We very often try to “squeeze” too many things, tasks, and desires into our lives. But, alas, our days on Earth are always limited, and we simply do not have time to do everything we want to do.
That is why each of us should sort out our priorities in order to choose the most important and meaningful things. After all, the main secret of time management is not to be as efficient and productive as possible, but to decide what to neglect and what to give up (that is, the secret of setting the right priorities).
Below we will tell you the 4 steps on how to do it.
1. Set yourself long-term goals
“What do I want from life?” This question begins not only with time management, but also with the road to sustainable financial well-being.
A powerful side effect of finding an answer to this question is sifting out “second-tier priorities”, i.e. those things and tasks that are not really that important to us.
Whatever it is, if it is not one of the top five things you want to get out of life, then you must give it up firmly (or delegate the task to someone else immediately).
Knowing how to say NO is the key to a full and rich life.
2. Calculate opportunity costs
Let me first explain the term “opportunity cost”. These are the potential benefits that a person misses out on by refusing to do something. Since most of the time these “missed benefits” are invisible, it is easy to miss them. Especially if you’re not used to thinking in these categories.
Calculating several alternatives allows you to make the best decisions. Including from a financial point of view: by comparing all the benefits and costs of each possible alternative.
To make it clearer, here’s an example:
Any investor often faces a difficult choice in which it is more profitable to invest his money:
- to buy real estate for rent;
- or to buy shares in the stock market.
A beginner investor almost always chooses the first option, as it is more familiar and understandable (especially in case he has read books of Robert Kiyosaki). An experienced investor understands perfectly well that real estate is the worst option for investing money (because of its extremely low liquidity and the constant fall in its value in the dollar equivalent).
3. Keep in mind that your time is limited
4,000-5,000 weeks. This is about the average amount of time we can expect to live in this world.
Not so much…
So we must stop deceiving ourselves that we still have a lot of time ahead of us. We must make up our minds unequivocally:
- What is important to us and what is not?
- What we should do (and what we should not do) in our professional life?
- How we will increase our income?
- How we will build wealth and financial capital?
Each of us has difficult choices to make, but there is no worthy alternative. Because we cannot “embrace the immensity”. And the exclusion of the “infinite” will lead to an expansion of the parameters of the possible.
4. Learn to filter information streams
In order to succeed in this life, it’s important not only what you read, but also what you DON’T READ. Bad information and misinformation will pull you back and eventually in your old age you will be disappointed to find that you have not been able to accumulate capital or create anything significant in life.
This is “addition by subtraction”. It is the sifting out of information noise. It is the sifting out of everything superfluous.
Avoid reading news published in the financial media. Read only useful articles and blogs where people not only write, but also think and share their thoughts (like ours).
By doing so, you will not allow your thinking to become someone else’s. By doing so, you will learn to think for yourself, to draw your own conclusions that benefit only you, not someone else. Get used to making decisions about your money on your own, not under outside pressure.