Читать книгу There is always money! Boost your financial intelligence! - Vladimir S. Lavrov - Страница 3

Theory

Time is the most important and invaluable resource that cannot be bought, stopped, extended or prepared for future use. It just flows, but a lot depends on the efficiency of its use, both in work, and in creativity, and in business, and in relationships.

Therefore, it is important to immediately understand how much your time is worth. And then – to understand how to dispose of them wisely.

The cost of an hour of your time is one of the main indicators of the level of development of your financial intelligence (other key indicators of the level of development of financial intelligence are the scale of financial goals, delta size, and total cost of capital). The higher your financial intelligence, the higher the cost per hour of your time (as well as the scale of financial goals, delta size and total cost of capital).

To determine how much one hour of your life is really worth, take your monthly income and divide it by the number of hours you spend working. If you work for an employee in a government organization, then this is usually the standard 170—180 hours per month (provided that you live close to work and do not spend a lot of time traveling). If you work in a commercial structure or build your own business and devote more than 8 hours a day to work, then add the required number of hours to the standard working time, and then add to this amount the time you spend on the road to work and home, and then calculate the real cost of your time using the formula:

monthly income / working hours per month = the real cost of an hour in your life

Let’s say 30,000 rubles. / 180 hours = 166 p. in hour. Or 100,000 rubles. / 80 hours = 1250 p. in hour.

The cost of one hour of your life

Practice

Calculate the cost per hour of your working time using the formula above.

If you are a wage earner, take your monthly income and divide it by the number of hours you spend in a month working and commuting from / to work.

If you are working as a self-employed or sole proprietor, divide the cost of your services by the number of hours you work. If you receive money not for the result, but for the time (for example, you consult or teach with an initial reference to the cost of an hour), then take as a starting point the lowest cost threshold, below which you do not take on work.

If you are an investor (that is, you live on income from capital) or have several sources of income, then calculate the average monthly total income and divide it by the number of hours you spend per month working.

Remember the resulting cost of time. This is your point A (the point where you are right now). Think of what should ideally be a point B (cost of one hour of your time in a year), point B (cost of one hour of your time in 5 years) and point D (cost of one hour of your time in 10 years).

Results

Now that you know the value of your time, you can consciously spend your money shopping. Let’s say if you spend 500 rubles. per book, you understand that this price is equivalent to 3 hours of your work. If you need to buy shoes or a dress for 5,000 rubles, you understand that this price is equivalent to 30 hours of your work or 4 full working days. If you need to buy a sofa or a table for 15,000 rubles, you understand that this price is equivalent to 90 hours of your work, or 11 full working days.

So, when you spend your earned money on goods and services – you are actually spending small chunks of your life! Understanding this, you will not waste money just like that, buying what you do not need. You will begin to analyze not how much a given purchase costs in rubles, but how much it costs in terms of the time of your life. And then you will buy some important things despite the high price in monetary terms, and on the contrary, you will refuse some important things, despite the low price in monetary terms.

Homework