It Pays To Know How Much Is Your Time Worth

From the start of your first job till this day, have you ever asked yourself this question, "How much is my time worth?" If your answer is yes, then that's a good start. If not, then it's very highly unlikely that you are making the desirable income that you want.

There are many reasons why an employee work for a particular employer. However, we can't deny that one of the most important reasons is the salary. If your pay is too low, then you might start looking elseswhere for a higher paying job. Well, there's nothing wrong about that. Cost of living keeps rising, so it's nothing unusual to seek for a higher paying job in order to maintain your lifestyle.

Is job hopping really going to help you earn the desired income? Let's take a look at the following example.

A person has switched to a new job which pays him better. We're talking about a 20% pay increase and it sounds really good right? But not too fast yet.

Previous Job: average 44 working hours per week ; salary of $2,500 per month ; $14.20 per hour
New Job: average 55 working hours per week ; salary of $3,000 per month ; $13.64 per hour

A job which offers better renumeration could simply means demanding more of your commitment, hence putting more time at work. If you take the average of working hours per month and divided it by the monthly salary will give you the income per hour. So you are paid this amount for one hour of your time.

Of course, I'm using an example that is not too favourable, but is realistic. It does happen to any man on the street. Based on this example, you may think that you are getting a better salary but actually you are not. You sacrifice more of your precious time and yet being paid lower income per hour. The lesson we could learn from here is to fully realize that the amount of your time is very limited. 24 hours a day same for everyone.

Be wiseful on how you utilize your time. If you are selling your time to get money, make sure you know how much your time is worth because nobody in this planet values your time as much as you do.

Parkinson's Law

I recently read an article about Parkinson's Law. I've heard of Parkinson illness but never knew about of Parkinson's Law. Parkinson's Law could be more generalized still as: "The demand upon a resource always expands to match the supply of the resource." This law can be applied to individual too. As an individual's income rises, their costs of living and lifestyle increases to meet their income level.

So now lets have a better understanding. T. Harv Eker, bestselling author of Secrets of the Millionaire Mind, shares with us his view. Poor and most middle-class people believe that the only way to get rich is to earn a lot of money. They believe that only because they've never been there. They don't understand Parkinson's Law, which states, "Expenses will always rise in direct proportion to income."

Here's what's normal in our society. You have a car, you make more money, and you get a better car. You have a house, you make more money, and you get a bigger house. You have clothes, you make more money, and you get nicer clothes. You have holidays, you make more money, and you spend more on holidays. Of course there are a few exceptions to this rule... very few! In general, as income goes up, expenses almost invariably go up too. That's why income alone will never create wealth.

Therefore, if your intention is to be a millionaire or more, you must focus on building your net worth, which is based on much more than just your income. Do you know what's your net worth to the cent?