Productivity Tip # 3: Know how much your time is worth!
“You don’t get paid for the hour. You get paid for the value you bring to the hour“. – Jim Rohn
How much is an hour of your time worth? Easy calculation is to divide your annual salary by 2000 hours. For example, a $50,000 annual salary means your hourly worth is $25/hr. This is a simple calculation that does not take into account all the work related activities that people do. To get the actual worth, here is a calculator provided by MSN money which takes into account many factors that are mostly straight forward. For two of these factors please add some additional time as shown below. Trust me on this!
- In the “Work-related reading each week” box, please include the blackberry time. For blackberry use Heavy Usage – 8 hours, medium 4 hours and low 2 hours.
- In the “Work-related socializing each week” box, please include the cool-off time. This cool-off time could be playing video games or watching TV or complaining about work to friends & family, or all the these. High stress – 8 , medium – 4 and low – 2.
Value of the exercise
Since knowledge is power, knowing the true worth of one hour of your time can empower you. Empower you to make some decisions on how to better utilize your time. Motivate you to spend time more productively.
Credit for this tip:
The idea for this blog post came from the book “Your Money or your life” by Vicki Robin.
What are your thoughts and feelings after doing the exercise ? Did this tip help you in understanding the true worth of an hour of your time?