Previously we calculated how much we are really worth per hour and how it is far less than we thought. Now I hope to pull it all together into a usable concept. Believe it or not, figuring your true hourly wage is all about debt. Doing this exercise will help you get, and stay out of, dept forever.
In early January I pulled into the circular driveway of a ritzy resort in Santa Barbara and I wasn’t sure if I was going to stay or not. I left my car keys with the valet guy and he asked, “will you be staying sir.” I had no idea. He said, “you may self-park and you don’t have to use valet.“Perhaps it was my indecisive comment or maybe my standard uniform (shorts and flip flop) that didn’t fit in at the ritzy resort.
If you’ve followed my writings for a while, you may have noticed my slant on financial planning is less about money and more about a rewarding and satisfying life. Money is a necessary part of life, but not the purpose of it.
Sometimes we get so focused on earning money, that we forget what that money is for. Here’s an old tale that always brings me back to reality when it’s easy to miss the forest for the trees.
In my previous post I suggested that the hourly wage your employer trades for your life is worth far less than you think. In this post I’m going to help you get a better handle on what that number really is. To correctly estimate how much you’re worth per hour, you need to first calculate how much time you spend doing things for work that you don’t enjoy or wouldn’t do if you didn’t have to.
Have you ever wondered how much your life is worth? I’m not talking about your net worth, which is the value of everything you own minus your debt. I mean how much you’re trading your life, in exchange for your employer’s money? Strange idea, isn’t it?