What is Your Time Worth?
How do you figure out what your time is worth?
If you know what your time is worth you can then decide whether or not it is to your benefit to do the task yourself or pay some one to do it or maybe not do it at all.
While we all believe that we simply are invaluable, and we are as people, but when you have to figure out a dollar figure for what a minute of your time is worth this is how you do it.
The first step is to take a look at what you made being gainfully employed in the last twelve months.
All you are going to consider is the pay you received for the work that you did. If you had investments or things of that nature do not include those.
Now that you have the number, you will want to subtract from it everything that you spent in that 12 month period because of your job. Really think about this, do I have extra costs because of my job? If I do (and I guarantee that you do) what are they?
Now you will want to figure out how many hours you devoted to that job in a 12 month timeframe. You may work 40 hours a week for 36 weeks a year, but you also need to figure in the time you have to take to drive to and from work, any extra time that you dedicate to work outside of the office, any business travel, business parties, business dinners.
Now that you have those 2 numbers you will need to take your real wages which is the first number and divide it by the real number of work hours, the second number. The answer you get from that simple little division problem is what your time is worth right now based on what you do for a living.
What does this? This number that you just figured out will tell you whether or not that job you are doing that you aren’t enjoying is worth it and if you are really being paid for your abilities and all the work you actually put in. This number will also help you decide if there is a more cost effective way for you to get a task done.
An example is that your driveway needs to be shoveled or the yard needs to be mowed. Say that you can make $15/hr typing a few lines in an online form in your office. If you can get someone to mow or shovel for you for less then $14 it makes more sense for you to pay someone else to do it.