What's a minute worth?

Question

As I'm sitting here doing my annual Officer evaluation (military officer review, BLAH!) I cannot help but be distracted and began to think about this.... What is a minute worth to me? How do I make more money per minute or hour. The idea stemmed a bit from Gary Keller's book "The Millionaire Real Estate Investor", the section on Net worth and constantly revieiwng what your net worth is. So I ran a few calculations just to waste some of it.

1 Year= 8760 hrs or 525,600 minutes

Gross income/8760 hrs= hourly wage

Gross/525,600 mins= minute wage

Or how much does it cost to live-

annual expenses/8760= hourly expense

Annual expenses/525,600= expense per minute

So the question is how are you going to increase your hourly wage and decrease your hourly expense. I think I'm going to get back to work, because I don't own enough real estate yet and the Govt wants me to tell them why they should pay me more.

Kerry Baird · Answer

We are living the adventure and have used every bit of leverage in our military career/s to succeed.  Even in our obligated service, we can juggle the income/expense side of things.  For example:

-When we were young airmen, we had two (now married) friends who lived on their E-3 salary and invested every bonus and every end-of-year salary increase.  We were mil-to-mil and lived on one salary and invested the other...I got out later to be Mom.

-We bought a house at every duty station, including two houses in England.  We bought 3 rental properties in the US while we lived overseas.

-If I had known earlier that we could go up to 4 units with our VA loans, I would have suggested we buy one 4-plex to occupy and rent out for one year; and then would have moved out to do it again on the other VA loan.  I could happily be a serial mover, buying gentle fixers to improve.

-Using active duty benefits, you could acquire as much education as possible, particularly in areas which would improve your people-and-logistics management skills.

-Instead of buying the flash cars with a bonus, we bought more property and drove older cars.  Nothing sadder to me than a parking lot full of Audi's.  LOL

-We invested in the DoD Savings Deposit Program, while in combat zones and earned 10% on our money.  Used this and funds in Thrift Savings Plan to buy more property.

-We used larger tax returns from tax-free deployments to invest.

-Your One Thing for increasing income is working diligently on your OPR, so you hit your next promotion.  Then invest the difference. :D

Che Chiu Wong · Answer

Thanks @Joel W. for such a thought provoking topic.

First of all, I would like to factor in the time and end results. As an employee, one is in a passive position hoping the company will raise the wages. The end result could very well be climbing the corporate ladder. Your so called 'accomplishments' belongs to the company. As a real estate investor, your minute worth might be low at the beginning. You can safely expect that at least all of your hard work goes to your pocket.

Time is money. If you can have the time to work for yourself, you are already making more.

To answer your question, I would say work for yourself!

Joel W. · Answer

@Elizabeth  Colegrove

unfortunately we rent in Seattle. When we moved there I was very green in my understanding of REI, we were also scrambling to get anything because of a pending deployment. We lived in a hotel for 10 days and an extended stay for another week with three boys, then moved into an empty house at the last minute. My wife (such an amazing woman) had the HHG delivered while I was deployed to the Arctic for the next two months. I guess at that time I wasn't fully understanding the power of owning RE. Now I cringe every time I pay our rent and have sworn, never again.

Elizabeth Colegrove · Answer

@Joel W.

Do you own or rent in Seattle? We have done awesome by getting a personal that is way less than rent. So we can still live way below our means, save, etc.

Joel W. · Answer

@Kerry Baird

Your suggestions are surprisingly to foreign to most. The Coast Guard has never given many if any bonuses, I was lucky enough to get one when I enlisted 10 years ago, when I was told it would be taxed at 30% I almost jumped out of my skin, so I told them to put it into my TSP. Now I'm taking a loan out on my TSP at 2% and paying myself the interest. I've taken on the strategy of distance investing. I flew to Cleveland a couple weekends ago,  We are hoping to get stationed there next which is likely, becauae no one in the CG wants to be stationed in Cleveland. But as I've learned the last couple months investing while Active Duty and dealing with deployments is doable, you just have to change your strategy.

@Elizabeth  Colegrove

I've taken notice of your strategy Elizabeth and is something that I have taken into consideration, and have been trying to do. It is difficult to buy in Seattle though. Currently we live on one income and about 1/2 of it we cash flow back into our investments. AS Dave Ramsey says "your job is the best cash flow producing asset you have, so do good at it" until you can replace it with your investment cash flow.

Thank you both for yoru comments. And your service to our country as Military spouses, which is the hardest job in the military!

Elizabeth Colegrove · Answer

My husband is also an officer ;) We are currently duel income so we do what @Kerry Baird is suggesting. Right now we live off of his income and we invest my income in real estate. Our goal is to build up our cash flow so we can retire and live off his income and the houses (god/navy willing). We buy a house at every duty station that makes sense along with pure investments.

What's a minute worth?

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