by James Clear

Late in his career, Steve Jobs famously drove his car without a license plate.

There were all sorts of theories about why Jobs decided to drive without tags. Some people said he didn’t want to be tracked. Others believed he was trying to make a game of avoiding parking tickets.

Steve Jobs Mercedes

Jon Callas, a former computer security expert who worked for Apple, revealed a different reason.

He said Steve Jobs discovered a loophole in the California vehicle registration laws. Anyone with a new car had up to six months to get a proper license plate for their new vehicle. During the first six months, however, you could simply drive the vehicle without a license plate.

Once he realized this, Jobs arranged a special leasing agreement with his Mercedes dealer, so that every six months, he could drop off his current car and receive a new Mercedes SL55 AMG to replace it.

This meant he never drove a car older than six months and he never had to go to the Department of Motor Vehicles to get a license plate.

After hearing the story, many people responded by saying things like, “I guess that’s what you do when you have a lot of money.” And, to be fair, it is true that this license plate strategy isn’t reasonable for most people on the planet.

It’s not reasonable in California anymore, either. For anyone.

If you look deeper, however, you’ll notice that something else was happening: Steve Jobs was building a time asset.

Time is your most valuable asset

Time Assets vs Time Debts

Most productivity strategies focus on short-term efficiency:

  • how to manage your to-do list effectively,
  • how to get more done each morning,
  • how to shorten your weekly meetings, and so on.

These are all reasonable ideas.

We often fail to realize, however, that there are certain strategic choices that impact our time on a larger scale, too. These choices can be categorized as time assets or time debts, which are two concepts I learned from Patrick McKenzie.

Time assets are actions or choices you make today that will save you time in the future.

Software is a classic example of a time asset. You can write a program one time today and it will run processes for you over and over again every day afterward. You pay an upfront investment of time and get a payoff each day afterward.

Time is an asset

The car leasing system Steve Jobs developed is an example of a time asset. It took him some time to find a loophole and arrange a repeatable leasing system, but his process rewarded him with additional time and less hassle every six months.

Time debts are actions or choices you make today that will cost you additional time in the future.

Email is a time debt in which most people participate each day. If you send an email now, you are committing to reading the reply or responding with an additional message later. Every email you send creates a small debt you have to pay back at a later time.

This is not to say that all time debts are bad. Perhaps you enjoy serving on your school committee or volunteering with a local organization. However, when you make these commitments, you are also creating a time debt that you will have to pay at some point.

Sometimes, the debts to which we commit are worth sacrificing for, but many times, they are not.

Time Assets in Real Life

I wrote down a short list of time assets and time debts for my business. Here are a few:


Speaking. I can create a speaking page on my website that answers common questions and qualifies the right kind of people. This could include a descriptive Frequently Asked Questions section or a better sign-up form. The goal of the system is to set clear expectations and answer common questions I usually have to answer via email.

Accounting. By setting clear rules for my bookkeeper and accountant, we can develop a system to automatically tag certain expenses and transactions each month, which minimizes the need for me to manually approve repeated transactions.

Scheduling. Booking calendar appointments, calls and interviews requires a lot of emailing. Using software, like ScheduleOnce, eliminates this problem and lets people choose from a pre-selected list of available times.


Email. The more email I answer, the more email I generate.

Comments. I like the comments on my site and I don’t plan to remove them. But, every time I publish an article with a comments section, I create a time debt that I have to pay back by approving and moderating comments.

Interviews. At first, I said yes to every interview that came my way. Today, I typically do three to five every week. Saying yes to every interview became a time debt.

Low-quality work. If you don’t edit your article now, you have to fix the grammar later. If you write sloppy code now, you have to debug it later. If you create a poor product in the beginning, you have to service customers and process refunds later.

Every low-quality piece of work is a time debt that you have to pay back. To quote John Wooden, “If you don’t have time to do it right, when will you have time to do it over?”

A System for Your Time

Systems are more important than goals, and time assets are a perfect example of why this is true. Each time asset you create is a system that works for you, day in and day out.

If your schedule is filled with time debts, it doesn’t matter how hard you work. Your choices will constantly put you in a productivity hole. However, if you strategically build time assets day after day, you multiply your time exponentially.

Driving a car without a license plate might seem like an extreme way to save time, but it’s also a level of strategic thinking most people never embrace. This isn’t an approach that only works for Steve Jobs. It works for all of us.

Time debts need to be paid, so be careful how you choose them.

Time assets pay you over and over again, so spend more time creating them.

James Clear shares science-based ideas for living a better life and building habits that stick. Over 100,000 people read his free weekly newsletter.

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