$80k a Year Salary is Only $9/hr

12 Replies

An $80,000 per salary salary is only $219 a day.
$219 a day is only $9/hr if you earn income at 24 hours per day.
This doesn't take taxes into account.

What is your time worth? How are you making money work for you? Let's hear everyone's biggest accomplishments!

Huh? What is it your asking?

If I took what I make in a year and calculated it to an hourly "pay" then I'd feel dumb spending 2 hours cutting my palm trees which "costs" me $1000 (not really but for discussion) vs paying someone $150.

But you can take that to the extreme and never live life.

I used to think that way when I was commission sales. I'd work constantly since I knew ever extra hour working was $ in my pocket. 8 hours of sleep? That's "expensive" maybe $4k "lost".

Luckily I had this mindset when I was younger and could crush it before family. No way I could still do that.

Real estate is easy by comparison to almost any other way to make an equivalent living.

It's also $27/hr if you work a standard 8 hr day.

Do you work 24hrs per day? I don't and would never want to.

While the math is correct ($80k/8760 hrs), ERs don't pay for your sleep or down time.  They pay for active work (approx. 2040 hrs/yr). Most pay more in the form of ER taxes, the benefits they may provide and the paid vaca & sick time (160hrs+) they grant or the lost productivity when folks aren't doing their jobs. 

I know that's not what you were asking. But it's an unfair comparison & easy to get side tracked on. 

Originally posted by @Rich Vetter :

An $80,000 per salary salary is only $219 a day.
$219 a day is only $9/hr if you earn income at 24 hours per day.
This doesn't take taxes into account.

What is your time worth? How are you making money work for you? Let's hear everyone's biggest accomplishments!

Good post Rich. I think the idea behind the thread your trying to get started was lost on those above.  ^ But I'm picking up what your putting down, so I'll bite.

I have always been a fan of diversifying my income & vertically integrating my businesses. Currently I put my money to use in many ways as the owner of a Real Estate Brokerage, PM company, construction company, MLM company, Laundromat, Insurance company & many investments including an entirely new set of income streams coming next month with my pending purchase on a Motel & two vending machines. 

Case in point you can't "work" 24 hours / day but you can earn income is 24 hours / day if you have several sources set up to do so.

1. Personal Real Estate sales commission.

2-30. Commission earned when my agents make Real Estate sales. 

31-231. Rental income from roughly 200 rentals.

232-832. Property Management fees from roughly 600 rentals managed for others.

833. Contruction income from Holton-Wise contruction.

834-1,834 Residual income from my Insurance brokerage's annual policies.

1,835. Laundry Income.

1,836-1,993. Income from MLM company's residual streams.

1,994. Hotel income. 

1,995-1,996. Vending machine income.

1,997. Small ownership stake in a Title company.

1,998. Self Storage Income.

The answer, of course, is to put your assets in service to earn income for you. So your assets are working, technically. Absolutely nothing wrong with that. Some assets work 24/7. Some may work different hours or intermittently. Form my perspective, the ideal is to have multiple income producers that require minimal amount of my time (other than possibly setting up the 'machine') that work for me. That's the goal. There are lots of methods to accomplish the goal (assets working for me)... certainly rental real estate of all kinds (residential, commercial (automated self storage), growing trees;) come to mind, as does business ownership (e.g. franchises), financial services, etc. The key is to get to 'hands off' and automate as much as possible.

Originally posted by @James Wise :
Originally posted by @Rich Vetter:

An $80,000 per salary salary is only $219 a day.
$219 a day is only $9/hr if you earn income at 24 hours per day.
This doesn't take taxes into account.

What is your time worth? How are you making money work for you? Let's hear everyone's biggest accomplishments!

Good post Rich. I think the idea behind the thread your trying to get started was lost on those above.  ^ But I'm picking up what your putting down, so I'll bite.

I have always been a fan of diversifying my income & vertically integrating my businesses. Currently I put my money to use in many ways as the owner of a Real Estate Brokerage, PM company, construction company, MLM company, Laundromat, Insurance company & many investments including an entirely new set of income streams coming next month with my pending purchase on a Motel & two vending machines. 

Case in point you can't "work" 24 hours / day but you can earn income is 24 hours / day if you have several sources set up to do so.

1. Personal Real Estate sales commission.

2-30. Commission earned when my agents make Real Estate sales. 

31-231. Rental income from roughly 200 rentals.

232-832. Property Management fees from roughly 600 rentals managed for others.

833. Contruction income from Holton-Wise contruction.

834-1,834 Residual income from my Insurance brokerage's annual policies.

1,835. Laundry Income.

1,836-1,993. Income from MLM company's residual streams.

1,994. Hotel income. 

1,995-1,996. Vending machine income.

1,997. Small ownership stake in a Title company.

1,998. Self Storage Income.

I like how your business is vertically integrated, it makes a lot of sense. Having that many businesses you obviously need good people in place to manage a lot of the day to day without your constant involvement. I'd be curious in how you've set these up, only so much time in the day. 

For example, you have a construction company, how did you get that rolling? Did you build a solid crew then gradually add layers like a project manager, office staff, then general manager, etc as you went, did you find a small owner/operator and bring them under your umbrella, maybe  partnered up with an existing operation and rebrand under your name, etc. 

Originally posted by @Christopher B. :
Originally posted by @James Wise:
Originally posted by @Rich Vetter:

An $80,000 per salary salary is only $219 a day.
$219 a day is only $9/hr if you earn income at 24 hours per day.
This doesn't take taxes into account.

What is your time worth? How are you making money work for you? Let's hear everyone's biggest accomplishments!

Good post Rich. I think the idea behind the thread your trying to get started was lost on those above.  ^ But I'm picking up what your putting down, so I'll bite.

I have always been a fan of diversifying my income & vertically integrating my businesses. Currently I put my money to use in many ways as the owner of a Real Estate Brokerage, PM company, construction company, MLM company, Laundromat, Insurance company & many investments including an entirely new set of income streams coming next month with my pending purchase on a Motel & two vending machines. 

Case in point you can't "work" 24 hours / day but you can earn income is 24 hours / day if you have several sources set up to do so.

1. Personal Real Estate sales commission.

2-30. Commission earned when my agents make Real Estate sales. 

31-231. Rental income from roughly 200 rentals.

232-832. Property Management fees from roughly 600 rentals managed for others.

833. Contruction income from Holton-Wise contruction.

834-1,834 Residual income from my Insurance brokerage's annual policies.

1,835. Laundry Income.

1,836-1,993. Income from MLM company's residual streams.

1,994. Hotel income. 

1,995-1,996. Vending machine income.

1,997. Small ownership stake in a Title company.

1,998. Self Storage Income.

I like how your business is vertically integrated, it makes a lot of sense. Having that many businesses you obviously need good people in place to manage a lot of the day to day without your constant involvement. I'd be curious in how you've set these up, only so much time in the day. 

For example, you have a construction company, how did you get that rolling? Did you build a solid crew then gradually add layers like a project manager, office staff, then general manager, etc as you went, did you find a small owner/operator and bring them under your umbrella, maybe  partnered up with an existing operation and rebrand under your name, etc. 

 Right now we have a total staff of 60 to handle everything. As for the construction company specifically, the other half of Holton-Wise (Holton) is a G.C. when we got started he was running a pretty small 2-3 man operation. He oversees that part of the business & we just organically grew it up to what it is today, almost entirely to service the construction needs of our property management company. Currently there are 20+ folks on the construction side of the business.

Other ventures were set up differently. For example; the insurance business Holton-Wise has a 50% stake & @kevin hoag owns the other half & runs the day to day like writing policies & managing the hourly staff as he is the actual licensed broker of that company. 

@James Wise - thanks for chiming in! That's exactly where I was going with the thread. It was meant to be more of an introspective motivational post rather than a literal math problem. Impressive list you have there - keep crushing it!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here