How Much Is Your Time Worth?

How much is your time truly worth?  It's a question we surely have all thought about, but often fail to clearly define.  Is it your yearly salary divided by the roughly 2000 hours per year you put into a full time job?  Sure, that gives you how much your employer values your time at, but what do YOU value it at?  For most working aged people as long as they make enough to cover their living expenses with a little bit left over to cover the more fun things in life like dinners out and vacations, they are happy.  What if you could boost your value per hour even by just a few extra dollars an hour?  Think of all those extra fun things you could actually get around to doing.  Order that steak dinner at the restaurant instead of the hamburger.  Enjoy a nice glass of wine at a vineyard in Tuscany rather than boxed wine in your basement!  You get the idea here.

Okay so how do we go about increasing that value to get you that few extra thousand dollars per year?  You could bust your butt for months or even years and *hope* that you have impressed upon your boss that you are deserving of a raise.  Also to consider, does the company have the resources to even afford to give you a raise?  This option sounds a little iffy at best.

Another option is trading time for money and just working more or picking up another job. Earlier in life I didn't bother to think about it.  I just wanted money.  I sold my soul and picked up extra shifts which were paid hourly wherever I could to make extra money.  I didn't have a family yet and had fewer responsibilities.  So to me, it seemed like a no brainer at the time. The more money the better.  But at what cost?

Option 3 is to turbocharge your investing at higher rates of return.  If someone were to take some of that money that was sitting invested in a bank GIC making 3% and invested it in real estate making 15%, how much faster do you think they would reach a comfortbale level where they could start to spend money on those extras and not have to worry about whether you could afford it or not?

We tested this option a few years ago and went 'all in' on real estate, cashing out our investment accounts in favor of the higher yielding real estate mainly in the Calgary market.  We endured one of the longest, nastiest recessions that Calgary has ever seen.  Even with the endless stream of layoffs and bad economic news, we still managed a 15% rate of return on our real estate portfolio.  Even in a worst case scenario, real estate is the top-notch method to help get you to where you want to be financially!

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