Countdown to Financial Fitness: Time Management and Finances

Countdown to Financial Fitness: Time Management and Finances: When I was still working, I was good at time management. I had to be. Projects had deadlines. Meetings could not be missed. In one departme...

Time Management and Finances

When I was still working, I was good at time management. I had to be. Projects had deadlines. Meetings could not be missed. In one department, our manager gave us all Franklin Planners and sent us to a class to teach us how to use them.

Before I entered the corporate world, I worked for five years as an airport gate agent. Getting the flight out on schedule was my primary responsibility, and a myriad of perfectly-timed, integrated tasks had to be completed in order to accomplish that objective.

After I retired, I lost my time-management mojo. At first, it was a form of rebellion. I didn't have to wake up to an alarm or adhere to an agenda. I'd have oodles of free time that was all my own.

I had a long list of projects I promised my husband I would tackle once I retired. (Many of them involved cleaning and organizing.) They're not done yet. In fact, most haven't even been started.

At last week's Weight Watcher's meeting, we discussed time management and its importance to a successful weight-loss journey. Planning healthy meals so you don't grab high-calorie fast food when there's nothing in the refrigerator. Carving out time for a good breakfast so you're not tempted by sugary snacks mid-morning. Fitting exercise into your daily routine.

Time management is also important to achieving and maintaining financial fitness. By paying bills on time, you avoid unnecessary late charges and interest—not to mention keeping your credit rating high, which can save you money next time you apply for a loan or credit card. Filing your tax returns and estimated payments by the deadline to avoid penalty. Funding IRAs and HSAs to maximize tax savings. Ordering and reviewing your free annual credit reports. Using up flexible spending accounts so you don't leave money on the table. Taking advantage of gift certificates, sales, and coupons before they expire—provided they offer a discount on products or services you plan to buy anyway.

Without proper time management, so many good intentions can slip through the cracks.

For many years, I bought Franklin Planner refills. But as Microsoft Outlook grew more robust, I started managing much of my time electronically. It was cumbersome and inefficient to mark appointments in more than one calendar. After I retired, I didn't have as many meetings to keep track of, so I started to view the Franklin Planner refills as an unnecessary expense.

But now my system has disintegrated into a free pocket calendar and to-do lists jotted on scraps of paper. The lists sometimes get misplaced before everything has been checked off, and some incomplete tasks never make it to a fresh list.

Part of my frustration with my time management failure has to do with unrealistic expectations about how much I can accomplish in a day. The vision of unlimited time available in retirement was a mirage. Still, I believe getting a handle on time management will make me more productive… or at least, make me feel more productive.

The first step to time management is planning. Every day. You might argue that you don't have time to plan your day, but if you don't take a few minutes to set goals and figure out how you're going to achieve them, how will you know when you've accomplished them?

The next step is to divide long-term goals into manageable tasks. When you set your goals and timeline (which should be done before you get to the day-to-day planning), break the project into bite-size pieces so the goal post doesn't seem so daunting. For example, if you want to write a novel by the end of the year, you might set a daily word count. Or start with tasks like creating an outline, developing character biographies, researching topics that will be addressed in the book, etc.

If your goal is to build an emergency fund, your tasks might be: create a budget, set up a savings account, identify ways to fund the account, cancel that subscription to a service you don't use, etc.

Each day, prioritize your tasks. The Franklin Planner course taught us to assign tasks A, B, or C priorities, and then number each task in the category by the order in which you plan to work on them. Start with the A list. When it's complete, move to the B list, and then C. Tasks labeled A are the most important; they must be done today, and they usually support a long-term goal. (Often, they're the hardest and the ones we tend to put off.) Tasks labeled B are important, but could be postponed if you run out of time today. Tasks labeled C are nice to do but have no sense of urgency. Often, we fill up our days handling C-level tasks and procrastinate tackling the A-level tasks.

Sometimes writing down a task and assigning it a high priority might be the only way it will get done. Like exercise.

The same task could shift in priority from day to day. For example, if I'm home by myself, washing the dishes and vacuuming the floor might be considered C-level tasks. But if I'm having a dinner party tonight, those tasks rise in importance. At the beginning of the month, renewing your vehicle registration tag might be assigned a B priority; on the last day of the month, if it's still not done, it's an A.

You may find that some tasks should be deleted from your list, or perhaps handled by someone else. Looking at your prioritized list can help you say "no" or "help" without guilt—which is a great time-saver.

At the end of each day, it's important to review your task list and determine what has been completed, what needs to continue into the next day, what tasks should be deferred, canceled, or delegated to someone else. That way nothing is inadvertently forgotten. And checking off those A-level tasks can give you a great sense of accomplishment.

What tips do you have for time management? I'd love to hear your comments and suggestions!

Sharon Marchisello is the author of Live Cheaply, Be Happy, Grow Wealthy.