How Much Is Your Time Worth?

6

“Time is money” as the old saying goes. I’d have to say I think my time is worth quite a bit, but how much exactly? I never really thought about quantifying it before until I came across this calculator by Clearer Thinking. 

Wait, why does it even matter? Well, putting a number value to your time may help you decide whether it’s better to do something yourself or to hire someone else to do it. It may help you to decide whether it’s worth it to pick up that extra case or shift or give some time up and work less.

Well, I took the slightly long survey and I have to say, I enjoyed seeing the results.

Here are some of the fun things they reported:

  • My time was worth > $175/hr (Wow!).
  • They recommended based on this value that I delegate a good amount of tasks to paid help from time to time to free up some more time.
  • If I’m considering waiting in line for 20 minutes to get something free, ask myself whether I’d be willing to pay $58.37 for that thing. If not, I probably shouldn’t wait.
  • If I have the chance to save 30 minutes by taking a cab instead of the bus, I might want to do so, as long as the cab costs no more than $87.56 more than the bus.

What I learned:

  • My time is worth more than I would’ve guessed.
  • I’m probably wasting more time on certain things than I should and should definitely consider delegating or hiring out more.
  • I’ll probably never wait in line for anything free ever again. Goodbye free scoop day at Ben & Jerry’s!

Obviously this is just a tool and not something I should live my life strictly by. However, I found it extremely interesting and it will make me think twice about how to best to use the limited time in my life.

How much is your time worth? Is the value of my time ridiculous to you? I’d love to hear…

6 COMMENTS

  1. I think $175 is just a starting point. Your time will be worth MUCH more in the coming years, especially if some of your side gigs take off. Which also means that when another venture comes up (or when you do some real in depth analysis on a bunch of small investments) be mindful of your hourly rate.

    Fun question… is your household budgeting worth $175/hr?

    • Great advice. $175 seemed high but I hope it’s worth more as time goes on. For some reason some things seem worth it for $175 and some don’t. To be honest, my strength is not in budgeting and I’ve been working on it. However, maybe I should outsource that?

  2. Great article. I love pointing out the obvious so please forgive me. Isn’t it true in your valuation only if you could choose to spend the time you buy/reclaim doing that high paying work?
    I can’t do an extra 5 minute surgery. An ER doc can’t choose to do a 5 minute shift. So our time is only worth $XXX to the extent that we can time shift and aggregate all these short cab commutes and paid trips to Ben & Jerry’s into an extra work unit of time…
    So I think your point is only true some of the time or for some jobs

    • Sorry for the late response, was enjoying a nice trip away.

      I think I know what you’re saying – you’re thinking of time value in terms of the replacement value at that very moment.

      I think it’s more of a principle for the way you see your life & time. It just helps to put a numerical value to your time so you can try to figure out how to best utilize your most precious resource. It also helps to have some side hustles and ways to make more passive income so you can replace that time you would’ve spent waiting in line at the apple store and do something productive with it if you want. This shift in mindset has been a game changer for me. I’ve started delegating far more tasks and as a result, it’s freed me up not to work more, but to simply do things I enjoy more, like spending time with my family.

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