Feb 25, 2016
For a successful undertaking it is always important to keep track of your finances. This analysis of your situation would allow to understand at what stage you are at the moment. Where you want to be. What you want to achieve. If you have a goal, for example, you want to buy an apartment, then you know how much you need to earn. By analyzing some parameters, you can determine how close your goal is to reality.
In this article we will talk about how much your time costs. There are two ways to measure this parameter. I would call them a desirable one and a real one.
- The desired way is when you set the price of a service. For example, you say that an hour of a photoshoot would cost $100. Alas, this does not mean that your time is really worth that much. We can say that this is the "external" price which people are willing or not willing to pay. But, firstly, apart from this hour of shooting you'd have to process the footage and pay the expenses like Internet, electricity, depreciation of equipment, transport, etc. Secondly, you do not have all your working time packed with orders for which the desired price is paid.
- The real way of measuring the value of time is the following. For example, monthly income or salary is $2000. There are 22 working days in a month. Divide one by the other and you get about $90. We divide this number by 8 standard working hours and receive just over $10 per hour. This is the real value of your time at the moment.
As you can see, the difference is quite noticeable. But how is this information helpful apart from satisfying curiosity?
In fact, achievement of any kind of goals requires planning. I'm talking about big goals. If you do not plan and analyze where you are going, it may be problematic to achieve a big goal like buying a house or a car. Because resources will be wasted inefficiently in the course of overcoming the long path to the goal.
Let's say you decided to buy an apartment and it costs $90 000. You want to do it in three years, so you have to save $30 000 a year for it. Apart from this you must eat and spend money otherwise, that's what life requires. Based on this, you can calculate how much you need to earn. Then you determine how much you already earn now. After some calculations you will be able to compare the desired with the reality and draw conclusions. If everything is great, I sincerely congratulate you. If you need to start earning more, you can easily calculate how much you need to increase your income by and start making plans to build new revenue streams, reduce expenses, mprove current sources of income.
Thus, you can calculate the cost of your hour at any moment of your life and compare it with the desired cost, and to take, if necessary, measures in order to correct your movement along the path to your goal.
Why is it better to pay attention to how much you receive an hour, rather than monthly income? It is better because it's more accurate statistics, while the monthly income is a little more general. In life you sometimes need to make decisions more often than once a month. In the initial stages it may be once a week or even every day.
In addition, working with stock agencies, you get money continuously - while sleeping, eating, walking, showering and so on. Therefore, hourly statistics will be more convenient.
To ensure that this information is useful, we recommend that you also read the posts on the topic of planning, personal budgets and other posts on topics about philosophy of life and business, which are already in our blog and more will be added in the near future. Therefore, in order not to miss this information, subscribe to our blog!
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