Step 1: Calculate Productive Hours

Hours spent sleeping per day: Hours spent eating per day: Hours spent on other necessities per day:

Step 2: Calculate Monthly Income

Active income per month: Passive income per month: Number of workdays per month:

Step 3: Calculate Hourly Rate

How could you use this number?

Two benefits of this number are:

First, It helps you to calculate certain costs, such as the number of hours you need to work

to buy a particular item or product. When you know how much it costs

you in hours of labor to buy something, you can decided if the purchase is really worth it.

Second, It allows you to make better decisions on how to spend your time: If two hours of cleaning per week

means you have two hours less to work, then the opportunity cost of cleaning is $50. If you could hire a cleaningperson for less than $50, you could spend your time on higher-value tasks, such as generating income.

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