The other day I was taking a walk in our estate and noticed a hardworking man digging a garden of potatoes. He was visibly sweating, clearly pouring a lot of energy into the task. As I watched him, I began to wonder how much he would earn once he sold those potatoes. I realized that the return on his investment of time and effort would likely be quite small. In other words, his Return on Energy (ROE) was low.
This observation led me to reflect on how this principle applies in many areas of life. Often, we start businesses and work tirelessly, yet the results don’t reflect the energy we’ve invested. Similarly, we may put in long hours in our careers but find that the financial or personal returns are minimal. Understanding ROE can help us determine which ventures or career paths are worth pursuing.
One practical way to assess your ROE is by calculating your return per hour. For example, if you earn UGX 1,000,000 per week and work 40 hours, your return per hour is UGX 25,000. Once you know your hourly rate, you can begin to evaluate whether you’re using your time in the most profitable or fulfilling way.
If there’s an opportunity in another line of business or field that offers a significantly higher hourly return, it may make economic sense to consider switching. To maximize ROE, we must always think about minimizing opportunity costs. Opportunity cost is essentially the benefit you miss out on by choosing one alternative over another.
In the end, our energy and time are limited resources. We should aim to invest them where the returns are highest and the regrets are lowest.
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