The BIG idea in making money - no matter your occupation, niche, etc.

by vip-ip
18 replies
Hey everyone,

Perhaps I'm confused, but it seems like a lot of creative people on the web chase projects, no matter how much their client is willing to pay them. If you're of legal working age - no matter what you do to earn money - read on. I suggest you get a pen and some paper just to follow along my model, to make it easier to understand.

To enlighten fellow Warriors who may not be used to "managing by the numbers" like me, here is the big idea - in content creation, in web design, or any other industry or business:

FIGURE OUT HOW MUCH YOU'RE WORTH PER HOUR.

An hour is a commonly accepted unit of time for which you can get paid. It's all math, no sleigh of hand or trickery. To figure this out, there's a simple formula:

[Your Fixed Financial Need] + [Your Desired Profit] / [Hours] = Your Hourly Net Worth

Net worth = money after any applicable taxes. There's not much theory behind this, it's just commonly overlooked; there's money that you NEED to earn, then what you WANT to earn for fun/savings/other expenditures, and bam - that's your worth.

For instance: mortgage/rent ($1000), food ($400), transportation payments ($300), miscellaneous expenses ($300) - this adds up to a hypothetical need of $2k [let's assume that's monthly]. Now, on top of that, you want to earn $500 because you like traveling and want to save up for a vacation. Do the math, and your worth is a total of $2,500.

Now, figure out how much time you work a month. Most people work 40-hour weeks, so a month is about 160 hours. Therefore, your hourly net worth is $2,500 / 160 hours = $15.63 per hour. If you live in the US and get approximately 30% of your paycheck's total subtracted for taxes, then that means your official pay must be right around $20-$21/hr.

As an entrepreneur, your job is to figure out how to make that, but that's not what this thread is about. However, taking 5 minutes to do this will HELP you figure that out. Going back to our total-need-is-$2,500-a-month model: If you know that a 500-word article takes you a half an hour to write, and your hourly net worth is $15.63, then you better ask for $8 for that content today, or else you won't be able to feed and clothe yourself tomorrow (yes, I'm being a bit over-dramatic there). If a 10-page web site takes you a week, then that's 40 hours of work, which is worth at least $625.

It's all math, folks.

Best Regards,
vip-ip.
#big #idea #making #matter #money #niche #occupation
  • Profile picture of the author ryanbiddulph
    Hi vip-ip,

    Thanks for sharing your breakdown.

    I adopt a different viewpoint myself. I never do things from a place of need. I set my self-worth from a place of wants. Whatever you are worth per hour is what you imagination this number to be.

    Doing things from a practical/financial needs state of mind keeps you focused on your needs. You proceed to plan to live according to your needs. This cycle continues until you plan life according to your wants, your goals, your dreams.

    Many adopt this frame of mind "just for now." "For now" winds up being their entire life.

    This is why most people appear to be living life in a circle. They get the same results over and over with little progress along the way because their definite major purpose becomes "paying the bills", etc instead of adopting a grand vision of living life on their own terms.

    Picture yourself making $50,000 and hour over, and over and over....you will move into action to make it happen if you become emotionally involved with this idea.

    Don't be pushed by your problems, be led by your dreams.

    Ryan Biddulph
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    Ryan Biddulph helps you to be a successful blogger with his courses, manuals and blog at Blogging From Paradise
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    • Profile picture of the author subse7en
      Originally Posted by ryanbiddulph View Post

      Hi vip-ip,

      Thanks for sharing your breakdown.

      I adopt a different viewpoint myself. I never do things from a place of need. I set my self-worth from a place of wants. Whatever you are worth per hour is what you imagination this number to be.

      Doing things from a practical/financial needs state of mind keeps you focused on your needs. You proceed to plan to live according to your needs. This cycle continues until you plan life according to your wants, your goals, your dreams.

      Many adopt this frame of mind "just for now." "For now" winds up being their entire life.

      This is why most people appear to be living life in a circle. They get the same results over and over with little progress along the way because their definite major purpose becomes "paying the bills", etc instead of adopting a grand vision of living life on their own terms.

      Picture yourself making $50,000 and hour over, and over and over....you will move into action to make it happen if you become emotionally involved with this idea.

      Don't be pushed by your problems, be led by your dreams.

      Ryan Biddulph
      LOL Ryan, with all of your post's that I've been THANKING lately, you need to start writing self-improvement books or something, as I'll be BUYING them!!!

      :p
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    • Profile picture of the author tk226
      Originally Posted by ryanbiddulph View Post

      Hi vip-ip,

      Thanks for sharing your breakdown.

      I adopt a different viewpoint myself. I never do things from a place of need. I set my self-worth from a place of wants. Whatever you are worth per hour is what you imagination this number to be.

      Doing things from a practical/financial needs state of mind keeps you focused on your needs. You proceed to plan to live according to your needs. This cycle continues until you plan life according to your wants, your goals, your dreams.

      Many adopt this frame of mind "just for now." "For now" winds up being their entire life.

      This is why most people appear to be living life in a circle. They get the same results over and over with little progress along the way because their definite major purpose becomes "paying the bills", etc instead of adopting a grand vision of living life on their own terms.

      Picture yourself making $50,000 and hour over, and over and over....you will move into action to make it happen if you become emotionally involved with this idea.

      Don't be pushed by your problems, be led by your dreams.

      Ryan Biddulph
      Hi Ryan,
      you are exactly right. This thought-network is very complex and hard and people loose their connection to this (if established) very often because it's not at all easy. And, by default most of the people live life to pay bills.
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  • Profile picture of the author GoogleWarrior
    YOU ARE SO RIGHT.
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    • Profile picture of the author GetItDone
      If I only look at my hourly needs and rate myself there, I will never be able to reach the status of Millionaire. I can't work enough hours at $21 an hour to every get there.

      So I agree, let's look at making $50,000 an hour and let that sink into my subconscious mind and see what happens.

      This is a great place to share our thoughts, ideas and successes. Thanks for sharing yours.

      Marcia
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  • Profile picture of the author jasonTBA
    Cool way of thinking about it mate, going to need to raise my income substantially to get a better net worth. Or work less hours lol
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  • Profile picture of the author vip-ip
    I think the two ideas are similar. After all, my formula does have that second part:

    [Your Fixed Financial Need] + [Your Desired Profit] / [Hours] = Your Hourly Net Worth

    If your desired profit is $50,000 / hr, great - I guess my point was to not disregard the fact that unless you can make ends meet to begin with, you're not going to be able to sustain attempts at achieving success at all.

    Best Regards,
    vip-ip ...
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  • Profile picture of the author itsallwhite
    I think this is a great strategy and a good reminder to me to focus on the money making activities and outsource the others. I think too many people try to follow small avenues and when you look at the bigger pictures there are better ways to make money.
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    Coming soon!

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  • Profile picture of the author kcorps
    Correct, It's all math. Let us work our business harder so that we can get a good result of the math calculation.
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  • Hi vip-ip... I thought about this that you wrote... An interesting and simple idea. I will apply and analyze the results... hmmmm...
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  • Profile picture of the author sarabill2141
    yes i also agree it is all math
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  • Profile picture of the author rockstaradi
    This breakdown is so very helpful. I am glad that you did it for me and all others.
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  • Profile picture of the author Gary Pettit
    "If you live in the US and get approximately 30% of your paycheck's total subtracted for taxes...."

    I believe the word you're looking for is hijacked, not "subtracted."

    I have to agree with ryan that your "worth" is not based on need, but on value, on what you put out. That would ideally be driven by the integrity of your dreams.
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  • Profile picture of the author King Shiloh
    Banned
    OP, the easiest way to die before your time is to keep setting short-term or medium-term goals for yourself. I call it short sighted kind of life.

    I don't believe on living temporarily because I believe that I will live a very long life. So, I always set a long-term goal.
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  • Profile picture of the author PeterDunin
    This is an interesting way of looking at things,cheers for sharing.
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  • Profile picture of the author ColdFire123
    Thanks for sharing!!!! This is a good reminder to me to focus on how to have more money.
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