When I was working the slaughterhouse, butchering hogs for $5 a couple of hours, I envied the management guys who got a typical salary. Oh, to be able to take a sick day, or come late, and not get my salary all docked! Those guys had it made - or possibly even longer it seemed to me right at that moment.
Lots of people think about that kind technique. But now I know how wrong that is certainly. Sure, the salaried managers at the slaughterhouse had it greater than the hourly stiffs mucking around with pig guts - but their jobs didn't put them any nearer to financial independence than mine did. Both people could only earn as much money for the reason that boss told us we could - instead of one dime more.
Now that i am financially independent, there are no limits to how much money I can earn. I'm the boss, and I make my own program. I'm thousands of miles away on the slaughterhouse. But I still measure my earnings on an hourly basis. Why?
Here's why: Because time is usually money, and there are only so many hours each day. In order to maximize my profits, I need to know exactly what a couple of hours of my time is worth - and you ought to, too. Now, just like everything, there's a system to do this. You can't just randomly pick them like out of the air - you should do the math. And just like with a regular job, the number should elevate as you gain more experience and progress the ladder.
But the point is to spend time doing the things that are most probably to put more money in your pocket - and pay some others to do the other things that has to be done.
Now, in the beginning, there's not a whole lot difference between the two. On your earliest property, it makes sense to manicure and mow the lawn yourself, since you also need every dime of cash flow. But after you've got a few properties generating positive profits, the balance starts to shift. How is an hour of your energy better spent - mowing lawns, or scouting out new properties to obtain?
Think of it this way - what kind is easier to delegate? Without much trouble by any means, you can find a kid to help mow the lawn for $20. Does one trust a 12 year old to judge new investment opportunities for you?
It feels like an obvious choice, but you'd be amazed at what amount of people get stuck on this. They can't get past the few hundred dollars taken from their pocket for work they may possibly do themselves "for free. " Trust me that "free" delivery, the results can end up costing you thousands of missed opportunities.
Chances are you didn't wind up in real estate investing so you may make $10 or $20 an hour. In the event that's what you wanted, you could have stayed with your job, right? You got into this to be wealthy - so value your time bearing that in mind. Here's a simple way to visualize it: in three hours, you can paint a house and "save" yourself a several hundred bucks. Or you can spend that same three hours setting up a deal that will add $500 on your cash flow each month. Which is a better use of your energy?
Economists call this "opportunity cost, " but Freezing call it good sense. Being financially independent means realizing that your chosen success depends on you - job, your decisions, your time. It's the best valuable resource you have - hence spend it wisely.