How do you go about valuing your time? Have you ever thought about it at all?
While it’s easy to waste an hour here and there in our day-to-day life without realising it, imagine if we actually knew just how much time we have left.
Well, let’s face it. There is nothing more certain in life than death and taxes!
Imagine there is an App you could download to your device of choice that based on biometrics it reads from your body, gives you a countdown timer of precisely how much time you personally had remaining on planet earth.
How much more care and attention would you give to how you use that time?
Many of the people who I see living great lives, value their time highly. More than their material objects, more than whatever is in their bank account or pension pot.
When you value your time, you begin to evaluate your all decisions from a different perspective.
I see people moving from job to job, quite often a pay rise being the main attraction. So let us take the choice between two very similar jobs.
Maybe at one you can make £40,000 working down the street from your house, and at the other you can make £50,000 by working somewhere that’s an hour drive away.
Most people would think it’d be a no-brainer to take the £50,000 job simply because of the pay increase. After all, everybody has a commute, right?
Besides, it’s £10,000, and we all could do with more money ...
Looking at the maths (apologies in advance if this is not spot on, but sure you will get the gist of my point).
If you have a 60 minute commute, every day you’ll spend about 2 hours in the car (10 hours every week).
If you value your time at ~£25/hour (~£50,000/year salary), over the course of the year you’ll be spending £12,000 worth of your time commuting, most likely being stressed some of the time.
With 48 weeks in the year (assuming you take 4 weeks holiday) you’ll spend around 480 hours every year in the car — 20 FULL DAYS — not counting any traffic delays you might have.
When you add the wear and tear on your vehicle, the trade-off begins to sound very different than it did at first.
This isn’t even factoring the cost of fuel not claimed for on your travel expenses (most don’t get to and from work allowances). A rough guess, say you are spending £1,000 minimum just to get you to your £50,000 job.
However, if you took the job closer to home, you would save £12,000 in the value of your time as well as £1,000 in fuel over the course of the year.
So, while the perceived pay gap is £10,000 at first, the actual pay gap between jobs when accounting for the value of your time and added fuel would be circa minus£3,000/year.
So, when valuing your time in this way, you are £3,000 each year worse off!
We will come to the opportunities to create additional revenue from the 480 extra hours you’ll have every year!
But first, with this fresh perspective in mind, the question becomes very different.
Imagine, you could do more of the things you enjoy while spending less time getting stressed and frustrated on your commute.
Without doubt there are factors I have not brought into things:
- Even if you worked closer to home, it would take some time to get to work.
- Do both jobs offer the same career opportunities further down the track?
- Are they both equally compelling in other areas important to you?
The comparison isn’t perfect, but it’s not supposed to be. It’s supposed to make you think. How do you spend a currency like time, one that isn't measured in pound notes?
I’m not saying you should throw away your car and quit your job tomorrow. But if you begin to factor in items that might seem less tangible than money, you might start to make decisions based around the quality of your overall life experience, not just the numbers that show up on your bank statement every month.
Plus with some of the extra 480 hours you now don't need to spend travelling to and from work, you could use a part of that to review some of the training and personal development materials we have within our membership site.
Check it out, when you get better at being a manager, even more lucrative opportunities will be open for you. In our time of working with managers, we have seen up to 40% increases in salary (some within the same company so no extra travel there!)
Kind regards, Irene
PS: It would be ideal if the higher paid job was always the one closest.