Every Dollar Has a Purpose

In guiding others on resolving financial challenges, I often recommend using a budgeting app (I personally favor YNAB, but choose what suits you) and connecting it to your bank accounts. Initially, you need not do anything else; simply allow the data to flow into the app for a month. Since most bills are paid monthly, this duration typically captures most recurring expenses.

After this month, you can sit down to categorize your expenditures into distinct categories. By visualizing these categories, it becomes easier to identify the root of your financial troubles—perhaps you're overspending on dining out instead of paying rent, or you may have numerous forgotten subscription services draining your funds.

Alternatively, you might be living frugally, and the issue lies with your income. The key takeaway is to start tracking your spending and then analyze the data.

It's worth noting that many people find it hard to wait a full month before categorizing their expenses. That's perfectly fine. The crucial point is to remain patient. Just as I tell individuals about debt management and weight loss: progress takes time, and focusing on the process rather than the results is essential.

Using Similar Techniques for Time Management

For some, the challenge may lie not in finances but in productivity. You might feel you could accomplish more, yet time seems insufficient. The same principle applies here: start with tracking, then analyze the data.

The approach to productivity is almost identical: create and adhere to a budget = create and follow a calendar. Invest in a time-tracking tool—there are many options available, or you can even resort to a basic stopwatch and notepad. Traditional methods endure because they work effectively.

The most challenging aspect of time tracking is remembering to start the timer, and you will likely forget initially. However, like any new habit, persistence will yield improvement.

Before diving into tracking, check your smartphone’s built-in time-tracker (iOS Screen Time or Android Digital Wellbeing). If you find you're spending excessive hours on social media, consider reducing that time first. This is the easiest win.

Once you start tracking your time, you'll notice patterns revealing that your days are filled with addressing others' needs rather than your own. You might also find that interruptions, like email notifications, disrupt your focus.

A study by the University of California, Irvine, indicated that such interruptions can significantly derail your concentration, taking an average of 23 minutes and 15 seconds to regain focus. This time loss is equivalent to watching an entire sitcom episode (minus commercials!). I found that minimizing email distractions was one of the first steps in my quest for increased productivity.

Regardless of what your time tracker reveals, you will likely see a common thread: your time management skills might need improvement.

The Eisenhower Matrix: A Tool for Prioritization

Fortunately, there’s a well-established method for prioritizing tasks. Stephen Covey, in his acclaimed book "The 7 Habits of Highly Effective People," introduced a time management matrix inspired by President Dwight Eisenhower's famous quote: “I have two kinds of problems: the urgent and the important. The urgent are not important, and the important are never urgent.”

Let’s simplify Covey’s Eisenhower matrix to help you decide on actions in various situations. The matrix is divided into quadrants based on urgency and importance:

• Quadrant 1: Urgent and Important. Address these tasks immediately (e.g., medical emergencies).
• Quadrant 2: Important but Not Urgent. Allocate significant time here for personal growth and long-term goals.
• Quadrant 3: Urgent but Not Important. Delegate these tasks if possible, as they may not align with your priorities.
• Quadrant 4: Neither Urgent nor Important. Many waste time in this quadrant; instead, focus on tasks that add value to your life.

As Cal Newport warns, excessive time on unproductive activities may result in lost potential.

TL;DR

Similar to organizing your finances, enhancing your time management skills leads to a better quality of life. Before acting, utilize the Eisenhower matrix to evaluate the importance and urgency of tasks. You may discover you're not utilizing your time as effectively as you could be, but don’t dwell on past missteps—today is a new opportunity to improve.

You have the ability to succeed. I believe in you. Best wishes.