What are the best approaches to assess the cost of my free time?
I am looking for suggestions on formulas for computing the cost of one hour of my free time in money equivalent for decision making. Ideally, they should take into account net income (salary), "survival" housekeeping expenses (house rent, etc.)
I am not well-satisfied with the basic formula I have found on the Internet so far:
worth = net income / number of hours spent on earning this income
It implies a mindset that if I earn X per hour on my job and if I want to spend one hour of my free time on some activity, I should compare it to X as I could earn X during this hour.
In my opinion, this formula has several drawbacks:
- It supposes that you can always earn X per hour which is probably not true (eg: our productivity capability is limited to a certain amount of hours; it is not guaranteed that you can find activities for extra income of X per hour)
- It does not take into account housekeeping expenses