We 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 don't 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 avoid and what to give up (i.e. the secret to the proper prioritization).
1) "What do I want out of life?"
This question begins not only with time management, but also the road to sustainable financial well-being.
A powerful side effect of finding an answer to this question is sifting out "second-level priorities," that is, 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) Calculating opportunity costs
Let me first explain the term "opportunity cost" - the potential benefits one misses out on by refusing to do something.
Since most of the time these "opportunity costs" are not visible, it's 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:
- An investor often faces a difficult choice: (1) to buy real estate to rent or (2) to buy stock 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 is well aware that real estate is the worst option for investing money (because of extremely low liquidity and a constant decline in its value in dollar terms).
3) Five thousand weeks
This is about the average amount of time we can expect to live in this world.
It's not that long....
So we must stop kidding ourselves that we still have a lot of time ahead of us.
We have to make up our minds unequivocally:
- what is important to us and what is not;
- what exactly we must do in the professional sphere of activity (and what we must give up);
- 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 eliminating the "infinite" will result in expanding the parameters of what is possible.
4) What matters is what you don't read
Avoid reading the news published in the financial media.
This is "addition by subtraction."
By doing so, you will not allow your thinking to become someone else's.
Get used to making decisions about your money on your own, not under outside pressure.