If you’ve ever read any of the feel-good books like Tuesday’s With Morrie or self-help books like Stephen Covey’s 7 Habits of Highly Effective People, you already know about the concept of “vampire time-suck“.
This is the person or situation that sucks the valuable time (aka “your blood”) out of you by attending certain meetings, taking certain phone calls, and completing to-do’s. If you think even for 30 seconds here, you can mentally picture that co-worker or vendor or daily/weekly job task that fills this time-suck, can’t you?
Why do I bring this up today?
Because one of my property management Clients reminded me how this concept intersects with the financial concept of “discounting value of money”.
Here’s the basic concept: A dollar earned or saved today is worth more than a dollar earned or saved in the future. It’s the method used to bring future projected cash flows into “today’s dollars”. And in running or operating a rental property portfolio, maximizing cash flow is king, right? (If you want to get your financial nerd on, here’s a quick link for more on this concept–http://www.investopedia.com/terms/d/dcf.asp)
Not necessarily. It truly depends on the stage of your investment portfolio, your personal priorities, and your ultimate timeline to ring the register and sell the units for recognizing capital gain. If you are early in your career, you may need or want to do everything yourself because money is that tight or because you need to know how to do something as a learning process. If, however, you are not a novice in this business venture or if you have some “spare” cash flows, then I highly recommend you apply the discounting cash flow model.
The older you get or the further into your investment careers you get, the steeper the discount curve gets.
In other words, you gladly trade time for money. You gladly trade off the repetitive tasks, the unpleasant tasks, or the tasks of very little value to someone else in order to gain more of your time back…to recapture control of the minutes in your life. Now in exchange, you will have to give up additional cash flow. But that’s the basis of any deal, right? You give up something in order to get something. This is one of the highest levels of business maturity and one of the smartest decision you will ever make.
Don’t believe me?
Here’s the proof: Of all the books, blogs, and interviews done with people on their deathbeds, how many of them would gladly trade a year of their earning power for another month of life? For even another week of life? Or even another day?
So…..when you’re done reading this, don’t check email or return that phone call.
Instead, choose RIGHT NOW what 1 thing, JUST 1 thing, you will either stop doing or have someone else do for you in your rental operation. Don’t put this off….time is slipping by fast.
Don’t let people or things suck your time. It is your lifeblood. Hoard it. Protect it. Embrace it.
As always, here’s to your continued success in achieving your Financial Freedom!
P.S. I would love to read what your 1 Thing is….post in the comments below or feel free to email me privately if you don’t want the blogosphere to know.
P.S.S. Curious to know what my 1 Thing is? Send me an email and I’ll tell you…you may be surprised.