Everybody's life revolves around numbers: for some people their cholesterol level is the most important number. Others have in mind the number of years they've been doing something, or the grand total of their bank account. And there are people who count the years left to pay off their mortgage.
Your per-hour monetary worth is one of your most important numbers, no matter what are your values and priorities. Knowing how much your time is worth is important even if you are not paid by the hour. But if you know how much your time is worth, you will be able to make better decisions about how you spend your time so you can make the most of fit.
The higher your hourly rate is, the faster you can reach your goals, because you have at your disposal more resources. But if you know the dollar value of your time, it is easier to decide how to leverage it, so you can increase your hourly value and get the most out of your time management.
Your per-hour value is in connected to the quality of your life: it influences how much time you have for leisure, and how you spend that time. Your hourly value has impact on your health also: there are studies that show clearly that lower income means more health problems, because of the poor diet and the lack of medical care. Not speaking about the stress caused by making ends meet, which can lead to depression and other mental health problems.
The amount of money you make right now also influences your future: it is important to be able to save for your retirement account and other major expenses, such as buying a home or offering your children a good education. All these will add up and make you feel secure about the years to come.
By knowing how much your time is worth, can you define more easily what is the value of your personal time? After all, you work so you can have more personal time to spend with your family, children, hobbies, travel or education.
If you are able to assign a monetary value to your time management, you will be able to decide whether the extra money you will earn by working overtime will be worth giving up your time spent with your family? Can you quit your day job and stay home with your children? Can you afford to do volunteer work for one year? Or what is the fair price you should ask for a freelance project that eats up all your time for three months?
