How Much Time Is It Worth?
Time is money, goes the saying. Too often though, we don’t think of the reverse as being true as well. But of course it is, because we give up our time to earn money.
One way to put the value of your time in perspective — and to get a feel for what’s important to you — is to calculate how much of your time you have to give up in order to buy something.
To figure that out, start by determining your take home pay per paycheck. Next, see how many hours you work during those two weeks, including your commute time, in order to earn that money. Then divide the amount you take home by the number of hours to find your hourly dollar amount.
For example, if you bring home $1384 every two weeks and normally spend 50 hours a week working including your commute, $1384 divided by 100 gives you $13.84 per hour.
That means that every $13.84 you spend is costing you an hour of your time.
At that rate, if a meal out costs you $30 including tip, then you’re working a little over 2 hours of work to pay for that meal. That might not seem too bad, because the work you do is distanced from the money you spend on the meal, but what if it wasn’t?
If you had to go work those two+ hours immediately before you could go out to eat, would it still seem worthwhile to you?
It’s worth giving some thought to, and adjusting accordingly.