Quick and Dirty Rule of Thumb - Calculating Your Hourly Rate

Knowing what your time is worth is crucial when you are strapped for time and you are trying to determine if an activity is worth your effort. As they say in the working world...Time is Money.

According to Tim Ferris, author of The Four Hour Work Week there is a quick and easy way to calculate what your time is worth. I will use myself as an example.

1. Take your annual salary ($75,000)

2. Remove the last three zeros ($75).

3. Divide that number in half ($37.50).

Unless you are "making" or "saving" that much with the given activity then it may not be worth your time.

If you are interested in drilling down deeper to get a more detailed look at what your "true hourly rate" is, then take a look at Trent's post (here) on the subject.

Don't get me wrong, doing things simply because they aren't financially worth your time isn't the only consideration. I know the time that I spend consuming media like MSNBC.com, ABC News in the morning before work, and the 50+ blogs I read on a daily basis (about 1.5 hours) may not be the best financial use of my time. However, I accept this because I subscribe to a maxim that people should learn something new everyday. As such, I see this as time well spent.

Cheers,
TMac

[Photo Credit]

Declining Social Security Trust Fund Balance Set to Begin

First boomer applies for Social Security (CNN Money)

Born one second after midnight on Jan. 1, 1946, makes Kathleen Casey-Kirschling, the first baby boomer eligible to apply for Social Security benefits. She has soaked up the media attention related to her birthday....

"She's leading the way for her generation"

Well I better stop procrastinating in my contributions towards my 401K and IRA since I am not counting on any money being left for people currently in their twenties.

I just want to provide one more semi-known stat regarding Social Security:

An estimated 10,000 people a day will become eligible for Social Security benefits over the next two decades, Astrue said. The Social Security trust fund, if left alone, is projected to go broke in 2041.

Urge your congress-person to work to fix the social security system!

Happy Saving,

- TMac


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Save Money on Meals - Have Your Company Pay for It (If You Can)

I am in training in Pittsburgh. I am learning how to communicate effectively. If they didn't send all first year employees to this training I would be worried about myself.

From a review of my month over month expense categories, I know that dining out is my Achilles heel. Big surprise there! To feed my desire to try top-notch fare like Fogo de Chao and Capital Grille I have decided that I am only going to try those places I have been pining for while on travel/training for work.

Since I am out here I am allowed to charge through certain expenses - cabs, meals, etc. Dinner is covered up to about $50 per day, which is nice because it puts alot of places I wouldn't normally eat at within reach.

As a result I am planning on having dinner at the Melting Pot and Pittsburgh Rare while I am out here.

Total savings to me: about $150 and I still get to enjoy some of the places that I wouldn't normally eat at. Now I need to work on those smaller dining out expenses - those quick $6 trips to Chipotle!