As most of our ever savvy UM readers may have guessed, right now I’ve got an ahem, “unexpectedly open schedule”.  As I spend time working to fill it once again, I’ve been pondering the true value of my time.

Leaving behind a 3 hour daily commute is something I’ve been dying to do for ages.  Leaving behind the paycheck.. well, not so much (er, duh).  

Still, regaining 60 hours (if I’m blessed with a downtown job I can walk to, or even a telecommute situation) of my life every month has its own mental rewards, but what about the financial aspect?

UM favorite Tim Ferriss touches on this subject often (in 4HWW, and elsewhere), but I’ll give just one thought provoking calculation for you.    

Let’s say you earn $75,000 a year.

The ‘accepted’ amount of hours per year is 2080.

The hourly rate in this example then would be calculated like so:

75000/2080

=$36/hour (rounded)

So in this example if a person earning $75,000 / year was able to save 3 hours a day, 5 times a week, 4 times a month:

$36/hour x 3 hours/day x 5 times/week x 4 times a month =

$2160/month

Over the course of a year?

$25,920

Granted, this isn’t money back in your pocket if you choose to squander the time. 

If you spend even a fraction of those hours working on automated income streams, or practicing a hobby that could someday produce an income (in my case, the ongoing cycle of grueling frustration / orgasmic reward that is learning to DJ), those hours can prove quite lucrative indeed.

For me specifically?  I’ve reanalyzed my ‘acceptable’ hourly rate to consider the benefits of taking back so much of my life.

I know I’m good for it.