What's Your Free-Time Rate

[Scout]

Wondering if anyone else sets a Free-Time Rate for themselves when trying to decide if you do something yourself or not. I had posted:

If you attach value to things figure out your throw-it-out-rate.

I use $50 an hour (~my overtime rate at work) and compute that to an objects value. I figure in an hour I can sell 5-6 items on e-bay or creigs list (1/2hr to list them, 1/2 hr to pack and ship). So that sets an objects value at $8-$10. if I don't think I can get that for it, it represents a negative cash flow.

Good luck!!!

In the Life Altering Event thread.

My wife and I use this if we are looking to do things like home improvements, landscaping, buy or cut our firewood....

We are both do-it-ourselves type people and we use this to force ourselves to outsource what we do not like to do or are not good at.

Do you do this?

What is your rate?

How did you set your rate?

Thoughts?

 

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[MJ DeMarco]

When I owned my business, I had put it at around $500/hour. Now in retirement it is more like $100/hour. Also, if the "project" or "task" is perceived to be enjoyable, then it is $0/hour. For example, I've been landscaping my backyard (instead of hiring someone) and it is eating up time which I justify since I enjoy the activity and feel like I am painting a canvas. The other day I rented a BobCat and rolled around the yard moving dirt and rock -- I had a blast!

 

[imcmillionaire]

When I owned my business, I had put it at around $500/hour. Now in retirement it is more like $100/hour. Also, if the "project" or "task" is perceived to be enjoyable, then it is $0/hour. For example, I've been landscaping my backyard (instead of hiring someone) and it is eating up time which I justify since I enjoy the activity and feel like I am painting a canvas. The other day I rented a BobCat and rolled around the yard moving dirt and rock -- I had a blast!

I don't have a rate yet, is that bad?

 

[Scout]

I never had a rate until I had kids, before then I would just do what ever had to be done because I had time.

In one of the books I read a while back (maybe ?Millionaire next door?) it had a section about how the average millionaire did not bother with basic home remodeling projects. They could make more money working on their investments in the time doing the home project themselves.

Couple that with the goals we have set and three kids, time started to disappear, so we had to start picking and choosing what we would take on ourselves, and the rate was created.

I would say when you start feeling like you do not have enough time to get your goals and action items accomplished then a rate may be a benefit. I would further base it on what your cashflow and ask yourself: If a guy walked up to you while you were on vacation and asked you to help him for two hours what would you be willing to take.

 

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[MrPink]

I have been using 10 dollars/hour