InSPAration Moments • Bright Idea – September 2020

Do You Know Your Value Per Hour?

Time vs. Money Calculate Your Labor Rate


Most people go to work everyday and average 40 to 50 hours per week. That is about 2,500 hours per year, including travel time to go back and forth from work.  This is the amount of time you spend to earn money and earn a living.

To calculate the value of your labor per hour, simply take the amount of money you earned last year and divide it by the number of hours you worked.

  • If you made $100,000 last year, your time’s value is $40.00/hour.
  • If you made $500K last year, your time’s value is $200.00/hour.
  • If you made $1 Million last year, your time’s value is $400.00/hour.

Why is it important to know
your value per hour and your labor value?

Let’s say your time is valued at $200/hour. Is it worth it for you to:

  • Clean your own house when a housekeeper hourly value is only $15.00 per hour?
  • Wash your car when the car wash can do it for you?
  • Buy cheaper airfare with several connections to save $100?

Once you know how much an hour of your time is truly worth, you can make better financial decisions daily.

For the next couple of weeks, watch where you spend time and what work you are doing. Don’t labor on work that is below your hourly value. If you catch yourself doing that, stop and ask yourself, “To whom can I delegate this work to?”

Doing this will allow you to spend your time on the most important work you should be doing.

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