9-5 Workers Would Be Happier If They Valued Their Time Properly
Valuing your time to maximize happiness
Here’s a question more people need to think deeply about:
How do you value your time?
Personal finance—and most things in life—is largely determined by how you trade the world's two most valuable resources: time and money.
Many people agonize over how they value money but don’t put nearly enough thought into valuing their time.
But focusing on valuing your time could lead to a greater work-life balance, a more sustainable career, and a happier life.
Let’s dive into the details.
Two competing ways to value your time
A 2021 paper titled “ On the value of time: Workers' value of their time depends on mode of valuation” offers two primary ways in which employees value their time while working.
Fixed-Time Mode: workers decide the minimum payment they'd accept for a fixed amount of time spent working.
Fixed-Money Mode: Workers decide the maximum time they'd work for a fixed amount of money.
Will the fixed time mode or fixed money mode lead to a happier life?
The difference between the two is all in the name; is your starting point to focus on time or money?
The research paper by Smitizsky et al. (2021) suggests that 9-5 workers might experience higher satisfaction and happiness in the Fixed-Time mode of valuing their time. This mode, where workers state a price for a fixed amount of work time, could lead to a clearer sense of control and predictability over their work-life balance.
For example, at my day job, I have a fixed 35-hour work week—and in exchange, I receive a fixed amount of money, which is my annual salary.
Workers are likely to be happier when they can anticipate and plan around a consistent work schedule, providing stability and the opportunity to balance personal and professional life effectively.
The Fixed-Time mode potentially empowers workers by allowing them to set boundaries and expectations around their work commitments.
This contrasts with the Fixed-Money mode, where workers decide how much work they're willing to do for a fixed amount of money.
Think of the freelance worker who bids on a project.
They start by saying, I’ll do the job for “X amount of money.” However, they may not put much thought in advance to how many hours they will need to work to finish the project. This is important because they get paid the same amount of money, whether it takes 1 hour or 100 hours to complete the project.
The Fixed-Money mode might prioritize earnings over time, potentially increasing work hours and stress and reducing personal time.
Ultimately, the Fixed-Time mode is more likely to align with a healthier balance and overall happiness for 9-5 workers.
Strategies for Valuing Time in Fixed-Time Mode
When I began my career, I had a very strong fixed-money mode—despite having a set 35-hour work week and a fixed salary.
I graduated from University at the bottom of the great financial crisis. That created a financial anxiety.
I was so grateful to have a salary that I set zero boundaries for my work hours. I’d take calls on weekends, work through lunch, stay at the office late, and not claim all the overtime hours I was entitled to.
I was giving away my time for free.
Which was easy for me to do as a single guy in my mid-20s looking to build a professional reputation.
11-years later, I’m in my mid-30s and have a wife and two small children at home—I don’t have the luxury or the appetite to give away my time for free to anyone outside my house.
Before reading this paper, I did not know that terminology, but I had unknowingly adopted a fixed-time mode.
I have clear countries for my work hours.
I prioritize tasks during work hours to avoid the feeling of “falling behind.”
My personal time is so packed with family time that I rarely have time to even look at my emails outside of work hours.
Adopting Fixed-Money Mode Wisely
A fixed-money mode is not necessarily “bad,”—but if this is your approach to valuing your time, it’s important to safeguard your well-being.
It’s very easy for people with a fixed-money mindset to overwork themselves. Be sure to balance working hours with adequate rest.
Every once in a while, stop and evaluate your financial needs and your personal time.
Are you enjoying life right now?
Could you meet all or most of your financial goals if you scaled back a little bit and spent more time doing things you enjoy outside of work?
You might consider tracking your time during work and projects to help safeguard against overworking. Tracking your time is a good way to find out which projects and tasks take up too much of your time.
Time tracking can lead to a data-informed approach to which projects you work on.
Final thought
What’s more important than which mode of time valuation you pick is that you make a conscious choice.
Many 9-5 workers don’t put nearly enough thought into how they value their time. If you don’t place a value on your time, your employer will—and their goal is typically to maximize profits, not employee well-being.
My challenge to you:
Block off some time over the next week to think about which mode of time valuation fits your life the best right now, and think about what safeguards you can put in to avoid overworking and burnout.
This is important even if your goal is to maximize career earnings.
If your workload is unsustainable, you won’t make more money in your career if you focus on maximizing money today.
Collecting a solid paycheck for 30-40 years will get you more money than a massive paycheck for 3-5 years, followed by massive burnout.
How many paychecks you collect during your career matters as much as the size of those checks.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
Love this Ben! Really hammers home that 9-5 workers need to think of themselves as "mini businesses", and think about resource allocation just like business owners... and time is one of their core resources. It made me think: How can someone in a high-pressure job with unpredictable hours transition effectively to a Fixed-Time mode?
Time mode for me. There is something incredibly freeing about “doing my 8, and hitting the gate.” I don’t check my work email after hours, or answer the phone. The people that need to find me know how to do it. I like my job, and when I need to stay due to irregular operations, I gladly will. But I have those guardrails up for a reason.