Before you go wasting your precious time checking out all those cool apps and the finding ways to save you time, we need to know how much your time is worth so we know what the value of the saving is in real terms.
So what are you worth? Millions I hear? Sure… Lets find out.
To put it blunt time is money and tends to be the motto most of us live by, especially in business. If time is money, then what is time in relative terms as it would seem we can never seem to have enough of it these days? What is the value of time and does this mean only work and no family and fun?
Well no, it merely means you need to know your worth in a monetary value and calculate your value of time appropriately so that you can determine if you are really saving time and maximising your revenues. Getting the best value and productivity for your time will ensure that it better reflects what you get paid at the end of the day.
Knowing your value of time will assist you in doing costings or quotes for work and deciding if certain jobs are really worth your time. It is also a determining factor in how you will be spending your time going forward.
A good example would be to weigh up the time versus money spent on transport. Is it faster to drive myself as opposed to using public transport and does this outweigh the cost of either? Another one could be to evaluate if it is better to spend five hours on a job that pays you not even half of your time per hour?
These are all factors you need to consider and calculate as you want to be productive and profitable at all times. It will also advise you on adjusting your current working hours and whether you should take that part time job and at what rate would be most profitable for you.
A value for time calculator will also point out how you value your time across different situations and whether it is consistently done or not.
There are various means of calculating our value of time with a vast array of calculations and applications included to help you spot trends or anomalies. It will obviously prompt questions on your side that needs more than one source of info from different aspects of your life.
This could include questions you would normally ask yourself about what you spend most of your time on, how much free time do you have been watching Netflix or being off ill for example. How much time do you spend at work and what functions or projects do you spend the time on.
If you are a permanent employee in a company you need to take your wages including your annual leave, bonus pays etc into account when you want to work out what your hourly rate is. Remember you need to calculate it back to your nett pay after taxes and deductions. Once this calculation has been done, you need to calculate your rate per hour times the number of hours spent working.
The rate per hour is not your rate divided by 24 hours a day. Most working hours are between 8 and 12 hours a day but a good average to use is 2500 hours per year. It all depends on the amount of hours you work per day. It is not all standard logic, due to labour legislation in different territories and also the type of industry we are working in.
If you are a small business owner, your hours of work will fluctuate based on demand, deadlines and your clients. This is a more complex calculation and therefore you will have to record your hours more accurately.
You will also have to take into consideration your travel time associated to get to work and home and all other travel time in your daily routine. You would need to calculate all variables into this equation to get an accurate time study and to calculate your value of time. Lawyers, estate agents and auditors also factor in cost of travel in addition to time spent.
There are numerous online time tracker applications available that can assist you in calculating your time and money spent. It all depends on how accurate and in depth you would like to have this done and what it is you want to measure.
For me personally I use the value of time calculator to ensure that I am still market related with my costing and to ensure that I spend my time wisely on things that matter.
There are a lot of other benefits as well like which can include measuring things like how to spend your money and would it add time and financial value or if spending time on a specific item/project is considered non-essential.
So before you go off on your next venture start calculating what is it worth for you in terms of time and money (they are not mutually exclusive when it comes to business). Most of us go out there chasing the next best opportunity but is it really worth it to invest your precious time in this venture?
I always remind myself that time is the one thing that you can never get back so make the most of the time you have and spend it wisely. You will be pleasantly surprised at what you could learn about your time after doing these value of time calculations.
So ask yourself, are you on your way to become a millionaire? Well, apply the above science and see how much time it will take you to get there!
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