“Time is money.” – Benjamin Franklin

Think about how much time you spend per week running errands, grocery shopping, spending time on the internet trying to plan a vacation, make a reservation or simply attempt to just check item’s off of your to-do list. Imagine having a go-to person who could take care of your day-to-day “time suckers” for you. What tasks would you choose to pay someone to do? And how much would you be willing to pay?

Ian Walker of the University of Warwick in England came up with a formula in the early 2000’s to help assess the exact monetary value of your time. In his formula, Walker takes into account your gross hourly wage (W), the tax rate you pay (R) and your cost of living (C) to determine the value of your time (T).

T= [ W (100-R) ] / C

The value of your time= [Wage (100- Tax Rate) ] / Cost of Living in your area

Let’s say you’re a bachelor living in Minneapolis making $200,000/year. Your gross hourly wage is roughly $96 assuming you’re working a 40 hour work week, 52 weeks a year.

Your combined tax rate (federal and state) would be approximately 40.85% and your cost of living index would be 112 (according to area vibes which calculates cost-of-living indexes).

Based on Walker’s formula above, the value of your time is approximately $50.70

While this formula is a neat tool to give yourself a ballpark of how much your time is worth, there are a few things it does not take into consideration such as your pleasure (or displeasure) in doing certain tasks and your skill level at completing them. At the end of the day you are your own judge about what luxuries you’re willing to pay for and which services are worth the cost of giving you back a few hours of your day. That said, I hope this formula will help you determine if you’re getting the most out of your dollars and your time.

Brass Tacks can bring simplicity to your life by assisting with everything from errands to home check-ups to itinerary planning to party ideas and general personal assistance. Whatever your need is don’t hesitate to contact us for our affordable rate information and a free consultation.