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An Intro to the Time, Money, Energy Equation (TME)

Updated: 2 days ago

Time, money, and energy. Three currencies we all utilize to some degree every single day.

You can gain more money.

You can increase your energy.

You can’t make more time.

The Time Money Energy (TME) Equation

There’s another variable to consider, however, which is value. Before diving into value, let's first understand the TME equation by calculating the Effective Hourly Rate (EHR). 

EHR = Money/Time x Energy

This equation shows that your EHR is directly impacted by the time, money, and energy you invest. The goal is to optimize these three variables to increase your EHR.

Adding Value to the Equation

How do you optimize your energy, leverage your time, and make more money as a byproduct? I've added a 'V' into the equation for Value. The new equation becomes:

EHR= Money x Value/Time x Energy

The Direct Impact of Value on Your Effective Hourly Rate (EHR)

Let's consider a real-world example to illustrate the power of increasing your Personal Value.

Before Adding Value

Imagine you're a consultant charging $100 per hour. If you work 20 hours a week, that's 80 hours a month. Your monthly earnings would be:

$100/hr x 80 hrs = $8,000

After Adding Value

Now, let's say you invest in yourself—courses, mentors, mastermind groups, etc.—and as a result, you're able to charge $250 per hour. If you work the same 80 hours a month, your new monthly earnings would be:

$250/hr x 80 hrs = $20,000

The Impact

By increasing your Personal Value, you've effectively increased your monthly earnings from $8,000 to $20,000, all while working the same number of hours. That's a 150% increase in your Effective Hourly Rate (EHR)!

How to Increase Your Personal Value

  • Hire mentors and coaches

  • Attend workshops

  • Read books

  • Follow good creators on social media

  • Join mastermind groups

  • Network

  • Listen to podcasts

  • Get more education

  • Leverage your personal stories, both the good and the bad

  • Show proof of authority with testimonies of your product or service

By focusing on increasing your Personal Value you can significantly boost your EHR, thereby making your business more profitable while optimizing your personal life. My mission is to help business owners like you 10x your EHR so that you can grow your business while spending more time at home. Check out this EHR Calculator that helps you calculate your current rate.

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