How Much Is Your Time Worth?

by Ramona Creel

Learning How To Quantify

When you were a kid, you probably didn't think much about what it took to earn money — you just asked for what you wanted and somehow, mommy and daddy made it happen. You didn't worry about what stuff cost, and you didn't understand when someone told you it was too “expensive.” Then you got an after-school job or started working for your allowance — and I'll bet you became a lot more discriminating about what you did with hard-earned cash!

It's the same with time.  Very few people really know what their time is worth, in concrete financial terms. They just go through their day on autopilot, wondering where the hours go. Until you recognize that your time is intrinsically valuable, you will never be able to make informed decisions about where your effort is best spent.  Here's a general guide illustrating how much an hour of your time is worth, and how just one hour a day (spent poorly or wisely) adds up over a year's time:

YOUR
ANNUAL INCOME
WHAT ONE HOUR
IS WORTH
ONE HOUR PER DAY
FOR A YEAR
$25,000 $12.61 $3,125
$40,000 $20.49 $5,000
$50,000 $25.61 $6,205
$75,000 $38.42 $9,375
$100,000 $51.23 $12,500
$125,000 $65.10 $15,884
$150,000 $76.84 $18.750
$175,000 $89.65 $21,875
$200,000 $102.46 $25,000
$250,000 $128.07 $31,250
$300,000 $153.69 $37,500

** Based on 244 working days per year

You can always look at delegating in terms of the biggest financial payoff. When I hire someone to take care of an item on my not-to-do list — and I pay them $25 an hour while my hour is worth $60 — I'm coming out ahead. The same is true when I can hire someone to do a task in a half hour that would take me 3 hours to complete. I can be focusing on higher priorities — things that feed my soul or grow my business or let me know I'm alive — without worrying that the work isn't being done.

© Ramona Creel, all rights reserved. Ramona Creel is a modern Renaissance woman and guru of simplicity -- traveling the country as a full-time RVer, sharing her story of radically downsizing, and inspiring others to regain control of their own lives. As a Professional Organizer and Accountability Coach, Ramona will help you create the time and space to focus on your true priorities -- clearing away the clutter other obstacles and standing in the way of that life you've always wanted to be living. As a Professional Photographer, Ramona captures powerful images of places and people as she travels. And as a travel writer, social commentator, and blogger, she shares her experiences and insights about the world as we know it. You can see all these sides of Ramona -- read her articles, browse through her photographs, and even hire her to help get your life in order -- at www.RamonaCreel.com. And be sure to follow her on Twitter and on Facebook.