How Much Does 1 Hour Of Your Time Is Really Worth?
Yuli Azarch | April 11, 2017 | 2 Comments on How Much Does 1 Hour Of Your Time Is Really Worth?
How much does 1 hour of your work/time is worth?
There is a great tool which I personally use to get to the estimate of how much your time should be worth.
You do that by calculating your yearly income goal, and then dividing that yearly income goal into a monthly goal, and then into your estimated hours of work per week. This quick math will give you the exact worth of your 1 hour, or at least where it should be, in order to get your goal.
Let’s take an example:
- Your goal is to earn $120,000 per year.
- This would mean you need to earn per month $10,000.
- Assuming you are working 20 hours per week, that comes up to 80 hours per month.
- $10,000 / 80 = $125.
Assuming indeed 20 hours per week is a number of hours you work, and that is your goal, you realize your 1 hour of work is worth $125 (Or should be worth, more accurately). You can adjust the financial goal and number of hours to whatever fits you personally, based on your goals.
That is a great tool to use because it gives you an understanding of what you need to do to get your goal.
If right now you are spending time doing activities which are worth $15-$20 per hour, and you can easily hire people that can do the same activities, you are not getting your per-hour output, and you will not get your goal if you continue doing that. You need to be doing activities worth $125 per hour, to get to the example goal mentioned above. From switching from $20 per hour activities, by hiring someone else to do it, and moving to activities that are worth $125 per hour, you automatically earn $105 more in that hour.
Moreover, I suggest putting a big sign close to your computer, to remind you and to start training your subconscious mind your true value of 1 hour. It is too easy to set a financial goal or write something once, but if you do not remind yourself constantly about it, you fall back to previous habits, and previous thought patterns. Your subconscious mind is x1000 more powerful than your conscious mind.
I have the following sign beneath my computer:
I have been using that sign for the last 3+ months regularly in front of my computer. That small sign started programming my subconscious mind the true value of my 1 hour:
- Too many times I started doing things, which I can easily hire people for $5-$20 per hour, and they even may do that better than me! If I continue doing those things, I will not get to my personal financial goal.
- I started saying many times “No” much easier in the last few months. By putting it down on paper, I know my 1 hour worth. A task which is not important? NO. A meeting which is not important? NO. Someone wants just “30 minutes” of my time for a small and not important thing? NO.
By training my subconscious mind with that sign below my computer, I believe I am moving faster towards my financial goal.
Action steps: Do the exercise above. Calculate your 1-hour worth, and put it down on paper in front of your eyes.
I hope this was helpful. Would love to hear your thoughts and comments below.