Time is All We Have: 3 Ways to Increase Return on Investment | Erin Falconer

Do not squander time for that is the stuff life is made of.– Benjamin Franklin

Return on investment (ROI) is a term you hear frequently, usually in relation to business and finance. The goal (obviously) is to maximize return on the money you invest. The implications of this concept go much deeper when you start to think of time as your primary investment rather than money. Everything you do is an investment of time. When you watch television, you’re making an investment in entertainment. If you watch a show that sucks, you’ve made a bad investment and receive a poor return for your time.

In many ways time is more valuable than money. You’ll always have the opportunity to make more money, but once time has been spent it’s gone forever. When you think of time as a commodity, and all of your actions as investments, it changes the way you approach every day decisions.

We spend time in many different ways: working, eating, sleep, exercise, entertainment, etc. All of these things are important. When we start investing too heavily in one area and not enough in another we create problems for ourselves. The key is investing our time in a manner that perfectly balances each of these areas and forms a productive and pleasurable life.

Deciding how to invest our time is a formidable task. Unlike business, there are no percentages or spreadsheets to reference. We have to rely on experience and intuition. I’m far from a master at this, but these are a few principals I use to guide my decision making.

1. Look for Multiple Positives

A multiple positive is an activity that generates a positive return in more than one area. These are great for ROI because they multiply returns and incur fewer losses. One of my best multiple positives is working on this website. It’s something that I find extremely entertaining, it contributes to a small (but steadily growing) stream of income, and it develops skills that I’ll be able to use the rest of my life like writing, web design, and networking.

Every individual will have different multiple positives, the important part is finding ones that work for you. A multiple positive for a software developer might be working on open source or a personal project. It can even be as simple as playing basketball, a fun game that’s also great exercise. The key to finding multiple positives is finding areas where different positive actions intersect. If I can find a way to get paid to eat delicious food I’ll be golden.

2. Avoid Multiple Negatives

Multiple negatives are the same as multiple positives, except the complete opposite. These are activities that detract from multiple areas of life. One of my favorite weaknesses is going out drinking. This hurts me in three ways: the time spent isn’t productive, drinks are expensive, and the effect of staying up late and being hungover usually ruins the following day. If I don’t have a good time, this is basically the worst possible scenario.

I’m not saying you should never go out and have a good time. To be happy we need socialization and excitement. My point is that we should always try to minimize the negative impact of our actions. I try to do this by minimizing the amount I drink and only going out when I know it will be enjoyable. Often we get caught in a pattern of poor investment. Over time, the benefits fade away and what remains is mostly negative, but we keep doing it out of habit. This can be avoided by periodically analyzing our behavior. Is it still a good investment, or is it time to make a change?

3. Utilize the Power of Compounding

I’m sure that everyone reading this understands the power of compound interest. When you invest money you earn interest. Then you start earning interest on the money you earned from interest. Over many years this continues to compound and eventually leads to a very large sum of money. The same concept applies to time. If you invest time by working hard when you’re young, you put yourself in a position to succeed that will continue compounding for the rest of your life. If you waste time when you’re young, you can’t make up for it later because you’ve lost the opportunity to utilize the power compounding.

Many people my age fail to realize this, in fact I didn’t, or at least I didn’t act on it, until fairly recently. The primary reason is that we’re trapped in the childish mindset. As a child, your only responsibility is entertaining yourself. You needn’t worry about investing your time because Mommy and Daddy are there to take care of you and they’re usually happy as long as you stay out of trouble. These days many young adults ride the childish mindset straight through college. After graduation we’re expected to adopt the adult mindset (and the responsibility of investing our time) instantaneously. A lot of people don’t get it, and every year they waste, trying to extend the college days, is an opportunity that can never be replaced.

Many people think their time isn’t valuable when they aren’t working, so they throw it away on activities that have a poor return on investment and don’t build for the future. The truth is, no one else is going to consider your time valuable until you do. If you want to acquire the wealth that will provide the freedom to live your ideal lifestyle, start thinking of every decision as an investment. Nothing is insignificant.

One mental model that can help you make better decisions is imagining that your life is a corporation and you’re the only employee. If you were the CEO of John Doe Incorporated, and were obliged to maximize profit on behalf of investors, what would you make yourself do? You’ll find that this sort of analysis simplifies many decisions and increases return on investment.
Thought provoking?  I think so.  Let me know what you think below.
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Driving yourself to perform: If not you, then who? | Eugene Whelan

We all want to do better. Better at work, better in life, better at everything. But how do we achieve this and do we really know what better is?

Performance at work has always been a hot topic. At worst, performance (or the lack of it) can put a company under, at best it can make it positively flourish.

It's the reason we have performance reviews, targets and KPIs – so that our boss and the management of the company can tell how we, and they, are doing by performance results.

But performance isn’t just about facts, figures and targets. It’s not just about meeting expectations to a satisfactory level within the work place.

In terms of ourselves, performance, and our understanding of it, is the key to personal and professional development and the business success.

Or to use a driving analogy: if you can't see where you are on the map, how can you work out your route, or know when you have arrived.

So it's down to you to manage your own performance at work if you want to get the results and recognition you want and get to where you really want to be.

 North, South, East or West?
Back to our map analogy. Do you know where you are in terms of performance at work?

Have you looked at your performance, analysed your strengths and weaknesses and more importantly accepted them?

Have you ever conducted your own performance review? If not, then you need to, now.
Choose a time-frame – say the last year. Brainstorm a list of your achievements (don’t be shy), your failures (do be honest!), your challenges and issues, obstacles you feel you overcame, situations you think may have got the better of you and anything else you think may affect or contribute to your performance at work. These can include factors outside of work as well.

Group the different elements together and you will have a good idea of where you are on the map performance-wise. Then you need to decide what you need to change so you can improve your performance.

 Analysis and Investment

Change is usually a good thing, but invariably very hard to do, especially when it needs to be self-motivated.

However, now you have reviewed your current position, you will have a very good indication of where you may be falling short, not only in terms of your mindset around your job and your company, but also in terms of where you may need additional learning and development to do your job better and improve your position.

Having a good awareness of the skills/abilities you lack to improve your performance and further your career is the starting point to doing something about that.

This is when communication with your superior is key. You will need to make an investment in yourself and ideally the source of the investment will come from your company. You just need to convince them why it will be commercially profitable for them to do so. Performance reviews are the perfect time to do this.

It's this simple:

1. Arrange a meeting with your supervisor to discuss your self-review and use it to point out your strengths but also the areas where you feel you are lacking. (Ask for their feedback on this.)
2. Highlight the type of training or investment you have identified you need to undertake, to improve upon those areas. (Do they agree with you?)
3. Discuss how afterwards, you would be more effective and productive in areas, and how this would impact on your contribution to the company as whole. (What's their opinion?)

Well it’s not really that simple but you have to be the “driver” in this situation, your boss won’t just stop and hand it to you.

 So. Get your Performance Sat-Nav in Gear

If you want to get better at what you do, if you want to succeed and if you want to further your career then you need to take control.

These days, the burden of self-improvement is squarely on the shoulders of employees not the managers. The thinking being that if you want to “get ahead” then you need to do something about it. And the more pro-active you are the more favourably it will be looked upon.

That means you need to know where you are headed and how you are going to get there.

Based on your own performance review and your assessment of the investment you need to improve your skill and performance levels, you need to create a road-map of actions that will help you make it happen.

Again take the time-frame of a year (or three if that’s more reasonable) and decide where you want to be at the end of that time. Then work backwards as to what you need to do to achieve that goal.

Could it be finding and paying for your own training if it is a crucial area that just can’t wait? Is it a daily strategy or ethos that will lift your performance levels and your mindset? Perhaps you need to change the way you do or approach certain tasks or projects?

Whatever it is, it’s up to you to decide. And at the crux of all of this is honesty.

You need to be truly honest with yourself about what you need to improve upon, so that you can actually make those improvements happen.

If you can’t then you will be looking at a map with no roads and you’ll be going nowhere.

So ask yourself this question: What have you done to improve your skills, abilities, and your performance in the last six months?
Author's Bio:


Eugene Whelan is a qualified business and life coach and is the owner of One To Ten Coaching.

He has over 25 years experience at senior management level in the manufacturing and distribution industries.

Eugene has worked in various senior roles including, sales, manufacturing and commercial.

During this time he has gained an invaluable insight into the day-to-day pressures that go with such leadership roles and the expectations to be met.

Eugene is a direct and enlightened business consultant, able to see the practical side of people and situations as well as the more intangible qualities and potential of both.

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