You’ve probably heard me talk a lot of times about how property investors need to master their time in order to build a profitable and sustainable property business.
You’ve probably also heard me talk about working on income – generating activities.
And it’s true.
You see, if you want Your property business to thrive in these times, You have to spend the majority of the Your time on activities that generate the most profit, and leverage the rest, right?
It sounds simple, doesn’t’ it? But many property investors struggle with what they should do on a daily basis in order to bring in the dough.
So, I thought I would share some tips on how to calculate your income generating value (IGV)
When you know exactly what an hour of your time is worth, you can calculate accurately what tasks you should do yourself, and what tasks you should leverage out, pay for, or inspire others to do for you.
Taking a step back though, the following exercise is important. For the next 2 weeks create a simple work log of how you are spending your work time (career of property). Have a word doc open or a sheet of paper or notes folder on your smart phone. Every hour that you work in a day, note briefly what you did. Be honest with yourself, and at the end of the day put the letters IGA next to the parts that were income generating.
At the end of the 2 weeks work out what percentage of your time is spent on IGA’s. If you’re anything like us, you’ll probably be shocked at how just a few hours brings in most of the money and results, and a huge amount of time is virtually wasted.
Now, to calculate your IGV, total the amount of hours you spend working every week. That includes your job/career, any part time work, and any time you are putting into property or asset building – the entire amount of time attributed to earning money. You might have something like 55 hours.
Now calculate, or roughly guess, how much money you earn in that time frame. If you find it easier, calculate the same figures: hours worked and income generated, in a month, it doesn’t matter as long as there is consistency. You may have £850 in a week. Make sure that all income that is not a loan is added, any asset or passive income should be included.
Now divide the amount of income by the amount of hours, and you have your IGV – your time value per hour. Every hour you work brings in, on average, £x.
Now you have to be strict with yourself, and have faith in this algorithm. OK, it’s not that fancy, but still, you must be disciplined: any task that comes your way that you feel will or could earn you more than your IGV, then do it yourself, because it will pay you too. If you keep doing that, your IGV will go up and up.
But even more importantly, every task that comes your way that will or could bring in less than your IGV, you must leverage or outsource it. Either blag a favour, do a reciprocal deal, or pay for the task to be done. If you don’t, you’ll get poorer and you’ll actually repel more money that you pull in. We promise you this – stick to this and it will change your life forever.
And to monitor your time, to check that you are using it well, do your worklog for a couple of weeks to make this time restructuring a habit. It’s a habit of successful people, you can make it a habit too.
Do the above and you’ll boost your income fast!