Managing Your Resources

Chapter 8


 You are good when you strive to give of yourself.

Yet you are not evil when you seek gain for yourself.


Kahlil Gibran,  Author






Learning Objectives

      Outline the three steps in time management and in money management.


      Describe the three categories of time and the three categories of expenses.


      Explain how to make a to-do list and a schedule.


      Define procrastination and explain its causes.


      Describe the criteria for an effective budget.


      Cite ways to reduce excess spending.

Taking Control Of Your Time

      Time Management  The planned, efficient use of time.


      Step 1  Analyze How You Use Your Time


     Assign your activities to three different time categories:

     Committed Time –work, family, volunteering, and other activities that relate to your long and short term goals.


     Maintenance Time –the time you spend taking care of yourself and your surroundings.


     Discretionary Time –the time you can use to do whatever you wish.

     Activity 40: Time-Demand Survey

Time Control continued…

      Step 2 Prioritize Your Activities

     Look at your work, school, family and social obligations.  Which ones are most relevant to your goals and values?  Generally, discretionary time can be cut first, but don’t eliminate all fun and relaxation to get more done.  And, don’t forget sleep!


     Personal Journal 8.1  Prioritizing Your Life


Success Secret

      Make time for activities that relate to your goals.


Time Control continued…

      Getting More from Your Time Spend 80% of your time and energy on your top priorities.


      Activities that should be LOW priority for everyone include:

       time spent with people who don’t make you feel good about yourself,


       distractions like video games and watching constant television,


       tasks you don’t enjoy or do very well, that you could eliminate or even hire someone else to do,


       tasks that save a little money, but consume lots of time, such as clipping coupons for food you don’t buy.


     Activity 41 Examining Your Priorities

Time Control continued…

      Step 3 Create a Plan for Your Time


     Make a To-Do List in priority order, then stick to it!


     Make a Schedule –a chart showing dates and times when tasks must be completed.


     Activity 42: Time Management Practice


     Identify Your Prime Timeplan your most important tasks for your high-energy time of the day.


     Personal Journal 8.2  What’s Your Prime Time?

Tackling Procrastination

      Procrastination  The habit of putting off tasks until the last minute.


      Why We Procrastinate…

     Everyone procrastinates sometimes. But many people use procrastination to avoid taking charge of their lives.


     Activity 43:  Do You Procrastinate?


Success Secret

      Get Started! Divide your project into segments, then tackle just one.

Money Matters

      Money Management  The intelligent use of money to achieve your goals.


      Early Lessons About Money  Our attitudes about money are strongly influenced by the example our parents set for us.


      Money is a Tool  The most useful attitude toward money is a practical one: money is a tool to take care of our basic needs and achieve important goals.


      Your Money and You 

     Personal Journal 8.3  How Do You See Money?


Managing Your Finances

      Finances  Your monetary resources.


      Step 1: Analyze How You Use Your Money

Assign your expenses to three different categories:


     Fixed committed expenses –necessary, fixed, monthly expenses such as rent, car payment, etc.


     Variable committed expenses –necessary expenses that vary monthly such as food, laundry, tuition and books, auto repairs, gifts, etc.


     Discretionary Expenses –lifestyle expenses that are fun, but not strictly necessary including entertainment, meals out, cable TV, etc.


Activity 44: Expense Log





Managing Your Finances continued…

      Step 2: Prioritize Your Expenses


     Use your values and goals to determine how you will use your money. Don’t forget a savings category of 10% of your annual income.


Success Secrets

      The recipe for financial success is “spend less than you earn.”

      Look at money as a tool to achieve your goals, not as a goal in itself.

Managing Your Finances continued…

      Step 3: Create a Plan for Your Money


    Income All the money you receive during a fixed time period.

    Budget  A money-management plan that specifies how you will spend your money during a particular period. An effective budget meets these criteria:

     It is realistic, taking into account all of your expenses.

     It is balanced, with expenses equal to or less than your income.

     It centers around your goals and values and includes savings.

     It can be modified if necessary.


     Activity 45: Budget Worksheet

Stretching Your Resources

      Impulse Buying  Spending money on the spur of the moment, without planning.


      Drop the Shopping Habit  Ask Yourself:

     Do I really need this item?

     What other bills do I have to pay?

     Have I allowed for this item in my budget?

     Do I own something similar already?

     Is there something less expensive that is as good? 

     Is this the best time to buy?


     Personal Journal 8.4 Look Before You Leap

Using Credit Wisely

      Credit (loan)  Money you can use before having to pay back the lender.


      The Perils of Credit  If you don’t pay off your credit car bill monthly, you incur finance charges which add up quickly. Ask yourself whether you overuse credit:


     to pay overdue bills, especially other credit cards

     to buy an item that costs $5.00 or less

     to pay for a vacation

     to pay for a large purchase you hadn’t saved for

Using Credit Wisely

      Your Credit Record  A log of the financial habits of a person who buys on credit that employers, landlords and banks can access at any time.


      Having a good credit record is essential for renting an apartment or buying a house, car, etc.


      To establish good credit, pay all bills promptly, avoid  large debts, and do not bounce checks.


Success Secret

      Resist the temptation to overspend.