What Is Your Financial Worth?
Thursday, March 4th, 2010In order to be productive, you need to familiarize yourself with a formula that will allow you to calculate your financial worth at an hourly rate based on the upcoming year’s projected income. The results of this calculation will open your eyes and be able to realize the importance of knowing your financial wealth in an instant. Once you do this exercise, you will look at your daily schedule in a whole new light and become aware of all of the time that is being wasted.
Assume that your target income for the next year is $400,000. A single year consists of fifty-two weeks, but you should allow a couple of weeks for vacation, holidays, illness, etc. So, let us say that there are fifty working weeks in an entire year. Each workweek is made up of five working days, so there are two hundred fifty workdays in a single year. At eight hours per day for two hundred fifty days, we get two thousand working hours per year.
Divide your projected income by the number of working hours and you come up with $200 per hour. However, this is not all there is to it. Out of the two thousand working hours, only one third of your time is spent producing revenue. That knocks your hours of productivity down to around six hundred sixty-seven. It is okay to round up to six hundred seventy in order to keep the formula simple. That means that your financial worth is close to $600 per hour.
Once you know your financial worth, you will be able to use that knowledge to improve your wealth creation strategy to ensure you are well on your way to financial freedom. Knowing what you are worth gives you a base to work from so that you are able to manage your time in the most profitable manner.
Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 – 2010
