Money Value Of Time
Since the key to productivity really is having a millionaire-focused mindset, knowing how much each hour might be worth can change the way you think about your productivity. What is the actual value of your working hours? The next time you think about wasting an hour of your day goofing off on Facebook, or catching Fox News, think about this little calculation. This exercise will help you to never look at each hour of your day the same way again.
So, what is you income goal for the next year? $150,000? $250,000? In the example below, I will use $250,000. Let’s say you work 5 days a week for 50 weeks. If you work 8 hour days, you work 2000 hour per year.
Well, the math is simple, right?
$250,000 divided by 2000 hours equals $125 per hour. That is what each hour is worth, right? Not so fast, my friend. We need to look further.
The simple math is wrong. Studies show that only a third of the time that we work is profitable, revenue generating time. That changes the equation a little. Watch.
Now, we still work 250 days, but only about 3 hours of our day is considered productive time. These are the effective and efficient hours of our day. So, there are really only 750 working hours a year. Now look how the value changes.
$250,000 divided by 750 hours equals $333 per hour. That is drastically different! But it is much more accurate based upon the actual productive time we work each day throughout every workweek every year. Now each hour is worth over $200 more! Squander away a day, and it costs you over a $1500!
So, the next time you decide to blow off an hour of your day, think about what it will actually cost you. Or, better yet, make sure the hours you are working are focused on income producing activities – you can’t get bogged down with busy work now! You are a highly paid professional!
Here are your action steps:
1. Go calculate the money value of your hour.
2. Work as if you will lose that money each time you lose an hour.
3. Work as if you are worth that value.
This concludes the series, “Effective Self-Management.” If you will apply the strategies you discovered, you will be well on your way to the best you that you can possibly be. My hope for you is that this information has helped you as a professional, and as a person. May you manage yourself more effectively in time so that you can achieve all you ever hoped for and more.
To Your Success!