Time Management - Determining How Much Your Time Is Really Worth - part 1

Not all uses of time are equal and this simple truth can make a big difference in life. This article of 3 parts explains how to figure out what your time is worth and use that information to spend your time more effectively.

People who spend their time effeciently

• doing more profitable work - make more money
• investing in others - build better relationships
• creating a flexible career - enjoy more freedom
• working on high-impact projects - contribute more to society

It all comes down to how you spend your time

• more wealth
• more friendship
• more freedom
• more impact
• and others too (health)

Understanding how to get the most out of your time starts with knowing—in exact terms—what your time is worth.

On extreme ends of the spectrum, it is easy to know if a task is worth your time. The problem is: most of life is lived in the gray zone of the time-value spectrum. Most people base their decisions on gut feelings or guesswork and never calculate what their time is actually worth.

Example:

• Should you pay your neighborhood teenager $20 to mow your lawn so you have an extra hour free on the weekend?
• Should you spend this week working with a client that will pay you $2,000 right away or working on a business idea that could generate $20,000 over the next year?

I tracked every hour I spent over a three-month period and calculated the value of each hour using six different equations.

You can use this spreadsheet to plug in your numbers and get an immediate value for your time. (Free download: The time-value spreadsheet). I will be referring to this spreadsheet throughout the remainder of the two remaining parts (Part Two and Part Three) of this article and I would like to kindly invite you to read them as well.

Part 2: http://www.budapestoffices.net/time-management-determining-how-much-your-time-really-worth-part-2

Source: http://www.entrepreneur.com/article/269922, originally appeared on JamesClear.com