In finance there is a practice called ‘zero budgeting’ – basically, it is the allocation of your income to all of the necessities in your life (repayments, bills, hobbies, charity, etc.) as well as other important elements of your finances (such as savings, holidays, superannuation, dinners out, new clothes, etc.) planned out COMPLETELY down to the last cent. The philosophy behind this is that by allocating ALL of your income to concrete locations you:
1. Always have the money to pay for your bills as you have set these amounts aside in preparation.
2. You are conscious of your incoming and outgoing costs, not oblivious. Are less likely to make impulsive ‘splurges’ that you will later regret as you are conscious that you will be taking money away from other areas and causing problems.
3. You start to build great habits of saving and paying any debts and it will become almost ‘automatic’, as you direct debit money into the necessary places as SOON as you receive your income.
4. By not having ‘spare money’ left over after your budget, you are more likely to be purposeful with your money, rather than wasteful and ‘carefree’. This is one of the most important mindsets when it comes to financial management – the unconscious or avoidance of knowing the reality of your financial situation.
This principle is not only useful for financial positions, but also any other situation in life. If you work from home and find that you are not as effective as you would like to be – you can zero-budget your TIME into specific tasks, for example:
9:00am -09:10am Check emails and respond to ‘quick’ emails. Make a list of ‘to-do’s from the email and general tasks for the day.
9:10am-9:20am Write blog post for website/first draft of presentation/proposal etc.
In this way, you will have all of your tasks allocated to a space of time and before you know it, your to-do list will be shrinking before your eyes.
This is a great principle to apply to workouts, also – if you have a tendency to walk around the gym and waste time, allocate your exercises to minute or minute-and-a-half rounds in order to get the most out of your allocated time at the gym.
Feel free to share your experiments with zero-budgeting this week below!