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Time As Part Of Costs

One of the big benefits of moving from being an employee to being a consultant is my valuation of time. When before I used to discount or completely ignore the cost of my time, when I started billing by hour, I'd naturally apply a charge out rate to every other activity.

What does this mean?

Nothing is free. Even me sitting here writing this post costs. And that's the way it should be because nothing IS free. If I spend an hour watching the season finale of American Idol, I'm not spending that hour laughing at my hubby's funny work stories or writing the next chapter of my book (the sequel to Invisible). I've made a choice and I've paid for that choice by whatever else I give up.

I recently went to the housewarming of an entrepreneurial couple. The husband hired contractors in to completely re-do the house. He could have done it himself but he said quite openly that his time was worth more. I'm still struggling with that concept. My own hubby (coming from a family of do-it-yourself'ers) REALLY struggles with this concept. He constantly wants to re-evaluate using a financial advisor.

Frankly my time is worth more. If I look at the time required to replicate the service the financial advisor is providing vs the cost he is charging for that service, it isn't worth it.

Look at your time. Are you spending it wisely?

Posted by Kimber on May 28, 2008 6:00 AM |

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