Understanding what our time is worth allows us to make more informed decisions regarding our time and money. Your hourly rate informs your decision to DIY a project at home, determine whether you’re spending too much time searching for a deal, or whether its time to negotiate a raise or other benefits at work. Your personal hourly rate shouldn’t be the only consideration but understanding the relationship between our time and money will allow us to live more meaningful and optimized lives.
And calculating what your hourly rate is as simple as taking your annual salary and dividing it by the total number of hours you work a year. So for example $50,000 / 2,000 hours assuming you might work 40 hours a week and take a couple weeks off, so 50 weeks total. That get’s you a gross hourly rate of 25/hr.
However don’t forget to take into account the additional time and expenses that you incur because of your job and you can easily see your hourly rate dip below 20/hr! Admittedly this portion of the calculation isn’t as straight forward, but is also the type of exercise that is helpful when it comes to calculating what our time is actually worth.
During this episode we enjoyed a Seismic Positivity by Pipeworks Brewing Co which you can find on Untappd. A big thanks to Russ here in Atlanta for donating this beer to the show! And if you enjoyed this episode, be sure to subscribe and give us a quick review in Apple Podcasts, Castbox, or wherever you get your podcasts- we’d love to hear from you.
Best friends out!