We value time differently based on the money we have

That money buys time is obvious. But money also affects subtly and on a psychological level in how we interpret an investment of time, without needing to live in that Swiss city where earning $ 100,000 a year you are considered poor (and even grant a subsidy).

The minimum economic differences instantly affect our judgments over time. For example, when immersing ourselves in the aisles of an intricate and confusing supermarket, we will lose more or less time in acquiring certain products depending on the money we earn per year.

As he explains Eduardo Porter in his book Everything has a price:

According to a study of Denver buyers, families who earn more than $ 70,000 a year pay 5 percent more for the same products as families who earn less than $ 30,000. Singles without children pay 10 percent less than families with five or more members. Families whose head is a person in their 40s pay up to 8 percent more than those who are just over 20 or almost 70. Retired people pay much more attention to what they buy than middle-aged people. They consciously seek the best offer and end up paying almost the same amount for the same product. Middle-aged people, on the other hand, buy less carefully.

In short, and invoking Don Perogrullo again, time is relatively more valuable for the rich, that they already have money, that for the poor, that they don't have it.

Someone who earns 10 euros an hour will probably prefer an extra 20 euros rather than an hour of free time. But a professional who earns 300 euros per hour, you probably prefer free time. The first will buy using more time, even spending time cutting and collecting discount coupons, because their time is worth little; The second will pay the first price you see so you don't waste your time.

Video: The paradox of value - Akshita Agarwal (April 2020).