A mathematical formula calculated by a British university professor has found that time actually is money. According to the equation, the average British minute is worth just over 10 pence (15 cents) to men and eight pence (12 cents) to women. The formula is: V=(W((100-t)/100))/C, where V is the value of an hour, W is a person’s hourly wage, t is the tax rate and C is the local cost of living.
It shows that there is no such thing as a free lunch or even a free dinner, while brushing your teeth for three minutes uses up 45 cents in “lost” time, and washing a car by hand has a hidden cost of $4.50. The formula allows people to figure whether they are getting a fair rate for overtime, or judge the financial cost of takeout vs. the time it takes to cook dinner, or the cost of using a taxi or the bus. In Britain, the formula means that an hour for a man on average earnings is $8.99/ hr. which is very close to the American minimum wage. The study found that the typical cost of cooking dinner, including the value of time spent and ingredients, was $15.72. The average cost of ordering a take away meal was $7.31. By looking at salaries against taxation, the cost of living, and regional variations, we can see how much an hour of our time is worth whether at work or home. One can now understand why people are paying to save time, like having someone to cut the lawn or clean the house.” (CNN, 5/29/02)