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ROI vs Return On Time

What’s the difference between yield and return on effort?

 

 

Yield is another word for return on investment (ROI) – in this case, we are specifically talking about investment of capital.

You put money into some sort of investment, and you expect to get it back – plus an additional return.

A lot of people focus on getting the highest return or interest rate possible for their money.

It makes sense, right?

A couple of caveats come with that though.

There is, of course, often the potential for higher risk when you chase a higher return.

But I believe the bigger factor is how it affects the return on your effort – your return on time (ROT.)

If you have to put in a lot of work to find, manage, or put together those higher-yield deals, the cost is now not just financial – it’s costing your time.

If finding great deals is what you do every day on a regular basis, then you should be spending your time on maximizing yield and fine-tuning the constructs.

But what if you want to be a more passive investor?

I personally want more of my time.

I’d rather rely on other people who put in the time to find and structure great opportunities.

I’d rather give them a better yield for their time and effort, and I’m happy to take a little bit less because I’m not putting my time into it.

You don’t want to be trading time for dollars for the rest of your life. At some point, you need to trade some of that monetary yield to get more of your time back.

To your freedom!

David

 

 

P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think) :

1. Grab the first 3 chapters of my latest book:

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2. Become an Insider:

If you’re committed to Freedom, but still building a practice, paying down school debt,  or growing investment capital, Freedom Insider is your entrance ramp onto the fast track! Visit www.freedomfounders.com/insider and click the big orange “Become An Insider” button!

3. Apply To Visit The Mastermind:

If you’d like to join dozens of dentists, docs, and practice professionals on the fast track to Freedom (5-7 years max), visit www.freedomfounders.com/step-1 to apply for a seat.

4. Want to Move to the Front of the Line? Fast Access Insider Group:

If you’d like to work directly with me and a small group of my closest investment colleagues, with direct access to the dealmakers and asset classes that I invest in, just send a message to my Executive Assistant (Lindsey@FreedomFounders.com), and put “Fast Access” in the subject line. Or, call 888-548-5855 and leave a brief voicemail for Lindsey. Let her know you’re interested in the Fast Access Insider Group – we’ll set up a time to talk, find out about your goals, and see if there is a fit.

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