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Are You Spending or Investing Your Hard Earned Money?

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Are You Spending or Investing Your Hard Earned Money?

According to Australian Millionaire, Tim Gurner, our inclination towards frivolous items such as Avocado Toast are the reason why millenials can’t afford to put a down payment on a home.

As outlandish as this observation may sound, there is some truth to it. I seriously doubt that your decision to eat avocados is going to deter you from ever buying a home. But the act of irresponsible spending certainly will. The future is some far-off, unknown entity, and those of us who like to live in the now tend to indulge instead of invest. And while that instant gratification feels oh so good, eventually it will catch up with us. We need to start planning ahead.

Don’t squander away your hard earned money

We’ve been hearing it over and over since we were children. Our parents would give us a small allowance and tell us, “don’t spend it all in one place.” We may have laughed it off, but they were trying to teach us a very valuable lesson: we need to spend our money wisely.

We have reached an era where adults between the age of 24-35, what used to be ample home-buying age, are not able to afford a home of their own. A number of factors contribute to this issue: Credit standards have become stricter, making it more difficult for people with faulty or no credit at all to get a loan. Student loans are on the rise, burying millenials in crippling debt. Lifestyle changes- people are delaying getting married and having children, no longer prioritizing this as their ultimate goal. Many millenials are not receiving salaries that make them able to afford a home; many of them are living hand to mouth. Individuals in this age group are inclined to move to inner cities, where the act of renting is more prevalent than buying.

Ultimately, you don’t have to save up your money in order to buy a flat or home. If that’s just not your style, then do what makes you happy. But still be aware of your spending habits. Like I said, you work hard for your money. By all means treat yourself, but also consider the time you’ve put into earning that cash. It won’t be instant, but investing in yourself now will pay off big time in the future.

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Avoid these money spending mistakes:

1. Don’t be a sucker for a seemingly “good deal.”

Imagine you’re in the market for a new television set, and you’ve narrowed it down to two choices. Both televisions are priced at $500, but one of them has been marked down from $800. Immediately you conclude that the one that has been marked down would be a better value. This thought process is known as Anchoring Bias. This means that we make decisions based on one piece of information (the anchor). In this case, the discount is the anchor. You don’t know why the store chose to discount this item, and what issues it may have.

I’m sure we’ve all been guilty of naming ourselves, “bargain shopper,” never being able to pass up a good deal or sale. Many of us fall victim to this marketing tactic during the holiday season. Everything is on sale! And since we can’t resist a good sale, we spend money we normally wouldn’t, on items we normally wouldn’t buy. The end result? We just end up with stuff. Stuff we don’t need, and doesn’t bring us any fulfillment. If anything it makes us feel empty, because everything new eventually loses it’s charm.

2. Buying the things we WANT, instead of what we NEED

Do you ever find yourself sifting through your bottomless closet, filled with nearly identical shirts and shoes, only to realize you have “nothing to wear? Shop Therapy make us feel good. But only momentarily. How good will you feel about those items when you realize you can’t pay your bills?

It is exciting to get something new, and in the moment, we believe that this new item will help to shape us into the person we want to be (this jacket makes me look professional, more people will take me seriously). But the truth is, these items won’t change us. And we’re likely to lose interest in them just after a few days.To avoid this dilemma, really consider how much you need an item before you buy it. Don’t buy it on impulse, wait until the next day and consider if you really need it. Chances are you’ll forget about the item.

3. Spending money we don’t have

You just got your first credit card, and your soaring high on the possibilities. You can just buy things without worrying about your account balance. So you buy. You buy until you max out your credit card. So what do you do? You apply for another credit card to support your spending habits. Next thing you know, you’ve racked up $20k in debt with no way to pay it off. Your credit score plummets and your phone is ringing off the hook with debt collectors.

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The money isn’t tangible, so you don’t feel any real loss as you’re spending. Credit cards make spending way too easy, and debt that much easier to fall into. You can easily miscalculate how much you can afford; or worse, go into denial about how much you’re spending.

This is why so many adults are buried in debt. Since they don’t physically see the money leaving their bank accounts, they’ve disassociated the loss that comes with spending.

4. Buying instead of investing

Say that you’re an Instagram star, promoting a vegan lifestyle and the benefits it provides. You could spend $1000 on a new hand bag, OR, you could spend that money on a Nutrition Certification Course. Consider which is more beneficial to you: buying an expensive handbag that you’ve had your eye on, or investing in something that could potentially further your progress in life?

Sure, you’ll get that temporary high from buying that handbag, flaunt it around and be the envy of the town. But as soon as you’ve felt that satisfaction, that handbag no longer benefits you. It’s old news. However, if you spend it on the Nutrition Course, you could be well on your way to expert status on a subject that truly interests you. That is a benefit that will pay off for years to come; well after that ragged old handbag fell apart and became useless.

Never let the instant gratification trump you from investing something more rewardable.

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5. Trying to “buy” a relationship.

Your relationship has been on the rocks for a while, and you’re not really sure how to show them that you care. So you buy them tokens of your affection, showering them with gifts. This may temporarily fix the tension in the relationship, but the core issue is still there.

If your partner is only with you because of what you can offer them materialistically, then you should know it isn’t real. You shouldn’t have to buy your friends or romantic partners with extravagant items. If your partners love for you is determined by how much you spend on them, then they don’t love you for you. They love your money and what it can get them.

You are buying the relationship; an investment that will ultimately end in loss.

6. Opting not to invest in Health Care.

You take great care of your body. You eat right, work out daily, and take all of your vitamins. You feel great! There’s no need for health insurance, your health is just fine. One day on one of your runs through the park, you slip on some mud, fall awkwardly, and fracture your neck. An ambulance picks you up and takes you to the hospital. They perform x-rays, cat-scans, keep you overnight for observation, and provide you with painkillers to alleviate your suffering. When all is said and done, you now owe the hospital just shy of $30k. Your health was in great shape, but you just can’t predict these things. If you had health insurance, you wouldn’t have to worry about these costs on top of your injury. But now you do.

Millenials may feel that they don’t need to waste their money on Health insurance, because they’re still young and still have plenty of energy to spare. Health isn’t the first priority, because time and age is still yet to take a toll on us. But before we know it, our bodies start to give out on us. We eventually will age, sending our energy levels and health on the decline.

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Now, health insurance or not, you need to seek medical attention. And without coverage, your payments will be astronomical. An issue you never would have dealt with if you just sucked it up and made the monthly payments. Maybe you don’t need it now. But someday you will.

Invest in yourself and the future, and the payout will be well worth the sacrifice

When you really break it down and consider what is important, you realize you don’t actually need very much. What do you actually need? Your health, food (if that includes avocado toast so be it), water and shelter (clothing optional, but for the purpose of social norms I suppose we’ll include that as well).

Featured photo credit: Mashable via google.com

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Brian Lee

Chief of Product Management at Lifehack

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Last Updated on October 28, 2021

15 Strategies for an Effective To-Do List

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15 Strategies for an Effective To-Do List

One of the age-old productivity techniques around is the classic and effective to do list, and for good reason. It’s one of the most productive ways for you and everyone else to get anything done. Whether it’s a mental list or something that you are writing down, a to do list is an essential productivity tool.

At the same time, it is one of the most confusing productivity tools around. Many people discredit this for various reasons and don’t believe that a to do list is any good. But my argument is that maybe you and other people aren’t making an effective to do list, so here we will go over how to get one done right.

Why Bother With an Effective To-Do List?

You’ve Been Using Them Wrong

Before jumping into strategies to make an effective to do list, it’s worth knowing why you should bother making one. The first important point is that many people have been making to do lists all wrong.

Two of the most common mistakes are:

  • People use lists as a measurement of whether they are productive or not.
  • They put too many items on the list.

It’s understandable why you or other people do this, though. A to do list is a productivity tool, so it makes sense to pile on tasks. However, the brain doesn’t work that way. If you have a lot of tasks on your list, it feels like torture as the list never ends.

At first, it can feel nice that you always have something to do, but keep in mind that you only have so much time in a day. It’s important that you place more value in quality work rather than sheer quantity.

On that same note, if you are someone who has a tendency to seek validation, a to do list can be tough. There will be days where you won’t get everything done due to life events. This creates unnecessary pressure and sends you into a stress whirlwind.

It Helps You Stay Focused

When you build an effective to-do list, the main goal of these lists is to provide clarity and focus. If you’ve been doing them wrong, you may have noticed that you are focusing in on a task on your to do list and getting it done.

This may be overshadowed by the multiple items on your list, but you are focusing on a task during a given time. You really see this in action when you consider having a shorter to do list, though.

I understand that a to do list isn’t for every single person, but this focus is helpful to people when starting out. You’re still not certain about your goals or the path that you want to take. You may also struggle to determine the next step to work towards.

A to do list is a guide you can refer back to it whenever you need it. Furthermore, the techniques that I’ll be mentioning below will make to do lists more effective for you.

15 Strategies for an Effective To Do List

You’ll begin to see how powerful a to do list is when you consider the various strategies you can incorporate in one. This is your to do list, so pick from the strategies below to find what suits you. If you’re not certain, don’t be afraid to experiment and mishmash several combinations.

Remember that the road to success is one with many branching paths, so the methods you use are your choice.

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1. Break the List Into Two Parts

The first strategy is to break a list into two parts. These two parts are called dailies and to do’s.

Dailies are the everyday tasks that you want to develop more. For example, if you want to make a habit out of exercising in the morning, a daily task could be following a 15-minute workout routine or going for an hour-long walk.

Your to do’s are non-daily tasks that you need to be getting done at some point. Maybe you need to prepare a report at work or make a presentation. You can put that into your to do column.

This is an effective strategy because it saves all the clutter that most people gravitate towards. As mentioned before, people stuff their lists, and a lot of it is usually tasks they you would do anyway, like going grocery shopping or dropping the kids off at a friend’s place.

2. Put a Limit on Items

If you find breaking your list into two parts too much, I’ll suggest brevity to be a virtue when making these lists. You can set any number of items, but the key is that you do have a set limit in mind. Some people have no more than seven while others go as low as three. Do what makes you feel comfortable.

The idea behind this is to narrow in on the most important tasks that you need to accomplish that day. Of course, there are other things that you’ll be doing during the day, and that’s fine, but you want to prioritize the items that on your to do list before the day is done.

3. Use Checklists for Complex Tasks

If you’re already making narrow lists but are putting in tougher tasks, my suggestion is to break that task down. Whether it’s full-on steps you need to take or jotting down important details that need to be present is up to you.

Either way, this allows you to ensure that you’re getting everything done the proper way and that you’re not missing any key details or steps.

4. Tackle MITs First

MIT is the “most important task.” Another way to look at this is to tackle the largest and most intimidating task first[1]. Why you want to do this goes back to how our brain works.

You may feel compelled to do the easier tasks first before getting to the bigger task, but the problem is that these tasks—even the easy ones—drain your energy. Furthermore, if you have a really big task to complete, chances are that’s going to be on your mind over the course of the day. That means you’re spending more energy just thinking about it.

All of that wouldn’t be a problem if that big intimidating task was dealt with first thing in the morning.

5. Create a “Done” List

Another interesting approach to consider is to have a “done” list. This is a list of the tasks that you’ve completed from your to do list. Many people find it satisfying to merely cross an item off their list and be done with it, but depending on what you’re putting on those lists, a done list could be inspiring.

Imagine if you are someone who places above-average difficult tasks on your to do lists, activities that require an hour or two to complete properly. This can inspire you to do more if, after a day of working, you notice just how much you accomplished over the course of the day via this list.

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6. Make Your List Easy to Spot

From colorful paper to posting it in an obvious spot, you want your list to be in a place where you can spot it easily. Mind you, you don’t need to have this list in front of you all the time as it could create unnecessary stress. But setting it to one side is a nice idea—a glance to the side and you know exactly what needs to get done.

7. Add Gaming Elements to It

If pen and paper isn’t your thing when making to do lists, there are several apps that can guide you along as well. The beauty of to do list apps is that there is more room for creativity, and some of the developers incorporate games into them.

For example, Todoist has an achievement system where individuals earn badges as they complete more tasks. There’s also Bounty Tasker, which makes you feel like your tasks are side quests in a video game.

8. Give Yourself Deadlines

Work expands to fill time allotted.

It’s an old philosophy that still rings true with how we are productive. For example, say you’re assigned to write a report, and you’re given a week to do it. You’ll likely work on it steadily throughout the week. Or if you’re a procrastinator, you’ll put it off until the night before and finish it.

But what if you’re given that same task and only allotted an hour to complete it? You’ll likely get the report done, but you’ll prioritize the main, important points and highlight those rather than fill it with unnecessary fluff.

The whole point of this is that with your goals and the items on your to do list, you want to have deadlines. When it comes to to do lists, my suggestion is to give yourself a day to complete the tasks there. This is enough pressure and incentive for you to work hard on them.

9. Add Tasks When They’re Fresh

Another strategy is to assign yourself tasks even when you are working on something else. Keep in mind it’s not something you have to do right now, but this can help with people who are struggling to think about what to focus on next.

This is along the same lines as when you hear something interesting and you write it down. It’s a wise thing to do as it saves you the bother of having to dwell on that idea rather than focusing on the task at hand. It also saves you from having to recall what the task is if you’re the type to write up the next day’s to do list at the end of the day.

10. Be Comfortable With Revising Your To-Do List

Depending on your overall mindset, another good strategy is to look at your to do list and make changes to it. If you’re practicing the previous strategy, there may be a possibility that your to do list is getting lengthy and you’re setting unrealistic expectations that you can finish it all.

By giving yourself the opportunity to revise your to do list, your allowing yourself to spread out your tasks rather than have them clumped up. This helps your mindset as you’re not overwhelmed by the list.

11. Write Tasks, Not Goals

You should have separate lists for your tasks and your goals. The idea is to not put goals on your task list at all.

While tasks can help you lead to your goals, goals are larger desires and not something that you can achieve over the course of the day. For example, “learn to speak French” is a goal; however, you can break that into a task by saying “read French content for 15 minutes” or “watch a movie in French.”

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This also extends to objectives, too. You can see these as milestones. Going back to the example of speaking French, an objective can be, “discuss my favorite foods with someone in French.” It’s the desired outcome that you’re looking for from your practice.

12. Keep To Do Lists Brief

Here, brief means scannable in that you can quickly look over at the list and know what needs to get done. How you can do this is by focusing on the keywords of specific tasks and not dragging them out. For example, say your garage is a mess and you want to clean it up. Instead of writing a lengthy sentence, keep it short and write something like “clean garage for 30 min.” or simply “clean garage.”

With this strategy, you’re spending less time writing the task down when making the to do list. Furthermore, you’re relying on trigger words to get your mind to recall specific details for that task.

13. Have Multiple Lists

As mentioned above, it’s a good idea to have separate lists for various things, like having a separate list for goals, objectives, daily tasks, and to do’s. Another way you can look at it is to have a system where you are consulting from three lists.

These lists are:

A Master List

This is where any of your long-term goals are, things like moving to a new house, getting out of debt, or building a business. These are things that will take a year or more to accomplish.

A Weekly Project List

These are things that you want to accomplish by the end of the week. These are things that will move the needle slowly towards some of the items on your master list. From the previous example, these could be doing research on getting a business loan, house hunting, or setting up a savings account.

A High-Impact List

Lastly, these are tasks that need to be accomplished today. Whether they are related to the previous two lists or not doesn’t matter. This is where high priority tasks are placed. Examples can be calling specific people or working on a project or a report that’s due soon.

By having these lists in place, you’ll be referring often to the weekly project list and the high-impact list and determining whether a weekly task should be moved to that list.

As you do that, you’ll begin to notice how much your daily life has an impact on those goals that are written on that master list. That can be inspiring since what you are doing is actively bringing you closer to your goals.

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14. Don’t Ramp up Difficulty Until You’re Ready

Some of the strategies mentioned can seem easy on the surface, but they require a lot of mental fortitude. Motivation is an unusual thing, and our brains are wired to process a certain way. If you’re looking for genuine change and something that sticks, the best principle is to keep things simple and easy at first.

It may be a drag, but you don’t often realize how those baby steps can play a crucial role in you being able to start running and chasing your dreams. Don’t be ashamed if you have to start off with simple tasks for yourself. Even going back to daily tasks that you do anyway like showering, doing the laundry or shopping for food is a good way to start.

Putting those items on the list at first makes you feel like you’ve had a productive day. From there, you can challenge yourself with more difficult tasks. Incorporate an exercise routine or spend a half-hour on a task that means something to you.

The idea is to ease yourself into a routine so you don’t feel overwhelmed.

15. Measure Your Time

The last strategy that can help you is to measure your time. How long does it take you to finish a specific task? You don’t need to go for specifics, but make a point of timing yourself over the course of a week and get the average time spent on that task.

Why is this important? This information can be broken down in two ways.

The first way is to use it as a marker to boost efficiency. Depending on the task, you can find new ways to achieve the same results in a shorter time.

It also allows you to know what you can do in a given day. If you know that it takes you an hour or so to go through your entire morning routine, you’ll be more conscious about how you move through that routine.

Furthermore, if you know what tasks you’ll be doing the next day, you can better manage your time since you know roughly how much time it’ll take to get everything done.

Final Thoughts

Building an effective to do list is not as easy as it seems.

There are all kinds of unique strategies to try out, some more challenging that others. However, if you are motivated to use this productivity tool to make your life easier, then it will get easier.

All that you need to do is keep putting effort and experiment and reevaluate when necessary. So get started with your to do lists today.

More Tips on Using an Effective To Do List

Featured photo credit: Emma Matthews Digital Content Production via unsplash.com

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