DIY, "your time", and FVM

[Jonathan Roveto]

Hey all!

I wanted to start a discussion about valuing one's time. I'm big on DIYing work at my properties, but I don't want to waste my time on certain things. I think most people here place a value on their time as well. I currently have a W-2 job, a few properties, and am finishing up a PhD, so I don't do enough real estate that I have to also consider the "If you're fixing a toilet, you can't be out finding your next property" factor.

Anyhow, one thing I'm curious about is how do people value their time considering the future value of money. At my W-2 job, I'd say that my time is worth about $35/hour. A lot of people would tell me that I should value my time at say $50. I know of others who value their time at $100/hr. If I had something to do at a property that I figure would save me $300 (including material cost over cost of hiring out) to do in 10 hours (and it didn't affect W-2 life), one would say that it's $30/hr work. However, I think everyone here realizes that $300 now is certainly not worth $300 twenty years from now, when maybe I decide I'll retire early. At 10% ROI, assuming no inflation (you can play with this and say 12% and then 2% inflation, whatever), $300 now is $2200 at retirement, meaning that your work is $220/hr for retirement. In other words, cash now is king, obviously.

Does anyone else think this way? Is there much wrong with this thinking? Excuse me, I have to go install a floor now.

Note: I definitely understand opportunity cost, and I'm assuming that the time I save isn't really going to be put someplace productive (even though I could consider finishing my PhD faster or putting effort into moving up in my company... although the latter is laughable for reasons).