How Much Is Your Time Worth To You? Here’s How To Find Out!

how to value your timeWe all have the same amount of time every day. There are only 24 hours, 1,440 minutes or 86,400 seconds in a day.

To my knowledge, no one has figured out how to manipulate, slow down or make more time.

No one has informed me, or anyone I know, of a fancy time machine that can take us back in time, either.

That means we’re limited in how much time we have every day, week, month and year.

No one knows how much time they have left on this planet, but we all know that our time is finite.

To me, that makes time one of the most valuable things anyone can have in their lives. An abundance of time would make anyone richer, instantly.

We all value the time we have left in different ways. Unfortunately, many people do not realize how valuable our time really is. That’s why you must go through the exercise of figuring out how much you value your time.

How To Value Your Time

Most people assume time should be valued in a monetary fashion. If you follow that line of thinking, you need to figure out how to go about setting a dollar amount that each hour is worth to you.

Most people automatically think of their pay rate at their job as how to value their time. To figure out if that is how you value your time, ask yourself if you would work an additional hour at your job at that rate if you were given the option.

Related: Would You Endure Misery For A Six Figure Job?

If you say you would work that extra hour, your time is worth your hourly rate or less. If you say no, figure out how much you would need to be paid to work one additional hour. That amount is what your time is worth.

Of course, you probably would not work an additional 40 hours (a total of 80 hours) at that hourly rate. For most people, each additional hour would have to be paid at a higher and higher rate, as each hour worked takes away from your free time.

Related: Is It Worth The Effort To Work Two Full-Time Jobs

That means that your time probably doesn’t have a flat hourly rate. Instead, your time is valued based on how much free time you have.

You would also want to consider any costs that would be associated with the extra time you work and add those in to your value as well. Whether you’d have to commute to work an extra day or end up buying a prepared meal for dinner, these costs should be considered, too.

Can Time Really Be Valued In Terms Of Money?

Others would argue you can’t value your time in a monetary fashion. Time is inherently too valuable to assign a dollar value to an hour. Instead, time should be valued based on things like experiences.

In this valuing system, you would come up with a hierarchy of how you would ideally spend your time and try to spend the most time doing the things toward the top of your time value list.

Related: Things or Experiences? Which Is A Better Use of Your Money?

Once you have stashed away enough money to spend your free time how you wish, you would quit trying to earn money in order to spend your time doing those more valuable things.

However, if working or doing something that earns money is your highest valued way to spend time, you could work constantly. Some of these people are workaholics while others are extremely driven by a passion project.

Using Your Time Value To Make Decisions

After figuring out how you value your time, you can use that new found value to put things in perspective. Figure out if you’re really spending your time the way you want to.

If you aren’t try to brainstorm ways you can spend more time doing what you wish to while still being able to financially support yourself and your family.

This may mean sacrificing some of your time up front to build enough wealth to become financially independent so you never have to work another day of your life. Alternatively, it may mean giving up fancy cars and taking a job that doesn’t require you to work as many hours.

Life is full of choices. What you do with your time is one of them. Will you be a slave and give away your time for things you don’t really value just to impress others? Figuring this out early will open your mind up to limitless possibilities.

What are your priorities? What do you want to spend the most time doing? Do you have to sacrifice by trading time for money to make things work? Or do you enjoy what you do to earn money to the point where you want to spend time doing it? Let me know your thoughts in the comments below.

Photo by: stuartpilbrow Text added by: Lance Cothern

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About Lance Cothern

Lance Cothern, a Certified Public Accountant (CPA) licensed in the Commonwealth of Virginia, is the founder of Money Manifesto. You can read more about him here or connect with him on Facebook, Twitter, Google+ or Pinterest.

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