If you were on an overbooked flight, how much would it take for you to take a flight the next day? $500? $800? $1500?
If you’re a doctor, on a United flight in Chicago, and absolutely had to be somewhere the next day – the answer is “infinity.” Or as United showed us last week, the cost will be in the millions after they concussed a passenger before bumping him.
Here’s the rub – we all have a price. If United offered him $10,000 – he might have taken it. Delta does a clever thing where they ask for volunteers and just starts paying them. How novel.
But how much do you ask for? How much is your time worth?
It’s often said that time is money but that’s backwards. Money is time. We have a limited amount of time on this earth and when you have money, you control more of your own time.
If time is money, can you quantify the value of your time to make better decisions?
I start with the value of a “work hour” and then triple it.
To get the work hour value, I calculate my take home pay (salary minus taxes and payroll deductions, accounting for deductions) and divided by total hours worked – 2,000. If you want to use the total number of hours in a year, divide by 8760 (365 * 24).
Jim Wang of Wallethacks.com is a thirty-something father of two who has been featured in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money. He can show you the philosophies, strategies and methods he used to become financially independent and free to pursue what was important.