Before You DIY, Calculate This...

[Jeff M.]

What is your time worth?

Re-flooring a unit myself NEVER saves money. On paper, it may be enticing to DIY and save $500. BUT in the time it takes to lay the floor, I've potentially lost $5-10k!

What the Pergo??!! The time spent taking on a task you're not expert at, is time you're stealing away from activities that yield bigger returns. The time spent on your knees wrestling with laminate, could be spent finding other hot properties, sending out yellow letters, talking to prospects, wholesaling properties, etc.

Are you a handyman or an investor? Depending on the scope of the project and level of experience, sometimes it makes sense to DIY BUT only if it’s the most profitable use of time. How valuable is your time? For a handyman it's $25-40/hr. How much is your investing expertise worth?

Aside from being the most precious, non-renewable resource, time is our universal currency. Every day we trade action for time. Our productivity sets the exchange rate. Our choices determine the ROI. Unfortunately, the Big Bank o' Time will never get a sweet bail-out deal. It's up to us to vigilantly monitor, defend and grow our balance sheets.

For a week, keep a Time Tracking Sheet. Analyze how you spend yours and adjust accordingly. Don't just spend time, invest it wisely. I hope this post was a good use of mine. (It sure beats laying linoleum!)