This is exactly why I will NEVER work for an hourly wage! Im worth way more than anyone could pay me... I create my own value!
You can calculate the hourly wage equivalent for all monetary-value creating activities.
Invoice yourself – What are you (really) worth?
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Re: Invoice yourself – What are you (really) worth?
#12This is exactly why I will NEVER work for an hourly wage! Im worth way more than anyone could pay me... I create my own value!
You probably need time to create that value... Halfway agreed.
Re: Invoice yourself – What are you (really) worth?
#13This article makes the mistake of equating the "cash value of time" with the real value of time. If you're Warren Buffett, a dollar when you were 20 years old could have been worth $10m now. If you're building a startup, saving every penny you can on ramen noodles might give you an extra month you can survive with no funds. Thinking "I'm worth so much more than this" because you could be charging $100 an hour for Jav…
I think I agree with the gist of what you're saying, but saying "Time has no cash value" is overly broad and a bit silly. Do you think interest rates only exist to hedge against inflation?? What is the value of angel investors??
Re: Invoice yourself – What are you (really) worth?
#14It's also very interesting when you begin thinking of how it affects other people's value or money. In his example of bargain hunting and collecting coupons, he spent 8+ hours to save $20, which he realized was a poor return on his money. (That must have been some serious bargain hunting). Not only that, if he purchased some goods for $20 less than he would have without the coupons, then the vendor ended up $20 poore…
Don't forget that a penny saved is not truly equivalent to a penny earned, because saving a penny actually requires earning enough to cover taxes and the extra costs (travel time, gas, etc) you incur to earn it. Saving $20 on a purchase is equivalent to earning $30-40.
Re: Invoice yourself – What are you (really) worth?
#15This article makes the mistake of equating the "cash value of time" with the real value of time. If you're Warren Buffett, a dollar when you were 20 years old could have been worth $10m now. If you're building a startup, saving every penny you can on ramen noodles might give you an extra month you can survive with no funds. Thinking "I'm worth so much more than this" because you could be charging $100 an hour for Jav…
I think I agree with the gist of what you're saying, but saying "Time has no cash value" is overly broad and a bit silly. Do you think interest rates only exist to hedge against inflation?? What is the value of angel investors??
I think you're confusing the time value of money with the cash value of time :)
Re: Invoice yourself – What are you (really) worth?
#16This is exactly why I will NEVER work for an hourly wage! Im worth way more than anyone could pay me... I create my own value!
Funny -- I have been working for an hourly rate the past year or so, having been salaried for all my jobs previously. Being paid by the hour really opened my eyes to the "cost" of almost everything else I do. Why, just responding to this post "cost" me a couple of dollars....
Re: Invoice yourself – What are you (really) worth?
#17Offtopic, but am I the only one who finds it incredibly annoying when blogs like this disable the back button by overwriting the last item in your history?
Re: Invoice yourself – What are you (really) worth?
#18This article makes the mistake of equating the "cash value of time" with the real value of time. If you're Warren Buffett, a dollar when you were 20 years old could have been worth $10m now. If you're building a startup, saving every penny you can on ramen noodles might give you an extra month you can survive with no funds. Thinking "I'm worth so much more than this" because you could be charging $100 an hour for Jav…
I'd go a little further and say that the actual gain is the value of your productive output minus what you had to pay for it.
If you're producing $100 worth of value, but you spent $100/hr to get that time then you're not really gaining any ground (and you won't be able to improve your leisure time). If you produce $100 worth of value and spend only $10 to get that time, then you're producing value that can "spend" to enjoy life.
Re: Invoice yourself – What are you (really) worth?
#19I find pieces like this often leave out a very important piece of the equation: what you do with the time you gain. The value of your time isn't constant.
You haven't gained much if you pay someone $20 to mow your lawn because you think the hour you would spend is worth $100, but then spend that time watching soaps on TV. Is an hour of soaps worth $80 for you? Is that relaxation you need in order to $80 more productive later? I've seen people justifying purchases and luxuries by saying, "My time is worth it." but then they waste the time on other busy-work and still don't think they have enough time in their day.