The Money Value of Time

Written by Elena Fawkner

The Money Value of Time

2002 Elena Fawkner

You have, no doubt, heardrepparttar phrase "the time value of money". It means that a dollar in your hand today is worth more than a dollar in your hand a year from now. Why? Because of what you can do with that dollar overrepparttar 117740 next year. You can invest that dollar in an interest bearing account and have $1.05 atrepparttar 117741 end ofrepparttar 117742 year. If you decide to take your buck in a year, your opportunity cost (foregone investment) will be five cents. Not to mention what inflation will have done to your purchasing power in repparttar 117743 meantime.

As interesting asrepparttar 117744 time value of money is to economists and financial planners, if you're anything like me, you probably findrepparttar 117745 whole subject just a little short of riveting. So here's something more interesting to think about. The money value of time. Your time, that is.

Why do you need to think aboutrepparttar 117746 money value of time? Because, quite simply, once you truly understand what your time is worth, in dollar terms, you will work your business more productively and efficiently than ever before.

In my other life, I'm an attorney. I work for a downtown Los Angeles law firm and, like any other law firm, what counts is how many billable hours I clock each month. We have software to track it all for us of course. My time is charged out at $250 an hour. In a minimum of six minute increments. This means that if I so much as pick up and read a one paragraph letter from another attorney, my client is billed $25.

Spend enough time tracking your time like this, getting torepparttar 117747 end ofrepparttar 117748 day and needing to see at least seven billable hours totaled on your computer screen and you soon develop a very healthy respect forrepparttar 117749 dollar value of time.

And because I don't want to have to be atrepparttar 117750 office for ten hours before I've generated seven that are billable, let me assure you I work very efficiently indeed.

Inrepparttar 117751 process, I've become an expert at avoiding time wasters and unproductive activities. As a result I can usually generate seven billable hours from being inrepparttar 117752 office for only eight. (The other hour is unavoidable non-billable general admin type stuff.)

My point? Start thinking like an attorney when it comes to how you value and spend your time. Here's how.

First, decide what level of income you need from your business. Forrepparttar 117753 purposes of our example, let's say it's $52,000 per year or $1,000 per week.

Next, decide how many hours you want to work each week. To keeprepparttar 117754 math simple, let's say you're going to work 50 hours a week. Therefore, on average, you need to generate $20 for every hour of time you spend working in your business.

But not all of your time will be revenue-generating (i.e., "billable") time. Any business has its share of non-billable time - those routine administrative tasks that must be done even though they make no contribution to your bottom line.

So, now you have a choice. You can either work more hours each week to cover your non-billable time, or you can increaserepparttar 117755 amount you need to earn from every billable hour. The first option means working longer. The second option means working smarter. Your choice.

Whatever you decide, keep that hourly rate firmly in mind. Every hour of your time is worth $20 (or whatever rate you have calculated for yourself).

Think about that whenrepparttar 117756 phone rings on a work day and it's your sister wanting you to go with her torepparttar 117757 shopping mall this afternoon. There's three hours or $60 you've just thrown away (not to mention what you spend atrepparttar 117758 mall!). Tell her you'll go with her on Saturday instead. You have to work today. Think twice aboutrepparttar 117759 hour and a half it will take you to do your errands this afternoon. Another $30 gone. Do them on your own time, not your business's.

"Success is an option, it takes work and sweat!"

Written by Jonathon Ford

"Success is an option, it takes work and sweat!"

You read lots of books about ?how to make millions? online; how to make a 6 figure income from home in your pajamas, work only 2 hours a day ? and manage to have a vacation onrepparttar beach every other month, learnrepparttar 117739 secrets of success... you get motivated and then it fizzles out like a wet firecracker.

You work hard duringrepparttar 117740 day to make ends meet; you study at night to see if you can raise your standard of living, to buy your wife that little extra... You study these ?fabulous offers? that are going to make you rich and give financial independence.

Most of us don?t even come close to making a few bucks online, you read so much hype you don?t know who to believe and who is really ethical. Scams abound onrepparttar 117741 Internet. Still, you apply for some ?free? information from another cyberdude who is gonna make us rich overnight, promising you allrepparttar 117742 wealth and fun onrepparttar 117743 beach forever. But, like gossamer, that also comes to zero.

You then wise up a little and become selective and perhaps do a little evaluation on specific areas, maybe it is on e-books "How to get a stampede to your website!" Get your copy now.

You think "Well, lets try this, it is only $50, it can?t break me." Everybody else seems to be making big money on repparttar 117744 Internet.

"What about affiliates? Should I be selling there?" No, you think, people get ripped off being an affiliate... MLM? Ha!

It sounds so logical, you apply for this e-book and you?re gonna make $5000 per month doing absolutely nothing. You?re gonna put your business on autopilot asrepparttar 117745 script says, sit back 24/7 and watchrepparttar 117746 loot roll in. By now you know it isn?t quite real, it sounds falser than a weeping croc.

You begin to make a concerted effort and apply allrepparttar 117747 information in hope. Step one... your wife is looking over your shoulder, she wants to know why you are spending so much time onrepparttar 117748 computer. "My dear, I have got to get something going, I might lose my job tomorrow."

It?s midnight and you decide to call it quits until tomorrow. At 6.0. am you wake up andrepparttar 117749 first thing that comes into your mind isrepparttar 117750 Internet "Have I donerepparttar 117751 right thing? Should I be doing something else?" There is a lot of effort going into this project and then those awful thoughts creep in, "Can I really make money online?" "Maybe I can?" There is so much uncertainty.

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