This week we were examining a simple question that has big implications: what is your time worth?
As investors we spend a lot of time obsessing about how much money we can afford to put into a deal, but we neglect the only truly limited commodity we have – time. Really, we should be factoring the costs of our time into our overall ROI calculations.
But how do you know how much your time is worth? We used a calculation which Tim Ferriss shared in an interview:
- Take your annual income, e.g. £50,000
- Take off the last three zeroes, e.g. £50
- Halve it, e.g. £25
- That’s your hourly rate!
The calculation assumes that you’re working 9-5 for 50 weeks per year so won’t be exact, but it’s a starting point so easy there’s no excuse for not doing it.
We went on to discuss how to leverage your time as well as your money, and areas of property investment where you might be able to make some significant time savings.
Check out the episode to hear all the details!
Resource of the week
Directly related to this week’s topic is our resource – a guest post on The Property Hub’s blog by Andy Ridley. Andy put a lot of time into a refurb project and made a big profit, which he was delighted with…until he worked out his hourly rate for the work he put in!
It’s not often that you see such a detailed and honest breakdown of a project like this, and it perfectly illustrates the point of this episode.
And as an extra resource, if you haven’t read The Four Hour Work Week yet, it’s well worth it – but don’t start making plans for the 36 hours you’ll save just yet, because it’s not quite as easy as the title makes it sound…
News this week
If you’re a yuppie, you might be paying more than 60% than the average to live in your chosen area, according to the BBC.
The definition of “yuppie” is broad and we’re doubtful about how much we can take from the conclusion, but it does back up something we’ve often said before – it can make more sense to rent your own home if you want to live in an expensive area, and invest your capital elsewhere where the yields are better.
This week’s mentions
We’ve started a thread in The Property Hub where you can ask us anything – so get over there and pose us your property questions if there’s anything you’d like to know!
And for Property Hub Plus members, we’ve started weekly office hours – where you can book a slot with us to talk about property, business or anything else you like.
Meanwhile, we’re just wrapping up our interviews for Yellow Lettings and we’ll have a new member of staff joining us very soon. We will keep updating you on how things are going, and we’re very excited about what the next few months have in store!
Join the conversation!
Do you have any tips for tasks you can outsource to free up time for more productive things?
Do you factor the value of your time into your calculations?
We’ve got a dedicated thread for this episode, so join the discussion in The Property Hub!
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