How Much is Your Time Worth? by Pat Gras

With a new year upon us, it’s a great time to consider what our time is worth and if we are reaching that potential.  Are you earning what you really feel your time away from friends, family, hobbies, vacations and life in general is worth?

How do you calculate your work value?  How many dollars should you be making for your work time?

Let me share with you how I calculate it.  This year I intend to increase my income goal with my network marketing business to $300, 000.  Is that even realistic you ask?  Yes, in my company this kind of income is made adding just 1 new customer per week.

So with my goal set, I can now set to work figuring out how much my time is worth.  I expect to work about 50 weeks this year.  My business is totally mobile, so I can take it with me while I travel, so while I won’t actually be home that many weeks, I can work that many weeks.

Now, in those 50 weeks, I will be working an average of 25 hours per week.  That works out to 1250 hours per year.  If I divide that into my projected income of $300K, that makes my time worth $240 per hour.

What’s wonderful about this formula is that as my income increases, so does my hourly value because I work the same amount of hours per week because of leverage.

You can use this same simple formula to calculate your own hourly value.  Simply calculate the number of weeks you will work, multiply it by the hours per week that you work.  Then take the total number of yearly hours and divide it into your salary/projected income. 

You could find this to be a very eye opening exercise.  I know it was for me.  Now I place even more value on my time and focus diligently on my business for those few hours per week.

You may find that you are being highly under valued and it’s time to make a change or you could be pleasantly surprised to find out that you are earning a great hourly wage and may just want to increase your focused time to increase your income.

Whatever your conclusion, take the time to evaluate where you are at and choose your financial destination.