How Much is Your Time Worth

Think about how much your time is worth. If you’re having a hard time then think about how much you would like it to be worth, let’s say, in a year. How about $1,000,000 a year? That seems like a very comfortable number to me.

You could probably earn $1,000,000 in a lifetime, if you work 45 years continuously, but in 45 years that money won’t be worth the same as it is today. So how realistic is it to value a year’s worth of your time at $1,000,000?

Let’s break down the problem a bit. A million dollars a year translates to $19,231 per week. That means if we assume you’ll work 40-hours per week towards your goal then you would want to value each hour of work at $481. That’s probably a little more than you are making now, but it’s not a terribly unrealistic number.

Now let’s take a moment to analyze our daily routine. In a 24-hour period we can assume we’ll be at work for 8-hours, and asleep for another 8-hours. That leaves 8-hours to spare. If you commute 40 minutes each way to work then you are left with 6 hours and 40 minutes.

Those 6 hours and 40 minutes can be fizzled away uncaringly, without having assigned to them even a passing thought of their significance.

However, if to those hours we attach the same value, or even more value, than the time we spend at work, then that gives us more time to achieve our goal. Now, if we add some hours from the weekend, another 8 hours divided between the two days, then we have an extra 416 hours a years to dedicate to our goal. That would give us an hourly value of $401 per hour. Even more realistic than $481 per hour.

If you really want to get crazy and do the damn thing, each hour of your day, the time you’re sleeping, the time you’re cooking, eating, watching the kids — if you value each hour the same towards your goal, then you would only need to pull in $114.16 each hour of the day.

So there you go. Now you just need to figure out how to average $114.16 per hour for the next 365 days.

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