Lending Club Blog

Updating Your Time Worth to Reflect Life Changes

A few years back, I described the importance of knowing what your time is worth. As income levels and leisure time fluctuate, recalculating your time worth makes sense. You’ll want to ensure that your cost-benefit analysis uses accurate information. Otherwise, you may reach incorrect decisions.

Over time, many of the parameters used to calculate the value of your time can vary considerably. You may be earning more money, thanks to raises, or significantly less money if you’ve had periods of unemployment. The cost of childcare may have increased, or been significantly reduced as young children reach school age. Changes in your spouse’s situation can have a similar effect. All of these factors, and more, contribute to the value of your time.

You may also find that you have different “time worths” depending on how you plan to pay for things. If a particular service would take you 2 hours to do yourself or $100 to pay someone else to do it, you might conclude that it would be worth paying someone else to do the work if your time is worth more than $50/hr. But you have different ways to be able to pay for this service. You might choose between putting in some overtime at work and selling some services online. For overtime, you’d have to earn a lot more than $100 to have an extra $100 of take-home pay because of taxes. Depending on what you sell online, it may not be subject to taxes, so a $100 sale would truly net you $100.

For that matter, you might have more than one job. Knowing the value of your time for each could help you to choose the most appropriate place to put in extra time. For me, there’s a huge difference between an extra hour at my day job and an hour’s worth of extra work on my blog.

The simple truth is that our decisions are only as good as the information we have on hand. By keeping an accurate estimate of the value of your time, in its different forms, you’ll be able to make the best decisions between doing work yourself and paying others to do it for you.

How many different ways can you think of to value your time?

Wednesday, April 22nd, 2009 at 6:24 am

Comments (0)


Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

A Message to Investors from our President and Acting CEO

Today, our President and acting… Read More »
May 19, 2016

Lending Club Receives Tribeca Disruptive Innovation Award

Disruptive innovation comes in many… Read More »
April 29, 2016

Lending Club Business Financing Review

One of the biggest challenges of owning a small… Read More »
April 27, 2016

Lending Club partners with Funding Circle and Prosper to launch Marketplace Lending Association

Read More »
April 7, 2016

Lending Club Welcomes Maryland and North Dakota Investors!

We’re now open to retail… Read More »
February 23, 2016

What is Lending Club?

More than one million Americans have achieved their financial… Read More »
February 16, 2016

Get ready for tax season! Lending Club Now Offering TurboTax Integration for Form 1099s

Read More »
February 12, 2016

Lending Club Success: Surpassing $16 Billion in Loans

Founded in 2007, Lending Club’s… Read More »
February 11, 2016

Credit Performance Update

Summary: Credit performance of our standard program is coming… Read More »
February 7, 2016

Critical Small Business Financing Issues

A recent Harris Poll survey conducted on behalf of… Read More »
December 17, 2015


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w