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 Time –plan 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.