“Time is Money” Explained

Ahh yes, the iconic goblin phrase “Time is money friend”. Intuitively we know what it means. If you work for an hour you get paid for an hour. If you don’t work then you don’t get paid. But there’s more to it than that. Whatever you are doing at any moment could be sub-optimal. There’s a reason why it costs so much for someone to run you through a dungeon (do people even do dungeon runs anymore?). It’s because they could be spending their time doing an LFR or Mythics or <insert other gold making strat here>. It’s all about gold per hour. That’s what “time is money” really means.

In economics there’s something called “opportunity cost”. It’s defined as, “the loss of potential gain from other alternatives when one alternative is chosen.” In other words, that person could spend 1 hour running you through a dungeon for 500g, but if they could spend that same hour farming and make 2000g then their opportunity cost is 1500g for running you through that dungeon. Keep in mind these prices and time frames are arbitrary. It’s just to illustrate the point.

So you found a way to make 1,000g per hour and you’ve got your excel spreadsheet open. You’ve done a number crunch and figured that if you work 12 hours a day, it will only take you 208.3 (repeating, of course) days to have enough gold to buy that 2.5M gold spider mount (that you don’t need by the way).

Now here’s where “time is money” comes into play. Can you, in 208 (I rounded it, sue me) days come up with a gold making strategy that will make you 2000g per hour? If so you can cut your farming time down to 104 days + how ever long it took you to come up with the new strat.

And that’s the idea. Never settle for a strat ONLY because it works. There may be one that makes 10,000g an hour that’s just around the corner. So always be looking for more opportunities and don’t be afraid to take a little risk here and there. If your profession sucks then drop it. The opportunity cost of holding onto a profession that makes you no gold or very little gold is too high not to drop it. Get one that’s more profitable for you.