Your time is your most valuable asset
Correct time management can help you get ahead with your investments, just like it can help you win a game of chess. In order not to find yourself performing carelessly because you feel rushed, it is crucial to learn to treat time as your most valuable asset.
As a financial advisor, I meet many wealthy people. What I admire most about many of these folks is that they never appear rushed and always seem to have an extra minute to sit and talk. They know how to use their time wisely, and as such, can focus their attention on me, rather than the many tasks clamoring for their attention.
Many successful individuals schedule their work day when they first arrive in the office. A lot of them also include some “buffer time” to deal with the unexpected that might have otherwise interrupted their plan. This is similar to a bit of advice Garry Kasparov shared at a special coaching session for Susan Polgar’s chess team: He advised to always keep 10 extra minutes on their chess clock. This ensures that they will always have enough time to consider their decisions, and not act recklessly due to lack of time.
Benjamin Franklin said “time is money.” Here are two tactical ways time will help you improve your finances:
Keep your financial life as simple as possible
Simplicity is King.
Automating your finances can help you keep your financial life more simple, and, if done correctly, save you time. By automating online bill payments, you can save time and money. You save time by not having to run to pay the bills, and you can save money by not having late fees due to forgotten bills. Most important, though, is to automate your saving transfers. That way, you are sure you put money in saving every month.
Use time-tested tactics to handle your money
Trying to reinvent new time management systems while there are so many good systems out there already is like trying to reinvent the wheel. Don’t waste your time trying to come up with new ways; rather, follow and learn from preexisting strategies.
In investing, there are time-tested tactics that produce profits, despite market volatility. If you follow the basic rule of managing money, automated saving, you will be firmly on your way to financial success. A great way to automate your monthly savings is to use the tactic of dollar cost averaging. Another technique is to set up your investment account to automatically reinvest dividend interest. Automating savings is a time saver because it means that after the initial set up, you don’t need to take the time to transfer money into savings, and can use the time as you wish.
We all have 24 hours in our day, so why is it that some people get more done than others? The answer is because they know how to prioritize their activities correctly.
How do you manage your time? Are you maximizing the hours in your day as well as your savings?
Douglas Goldstein, co-author of Rich As A King: How the Wisdom of Chess Can Make You A Grandmaster of Investing, avid chess fan, international investment advisor and Certified Financial Planner (CFP®).
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