How to Determine Your TRUE Hourly Wage
Do you know what your TRUE hourly wage is? Most of us really don’t. You may know what you get paid hourly for the “work” you do or what your annual salary is but that is not your THW (True Hourly Wage). Far from it.
Your TRUE hourly wage equals your TRUE income divided by the TRUE number of hours required for work.
THW = True Income/True work hours
Why You Need to Know Your TRUE Hourly Wage
If you never want to work again, this blog is…NOT for you. If you dream of sitting on a beach and doing nothing for the rest of your life you will be better off switching over to scroll through facebook right now and not wasting your time here.
Increase Your TRUE Hourly Wage Every Day with the THW Penalty Habit
On the journey of increasing your TRUE hourly wage to create greater financial independence, one of the most important things you can do is create and implement the habit of increasing your hourly wage every work day.
What do I mean by this?
Don't Miss Out on Using Your Low Income Year to Increase Your True Hourly Wage
Having a year when you earn less income than is typical for your household can be a stressful time. Maybe you have lost a job or are transitioning jobs. Maybe you are going back to school to earn a degree. Maybe you are simply taking a break to hike in Patagonia, or have switched to a lower paying job. Although a temporary reduction in income can cause some stress, it often provides one of the greatest opportunities for your long-term financial future. And sadly, most people don’t take advantage of this opportunity.
Pro Tip: Automate or Delegate Everything Below Your TRUE Hourly Wage
Once you know your TRUE Hourly Wage (calculate it here), you need to change your mindset and begin to automate or delegate every task that can be executed at a lower hourly wage. It has taken me a long time, probably too long, to come to this realization. There was always something in me that resisted hiring out tasks that I could do myself. I have always been a more frugal penny-pincher so spending money on something I can do myself seemed like I was spending money that I could be saving.
Stop “Playing Office” and Increase Your True Hourly Wage Today by Going Home Early
One of the best phrases I have come across lately is “stop playing office”. I heard this phrase on a podcast recently and it really struck a cord with me. Essentially, the idea is that very few of us are truly working the entire time we are at the office. We are expected to be (or think we are expected to be) in our seat at work for the full work day. So, we put in our time and make sure we are “playing office” for all the hours of our work day.
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