A Study on Essence of the Phrase "Time is Money"

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Bachelor of Business Administration (BBA) Semester-III (Paper Code-BBA 211) To

Guru Gobind Singh Indraprastha University, Delhi

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Institute of Innovation in Technology & Management, New Delhi 110058 Batch (2008-2011)

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CONTENT

S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Topic Certificate Acknowledgement List of Tables List of Figures List of Symbols List of Abbreviations Chapter-1: Introduction Chapter-2: Literature Review Chapter-3: Research Methodology Chapter-4: Finding & Analysis Chapter-5: Conclusion Chapter-6: Recommendations References/Bibliography Appendices

Page No.

1 10 29 31 41 43 45 46

LIST OF TABLES
Table No. 1 Title Future Value Factors Page No. 21

LIST OF FIGURES
Figure No. 1 2 3 4 5 6 7 8 9 10 Title Gender of the respondents Age of the respondents Believe in Statement Time is Money Importance of time in life Scheduling of daily life Thinking about time table is an effective way in case of time saving Wasting of time unnecessary way Time is the valuable thing for any kind of business Time waste means loss of money The suitable use of time is very essential in current conditions Page No. 31 32 33 34 35 36 37 38 39 40

LIST OF SYMBOLS

S. No. 1 2 3 4

Symbol $ * %

Nomenclature & Meaning Dollar Sigma Star Percent

LIST OF ABBREVIATIONS
S. No. 1 2 3 4 5 6 7 Abbreviation Name TV CD e.g PV FV CF FVIF Full Name Television Computer Disk that is Present Value Future Value Cash Flow Future value factor

Chapter-1 Introduction
1.1 Time is money: It's an old cliche that we all know and understand, but to what extent do you really apply it in your business? For example, do you make a phone call when an email would do just fine? Sure, there's something to be said for spending a little extra time building rapport with your clients, but phone calls often stretch out into ten, twenty, thirty minutes when taking five minutes to craft an email would have gotten the job done. Remember, your clients and strategic partners are busy too -- they may appreciate the efficiency of an email instead of a phone call.

On the other hand, are you an "email person", who insists on going back and forth via email, when a phone call is clearly necessary to iron out the issue? If something is going to require a lot of back-and-forth, a phone call may be more efficient. If you're trying to come to an agreement about something and you exchange more than two rounds of email, it's time to just pick up the phone. What about picking up checks from clients? Entrepreneurs are always in a hurry to get paid, it seems, and again, there's something to be said for building rapport with clients. But often,

picking up a check may mean the only person you actually speak to is the receptionist at their office. Is it really worth an hour of your time to say hello to their receptionist and get paid 1-2 days sooner? Just ask them to mail it to you. 1.2 How much is your time worth? Have you figured it out? If not, you should. To figure the minimum, figure out how much money you're making per year and divide it by 2,000. To figure the maximum, consider how much you make for your most productive time -- closing a deal, a speaking engagement, billable client time, etc. Somewhere in between there is the real value of your time. There's a saying which I recall reading somewhere (I thought it was Harvey Mackay, but I haven't been able to track down the quote): Don't pay someone $25 an hour to do $7 an hour work. Plug your own numbers in there. Maybe it needs to be, "Don't pay someone $50 an hour to do $20 an hour work." You're the first number. Whatever your time is worth, think about each and every activity that you're spending time on a regular basis. Could you outsource it to a bookkeeper, a virtual assistant, a web designer, a copywriter, a part-time employee, your spouse or even one of your kids? It's very difficult for most entrepreneurs to relinquish that control and delegate, but it's one of the best ways that you can ultimately increase your income while decreasing the number of hours you work. Remember - most resources are potentially unlimited. There's no limit to how much money you can make (someone can pass up Bill Gates, right?). There's no limit (other than self-imposed) as to how many customers you can have, or employees, or locations, or products or anything else.

But there are only 24 hours a day, 7 days a week, 52 weeks a year, and you have to spend some of that time sleeping, eating, playing, relaxing and growing with yourself, your friends and your family. Time is an entrepreneur's most precious resource, because it is the only one that is truly scarce. Be stingy with it. 1.3 The Connection between Time and Money: You have probably heard people use the statement "time is money" many times. While it sounds like a simple statement, it is much more complex then you may think. There are certain connections that time has with money, but there are also some notable differences as well. The connection between time and money is something that is well understood among most large companies. They understand the importance of time management, and this is why many of them have tardy policies for their employees. If you are a college student, your instructors may talk to the class about the importance of being on time at the beginning of the semester. If you show up late to class, you may have to deal with penalties or other problems. How you manage your time will play an important role in whether you are a success and failure in life. If you talk to most people, virtually all of them will tell you that they want to become wealthy. Others will tell you that they want to be self employed so they can work for themselves instead of someone else. However, their actions will often speak louder than their words. To understand this, all you have to do is look at the 80/20 principle. Only about 20 percent of the population has become either self employed or wealthy. The other 80 percent will never achieve these goals. While there are many reasons for this, one cause is the way most people spend their time. While many people will tell you about how wrong it is to waste money, you won't hear them talking about the importance of not wasting time. In a sense, time is more valuable than money. It is more valuable because it can never be gained back once it has been lost. If you talk to most people who are millionaires, they already understand this. They also

understand the 80/20 principle. They know that 20 percent of the things they do will play a big role in whether they fail or succeed. They don't waste much time dealing with the other 80 percent. If your goal is to become financially independent, there are a number of questions you should ask yourself. How much time do you spend engaged in activities which will allow you to become financially independent? How much time do you spend researching activities that can make you financially independent? How much time do you spend learning the necessary skills to help you succeed in a field you're interested in pursuing? How much time do you spend watching television, playing games, going to clubs, or spending time with your friends? These are questions that only you will be able to answer. The answers that you get for these questions will tell you whether or not you are on the road to achieving your goals. If you are not happy with the answers, this means you have some areas where you need to improve. You will first need to learn how to use the 80/20 principle to succeed. This may require you to make some changes to your lifestyle, and this may be difficult. If you are a young person who wants to be self employed, but you are spending most of your time at parties on the weekend, you may need to reverse the situation. Instead of spending most of your time at parties, you will need to begin spending more time researching ways that you can become self employed. This is what separates wealthy people from those that never become wealthy. They understand the importance of time management, and they undestand the connections between time and money. This is also the reason why your boss gets angry at you when you come into work late. When you don't start and complete your tasks on time, you will cost yourself or those you work for money. Lost time equals lost money. If you are an employee of a company, the amount of time you and your co-workers spend working will determine the profits that are earned by the company. When everyone is coming in late, this will massively cut into the profits of the company over a long period of time.

1.4 "Time is money" - a significant experience that has special meaning, It is an old quote that Time is Money and everyone has heard this sentence. But we are not fully aware from the meaning and the importance of this sentence. Time can make money but from money no one can make time. In this modern world where life is moving so fast, there is a shortage of time. Therefore, it is necessary to know the value of time. Nowadays everyone especially children are wasting their time because they are not fully aware from the fact that how much important time is? They are not seeing their dark future, thats why they are wasting time in playing games and other negative activities. It is not like that the child should be a book bug. He should also play but on time, because excess of everything is harmful. It is the duty of parents to remind their children about the importance of time and to remind them of the difficulties of practical life. Nowadays, children are wasting their time sitting in front of computer and playing games, in watching T.V, and in playing sports. They should concentrate on their studies; Extra-Curricular activities are good but should be limited. The children should utilize their time in positive activities, like reading Magazines, reading different books and newspaper. The biggest example of not properly utilizing the time is that children are wasting their time as they are spending daily 3 to 4 hours in front of computer but they even dont know how to repair the computer. Internet is the best and easily available source of knowledge to the new generation, but instead of using it in the right manner they are using it negatively. Now this era is very tough and the upcoming era will be the toughest. Only those will survive who are utilizing their time in positive things. Wastage of time wont give anything, because once time runs away, than it never returns. So it is better to save time and utilize it in bringing some new creations and innovations. Time is more expensive than money therefore its importance should be realized. A human being should be efficient enough to utilize his time in the best possible

way. Just take the example of multinational companies. Their motto is to save time because they know that saving time will be beneficial and helpful for them to make more money. Remember there is no limit of earning money. A person can earn more money than Bill Gates but to do this all you need is proper utilization of time. Time always matters in everything. Never left work on tomorrow, try to complete your work by today, because this saving of time will be obviously beneficial for you. Keep this thing in mind that there are 24 hours in a day in which we eat, sleep, and relax and by deducting all the time from these activities, we are approximately left with only 15 hours and wasting more time than 15 hours is harmful. Those who do not respect time, time also do not respect them. Wasting of time is very harmful and consequences will be severe if we are not using the time appropriately. Wasting of time is a major cause of unemployment for future. Students who are wasting their time are indirectly harming their own selves. Student waste their time in negative activities and in playing games which results in failing of their exams. Students should also use their time in a proper way to get their future better and brighter. It is a bad thing if we constantly obsess over time. But sometimes, we need to be conscious of it. The reason for this is simply because we don't get time back. Whatever position you happen to be in, ask yourself some serious questions. In the past, have you used time wisely? On a scale of 1-10, how much do you put value to time? Do you go about the day not even worrying about the time that passes by? Most people won't worry about time passing by. This is because we do not wish to let time pass by. We grow older as it passes by and not everybody likes this, and not everybody wants to know the future. But I think if we use our time wisely, it will make us more confident of our future. Whether you like it or not, whether you choose to ignore it, time will pass by anyway no matter what. If

you think about it, anything can be exchanged for. I can exchange money for an item, and I can exchange an item for money. But I cannot exchange money for more time, and I cannot exchange an item for more time. Everybody more or less has time. Not everybody has a nice house and not everybody has a nice car, but everybody has time. It's really what we do in that time that separates successful people from unsuccessful people. If you're a busy person than you probably have a busy schedule such as going to work from 7 in the morning to 5 in evening, coming home and having dinner with the family, doing some paper work, watching some TV, then going to bed at 11 and then waking up at 6. I know some people who go to school and work at the same time and have only a couple of hours of the day for "free time". But there are people who just wake up in the morning like at 11 or 12, eat brunch or lunch, go on the internet or maybe watch some TV for a couple of hours, eat something that makes them tired so they take a 1 or 2 hour nap, wake up and receive a phone call to go out with friends for dinner, come home late, go on the internet or play computer games until 2 or 3 in the morning, then go to sleep. This is an example of not using time wisely - duh. that was promoting a product or service such as a... I don't know sleeping nighttime CD's for people who have trouble sleeping and these CD's cost $20 and you got 50% commission or $10 for each time helped promoted this item, a person who is working 10 hours will get $100, and if you're just working on the website for 10 dollars, you will get $0. What I'm trying to get across is that if you're trying to make more money, or set some type of business, or just have a project that you have in mind that is going to be a lot of hard work, time is your best friend.

Whatever project that you have in mind, chances are that there's a good chance that hundreds of thousands of people that you don't know about are doing the same thing, except they are using time in doing it while others are wasting their time not doing it. All I'm saying is be aware of time. Time is leverage. If you have more time to do something than another person, that is worth so much. People don't value time these days, because, well, it's not money. It's not something that you can touch or hold in your hands. You can't really see time. You can see time passing by on a clock... but that's not too exciting is it? Although passing time isn't that big of a concern to most people, time in fact is one of the most precious things we as human beings have. Time really is more powerful than money. With 10 hours work, one can get $100 worth on money. But with $100, one cannot get 10 hours back in his or her life. Those 10 hours are gone forever. Each hour that passes by is an opportunity to make money. Notice I didn't say each hour that passes by that you will make money, but each hour that passes by you can use that hour to build something that will make you money in the future. If you work in a job that basically gives you, for example $10 an hour, then you're basically trading an hour of your life for $10. This isn't a bad thing at all, but if you are complaining about not having enough money, realize that you are the one who has accepted trading 1 hour of your life for $10. There are many ways to earn more than $10 for 1 hour of your time. For example, if you spent 10 hours making a website But on the 11th hour, you might make a sale and get 10 dollars, while the other person working will also get 10 dollars, and 11th hour you might get 20 dollars, while the other person gets 10

dollars, and on the 13th hour you might get 30 dollars, while the other person gets 10 dollars and I think you get the idea. If we were going by this scale, by the time the other person has worked 20 hours, they will receive $200. By the time you reached 20 hours, you will have made $550. Of course this is only an ideal case. But you can see how valuable time is if you use time wisely. Even if you aren't making money in a set amount of time right now, you can always be able to produce something of value with the time you have and exchange that for money later. The most important thing I think we should understand is that time is going to pass us by anyway so we have the option to choose to let it pass by and just let it pass by with nothing really happening, or choose to let it pass by but knowing that something positive will result in the future because we are doing something right now. And it doesn't have to be just for money, it can be for a skill that you want to learn like playing an instrument or any other type of goal you wish to achieve such as losing more weight or gaining more muscle. Whatever it happens to be, understand that time doesn't wait for us. It always continues. And it is what you choose to do with time right now that will ultimately determines the outcome of your future.

Chapter-2 Literature Review

2.1 Introduction: In economic terms, things acquire value whenever people want or need the thing but the supply of the thing is not sufficient to satisfy everyone's wants or need for it. Take gold for instance. This metal is both beautiful and very scarce. It can be used to make beautiful jewelry and other objects of beauty which are desired by large numbers of people. However, because there is very little gold in the world relative to the amount that people want, it has a very high value as evidenced by the large quantity of other things people are willing to give in exchange for gold. As I am writing this Hub response (January 2009) the current price of one ounce of gold is $876 - this is simply for a one ounce piece of the metal that has been mined and refined into a small chunk of pure metal that can be converted into something else. Turning it into a piece of jewelry will require added work and expense. Contrast this with an ounce of dirt which anyone can reach down and scoop up off the ground at any time for free. Value is determined almost exclusively by an object's relative scarcity rather than by its need to sustain life as evidenced by the famous diamond/water paradox in economics. Like gold, diamonds are both beautiful and scarce but, also like gold, by themselves provide nothing in terms of sustaining life by nourishing our bodies or sheltering us from the elements. Granted, if we have gold or diamonds we can trade them for food, water, clothing or shelter but we can't use them directly for these purposes. Water, on the other hand, is absolutely necessary for life - three days without water and a person is dead. Yet, diamonds command a very high price and water, in most places, is free

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or nearly free. This is due to the fact that the earth is made up of about 75% or more of water while diamonds make up some tiny fraction of one percent of the earth. As a result of its relative abundance, we tend to take life giving water for granted and place a high value on diamonds (if you don't believe this, just try giving your wife a glass water for an anniversary present). Of course, someone near death in the desert from thirst will gladly exchange a bag of diamonds for a glass of water which shows that when the relative quantities are changed with water being scarce and diamonds abundant the values change as well. 2.2 Time and Value: So, what about time? Time is also a scarce resource since each of us has just 24 hours at our disposal each day and our lives are finite. Looking at time in terms of the immediate present or the near future up to say a year or so we can see that time is limited and will tend to treat it as such. With the possible exception of the very old or those with a terminal disease or other condition (such as a condemned prisoner) most of us tend to look upon our lifetime supply of time as nearly infinite and will tend to take it for granted like water. Unlike most other objects that have economic value, time tends to be invisible in the sense that we can't see it or feel it like some physical object. However, like other physical objects we can trade it or sell it for other things or acquire more by buying it or trading something else for it. Every time a homeowner pays someone to cut the lawn, clean the pool or do some other time consuming household task rather than doing it themselves the homeowner has just brought some time as that person can now go play golf or engage in some other fun activity on Saturday afternoon rather than staying home and cutting the lawn or cleaning the pool. Similarly, every time we work for money or other goods we are basically trading or selling our time in exchange for money or other goods

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The human race has progressed and improved its lot materially down through the ages by learning how to increase the quantity of scarce resources. Of course, the more success it has had in increasing abundance has been more than offset by the fact that our wants have increased by even more. As any parent or grandparent (from any era, not just the present) much of what our children and grandchildren deem as the minimal necessities of life didn't even exist when we were young. While my grandparents could recall when telephones became common enough so that their family could afford one, cell phones are so common that even babies who can't talk yet are given toy cell phones to play with. Many people today look back nostalgically at the slower pace of life people had in the past. Today we rush around and never seem to have enough time while our ancestors a hundred or so years ago or more appear to have lived simpler and less complicated lives than we do today. We forget that their lives were simpler because they had fewer choices to occupy their time. In the absence of cars, people were forced to live and work within a much smaller area and, even within that limited area, the lack of fast transportation limited the time available for recreation beyond the home. Little League, soccer, dance lessons, etc. for children are available today because cars allow us to keep the travel time to and from these things to a minimum - use a horse and buggy and the time needed to travel to and from the Little League field will be such that there won't be time for the practice or a game. In the absence of microwaves and frozen foods someone will have to spend hours preparing a meal. Today cooking is a hobby for most people while in the past it consumed a good part of someone's (usually the wife's) day every day. Food, clothing and shelter are necessities of life and our pre-historic ancestors, like our animal cousins, devoted almost 100% of their working lives to supplying these basic needs. Foraging for each day's food was an all day job. Civilization began, once we learned how to domesticate farm animals and cultivate

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grains and vegetables thereby having access to a supply of food by the home and eliminating the time needed to wander in search of game or edible plants. Continued advances in food production and preservation techniques have allowed us meet this basic need while spending less and less time producing food or, as is the case of most of us, less and less time earning the money needed to buy the food from the few who produce it. Greater efficiency in the production of food and other basic needs is not the only factor in increasing the time available for other things. Advances in transportation have provided us with the means to go more places and do more things because the time required to go places has been reduced. Advances in communications have also increased our time by eliminating travel time altogether. Today I can go online and with a few clicks pay my bills for the month thereby saving the time it used to take to write checks, address envelopes, go to the post office for stamps and go to the mailbox to mail the payments. Electric lighting is another technology which has allowed us to increase our time by extending light into the hours of darkness. I have seen studies which have shown that in times past when artificial light was limited to camp fires or candles people tended to rise with the sun and go to bed when the sun set. Since there was little to do in the dark other than go to bed (with the possible exception of sex which is best done in bed and requires no light and which is probably one of the reasons why people had more children in the past). People's bodies and sleep needs adjusted automatically to the changing length of days and, with the invention and availability of artificial light allowed them to adjust further and spend more time awake than asleep. Advances in food production, which provides us with a steady and uninterrupted supply of food, along with other advances that have made life safer has led to increased life spans. We now live much longer than our primitive ancestors which means that, in addition to reducing

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the time needed to provide the essentials needed to sustain life, we have also created more time for everyone by giving them longer lives. These and other advances now allow us to bank or save time for the future as well. Working and saving now, allow us to take time off for vacations where we are able to consume the fruits of past labor without producing anything while vacationing. Retirement is another area where people can produce a surplus now for consumption later in life. It is only in recent times that all but the tinest minority of the population has been able to stop working and enjoy things like vacations or retirement. Of course, being abundant means that many take it for granted and place little value on it until they begin to lose it as we see with some older people, and some not so old, who look back on their lives or the recent past and regret the time they wasted. Then there are stories of people who are suddenly faced with a terminal disease and elect to live every remaining minute to the fullest like Jack Nicholson and Morgan Freeman in their recent movie The Bucket List. There are also people, soldiers who live for combat, spies on dangerous missions (such as Matt Damon's character, Jason Bourne, in the Bourne trilogy of thriller movies), etc., who love danger and feel most alive in situations where their time on earth could end at any second. While most of us have no desire to live on the edge, voluntarily or involuntarily, like this, it doesn't hurt to spend a few minutes every now and then contemplating the insights of those with terminal illnesses or who choose to live on the edge or the literature and movies about people in these situations. Doing so, we just might come to value our own time a little more dearly. 2.3 Time Value of Money: The basic idea of time value of money is that a dollar today is worth more than a dollar tomorrow. This can be shown in many ways, many people find it easiest to understand if they think in terms of something they already know: food. For example having the money today

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allows you to buy some food immediately. Alternatively you may be willing to forgo current consumption and wait until later to purchase your food. Thus you could lend your "food money" to another with the promise of being paid back at some future time. Since you are passing up food today you would demand a return sufficient to allow you to buy at least as much food in the future that you are giving up now. As we do not know the future this type of deal involves risks. For example the borrower may decided to not pay you back. This is called default risk. Or the borrower may pay you back but due to rising prices you can no longer purchase the same amount of food as you had expected to be able to buy. As a result of these risks (you as a lender) would require a higher interest rate to compensate for accepting the risks. However if you ask for too high of interest rates you will not find any takers for your loan. 2.4 Present Value: The time value of money principle says that future dollars are not worth as much as dollars today. You should be able to explain why! If you do not understand, please go back and reread the above example. It is extremely important and influences almost everything we do from now on. In the vernacular (I love that word) what this means is that you are unwilling to make an interest free loan. Fortunately we can compare present and future values with a rather simple equation.

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This will give you the present value of a single future cash flow (CF) . In fact for ease down the road we will generally use CF instead of FV. Future Value (FV) will be reserved for when we are actually solving for a future value. (For example how much will we have in 5 years). A simple Present value example follows: What is the present value of $8,000 to be paid at the end of three years if the correct (risk adjusted interest rate) is 11%?

2 = 8,000/(1.11)3 = 8,000/1.36 =$5,849 Note that if you had so desired you could write this equation as 3 PV = CF * (1/(1+r)t ) Which would be: PV = 8,000 * (1/1.11)3) =8,000 * .7312 = $5,849 The second term in equation 3, (1/(1+r)t ), is known as the present value discount factor or present value interest factor. It is usually abbreviated PVIF(r%, N periods). You can find this number either mathematically or from present value tables.

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Continuing our example, suppose that you were willing to make a loan where you would get $8,000 back at the end of the third year, and $10,000 at the end of the fourth year. What is the present value of this? Correct, you find the present value of each cash flow and then add the present values. Thus, PV = 8,000/(1.11)3 + 10000/(1.11)4 = $12,436.84 Generically, we can thus rewrite equation #2 as:

4 Whereby we calculate the present value of each cash flow and then sum the present values. As you can imagine this can get quite cumbersome if we had many future cash flows. As a result many short cuts have been devised. Chief among these is when all of the cash flows are identical. This we call an annuity. Examples of annuities include loan payments and certain long term contracts such as pensions, leases, and certain sports contracts. Example what is the present value of an annuity of $250 a year at the end of year for 6 years if interest rates are 12%? To solve this we could add each individual present value up, or can use the following discount factor and then multiply by the cash flow.

5 PVIFA(r,n)=PVAF(r,n)=

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Thus if interest rates are 12% and you will receive 6 payments, the discount factor is 4.114. Thus the Present Value (PV) of 6 payments of $250 if interest rates are 12% is PV = PVAF(r,n) * CF = 4.114 * $250 = $1,028.50 An important assumption in using the annuity discount factors is that the cash flows occur at the end of each year. If the cash flows are occurring at the beginning of each year, the cash flows are called an annuity-due. Stop and think for a second what we are doing in an annuity due. The first cash flow occurs today. Thus the present value of the first cash flow is equal to the cash flow. One year from now you will receive another cash flow. This second cash flow occurs at the same time (or technically 1 day later) than the first cash flow of a regular annuity. To the present value of an annuity due is 6 PV = CF + PVAF(r,n-1) * CF Using the above example but assuming the first payment is made today (rather than in one year). we can value the cash flows using the annuity-due equation. PV = 250 + PVAF(12%, 5)* CF = 250 + 3.6048 * 250 = $1,151.20 Note that the present value is greater than before. Why? Because the payments were all shifted up one year, thus allowing you (the lender) to reinvest sooner and make more money.

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Alternatively if you were the borrower you are paying earlier so you lose interest that you could have earned by keeping your money invested. Another shortcut that you will be responsible for is a perpetuity. A perpetuity is a stream of cash flows that goes on forever. Or at least we assume it does. This may or may not be a good assumption (why?-forever is a very long time!) but is very easy to use. 7 PV of a perpetuity = CF/r Note the cash flow does not have a subscript. Why? Because the definition of a perpetuity says that all cash flows are identical. Example: To pay for a new highway the local government sells a perpetuity that promises to pay $1000 a year from now until the end of time. If interest rates are 10%, what is the most that you would be willing to pay to get these future cash flows? The basic formula is

8 FV =

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Table No-1: Future Value Factors Example: you invest $1000 today at 10% in one year you will have 1000*(1.1)1=$1,100

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PV = CF / r = $1000 / (.1) =$10,000 An interesting extension of this is that you can also value a growing perpetuity. This is a series of cash flows that grows at a constant rate. For example suppose that the above perpetuity were promised to grow by 4% per year. Thus this year you get $1000, the next year you get 1000(1.04)=$1,040 etc. PV=CF1 / (r-g) where CF1 is the cash flow you will receive in one year. Example: suppose you just received $1000 and now want to sell your growing perpetuity. What is the least you should accept for the claim on these future cash flows if the growth rate is 4% and the correct risk adjusted interest rate is 10%.

PV = = $1,040/(.1-.04) = $17,333 2.5 Future Value: Future Value is largely the same as present value but in reverse. The basic idea is the same except here instead of determining what something is worth today, we want to find out how much something is worth in the future. For example how much will I have if I invest today.

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In two years you will have 1,000*(1.1)2= 1,210. In three years you will have $1,331, This is based on the implicit assumption of compound interest. Which means you earn interest on your interest. This is a powerful concept and can lead to very large amounts when you have enough time periods over which to accumulate more interest. Like in the present value discussion we also can use tables to determine a future value factor. These are abbreviated as FVIF(r,n). Thus FV= PV * (FVIF(r,n)) If r=10%, n=3 = $1,000 * 1.331 = $1,331 which is the same we calculated above. We also have annuities when calculating future values. These are often used in retirement planning. For example if you invest $1000 a year for three years how much will you have at the end of three years? If r=10%, n=3 (as before) FV= CF * (FVAF(r,n)) = $1000 * 3.3100 = $3,310.00 How is the future value of an annuity calculated? (that is where are the numbers coming from?) Remember the future values for single payments at 10% for 1 and 2 years these plus the last payment of $1000 sum to $3310. Still uncertain as to the logic? Draw a timeline. Your first payment occurs at the end of year one and earns interest for two years ($1210), the second cash flow occurs at the end of the second year and earns interest for 1 year ($1100), while the third cash flow occurs at the end of the third year and therefore earns no interest ($1000).

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In the days of looming recession and alleged credit crunch, competition within business has become ever fierce. Expenses are honed to within an inch of their life and staff, unfortunately, become a less essential commodity. Many companies who are feeling the pinch will survive the economic pressures by getting through on a skeleton work force. There is a pecking order when it comes to surviving such issues as belt tightening. First to go are the incidentals. Staff will first notice putting their own hands in their pockets for tea and coffee, then the tea breaks will be shortened to ensure time is spent more productively, followed by cleaning services being dispensed with, putting more pressure on the remaining staff. Sometimes, companies will cut corners with their services or products but this is counter-productive. If the quality of services diminishes then so do the customers. More conducive to surviving the credit crunch is to make what business you do, more effective. This certainly does not involve cutting corners but providing an efficient service to the best of the company's abilities. One way of standing out from your competitors is to ensure that your service or product is easily accessible, straightforward and competitively priced. Many companies are beginning to recognize the benefits of custom software development to help with this process. Everything in life is now computerized. This does not, however, ensure ease of use. Off the shelf software packages have long been used for companies to adapt their business to the software and thus have a useable programme that works even if it doesn't quite fit. Off the shelf software packages are cheaper than the custom software development process but it is this 'not quite fitting' is the hiccup that could make all the difference in the face of harsh competition. To use the services of custom software development means that the IT solutions you are implementing will fit your business like a glove. It can grow or downsize depending on the needs of your business at the time. This will lead to a service that is fast and efficient, which then leads to a quicker turnover to impressed customers, leading to recommendations, leading to a more powerful business. There are, however, drawbacks to

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custom software development. The first is the expense. It will take a whole team of analysts, programmers, technical writers and hardware and software specialists to come up with a bespoke piece of software. So, it would seem that in the long run custom software development is a good thing but you need adequate funds to start with to cover the costs of development and you also need to balance the pros and cons of this outlay within your accounts. Their needs to be absolute clarity between software developer and customer to understand every aspect of the customers business needs now and in the future. If there is any grey areas, these will manifest themselves in the form of an expensive piece of bespoke software that just isn't quite up to the job; a waste of money. Compatibility between existing customer systems and that of their customers can sometimes become an issue also. This can lead to frustrated customers who then choose to go elsewhere. On the other hand, there are some excellent off the shelf software packages that are designed to meet the needs of certain fields. Along with the much lower price tag, this ease of use can often sway an already hard up customer to stick with what he knows, a software package that will be easy to install. Much depends on the type of business you have. If it is a common type of business eg plumbing supplies, then there is bound to be a quality off the shelf software package that will accommodate your needs. But for those more unique businesses, then it is possible that only custom software development will suffice The importance of time management is more than to-do lists and personal organizers. The benefits of time management extend to your personal life, career success, and achieving goals. It is hard to overestimate the importance of time. With 24 hours a day, time is a scarce and finite resource.

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We all know this!

We've heard and probably said ourselves to "make the best of each day" or "live each day as though it was your last". These affirmations highlight the importance of time management - but usually they are not enough. Here I provide time management power point demonstrations, time management exercises and free time management sheets that you can download to boost your time management skills today. The choice that you take in using your time determines your effectiveness - wasting time can lead to a wasted job or even a lack of purpose and meaning in our lives. As Benjamin Franklin observed: Imagine if you were given $86,400 each morning. You are required to spend this money. You cannot save it for a rainy day or invest it for your future.

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The money that you have today you have to spend today! How would you spend it? This happens with us each day with a more valuable resource - our time. Each day we have 86,400 seconds which we have to use. You can't invest it or save time up. Each day gives us the same amount of time. While we can save and invest money, time is a resource that can't be replenished - once time has passed it is gone for ever. This raises the importance of managing your time - from to-do lists and personal organizers to your personal effectiveness and the way that you want to your life When I ask people in conferences, lectures, or in my private practice; most people respond that time management is about planners, techniques or time management tools But these are the tools to self (or life) management. Time management is really about self management. How you manage yourself in relation to time. You have a finite amount of time in which to choose your activities - don't you want to choose activities that are of the highest priority for you. Do you have a to do list as long as your arm? Are you stressed about what you have to do? Do you have conflicting priorities and difficulty making decisions? Are you frazzled and worn out at the end of each day? 27

With 24 hours in each day, time management is about managing your activities in relation to time. The foundation of good time management starts with personal goal setting and developing your priorities. How can you make a decision on what to spend your time on if there is not a clear vision of where you want to go? By prioritizing what is most important to you, time management allows you to spend quality time doing important things that add value to your life.

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Chapter-3 Research Methodology

Objectives of the Study

The study covers all the following objectives:

To present the value of time in life To present the methods for suitable use of time To assess the time value of money To identify the measures on which basis we can say that Time is Money To provide some suggestion according to research topic

Research Methodology

Methodology: Research is defined as human activity based on intellectual application in the investigation of matter. The primary purpose for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so.

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The term research is also used to describe an entire collection of information about a particular subject. Secondary data are easily accessible, relatively inexpensive, and quickly obtained. Some secondary data are available on topics where it would not be feasible for a firm to collect primary data. Although it is rare for secondary data to provide all the answers to a non-routine research problem, such data can be useful in a variety of ways. Primary data is collected for the specific purpose of addressing the problem at hand. The collection of primary data involves various steps. Thus obtaining primary data can be expensive and time consuming. These suggest that primary data are those data that are collected for the particular purpose of research in hand. The disadvantage of collecting primary data is that it is lengthy and resource and time consuming process, but the advantage of primary data is that they are first hand information and comparatively more reliable. A researcher originates primary data for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process. Obtaining primary data can be expensive and time consuming. Sampling Design: Size of Sample: 100. Tools used to collect data: Primary Data Questionnaire Personal interview Secondary Data:

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1. Newspapers and Journals 2. Online reference Statistical Method Used: Pie chart Column diagram

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Chapter-4 Findings and Analysis

Q1. What is your gender?

Male Female

75% 25%

Female 25%

Male 75%

Figure No-1: Gender of the respondents The above mentioned graph shows that 75% respondents are male and 25% respondents are female.

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Q2. What is your age group?

15-24 25-34 35-44 More than 44

15% 45% 30% 10%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

45%

30%

15% 10%

15-24

25-34

35-44

More than 44

Figure No-2: Age of the respondents 45% respondents are from 25-34 age group and 30% respondents are from 35-44 age group.

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Q3. Time is money are you believe in this statement?

Yes No

95% 5%

No 5%

Yes 95%

Figure No-3: Believe in Statement Time is Money 95% respondents replied yes that they believe in this statement but 5% respondents replied no that they believe in this statement.

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Q4. What is the importance of time in your life?

Very Important Important Not important

40% 55% 5%

Not important 5% Very Important 40%

Important 55%

Figure No-4: Importance of time in life 40% respondents replied that time is very important in their life but 55% respondents replied that time is important in their life.

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Q5. Do you use any schedule for your daily life?

Yes No

59% 41%

No 41%

Yes 59%

Figure No-5: Scheduling of daily life 59% respondents replied yes that they use schedule for their daily life but 41% respondents replied no that they use schedule for their daily life.

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Q6. Do you think that time table is an effective way in case of time saving?

Yes No

73% 27%

No 27%

Yes 73%

Figure No-6: Thinking about time table is an effective way in case of time saving 73% respondents replied yes that time table is the effective way in case of time saving but 27% respondents replied no that time table is the effective way in case of time saving.

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Q7. Do you waste your time in doing the unnecessary things?

Yes No

0% 100%

Yes 0%

No 100%

Figure No-7: Wasting of time unnecessary way 100% respondents replied no that they are not waste their time in unnecessary things

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Q8. Time is the valuable thing for any kind of business are you agree?

Strongly Agree Agree Neutral Disagree Strongly Disagree

25% 49% 15% 9% 2%

60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Neutral Disagree Strongly Disagree
25% c 15% 9% 2% 49%

Figure No-8: Time is the valuable thing for any kind of business 49% respondents are agreeing with this statement but 25% respondents are strongly agreed with this statement.

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Q9. Time waste means loss of money This is right or wrong

Right Wrong

95% 5%

Wrong 5%

Right 95%

Figure No-9: Time waste means loss of money 95% respondents replied that it is right but 5% respondents replied that it is wrong.

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Q10. The suitable use of time is very essential in current conditions are you agree?

Strongly Agree Agree Neutral Disagree Strongly Disagree

35% 55% 8% 2% 0%

60% 50% 40% 30% 20% 10% 0% Strongly Agree

35%

55%

c 8% 2% 0%

Agree

Neutral

Disagree

Strongly Disagree

Figure No-10: The suitable use of time is very essential in current conditions 55% respondents are agreeing with this statement but 35% respondents are strongly agreed with this statement.

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Chapter-5 Conclusion
In many fields in our life, we face situations where the errors can be corrected by some sort of retake. We can manage to sort out our mistakes as we may get another chance. But life is the only game where there is no second chance to correct our errors, our mistakes. Once it is over, there is nothing that can help. The time does not care about the winners and the losers. It does never care about what a person has achieved in his life and what he has lost. Time does not care about who succeeds in life and who fails to achieve his/her goals. Time does not entertain any kind of excuses neither it cares about fairness or equality. The only thing that matters is how we lived, how we fought, how we played the game. Every step needs to be taken at right moment. Time does never show partiality, it gives everyone equal chance to win, it offers opportunity but also demands a sense of urgency, urgency to wake up and act at the very moment. We should always keep in mind that time is money and no one can afford losing it. Time has given everyone equal chance to win, the proof of this can be read in history, there are different chapters in the history where many individuals have written there names with golden ink, because they were successful, because they did everything on the correct time. They never let an opportunity pass by. All this is to indicate only one thing and that is nothing but. we all should take care to act on the right moment. We should be constantly aware of the value of each and every moment of our lives - moments that seems so insignificant that there loss often goes unnoticed. Perhaps God knew about us, and he gave us more time. We still have all the time we need. We still have lots of chances, lots of opportunities lots of days, months, and years to show what we can do.

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For most of us, there will be a tomorrow, next week, a next month or perhaps a next year. But what we need to know is the value of that particular chance we have got, we need to develop a sense of urgency, unless we wake up, those brief windows of time will be sadly wasted away and we wont have time even to cry! Once again we should keep in mind that there isnt an endless supply! So as you think of your dreams and goals of your future tomorrow, begin today to take those very important first steps to make them all come to life! If you want to achieve them, you have to wake up and start working for them! Life must be measured rather by depth than by length, by thought and action rather than by time. A counted number of pulses only are given to us of a variegated, aromatic, life. How may we see in them all that is to be seen by the finest senses? How can we pass most swiftly from point to point, and be present always at the focus where the greatest number of vital forces unites in their purest energy? To burn always with this hard gem-like flame, to maintain this ecstasy, is success in life. Failure is to form habits, for habit is relation to a stereotyped world, while all melts under our feet, we may well catch at any exquisite passion, or any contribution to knowledge, that seems, by a lifted horizon, to set the spirit free for a moment. It is not work, but care, that kills, and it is in this sense, I suppose, that we are told to take no thought for the morrow. To consider the lilies of the field, how they grow; they toil not, neither do they spin: and yet even Solomon, in all his glory, was not arrayed like one of these. Wherefore, if God so clothe the grass of the field, which to-day is, and to-morrow is cast into the oven, shall he not much more clothe you, O ye of little faith? It would indeed be a mistake to suppose that lilies are idle or imprudent. On the contrary, plants are most industrious, and lilies store up in their complex bulbs a great part of the nourishment of one year to quicken the growth of the next. Care, on the other hand, they certainly know not.

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Chapter-6 Recommendations
It never seems like we have enough time in life, despite hours upon hours available to us each day. Where does all the time go? Better yet, how can we use our time better and what are some of the ways to do so? Continue reading to find out. The first step toward better time management is to identify the activities which are sucking away at your valuable time. Once you create a list of these time wasters, begin the process of weening off each of these activities and replace them with those that are productive. A goal can help us strive toward excellence but one fatal flaw when developing goals is to make it utterly unobtainable and a compete waste of time as we become distracted and unfocused. The correct way to set a goal is to go outside your comfort zone but break down the entirety into manageable chunks which you can reward yourself after each milestone. Thanks in many ways to social media, many people have multiple accounts littered across the net. Each additional account becomes another chore to check on a regular basis. Additionally, with email, banking and many other accounts, these "few seconds" checking each will quickly add up to hours. To manage your time better, try to create a set schedule where you only check your profiles and accounts at certain times of the day and afterward, leave them alone. There are many activities which we do each day that could easily be fit together: answering emails, returning phone calls, writing articles. Because most of these tasks of responding and working often come at different intervals, we always break up our time.

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Instead of immediately responding to an alert, batch your work together so you only spend a certain allotted time to finish each of these tasks - once the time is done, don't check it until the next day. We all have a lot of work to do but it always seems like we take on additional projects even when we're overloaded. It could be as a favor or to stay busy but the more projects you take upon yourself the more likely you'll eventually burn out. Start learning to say "no" when additional work arrives. Tell others that you're already busy and would like to but simply don't have the time. Learning to say no will help you keep focus and allow you to manage your time

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References/Bibliography
C, Koschate N and Hoyer W D (2005) High quality time management services? A study of the relationship between time and money. J Mktg 69: 84-96 Ofir C and Simonson I (2001) In search of time value for life: The effect of expecting to evaluate on time value. J Mktg Res 38: 170-182 Vernoer P C (2003) Understanding the effect of time management efforts on daily life. J Mktg 67: 30-45 Reinartz W, Krafft M, and Hoyer W D (2004) The time management process: Its measurement and impact on life. J Mktg Res 42: 293-305 Blanchflower, D. G., A. J. Oswald, and A. Stutzer (2001). Latent Entrepreneurship across Nations. European Economic Review 45 (4-6), 680691. Brenner, M., D. Fairris, and J. Ruser (2004). Flexible Work Practices and Occupational Safety and Health: Exploring the Realtionship Between time and money. Industrial Relations: A Journal of Economy and Society 43 (1), 242266. Fairris, D. and M. Brenner (2001). Time value of money: Is There a Connection? Journal of Time Research 22 (1), 1528. Freeman, R. B. and M. M. Kleiner (2000). Who Benefits Most from Employee Involvement: Firms or Workers? American Economic Review 90 (2), 219223.

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Appendices
Questionnaire Q1. What is your gender? Male Female

Q2. What is your age group? 15-24 25-34 35-44 More than 44

Q3. Time is money are you believe in this statement? Yes No

Q4. What is the importance of time in your life? Very Important Important Not important

Q5. Do you use any schedule for your daily life? Yes No

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Q6. Do you think that time table is an effective way in case of time saving? Yes No

Q7. Do you waste your time in doing the unnecessary things? Yes No Q8. Time is the valuable thing for any kind of business are you agree? Strongly Agree Agree Neutral Disagree Strongly Disagree

Q9. Time waste means loss of money This is right or wrong Right Wrong

Q10. The suitable use of time is very essential in current conditions are you agree? Strongly Agree Agree Neutral Disagree

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