Money?

Is $1,000 a lot of money? Is $100,000 a lot of money? What about $1,000,000? Would Kerry Stokes, owner of Channel 7, really watch a show like 'Deal or No Deal'? The highest possible prize is what he earns in less than a week? Would you watch a show where the highest possible prize was what you earned in a week?

My point is, for most financial information, talking in absolute dollar terms is pointless as there is no relativity. The figures need to be related to some other measure. What I have discovered is that using time instead of absolute dollars is the best measure when gauging an issue. From, how much should I pay for this business?, to, how much cash should my business retain?

The reason why time is such a powerful measure is because everyone has 24 hours in a day. And you know how long it takes to generate your level of income in any given time frame.

The Espresso Shot: Instead of saying you have $x dollars in the bank, express it in terms of how many months of expenses the cash covers. I can assure you, your idea of money will evolve for the better.