https://twitter.com/baldridgecpa/status/1501296600764665859

After advising hundreds of multi-millionaires, there's one thing they all have in common...

They don't only think in terms of Return on Investment, but also consider RETURN ON HASSLE.

Here's what that is, and how you can apply it to your wealth building strategy 🧵👇

Let's start by defining the term

- Return on Hassle (ROH)

-- The amount of money you will save or earn divided by The time, money, and brain damage it takes to get there As your net worth and tax burden grow, you can spend more on the denominator to drive the numerator

@naval suggests setting 'an aspirational rate' on your time. Up to $5,000+ per hour to do things you don't like to do.

This concept will help you in evaluating money strategies.

If tinkering with personal finances is a hobby, that's great! Keep researching and stay compliant.

Examples of low ROH activities I see constantly:

1/n - Trying to perfect your withholding to not 'give the government an interest free loan'.

I pay extra for peace of mind.

I have clients who constantly owe the IRS because the interest rate is relatively low.

Make a choice.

Back Door Roth IRA contributions -

If you make over 200k, there is a way to make a $6,000 non-deductible IRA contribution and roll it over to a Roth.

For 6K a year, how much brain damage do you want to put up with to figure out how to do it and stay compliant with the IRS 🤮

Complex business structures -

Selecting the right business structure can save you millions over the course of your business.

This isn't the case for most new businesses.

Researching the 'right' way to start a business is a form of procrastination.

Just start today.

Over-working and playing status games -

Money is designed to help you live a good life. Once you have won the game, it might be better to focus on other areas.

Too much of anything can make you sick.

Series I savings bonds -

Individuals can invest up to 15k a year in bonds that are tied to inflation. It's a massive opportunity as inflation rises today (7%+ coupon today.)

No meat on the bone - you'll maybe make $1000 annually on 15k. Also you lock up your $$ for 1-5 years.

Medicare premiums/When to take Social Security -

The folks who worry about this stuff aren't the people who need to worry.

Take the money when you need it.

Big Idea - Take social security early. Use the pension stream to finance a rental property, or vacation home.

Setting up overly complex estate plans -

This can save millions for HNW folks, but comes with setup, ongoing compliance, and tradeoffs.

Watch @AlexHormozi 's youtube video "I paid 0% tax on 56% of my income" for another perspective.

As you loop in professionals to help you through these 'opportunities', the costs quickly outpace the lifetime value.

Also if you make one mistake, you can blow up the lifetime value of the opportunity.

Most often your time would be better spent finding other ways to earn.

Thanks to @MeasureTwiceMNY for helping me build this list - this came out of a conversation we had on a phone call around inflation. He is a great friend and a follow.

What are some stories you have around spending too much time majoring in the minors on personal finance?