$$ How Much is Your Time Worth? $$

We all know the saying, time is money. But what does that mean? How much is your time worth?

Time really is a commodity.  It is something we can’t control for flow and gather. It just happens. And we have to learn to use it wisely because once it is gone, its GONE.

So lets break this down in the view of money.

So your boss wants you to finish a project ASAP because time is money. Well if your company makes a profit of $1,000,000 a week, well every hour you spend in a week is worth $5,952.38 to your boss. That’s a $1.65 a second. So I can understand why companies don’t want you quickly twittering.

But what if we don’t work for a big profit company? How about a non-profit organization? Does that mean my time is worth less?

Lets look at it this way. Say you work for a company that helps kids off the streets. Your salary is $40,000 and you work 40 hours a week. If you work about 250 days a year at 8 hours a day, you make about $20 an hour. For the price of a take out dinner, you help someone change their life. Does that $20 feel just as heavy as $5000 when you put someone’s life in the mix? Something to think about.

Let’s try the statement “it was cheaper to buy that then make it”. Let’s take an example of making a meal. Besides the cost of ingredients, lets break down the time to make it. So if it takes 3 hours to buy, prepare and cook your meal, how much does it cost? If we want to look at it in a only income view, if you make $35 000, each hour is about $4. So $12 plus cost of ingredients. So if it cost $20 for the ingredients, plus $12 for time that equals $32 for the meal. $32 –  could you go to a nice restaurant for that? What if that meal also gave you leftovers to last 3 more meals?  Now that meal only costs $8 dollars. Less than what you make an hour. Which then means you save $4 dollars to put towards something. (Ha the understanding of Saving!)

Now back to the point of adding a moral to it. How much of that time you spend is priceless? Like the times you spent with your grandma making lemon meringue pie or homemade perogies? Priceless.

Or how about when you multi-task in your hour. So you do laundry while cooking your food. Or maybe while your laundry is going, you write that article for that online newspaper you get paid for. How much is your time worth now?

Now for you students, tuition is expensive. But lets break it down for you. Say your tuition is $12,000 for 2 years. You may spend 20 hours in class. And another 20 hours on homework, studying, reviewing, worrying. So you have a 40 hour week. In the 60 weeks you are in that program, each week is work $200. That is $5 for every hour you spend focusing on school. It does still sound expensive.

But if that education pays off with a little better lifestyle for 10 years. Could you take that tuition and divide it over 10 years? Would looking at it long term make a difference?

Truely, time is invaluable. We could look at time in many different ways. One way is in this YouTube Video about looking life in Jelly Beans.  But its interesting to break it down like this.

So how much is your time worth?

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5 Comments

  1. That a very creative way of dealing with the time is money issue. How much is my time worth, hmmm. Well I think my time is worth the amount that I think it is. That’s a very vague answer but it is very true. I don’t think there is a set exchange rate, rather the exchange rate is fluctuating wildly and it can be worth more at sometimes and less at others. I also wrote a post about time and how it affects you, not exactly related to money but you might find it interesting: http://wp.me/p4p8vL-5p (If you don’t mind the slight plug 🙂

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