This is from an actual email exchange with one of our FZ members last week.
Him: “I have $75k I’ll need for taxes. What should I do with 3 months of extra cash?”
Me: “Send it over and I’ll buy some Treasuries for you. They’re yielding 4.62% right now.”
Him: “It’s already in Wealthfront Savings earning 3.8%. For the time it’ll take to transfer the money I’ll only get an extra $150. My time is worth more than that.”
Me: “Smart choice. #whatsyourtimeworth”
This is a perfect example of applying the “O” (for optimization) from the Cash F.L.O. Mindset.
The end game is optimizing the return on your TIME, not your MONEY.
Is he leaving $150 on the table? Yup.
But if his “hourly rate” is $800/hr, then he’d actually LOSE $250 if he takes 30 minutes to transfer the money.
(30 minutes is worth $400. So he’d SPEND $400 worth of TIME to only get $150 worth of money.)
Return on Time > Return on Investment
