Before we begin exploring this relationship, let me highlight some terms that are either real or exist in my own head:

  • Non-discretionary expenses: The living cost that you have to incur. Examples include: rent, food, debt, transportation to work.
  • Non-discretionary time: The time spent on activities that you cannot do anything about (at least right now). Examples include sleep time, work time, transportation time to work, time spent on personal hygiene.

Non-discretionary expenses, in combination with your income-per-hour, define your non-discretionary time to a large extent.

Lets look at the window where this matters the most:

  • A range of 100 to 3000 dollars per month for the non-discretionary living cost.
  • A range of 2 to 200 dollars per hour for the income.
  • 16 available hours in a day after subtracting the sleep and personal hygiene time.

Here’s what the relationship looks like: The relationship between income, living cost, time

The thing to note here is that all of the non-linearity exists on the income side:

  • Halving your living cost halves the time you need to spend at work everyday.
  • But doubling your income will usually mean you need to spend way less than half the time at work everyday.

Lower income scenario

At lower incomes, the time available goes to zero very very quickly. Even a slight increase in living cost requires a huge increase in the time you need to spend at your workplace.

Lets zoom in on this area: The relationship between low income, living cost, time

What’s the observation here?

  • A lot of people, even with 2 jobs, can barely make enough to cover their fixed costs.
  • A lot of fixed costs, like transportation, are a huge hit in the time aspect.
  • There is barely any time available. Lack of available time means you cannot really upskill yourself.
  • A small misfortune will bankrupt you.

High living costs scenario

Lets look into this area: The relationship between low income, living cost, time

The main observation here is that no matter how hard you work, at a lower income level, you cannot do anything more than just survive. Forget about pursuing a hobby or relaxing.

Other thoughts

  • Inequality is bad. And since most policies are usually made for the average person, the bigger the income inequality, the less these policies apply at the extremes (the poorest or the wealthiest).
  • Time is the most precious commodity, and the poorest have it the least. It is also needed to learn and upskill and the lack of it isn’t helpful to the ones that want to better their lives.
  • Its hard to find a place with lots of employment opportunities but low living cost. Places like these are the need of the hour.