Money Management Skills for the New Year

I should have started saving for retirement at age 13. If I want to retire at 65 at $75,000 a year and live for 30 years after that, I will need to start saving $10K a year now. Looks like I might need to make some adjustments.

You can do your own retirement calculation (Principal = Interest x Rate x Time) or use a handy calculator like this. Hopefully your employer will match your 401K contributions or invest in a highly profitable mutual find. Or maybe you'll win the lottery. The point is not to sound hopeless; the point is to get you to start saving now.

Turns out I'm the worst at money management. I rarely create budgets, and I love to shop. However, if I were good at these things, here is what I would do:

1. Create weekly and monthly budgets and stick to them. Don't buy anything you haven't budgeted for. As you get more practice at creating budgets, you'll get better at predicting how much you'll realistically spend in certain areas. For example, as much as you want to only spend $80/month on groceries, you'll probably spend more.

2. As you make purchases, immediately record each transaction on a ledger of some sort. This will make spending more painful, which is the point. This will also ensure that your checking account balance never dips below zero.

3. Resolve to give up one thing you spend money on that you absolutely don't need. I've learned that I can't do these things in moderation, it has to be all or nothing. So I am giving up all vending machine/convenience store trips for snacks during school or work. I have to prepare ahead and buy snacks at the grocery store if I want them. This will save me $520 in 2014.

4. If you find something you absolutely want (THOSE JEANS) which you haven't budgeted for, wait two weeks to buy it. If you still dream about it after two weeks, see if it can fit in your budget. Four times out of five you will have forgotten about it by then.

5. Make saving a game. If you're able to save a certain amount by a certain time, reward yo'self.

6. Don't buy stuff you can't afford.

These are things you probably already know, but I always need reminders. All my best for your new goals/new self in the New Year.

Lyndsi

Time Management Tips for a Productive Life

Time is a priceless commodity. It is one of the greatest gifts we have been given in this life, our probationary state here on earth. Yet, the older we get, the more we will find ourselves without disposable time. Every once in awhile I feel prompted to pray for help preparing for marriage. The last time I did that, I felt very distinctly that this wasn't about becoming a better seamstress or casserole maker, but about becoming more self-reliant. I specifically felt like I needed to become a better manager of my money (which I'll discuss in the next post) and my time. I am actually a bit of a non-punctual procrastinator, but here are a few tips I've learned recently as I've tried to become a better manager of time.

1. Always give yourself more time than you think you need. If I were to have a superpower, I think it would be excellent to know exactly how long something will take me to complete. A general rule of thumb I can share from experience is that if you have a specific project or assignment to complete that you have never done before, consider how long you think it will take you and then double that time. For example, I had to invoice all customers the other day at work. I thought I would be finished in two hours since it just involved creating some invoices and sending them by email, but it ended up taking me four hours, even though I worked quickly. Create your own rule of thumb for time management--try timing tasks that you do often and compare your results to your hypotheses. Then, as you schedule your days, you can block out a sufficient amount of time to get it done.

Another part of this is the ability to arrive at appointments on time. Always plan to be 10-15 minutes early. You won't offend anyone by actually being that early, and if a hiccup occurs in your travel plans, you might just be right on time. If you just plan to be on time to something, the only options you are giving yourself is to be on time or to be late.

2. Make your sleep productive. This includes utilizing natural daylight hours, maximizing sleep time before midnight, getting plenty of light in the morning, and turning off electronics and bright lights long before you go to bed. I think that's all I need to say there.

3. Don't waste your time. We all have lazy moments where all we want to do is watch TV, check Facebook, or sleep too long. Although things like these are okay once in awhile, they can eat up lots of time if not used sparingly. My new rule for myself is that whenever I'm feeling like doing something lazy, I do a small productive task first. Usually, once I get going on something productive, I remember all of the other great things I can be doing instead of the lazy thing I originally wanted. For example, the other night I came home with some extra time and wanted to watch my favorite TV show. Before I did that, I decided to read a chapter of the book I'm working on. The book gave me enough energy to then do the dishes and send some emails. I felt great after accomplishing some good things.

Something I've wrestled with quite a bit in life in terms of my testimony is the idea of the 1%. What are the odds that I would be part of the less than 1% of those given the true church of Jesus Christ? Statistically it doesn't make sense. However, as I have prayed for understanding, I have felt that I shouldn't worry so much about my privilege as I should my responsibility. Those who are given the gospel are called to be leaders in this world to do good and share it with others. I have felt strongly that as a leader, I have no business wasting the time I've been given on this earth. There is more good to be done than I will have enough time for, and Lucifer, our arch enemy will always tempt me to waste that time. What is one thing you can change today about how you use your time?

Additional Resources:

http://www.entrepreneur.com/article/219553#
http://www.mayoclinic.com/health/time-management/WL00048
http://www.lifehack.org/articles/lifehack/20-quick-tips-for-better-time-management.html

We'd love your comments and additional suggestions for effective time management!