In 3 minutes you’ll learn how to measure return on effort so you can free up time without losing progress.
A few years back, I was working nights and weekends on a side project. I thought it had huge potential—the thing that would make me financially free.
I tracked revenue, but not hours. When I finally did the math, I realized I was earning less than minimum wage for the effort.
Contrast that with my first rental property: $296/month profit after just a few hours of setup and delegation. One was high return on effort (ROE). The other was a grind that left me burned out.
The same math shows up in investing. I once spent dozens of hours researching stocks. My portfolio returned ~9.7%. The S&P 500 index fund returned ~9.5%—with zero effort. A 0.2% “edge” wasn’t worth the effort.
That’s when I started asking a new question before doing anything: not just “what’s the ROI?” but “what’s the ROE?”
The ROE Lens
Input → How many hours/energy units does it take?
Output → What measurable value comes back (money, time saved, opportunities)?
Ratio → Divide the two. More output per unit of effort = higher ROE.
Pick one current project.
Write down hours you spend monthly vs. what you get back.
Is it worth it?
Reply with one thing you’re reconsidering after measure ROE?
— Jake