Dollarizing Your Time

"Dollarizing your time" is the practice of assigning a theoretical monetary value to each hour you work. This is a foundational step for any entrepreneur, as it provides a powerful framework for making decisions about how to allocate your most precious resource: your time.

How to Dollarize Your Time

There are two common approaches to determining your hourly rate:

1. Freelance Rates: If you have experience as a freelance developer or consultant, you can use your hourly rate as a starting point. If not, you can research the rates of freelancers with similar skills in your area.
2. Salary Calculation: You can calculate an approximate hourly rate by taking your current salary plus benefits and dividing it by the number of hours worked in a year (typically around 2,000).

The Benefits of Dollarizing Your Time

• Better Decision-Making: When you know your time is worth, for example, $50/hour, it becomes much easier to make decisions about whether to perform a task yourself or outsource it to someone with a lower hourly rate.
• Increased Focus: It encourages you to focus on high-value activities that generate the most return for your time investment.
• Improved Productivity: It helps you to identify and eliminate low-value tasks that are not worth your time.

By putting a value on your time, you shift your mindset from that of an employee to that of an entrepreneur, which is essential for building a successful and profitable business.