Advertising
Advertising

7 Things I’m Doing Right Now To Improve My Financial Situation

7 Things I’m Doing Right Now To Improve My Financial Situation

    Just like most folks, I don’t consider my financial situation perfect. I have some debt that I need to pay off and some goals I want to achieve. Moving forward on financial matters can seem so difficult. Saying that ‘I want to get out of debt’ is general — there’s no clear starting point. And that’s just the minor stuff: figuring out taxes can make you wish we all still relied on barter. But setting your financial house in order isn’t impossible. You just need a starting point.

    Advertising

    These steps are my starting points. Not just any starting points, either: these are my ‘back to basics,’ ‘work on when I have no idea what else to do,’ ‘got to keep with it’ tasks.

    Advertising

    1. I set goals. My financial goals are very set things, though. They have dollar amounts and due dates, no matter what. After all, my finances are all about numbers. It just makes sense that my financial goals are the same way. I consider something along the lines of ‘I will save $500 by the end of this month for my emergency fund.’ I also think it’s crucial to know from the start what your money is for. Saving for shoes or for getting laid off is easy, but just saving is hard.
    2. I read. I know I don’t know everything there is to know about personal finance. I’m working on correcting that, though. Right now, I’m reading up on stocks — a subject that was not even mentioned during the one semester of financial literacy education my high school provided. Because I’m well aware of the deficiencies of my official personal finance education, I read a lot. I want to know all about different ideas, even if I don’t agree with them.
    3. I take my time. When it comes to a financial decision, including spending relatively large sums of money, I wait. While I might have an instinctive reaction (often along the lines of ‘Buy it! Buy it!’), I’ve found that I save a lot of money by just deciding to come back later. The same holds true on other financial decisions. Before I chose a bank, I take some time and do some research.
    4. I put my money out of reach. I’m lucky — I don’t have a problem resisting the urge to use my credit card. But if I have cash in my pocket, I always have a burning desire to spread the wealth around. I try to head this urge off: I don’t carry much cash. I’ve gone a step beyond that, though. Most of my savings is in an account that, while I can get my money in an emergency, I do have to jump through some hoops to make a withdrawal. Having to go through a few extra steps when I want cash makes me reluctant to spend money when I don’t actually need to.
    5. I improve my income. Passive income is the best thing since sliced bread. Whenever I get the opportunity to set up a passive income stream — even if it’s just a static website with Google AdSense — I do what I can to take full advantage of it. I do what I can to improve my other sources of income, as well. I negotiate for higher pay, take on side projects and generally do whatever I can to increase the amount of money I have coming in.
    6. I run a business. It seems like having a business would be more effort and expense than it would be worth, financially speaking. But you can effectively run a business for free, and it offers several advantages. Consider your ‘business expenses.’ If you run a blog or other computer-based business, that computer you just bought could be tax deductible. You just lowered your tax bill by making a purchase that you probably would anyway.
    7. I do things myself. Some instances of frugality, like making your own soap, may not improve your financial situation. It may not be worth your time to do some things yourself. But I’ve found several things to do myself that have saved me money, liking baking my own bread. Even better, if I’m doing some task I’d normally pay someone else to do, in addition to saving that fee I’m not out spending money on entertainment. Sure, it may not be cheaper for me to grow my own tomatoes, but when I’m gardening, I’m spending only a fraction of what I would at the movie theater.

    There are lots of little things that we can do to tidy up our respective financial situations. It’s important to remember that it’s not an all or nothing proposition you can make progress on your financial goals without committing to complete frugality, massive saving and working every hour in the day. That sort of approach will probably only last you a few days before you break down. But if you work on just a small task or two at a time, you can make a lasting change in your approach to personal finance. Even doing something as simple as eating one extra meal at home each week can make a profound difference in your bank balance.

    Advertising

    None of the steps I’ve listed before need to be hardcore processes. Even running a business can be something as simple as selling your old stuff on eBay. Each of these steps can be as small — or as big — of a commitment as you would like. Personally, though, I go for the light workload.

    Advertising

    More by this author

    50 Businesses You Can Start In Your Spare Time 8 Replacements for Google Notebook 5 Sites Where You Can Sell Your Photos 7 Tools to Find Someone Online 19 Entrepreneurship Websites Worth Checking Out

    Trending in Featured

    1 How to Master the Art of Prioritization 2 How to Find Your Passion and Live a Fulfilling Life 3 What to Do in Free Time? 20 Productive Ways to Use the Time 4 Becoming Self-Taught (The How-To Guide) 5 How To Start a Conversation with Anyone

    Read Next

    Advertising
    Advertising
    Advertising

    Last Updated on September 10, 2019

    How to Master the Art of Prioritization

    How to Master the Art of Prioritization

    Do you know that prioritization is an art? It is an art that will lead you to success in whatever area that matters to you.

    By prioritization, I’m not talking so much about assigning tasks, but deciding which will take chronological priority in your day—figuring out which tasks you’ll do first, and which you’ll leave to last.

    Effective Prioritization

    There are two approaches to “prioritizing” the tasks in your to-do list that I see fairly often:

    Approach #1 Tackling the Biggest Tasks First and Getting Them out of the Way

    The idea is that by tackling them first, you deal with the pressure and anxiety that builds up and prevents you from getting anything done—whether we’re talking about big or small tasks. Leo Babauta is a proponent of this Big Rocks method.[1]

    Advertising

    Approach #2 Tackling the Tasks You Can Get Done Quickly and Easily, with Minimal Effort

    Proponents of this method believe that by tackling the small fries first, you’ll have less noise distracting you from the periphery of your consciousness.

    If you believe in getting your email read and responded to, making phone calls and getting Google Reader zeroed before you dive into the high-yield work, you’re a proponent of this method. I suppose you could say Getting Things Done (GTD) encourages this sort of method, since the methodology advises followers to tackle tasks that can be completed within two minutes, right there and then.

    Figure out Your Approach for Prioritization

    My own approach is perhaps a mixture of the two.

    I’ll write out my daily task list and draw little priority stars next to the three items I need to get done that day. They don’t need to be big tasks, but nine times out of ten, they are.

    Advertising

    Smaller tasks are rarely important enough to warrant a star in the first place; I can always get away without even checking my inbox until the next day if I’m swamped, and the people who need to get in touch with me super quickly know how.

    But I’m not recommending my system of prioritization to you. I’m also not saying that mine is better than Leo’s Big Rocks method, and I’m not saying it’s better than the “if it can be done quickly, do it first” method either.

    The thing with prioritization is that knowing when to do what relies very much on you and the way you work. Some people need to get some small work done to find a sense of accomplishment and clarity that allows them to focus on and tackle bigger items. Others need to deal with the big tasks or they’ll get caught up in the busywork of the day and never move on, especially when that Google Reader count just refuses to get zeroed (personally, I recommend the Mark All As Read button—I use it most days!).

    I’m in between, because my own patterns can be all over the place. Some days I will be ready to rip into massive projects at 7AM. Other times I’ll feel the need to zero every inbox I have and clean up the papers on my desk before I can focus on anything serious. I also know that my peak, efficient working time doesn’t come at 11AM or 3PM or some specific time like it does for many people, but I have several peaks divided by a few troughs. I can feel what’s coming on when and try to keep my schedule liquid enough that I can adapt.

    Advertising

    That’s why I use a starred task list system rather than a scheduled task list. It allows me to trust myself (something that I suppose takes a certain amount of discipline) and achieve peak efficiency by blowing with the winds. If I fight the peaks and troughs, I’ll get less done; but if I do certain kinds of work in each period of the day as they come, I’ll get more done than most others in a similar line of work.

    You may not be able to trust yourself to that extent without falling into the busywork trap. You may not be able to tackle big tasks first thing in the morning without feeling like you’re pushing against an invisible brick wall that won’t budge. You might not be able to deal with small tasks before the big tasks without feeling pangs of guilt and urgency.

    My point is:

    The prioritization systems themselves don’t matter. They’re all pretty good for a group of people, not least of all to the people who espouse them because they use them and find them effective.

    Advertising

    What matters is that you don’t fall for one set of dogma (and I’m not saying Leo Babauta or David Allen preach these things as dogma, but sometimes their proponents do) until you’ve tried the systems extensively, and found which method of chronological prioritization works for you.

    And if the system you already use works great, then there’s no need to bother trying others—in the world of personal productivity, it’s too easy to mess with something that works and find yourself unable to get back into your former groove.

    “If it ain’t broke, don’t fix it.”

    In truth, this principle applies to all sorts of personal productivity issues, though it’s important to know which issues it applies to.

    If you thought multitasking worked well for you each day and I’d have to contend that you are wrong—multitasking is a universal myth in my books! But if you find yourself prioritizing tasks that never get done, you might need to reconsider which of the above approaches you’re using and change to a system that is more personally effective.

    More About Prioritization & Time Management

    Featured photo credit: Sabri Tuzcu via unsplash.com

    Reference

    Read Next