Here are 5 Steps to Maximize Your Earnings and Minimize Your Time Working.

Do you notice that you are working less and less and having more and more free time to enjoy your life every year?

If not, then you need to follow these 5 Steps to Maximize Your Earnings and Minimize Your Time Working.

My husband Jomel and I are always analyzing our earnings and figuring out what we are actually making per hour, and because of this, we earn a lot more with our time than most people.

There are steps to take though to make the process easier.

Here they are:

#1 Figure Out How Much Money You Make Per Hour

A lot of times I see people go out and make money and they say how much they made that day.

You want to know how much you made per hour.

That’s a measure of your true earning power.

So, if you make $90 and it took you 5 hours of doordash or uber driving, then divide the $90 by 5 and you know you made $18/hour.

Once you figure that out, we can go on to step #2.

Step #2 Subtract Any Operating Expenses

Think about how much it cost you to make the money you made.

Did you have to pay for gas, or clothes, or a travel meal?

So let’s say you only buy a $5 coffee at Starbucks when you doordash, and the cost of gas is about $5 for a day of doordashing.

You made $90.

So what you really made was $90 – $5 coffee – $5 gas = $80.

Step #3 Add Any Extra Time It Takes For You To Work

This is any time it takes for you to get ready or downtime after you work.

Say you doordash, and it takes you about 30 minutes to get ready. You have to get dressed, get and charge your phone, get your coffee from Starbucks, get your food delivery bag, etc.

Then, let’s say after doordash it takes you an hour to find parking, unload your stuff, take a long shower, get changed and talk to you best friend about everything that happened while you were dashing.

So instead of spending 5 hours doordashing, your actual time is 6 hours and 30 minutes or 6.5 hours.

Step #4 Calculate Your Taxes and Other Expenses

So, if you Doordash in Hawaii you need to pay General Excise Tax of 0.5% on all earnings.

This is better than if you did consulting or sold cakes, as you would have to pay 4.5% General Excise Tax (actual percentage depends on your location in Hawaii).

So you would factor in the different tax rates.

Also, your money from doordash is Pre-Income Tax earnings, and you don’t have to pay tax on the full $90 you earned, because you can deduct mileage and any expenses you incurred, including part of your rent and phone and utilities if you have a home office.

This is different from if you had a job, in which case all of your earnings are taxed and you have to pay medicare, social security and income tax on the entire amount.

So take into account how much you have to pay in taxes.

Maybe for your doordash it will end up being $0.45 GE and about $7.50 for income tax (assuming you claim $40 expenses and pay 15% on the remaining $50).

Step #5 Calculate Your Real Hourly Wage and Compare With Other Income Streams

So after deducting all expenses and adding in prep time here is your real hourly wage:

$90 – $5 coffee – $5 gas/mileage -$0.45 GE Tax – $7.50 =$72.05

$72.05 / 6.5 hours = $11.08 real hourly wage

Now use that number and compare with your day job, or your babysitting gig, and so on.

Conclusion

As you master these steps, you are naturally going to start working for more and more money per hour.

Maybe you’ll find that the early mornings are better for Uber, and lunch time is better for Doordash.

Or maybe you find your job is paying you more and you stop wasting your time doing Uber and Doordash and spend time playing with your kids at the local playground.

Your life will become better and you become more efficient with maximizing the money you earn.