Summary

We need to recognize what kind of environment surrounds us before understanding the Khalomsky law. We are living in the System which we call Capitalism. Most of all people recall(associate) Money(currency) when they see or hear “Capitalism” keyword. But, There is the hidden core factor behind Capitalism. That is Time. Capitalism was constructed based on Time conception. Khalomsky is nothing but the optimized regulation(code of conduct) for archiving sustainable development of high quality Life in Capitalism society where we are living in.

A veteran actor does his best to mimic the characters’ every single action even way of the thinking. He could become the character himself then. Identically, we have to think as a company. Because, Capitalism is nothing but the company itself. We only could understand and feel their(companies) moving when we think as a company, furthermore, it is possible to be able to get rid of what should not be done based on its ecosystem instinctually. Always, do remember. Veritas is simple, cleanness with no superfluousness such as Gravity, Water, Air, Cell, Element, Molecule, Electron and so on. Time is the same. There are some easy keywords we need to understand

Terminology

– Assets : Things belong to me (Not mine + Mine)
– Liabilities : Not mine(belongs to other but I have for a while; Effort not to have)
– Equity : Things actually mine
– Revenue : Salary
– Expenses : Whatever action or things that required to be done or spend for Salary
– Constant Cost : Means of Production
– Variable Cost : Labor power(Time)

Previously, Mr. Yang used to work as a baker for a while. He bought some flour and eggs with his money for baking a hunk of bread, and sold it for $30. His MONEY $10 was spent for a bread as COMMODITY, and he could take MONEY(M+m) again via selling it.

Firstly, his MONEY $10 was spent for flour, eggs as Constant Cost which was supposed to be spent as raw materials and $10 for labor power(himself). Secondly, a hunk of bread was made as COMMODITY that would be sold by a client. Thirdly, MONEY $30 was made when it was sold. Let’s assume that he sold bunch of bread for $30. How much could be his Income? $30 Yes. But, actual his net revenue is $10 as $20 out of $30 was already taken. (Warning : we will discuss later how Loss / Principal / Profit could be made for this baker) Here is a question. If a baker wants to make more money(increase net revenue), what he can do ? There is only one way to make more money is making Variable Cost cuts down.

– Assets($30) = Liabilities($20) + Equity($10)
– Equity($10) = Assets($30) – Liabilities($20)

So, if Liabilities is $15, Equity becomes $15(16.6% has been increased by cutting down Liability) This is what exactly most of all companies in this world to do for making more money. But, in real world, the most of the Expenses are fixed and hardly difficult to cut down. Sometimes it affects quality of commodity that company doesn’t want that kind of thing is being made. Now, we are going to apply this onto our personal life. Remember? We need to think us as a company and we can make cut down the variable cost to make more net revenue with high quality. Is it possible? Yes. This is absolutely possible. But, we need to be changed the way of thinking and approaching method. It might give you some confusability, no worry. simply read and follow step by step.

Khalomsky Value(K-Value)

Khalomsky(Pronounced /ka-ləm-ski/) value is nothing but the realistic time value in currency based on the actual income we are given. It consists of nine elements as below :

– Working time : Mon ~ Sat / 09:00 ~ 18:00
– Salary : $1,500
– Target Month : Jun. 2016

Khalomsky(Pronounced /ka-ləm-ski/) value consist of nine elements as below :

Kd(L) = Salary / Awd = 1500 / 26 = 57.69

Kd(L) value is a part of the single day’s value. In this case, Mr. Yang’s Salary is $1,500 and working 26 days in a month. therefore, Salary divided by actual working day would be $57.69

Kh = Kd(L) / Awh = 57.69 / 9 = 6.41

Kh is an hour value. This value could be calculated Kd(L) divided by actual working hours. In this case, Mr. Yang’s Kd(L) is $57.69 and working hours is 9 in a day. therefore, Kd(L) divided by actual working hours would be $6.41

Km = Kh / 60 = 6.41 / 60 = 0.1068

Km is the value for a Minute. Kh is 6.41 and there is 60 Min. in an hour. Therefore, 6.41 / 60 is equal to $0.1068

Ks = Km / 60 = 0.1068 / 60 = 0.0018

Ks is the value for a Second. This value is the fundamental value among K-values. Km is 0.1068 and there is 60 Sec. in a Minute. Therefore, 0.1068 / 60 is equal to $0.0018

Kd(E1) = (24 − Awh) ⋅ Kh = (24 − 9) ⋅ 6.41 = 96.15

Kd(E1) is the rest of the single day’s value which is actual Equity and this value is the only value that can be changed. First, 24 hours minus Awh(Actual working hours) and multiplied by Kh(an hour value). In this case, Awh is 9 and 24 – 9 is equal to 15. Therefore, 15 multiplied by 6.41 is equal to $96.15

KD = Kd(L) + Kd(E1)=57.69 + 96.15 = 153.84

KD is an actual total value for a single working day. as we know “working hours’ value” called Kd(L) and “rest of hours’ value” called Kd(E1). we can get this value by adding two values. In this case, Kd(L) is 57.69 and Kd(E1) is 96.15 Therefore, 57.69 + 96.15 is equal to $153.84

Kd(E2) = Nwd ⋅ KD = 4 ⋅ 153.84 = 615.36

Kd(E2) is another pure Equity value. Especially, this value showing not working days’ entire value in a month.This value can be calculated in the following way. Firstly, TDoM(Total day of month) minus Awd(actual working days), Secondly Kh value multiplied by 24 hours. Lastly, multiply each other value. In this case, TDoM is 30 and working days is 26. Kh is 6.41 Therefore, (30 − 26) multiplied by (6.41 ⋅ 24) is equal to $615.36

Kd(Awd) = KD ⋅ Awd = 153.84 ⋅ 26 = 3999.84

Kd(Awd) is the value for the total working days. This value can be simply calculated. KD multiplied by Awd, KD is 153.84 and Awd is 26 Therefore, 153.84 ⋅ 26) is equal to $3999.84

KDT = Kd(E2) + Kd(Awd) = 615.36 + 3999.84 = 4615.2

KDT is total value for the whole month. hence, we need to add total working days value called Kd(Awd) and total not working days value called Kd(E2). Therefore, 615.36 + 3999.84 is equal to $4615.2

Let me put all of K-values in a table so that we can see more clearly at once.

Target Month

TDoM

Working days

Not Working days

Salary

Jun. 2016

30

26

4

$ 1,500

Kd(L)
= Salary / Awd

Kh
= Kd(L) / Awh

Km
= Kh / 60

Ks
= Km / 60

$ 57.69

$ 6.41

$ 0.1068

$ 0.0018

Kd(E1)
= (24 – Awh) ⋅ Kh

KD
= Kd(L) + Kd(E1)

Kd(E2)
= Nwd ⋅ KD

Kd(Awd)
= KD ⋅ Awd

KDT
= Kd(E2) + Kd(Awd)

$ 96.15

$ 153.84

$ 615.36

$ 3,999.84

$ 4,615.2

Therefore, based on being earned $ 1,500 working from Mon to Sat for 09:00 ~ 18:00. We can get exact time value in currency as below:
– 1 Sec = $ 0.0018
– 1 Min = $ 0.1068
– 1 Hour = $ 6.41
– 1 day = $ 153.84
– 26 Working days : $ 153.84 X 26 = $ 3,999.84
– 4 Not working days : $ 153.84 X 4 = $ 615.36
– Month of Jun value : $ 3,999.84 + $ 615.36 = $4,615.2

He is working 9 hours daily from Mon to Sat for 26 days has the same value with $1,500, which means 9 hours into 26 days is used as Constant Cost(Expenses) in the other hand, he used 234 hours(worth $1500) and get paid $1500 again in Money as Salary, Remaining time is the same as below

1) 15 hours * 26days = Not working hours in working day
2) 24 hours * 4days = Day-off

And each of them has the same value as below :
1) 15 hours * 26days = $ 2,499.9 worth
2) 24 hours * 4days = $ 615.36 worth

So, By doing exchange his 234 hours for $1,500, his hidden time value could be clearly defined
that is to say $3,115.26 is what actually Mr. Yang’s net revenue. But, Here is the crucial precondition. To be given $3,115.26 worth instead of 486 hours, he has to accept his K-value(time value in currency). If not(if he doesn’t measure and don’t follow) His month value is, to tell the truth, just $1,500. which mean he makes huge loss in his business(life) even if he has possibility to change. What he can do then? The only thing Mr. Yang can do is re-designing his living pattern(Business model) based on Khalomsky law(Strategy)