Calculate your hourly rate

Everyone knows the saying “time is money.” But how much money is your time actually worth?

 

If you are in professional services, consulting or another sector where you charge by the hour, you probably know exactly how much an hour is worth.

 

But if you’re not in one of these professions, it’s pretty easy to calculate. Just take your profit (or the profit you’ve forecasted) and divided it by the number of hours your work each year (you can figure this out by multiplying the number of hours worked each day by 50, for the weeks you work in a year).

 

So if you make $200,000 in profit and work 2,750 hours a year (55 hours a week by 50 weeks) then each hour you work generates $72 in profit.

 

This will make you look at things in a much different light.

 

For example, how many hours can you afford to spend doing your own books rather than meeting with new customers? If you generate $72 an hour in profit, spending $60 an hour on a bookkeeper suddenly looks pretty smart.

 

I bet this simple figure makes you look at your time management in a very different way.

 

Get it done – today!

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