Time is money. If you want to run a profitable business, it’s really necessary to know what your time is worth. Otherwise, you’ll end up losing money or working to exhaustion.
This is a problem for a lot of freelancers face.
This tutorial will take you through a simple method for calculating the value of your time, which in turn will help you make better decisions and earn more.
Why It’s Important to Know What Your Time Is Worth
I recently wrote a tutorial on when small businesses should hire an accountant. The value of your time is a crucial component in making that decision. If you spend 10 hours doing your tax return and you value your time at $50 an hour, then the cost of doing it yourself is $500. So it makes sense to hire an accountant to prepare the tax return for you, but only if the service costs less than $500.
Without knowing how much your time is worth, there’s really no rational way to make that kind of decision.
Similarly, apply the same criteria to new opportunities that arise. Think about how much you’ll make and how much time you’ll need to invest, and if the hourly rate comes out higher than what your time is worth, it’s a good opportunity; if not, you may want to say no, unless there are other important benefits.
Read the full post here: Envatotuts+