ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Price Your Time Like A Business

Updated on August 13, 2015
CC BY 2.0  Money in Hand
CC BY 2.0 Money in Hand | Source

Is Your Income in Alignment with Your Dreams?

Today, I have a fictitious case study for you, based on many of the people that I have talked to. One of the most common things that people complain about is money, or lack thereof. It's a difficult issue, because we all want more of it, but most of us feel like it's out of reach. So, I'd like to focus on the first common mistake that people make: undervaluing themselves.

This topic is talked about extensively in the context of freelancing and self-employment. But, really, this applies to everyone. It's all about alignment. As a life coach, I see a lot of dissonance between what people want and what people do. Most people aren't doing what it takes to get where they want to be, but they complain and agonize about not already being there. That's perfectly normal. It's human. But, let's talk about how we can bring your vision and your actions into alignment when it comes to your money.

CC BY 2.0 Paying Bills
CC BY 2.0 Paying Bills | Source

Meet Gabriel

Gabriel works full time as a waiter in a small diner making about $1,500 a month. Gabriel also cleans houses for a few families in his neighborhood to earn an extra $175 a month. Gabriel loves both of these jobs and is very good at what he does. But, he struggles to pay his bills every month and is unhappy with his living situation. He cannot afford a car, so he relies on public transit to get to and from work. He lives in the best apartment he can (barely) afford, but it's very small, and not in a very nice neighborhood. Gabriel recently lost a lot of weight and none of his clothes fit him, but he can't afford to buy all new clothes.

Gabriel wants more from his life! But it seems like no matter how much harder he works at doing what he's doing, he can't get ahead.

Cost-based Pricing Analysis

The first model I'll show you is a cost-based pricing analysis. In this model, you add up all of your expenses and divide by the number of paychecks in a month (if salary or tip based) or number of work hours in a month (if hourly). So, if Gabriel sits down and thinks about a SMART goal (Specific, Measurable, Attainable, Reasonable, and Time-bound goal) for where he wants to be, his anticipated expenses might look something like this:

Monthly Expense
Cost
Rent and utilities
1000
Food
300
Car Payment
250
Gas, Insurance and Maintanance
250
Clothing
60
Total Healthcare and Insurance
150
Cell Phone
60
Recreation and Discretionary
330
 
 
Total
2400
In order to live the way that Gabriel wants to, he needs to be making $2,400 monthly
CC BY ND 2.0 Empty Wallet
CC BY ND 2.0 Empty Wallet | Source

Gabriel's New Awareness

After really thinking about it, researching the actual cost of the things that he wants, and adding it up, Gabriel now understands that what's in his head and what's in his life is out of alignment by about $700 per month. For the first time, he now has a clear picture of something to strive for- not just getting a nicer place to live or getting new clothes, but a sustainable situation that allows him to do those things without pain.

Market-based Pricing Analysis

Another pricing model that businesses use is a market-based pricing model. With this model, you look at what other people in your market are able to get for what they offer, and base your pricing on the market. So, if Gabriel took a look at what he's offering (waiting tables and cleaning houses) and what other people in those markets are making, some of the data he might come up with might be:

Position
Monthly Earnings
Waiters National Average
$1,803
Waiters in Travel Accomodations
$2,087
Restaurant Supervisor Position
$2,702
Housekeeping National Average
$1,875
Housekeeping Supervisor Position
$3,258
Source: US Bureau of Labor Statistics, bls.gov
L'Enfant Plaza Hotel Lobby
L'Enfant Plaza Hotel Lobby | Source

Gabriel's New Awareness

By researching what other people make, Gabriel learned a lot. First of all, the diner he's in doesn't bring in enough customers to make what he should be making for that job. A restaurant in a hotel would likely be a better place to get what he's worth for his skills. He also began to consider something he had never really considered before- going from cleaning houses to doing housekeeping in a hotel or hospital. Not only does it pay a little bit more, he wouldn't be relying on tips as heavily, and there's more of an incentive to eventually take a supervisory role.

This is Just An Example, and Just the Beginning

Although I attempted to use real data, this case study is fictitious and is not intended to provide any real advice for waiters or anyone else. This is simply one tool that I might use as a life coach to begin the conversation about making more money. Gabriel is very happy doing what he's doing, but he just isn't making enough money doing it for the fairly modest life that he wants to live. Maybe your dreams are bigger. These tools work for everyone from Gabriel to multi-billion dollar corporations!

Gabriel still has some work to do to bring the two into alignment, but this new awareness is a huge shift in his way of thinking about what he's doing. It's no longer these vague, "I'll know it when I see it" type goals, but something concrete that he can really start to work towards.

Try this yourself! Take about 30 minutes to really do your research here and think about a SMART goal that you can achieve and what it will be like once you're there. Then, you can begin to think about how to get there, and stop just worrying and complaining about not already being there. You control your destiny!

Thanks for Reading!

If you like this hub, please click here to share it.

I love hearing your feedback, or suggestions for what I should cover next, so PLEASE leave me a comment below.

If you have questions, comment below. I do read and respond! It's always an open discussion in my hubs :)

Be sure to follow me on Hubpages for new articles!

You can follow me on Facebook at:

facebook.com/yourcoachmatt
and
facebook.com/iqpawf

And on Twitter @yourcoachmatt

For information about personal coaching, book your free consultation from the 'Book Now' tab at fb.com/yourcoachmatt. Limited spaces available!

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)