What is the 80/20 rule in real estate? It means that 80 percent of your results are generated from 20 percent of your activities and we’re going to explain a bit more below.

In terms of money, what is your time worth? There is never enough time in the day to do everything. But there is always time to do the most important things. All you need to do is determine what those important things are. Before we do that, let’s calculate your hourly rate.

To calculate what your time is worth, complete this exercise. First, determine how much money you made in the last 12 months. Next, take the number of days you worked per week and multiply that number by the number of weeks in the year. This equals your total number of working days. Once you have that figure, take the total number of working days and multiply it by the number of hours worked per day. This equals the total number of hours worked. Now, take your income and divide that number by the total number of hours you worked. This number equals your value per hour. Going forward, you need to think about the activities you’re doing and decide if that activity is worth the amount of money you make per hour.

In order to determine your new rate, start with a typical 8-hour work day. Determine how many of those hours were spent doing top 20% of activities. Take that number and multiply it by the total number of days worked. This equals your total number of hours worked in your top 20% activities. Now, take last year’s income and divide it by the number of hours worked in the top 20% of activities. This equals your new hourly rate.

Doing the most important things is what is going to make you the money. Those are the things you need to do above all else. To calculate this, multiply the total number of hours worked by your new hourly rate. This will equal the new salary if all of your time was spent in your top 20% of activities. How much of a raise did you just give to yourself?

There is nothing wrong with doing lower value/hour tasks, but it’s not the best use of your time. By doing your top 20% activities, you’ll be more fulfilled and you’ll generate more business. Think about what that amount of money from your pay raise would do for you and your family. How much debt could you pay off? If you start talking to people today, you’ll find out that someone has your money. And they don’t, they know someone that does. It’s up to you though to show up and bring in the new, but you MUST execute and stay in your strength zones. Otherwise, you may end up forcing yourself out of real estate.

How you choose to utilize your time and focus can make all the difference in the world. Once you get the momentum, it gets easier. Time will continue on either way so you have to make sure you’re doing the right activities that support your ideal life. It doesn’t always matter how you start; it matters how you finish. Your potential is so much greater when you’re productive. Productivity = your potential so don’t waste your time and check out. That’s what everyone else does so be a professional.