When I was 18, I made $200 per hour running a business with my dad. At that age, I thought I’d cracked the code to becoming a millionaire. One day’s earnings covered my rent, utilities, and expenses for the entire month.
But then, everything changed.
I had a conversation with my grandfather—my first mentor in business—that altered how I thought about time, money, and value forever.
When I asked him how to make a million dollars, he said something simple, yet profound:
“To make a million dollars, either work 40 hours a week at $500/hour or 20 hours at $1,000/hour. Not all activities are created equal.”
At first, I thought his advice was overly simplistic. But the deeper I dug, the more I realized: he was right. High-value activities create massive impact, while low-value tasks keep you stuck.
Over the years, I’ve developed a repeatable system based on his wisdom. This system has helped me systematically increase the value of my time to $1,000 per hour—and beyond.
Here’s how you can do the same.
Step 1: Understand the Value of Your Activities
Not all tasks are created equal. Some activities are worth $10/hour, while others create outcomes worth $10,000/hour or more. The key is identifying which activities fall into each bucket.
Here’s a simplified breakdown:
- $10/hour: Cooking, cleaning, answering emails, running errands.
- $100/hour: Managing ad campaigns, creating systems, or talking to sales prospects.
- $1,000/hour: Building sales funnels, creating content, negotiating deals.
- $10,000/hour: Hiring key talent, refining messaging, cutting costs.
- $100,000/hour: Radical innovation, building a platform business, creating economic moats.
Insight: The higher the value of the activity, the longer it takes for the payoff. A $10/hour task pays off immediately, but $100,000/hour activities might take years.
Step 2: Track Your Time
Before you can optimize your time, you need to know how you’re spending it. For one week every quarter, track your activities in 30-minute increments. Use an alarm to remind yourself and log every task—no matter how small.
Once the week is over:
- Categorize each task into one of the value buckets.
- Calculate your average hourly rate by dividing the total value of your activities by the hours worked.
For example, if you discover your average hourly rate is $250/hour, that’s your baseline. Your goal? Systematically increase it.