Recently I was talking to a successful entrepreneur and we got to discussing the precious nature of time. Once the business or entrepreneur has all the financial resources needed, time becomes even more valuable. On the individual front, there are always requests for time-related things: coffees, lunches, panels, events, conferences, etc. It’s easy to set up a personal schedule with tons of meetings and not accomplish anything.
Now, when thinking about time as a precious resource, the logical way to quantify it is to determine your hourly rate. A great hourly rate estimate for time is as follows:
Take your annual compensation for last year (e.g. $100k), divide it by two and drop the thousands, and the result is your hourly rate (e.g. a $100,000/year would be $50 per hour).
So, the next time someone asks for an hour of time and you’re unsure about the value, think about the hourly rate and where best that time is spent.
What else? What are your thoughts on time being precious and the hourly rate as part of the opportunity cost?