Now that I have spent all the time and effort rearranging my blogs I guess the big question is why did I do all that work if I am not going to write. Well, my intentions were, and are, to continue writing. The purpose of the rearranging being to make the process of creating and managing content easier and less time consuming. I believe I have accomplished that purpose and now it is just left to do some writing.
Well, that’s easier said than done. I’ve been over the “free time” topic before; time is not free and is something that you can’t save up. One can spend time, or one can sell time, or one can buy time. A person’s potential value can be represented as a sum total of the amount of time available times the value of that time, net any costs associated with buying and selling excess time. You can get really fancy and throw in all kinds of variables to account for factors affecting the value of time being spent or purchased, such as level of education, risk, etc. to get more and more accurate estimation of a person’s inherent value in a capitalistic society.
What I am saying is that all my excess time is being bought or otherwise rendered worthless by someone else. The big problem for me right now is that to sell 40 hours of my excess time requires a total contribution of almost 60 hours from me. Not that I am complaining, but it is a problem that will have to addressed at some point in the future.
The way I figure it is that if I have 60 hours available I need to sell as much of that time as possible to maximize my earning potential and thus my inherent value as a member of a progressive capitalistic society. I need to figure out how to capitalize on the 20 hours of wasted time without risking the 40 I am already selling.
For example, consider a professional who is able to command $50 an hour on the market for his or her time. In rough terms, using the consultants *2000 hour/year rule-of-thumb, $50 an hour is about $100,000 a year, no benefits, if he or she can manage to stay fully engaged, which is a big if. Consider this scenario:
Hourly rate: $50
Time sold: 40 hours
Gross proceeds from sale of time: $2,000
Now consider the overhead in terms of time, not money
Weekly Commute: 12.5 hrs
Mandatory breaks: 2.5 hrs
Time associated with commute (Car maint & fueling, morning time spent preparing to go to work, etc): 2.5 hrs/wk
Total overhead time spent 17.5
Total time contributed to sell 40 hours: 57.5 hrs
Hourly rate net of overhead: 34.78
Then there are some dollar costs as well. Here are a few of the major ones off the top of my head:
16% of $50 for Self Employment tax: $8
Hourly rate net of overhead and self employed tax: 26.78
Weekly Fuel: $90/40 = 2.25 / hr
Effective hourly rate: $24.53
So what does all of this mean? Well, the most obvious thing is that if I could find a job near my house that paid more than $25 per hour I would be better off to take it over the one paying $50 / hour that requires a 50 mile commute because it would give me the opportunity to either sell 15 hours of time or otherwise spend that time how I like–doing family things, for example.
* * *
*The rule of thumb is based upon 40 hours a week for 52 weeks (42 x 50 = 2080) less the ten paid holidays that are taken by most corporations (10 x 8 = 80) giving 2000. To further make it equivalent to a regular job there is another week or two of vacation and/or sick time that most normal people take every year for various personal and family reasons.
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