How Much Do You Need To Earn Per Hour To Achieve Your Yearly Financial Goals?
Have you ever asked yourself what your highest income producing activity is?
If you’re like most people you probably go about your day-to-day business never really thinking about the moment to moment activities that consume your day.
I’d like to walk you through an exercise that has helped me and my clients really stay focused on earning their highest possible revenue per hour.
Let’s assume that we each start with 365 days in a year. If we take away the following:
- Weekends- 104 days
- 5 major USA holidays
- 2 weeks of vacation
- Personal religious holidays – (average 3)
That leaves each one of us with approximately 238 days in order to earn the income we desire. Of course we can add or delete days based on our own schedule and desires. If you multiply these 238 days times an average of 10 working hours per day, you are dealing with 2,380 hours of real work time for the year. So let’s do some math. If your yearly income goals are as follows…
- $25k = you must be earning an average of $10.50 every hour of work
- $50K = $21 per hour
- $100k = $42 per hour
- $250k = $105 per hour
- $1 M = $420 per hour
- $5 M = $2100 per hour
- $10 M = $4200 per hour
In order to earn the income per year that you really want, you absolutely must be doing activities every hour that line up with this chart. If you catch yourself doing anything that isn’t your absolute highest producing income activity all the time, you are in effect making it much harder to achieve your desired financial goals. In other words:
Which activity or activities generate your highest producing income?
Consider these:
- What are you spending your time doing?
- Are you focused on the real moneymakers or the real time wasters?
- Are you making it easy for yourself to be a high-income earner or are you doing the things that can be done by someone whose income goal or ability is less than yours?
When you start to look at each hour this way, you’ll stop doing the small stuff and you’ll start doing the real high producing stuff that yields results. Just look at your most recent 3-5 days and count the number of hours you spent really making the big bucks vs all the stuff that creeps up on all of us.
What you discover will amaze you!
To You Having It All,
John
P.S. If you’re a business owner and one of your goals is to achieve your financial goals, then you have to attend my business workshop coming up in August. Click here to learn more. I hope to see you there!
I know now what i need to do.
Thanks John.
Great stuff it’s eye opeaning to look at the numbers of what i would like to earn and how much i should charge for my services. Thank you for your out-look on life, I look forward to meeting you next month.
you are dead on i sent copies to my son and daughter.
How can anyone value our products/services, if we don’t. I give too much away. Thank you!
[...] Assaraf touched on it in his post on “what hourly rate you must make” to reach your financial goals, and then again when he laid out his “work schedule for [...]
Fantastic article John; pushing numbers to the higher realms…