This metrics is important because it serves as the measure of your growth, enabling you to know the present worth. The value of your time is done by calculating the value of the repeated activity that you do continuously for a period of time. These activities could be as follows:
Why is quantification important
It is important because it helps you in determining the direction and the amount of efforts needed to reach the desired goal. For example consider the following two cases:
Both the cases tell the same thing that Mr. A is overweight and he needs to reduce it but case:II gives the precise direction and amount of efforts needed by quantifying the things.
The quantification helps in aligning your efforts with the goals.
How to quantify your daily activities?
The quality of work you do in the office is compensated in the form of salary (quantification) by your employer or in the form of net profit when you are an employer or an entrepreneur while the other qualitative activities which you do regularly are not quantified.
In order to know the complete worth of your time, you need to quantify all your routine quality activities and sum up.
Mr. A works in a multinational company and is compensated Rs. 7,20,000 annually for working 8 hours a day. Calculate the average rate of Mr. A
The average working rate is as follows:
= Rs. 7,20,000/ no of hours worked in a year
= Rs. 7,20,000/ 365 days x 8 hours
= Rs. 7,20,000/ 2920 hours
= Rs. 247/ hour
The average value of his office time is Rs. 247/ hour when he is working for 8 hours in a day
Now, he has left with 16 – 8 = 8 hours to accomplish other qualitative activities mentioned above in the article.
Before quantifying the other activities, let us first prioritize & weightage them and this can be done as follows:
Mr. A devotes and spends his time as follows:
Maintaining Health and relationships (Time devoted: 3 hours)
The average and the total value of Mr. A is calculated as follows:
The value of his time per hour is Rs. 5483/ 24 hours = Rs. 228/ hour. You will notice that he spent 1.5 hours in the useless activities and the time value in the "charity & preserving the environment" section is zero. If he chooses to invest his time in the preserving the environment instead of the useless activities, his average value increases from 228 to 261 per hour.
What if when you are not earning?
You started as an entrepreneur and first initial years are spend building your enterprise and you worked with no income, then how to know the worth of your time on the per hour basis?
The best way is to take the average of the incomes of the entrepreneurs in your sector or the industry having almost the same experience and capital investment.
How to select the right activity?
The quantification of your day helps you in selecting the right activities and avoiding un necessary activities. For example: