You probably know your bank account balance, your credit card limit, your employee number – but do you know your hourly worth? If you don’t it’s time to find out. Your hourly money wage can help you understand how to best allocate your time in order to save money and live a financially healthier life. Here’s how:
1) Go over last year’s tax record to find out how much you made in the entire year after deductions and taxes. Divide this time by 8760 (the number of hours in a year) to understand how much your overall time is worth. Next, divide the amount you make by 2022 (the number of work hours in a year, assuming a 40 hour work week and two weeks of vacation). This is your work wage.
2) Evaluate. Take a look at your two numbers. Do they make you happy or horrified? If it’s the latter, now you have the motivation to do something about it. Consider all the things you do with your time. Is it the worth the price tag on your time?
3) Delegate. Consider all the things you can delegate for less. For example, if you are in sales and work on a commission but spend a lot of time on phone calls that don’t make sales, maybe you can delegate these calls to an assistant for $10 an hour. This leaves you with more time to make money and increase that working wage.
4) Plan. Now that you know how much your time is worth, it’s time to make a plan that can bring in more cash and make your time worth more. Maybe you can budget or pay down those signature loans to increase your real take home pay. Make a list of things you can do now.
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