I ran the numbers based on the Clearer Thinking exercise and found a rate at which Iād trade money for time that I was comfortable with (in economics, this is called the marginal rate of substitution). Itās based on the amount of money you earn for each hour you work, after taxes, and for me itās about US $50/āhr.
However, the rule of thumb is only theoretically grounded if you are paid by the hour. Iām salaried, so I am not expected to work a particular number of hours per week, and I canāt earn $50 more for each additional hour I work. Iām still willing to apply this number in my daily life because it āfeels rightā.
I ran the numbers based on the Clearer Thinking exercise and found a rate at which Iād trade money for time that I was comfortable with (in economics, this is called the marginal rate of substitution). Itās based on the amount of money you earn for each hour you work, after taxes, and for me itās about US $50/āhr.
However, the rule of thumb is only theoretically grounded if you are paid by the hour. Iām salaried, so I am not expected to work a particular number of hours per week, and I canāt earn $50 more for each additional hour I work. Iām still willing to apply this number in my daily life because it āfeels rightā.