Resource Management: Managing Time and Money Chapter 15 “The best way to save your money is to fold it in half and place it back in your wallet.” — Anonymous Money Management Time and money (the lack of) are often listed as people’s top stressors. Americans tend to spend money they don’t have (massive credit card debt). Americans tend to have little or no savings. The combined effect can spell financial ruin. Money Management (continued) Money Matters: Simple rules of financial management 1. Make a personal budget and follow it. 2. Don’t spend what you don’t have. 3. Pay all of your bills on time. 4. Save 10% of your monthly earnings. Money Management (continued) Money Matters: Good financial management means avoiding the mass marketing appeals to your ego to buy, buy, and buy! Money Management (continued) Tips for Achieving Financial Freedom 1. Make and follow an honest budget. 2. Live a sustainable lifestyle. 3. Freeze your credit cards. 4. Keep a spending journal. 5. See each purchase as an investment 6. Consolidate your debt. Money Management (continued) More Tips for Financial Freedom 7. Remove yourself from the temptation to buy. 8. Ask ―why‖ before you buy. 9. Don’t buy on impulse…wait a day or two. 10. Be wary of bargains. 11. Clean your house! 12. Learn to say no when you’re out with friends. Time Is a Man-Made Concept We have become slaves to, rather than masters of, time. Time Management Time-management skills are now taught to people, from grade school to corporate America, to help them gain a sense of control over personal responsibilities. Time Management (continued) Multi-tasking (e.g., eating, talking on the cell phone, and driving to work or school) is not an effective means to managing your time. Time Management Defined! • Time management is the ability to prioritize, schedule, and execute personal responsibilities to personal satisfaction. Personality Styles and Behavior • The Type A person • The workaholic • The time juggler • The procrastinator • The perfectionist • Lifestyle behavior trap Steps to Initiate Time-Management Techniques • Prioritization –ABC rank order method –Pareto principle –Important vs. urgent method Steps to Initiate Time-Management Techniques (continued) • Scheduling – Boxing – Time mapping (short blocks of time) – Clustering (group responsibilities) Steps to Initiate Time-Management Techniques (continued) • Execution – Assign specific deadlines – Break large projects into small tasks – Work on one section or task at a time – Reward your accomplishments Additional Time-Management Ideas • Learn to delegate responsibilities • Schedule personal time each day. • Learn to schedule interruptions. • Carry and use an idea book. Additional Time-Management Ideas (continued) • Edit your life. • Refine your organization skills. • Refine your networking skills. • Bring balance back into your life. Best Application of Time Management • Be sure to include flexibility in your time management plan. • Be sure to include other stress management techniques as well. “To know and not to do, is not to know.” —Anonymous Study Guide Questions 1. List the four rules for financial stability. 2. Describe the psychology of money. 3. List five tips to help achieve financial freedom. Study Guide Questions (continued) 4. Explain the following time-management concepts: • Pareto principle • Boxing • Time mapping • Clustering Study Guide Questions (continued) 5. List five effective strategies to help managing your time more efficiently: 1. 2. 3. 4. 5.