Valuing your time

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.

The calculation assumes that you’re working 9-5 for 50 weeks per year so won’t be exact. However, 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! Also, areas of property investment where you might be able to make some significant time savings.

Check out the episode to hear all the details!

This week’s 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…

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.

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!