https://www.youtube.com/watch?v=Jam9y7ZPdUs

The buyback rate is a way of helping us understand the value, literally, to the dollar of where we spend our time. So there's a formula that he shares. It's called the buyback rate formula. Your buyback rate is equal to your annual income divided by 2000 times 4. And I don't want to get into the how he created that. I just want to share it with you for an example, so you can learn the concept. So you can do it right now as you're driving or working out in your head. So you take your annual salary or how much you make at the end of the year, that maybe that's variable. Take an average for an example. Let's say that you make $200,000 a year. I can hear some of you laughing because you don't make anywhere near that. But for the sake of this, this episode, if you make $200,000 a year, you divide it by 2,000 hours, which is a typical work year, and that equals $100 an hour. But then you multiply it by four to get your buyback rate. That means you should never, in this case, times four is $400, right? $200,000 a year divided by 2,000 hours times four is $400. That means you should never do a task that costs less than $400 an hour to outsource.