Time management sheets are very helpful tools that guide you to calculate the value of your time. Very few entrepreneurs know the value of their time. Those who do are almost always a success.
The reason is very simple. Successful people have learned how to measure what an hour of their time is worth. Knowing this, they are driven to maximize the value of their time and protect it against useless or ineffective activities.
It’s a vital time management skill to learn. If you know your time is worth $100, and you are faced with a task needing 1 hour to finish – you will have a meaningful scale to measure if you should do it yourself, or find someone else you can pay to do it for you. Time management sheets can be of great help in making this decision.
How to calculate your time value with the aid of time sheets?
First, determine how much you earned last year (or month). You may do this by totting up all your income from various sources by adding them to your time sheet and computing the total.
Then, record the time (number of hours) you worked to earn that money. You must make sure to include all the time involved in generating your income, which includes travel, preparation and research as well as the actual duration invested into your work.
On your time management sheets, you can then divide your total earning by the number of hours spent, that will give you your present dollar value per hour worked.
Then, on a separate column of your time management sheets, work out your desired or target income figure for the coming year and beyond. When you divide this figure by the number of hours you work, you’ll have an estimate of how much your time should be worth. This gives you a fair indication of whether to do things yourself within that time, or delegate it to others.
Using time management worksheets to calculate the value of your time has 2 big benefits.
- 1. It allows you to plan outsourcing and delegating with a definite logical basis
- 2. It reveals the importance of your time to yourself, so that you value it higher and guard it against waste and distractions.
Once you’ve tried using such time management aids to calculate these figures, you’ll be surprised at how hesitant you will be in the future to waste your time. It’s difficult once you have figured out the value of it, because you’ll view it as throwing dollar bills into the trash! It’s hard to waste an hour once you know it’s worth $100 or more.