Putting a Minimum Dollar Value on Your Time
Your time is a non renewable resource. Meaning that you have a finite number of minutes in your life, and that’s it.
Money is a renewable resource. Meaning that it’s invented by people and theoretically, there is a limitless supply of money. We can always print another dollar. You can always earn another dollar.
However, unless you’re living off the grid, you need some amount of money to buy food, housing, clothing and other necessities.
The first step is to be actively aware that your time has value. Each minute. You are on a clock and will expire. The second step is to be aware that you have windows of opportunity in your life that are finite. They expire before you do. For instance, if you want to have children, you can only reproduce up until a certain age. As you get older, it becomes more difficult to change career path and make other life changes as well.
So be very careful when selling your time for money. You should determine a minimum amount of money you would sell an hour for. Then factor that into your job. If you can make $100 per day, but only work for one hour, that may be smarter than working 8 hours per day to make $150. Your goal then is to find a way to sell a second hour per day. You can then work two hours per day and make more than another opportunity would offer which requires you to work 8 hours per day.
While in some instances you have to do what you need to do to get by, your goal should be to maximize the value of your hours but building certain expertise, gaining certain certifications and building your personal brand to help you sell your hours for what you think they’re worth.
And you should try to build expertise doing tasks you enjoy or at least doing tasks you don’t hate to maximize the perceived value that you feel from accomplish work related tax.
The other piece to consider is cost of living. If you live in a city where you can buy a house for $50,000 compared to a city where your house costs $500,000, the length each dollar will reach increases dramatically. The value of $10 in the city where a house costs $50,000 is greater than the value of $10 in a city where a house costs $500,000.
Money is a relative thing. Its value is fluid and changes by location, by comparison to other assets (like housing, stocks, bonds, candy bars and other items).
So the location you are in should be a factor in calculating your minimum hourly rate.