I find it fascinating that there are so many different ways to calculate financial returns. Some people look at returns differently.
From gross yield to infinite returns, IRR, ROCE, ROE, ROI etc.
ROI, or Return On Investment, comes up often, especially in property conversations, which is something we spend a fair bit of time having.
But very few people discuss ROTI, or Return On Time Invested.
You might consider time when you start a new job and wonder, is this worth my time. Your salary and benefits would be your return on your time invested at a job. Though, if you were told the job would be 35 hours a week and you regularly work 70 hours, your ROTI would be half what you thought it would be.
If you are an entrepreneur, your ROTI can be a little discouraging in the first couple of years as you might work very long hours while planting the seeds for your business, and not getting much back in return.
As you don’t know how much time you’ll have in this life, before it’s all over, and you can’t get any more of it, you are best to allocate or spend every minute wisely.
By the way, your returns don’t have to be measured strictly in financial terms when measuring ROTI. The returns you get might be the joy of spending great moments with your family, spouse, kids, parents, friends, etc.
So when you consider your financial return on investment, also consider your ROTI. What you may have to give up in time, to achieve certain returns, may not make the investment worthwhile.
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