If we accept the adage "time is money," then how much is yours worth? Most people I speak to can't answer this question. To really understand the value of your time, and to provide some effective inspiration and motivation to do what's important, knowing how much your time is worth is absolutely critical.
Here's a simple formula to give you that number.
First, decide how much you want over the next twelve months. Perhaps it's $260,000. That seems like a good start.
Next, take the number of 8 hour business days you should spend on being productive in your business. For most people this is 250, which is 50 of the 52 weeks in a year. I think it should be around 220, because you deserve more than two weeks of vacation per year, but you can adjust this formula over time. Starting with 250 eight hour days, we have 2,000 hours.
At this point, $260,000 divided by 2,000 is $130 an hour. This sounds nice, but it's wrong. The reality is that even top CEOs have said they're lucky to have one truly productive hour in a day. It's what you do during that productive time that is building your wealth. The hours you spend on the phone, doing email and playing with your Blackberry are not likely to be producing any of that wealth. It's just important to put that time into perspective.
To be very generous, let's assume that maybe two of your hours are truly productive each day. Use a multiplier to factor this in. Multiply $130 by 4 to give us the value of your two productive hours a day. That's $520 an hour.
Why is this number important? Many people will blow through the day doing nothing but busy work. Maybe on some level it "needs" to get done, but it's not the work that is growing your business or your net-worth. If you get to the end of the day and you never spent any of it on the truly important stuff, then you just threw away that $520 an hour. Maybe you should invest in some time management courses.
Perhaps you want to make a million dollars this year. If so, each of those two productive hours a day are worth $2,000 to you. This mindset is critical if you want to be the person in your dreams. You can still talk to your friends. You can still go to the movies. You can still sleep in late, once in a while. But know that during each business day, you have opportunities to develop business that will be gone at the end of the day. Are your dreams worth two productive hours a day? If so, treat them as if they're worth it.