Values of time are used to calculate the non-monetary costs incurred as part of a journey so that the generalized cost of the journey (a combination of both monetary and non-monetary costs) can be calculated.
The value of time varies considerably from person to person and depends upon the purpose of the journey, but it can generally be divided into two sets of valuations: working time and non-working time. This division is appropriate because of the value of working time.
The value of time cannot be assumed constant over time. Time is a limited good and as productivity and income increase, the relative value of time increases as well. Historically, the projection of the value of time has been closely linked to personal income growth, which in practical applications is typically approximated by GDP growth. Due to a substantial amount of uncertainty in predicting the relationship between income and the value of time, it is common to apply relatively simple “rule-of-thumb” estimates that are measured as elasticity to income.
Generally, it is not clear what the elasticity should be and from a theoretical standpoint there is no reason why the income elasticityfor private travel should be unity, since it is a matter of personal preference how individuals or households allocate additional income to purchasing time savings. There can be many reasons why the average value of time for the population could increase or decrease over time. Examples include, but are not limited to;
- Wealth effects in general
- Improved comfort
- Mobile broadband and communication technology
- Longer trips
There is a saying “Time and tide waits for none”. The saying is indeed true. Time waits for none. It comes and goes. Time is absolutely unbound able. Neither money nor position can buy it. Nothing on earth can subdue or conquer it.
The most remarkable feature of time is its preciousness. Its value is unfathomable and its power is inestimable. Its potential is something which we cannot calculate. A minute is enough to win a victory. A second is enough to make you the richest man in the world. A fraction of a second can make a difference between life and death.
Therefore, if we want to succeed in life we ought to chalk out what we are going to do with the minutes, hours, days, months, and years at our disposal. This is the first step to success. Secondly, work must never be postponed; tomorrow’ may never materialize. We can only be sure of the present’ which in our hands. Postponement and laziness are the ropes that strangle time. Thus, time can create us or destroy us. It all depends on how we utilize time.