Ok, for some (many) you are probably thinking this is about “how much can I make as fast as I can make it”?
Well, no, not really.
First, believe it or not, not everyone wants to be like Donald Trump and focus on making more and more money. However, most people want to be able to make a bit more money then they need to live “comfortably” from their point of view, and thus, buy and do what they please.
So, what do we mean when we analyze an opportunity from the money aspect?
1. What are your true monetary goals in life?
You need to first come to grips on what you realistically want. We all cannot be as fortunate as Bill Gates or Oprah, but there are many people living their dreams on much less. So, what do you need today and in your future, and are you on track? If you don’t really know and don’t want to do the analysis it may be worth obtaining a financial advisor to help as they can often take the “emotion” out of making financial decisions for you. I recommend Fox & Company as they are not tied to any particular financial institutuion’s products to sell.
2. Will your “hourly commitment” to doing X bring you what you believe you are worth today?
Most of the time, if we are looking at new opportunities from a money perspective we try to determine if this opportunity will turn a profit of at least 20% or more of what I get today.
3. Will your “hourly commitment” to doing X bring you what you believe you will be worth in the future?
This is analyzing an educational investment – be it going to school or volunteering to do something or taking a job at a lower pay to get you somewhere bigger in the future.
4. What do I lose hourly by taking this opportunity on?
Say this is not a new job, but a new side project you want to turn into profit some day. What are you losing by taking this project on – time to invest in education? another project? free time? There is monetary value there – figure it out before making your decision.
Quick tip – Do you *really* know your hourly rate today? Most of us work more than 40 hours a week (some lucky people work less). Track the time you work over the next month and determine your real hourly rate – that may open your eyes to being open for a new opportunity.
We all should love what we do, but, if we can time box certain things and still make the same amount of money, or, open up time to have a side project and make more money, wouldn’t you do so?
Up Next: Finding Your Underlying Passion