“Time is a great healer but a poor beautician.”
–Lucile S.Harper
“I love deadlines. I like the whooshing sound they make as they fly by.”
–Douglas Adams
Time is valuable. Some professions bill in five-minute increments.
I know lawyers like that. Their invoices look like a trip to Cancun–just not for me.
The point: millionaires (including millionaire lawyers) don’t spend much time on random activity. Many things are strictly scheduled–including time off, recreation and vacations.
Once the world’s richest person, Bill Gates, also used to track use of his time in five-minute increments. That could be one reason that he will soon be the world’s richest person again. (Jeff Bezos is far richer at this writing, but that may change with his marital status).
SUCCESSFUL TIME MANAGEMENT
I suppose keeping track in five-minute increments might appear to be odd, but there is a larger purpose. The point of tracking items that way is to have the precision to:
1. Find out how you actually spend time, as opposed to how you think you use time—for instance, some recent surveys show that many people spend almost an hour on Facebook alone per day. That use of time could be fine if that is how you actually want to spend it. If you should be working instead, that could be a problem.
2. Confirm you use time in a way that is actually aligned with your priorities—the financially independent make goals and establish priorities far more than most others.
Most of the wealthy not only are looking to get tasks done, but they also devote specific blocks of time to particular goals. For instance, a CEO might spend a dedicated chunk of time to expansion plans, or meeting with potential partners, and do it at specific times during the week.
3. Make sure that day to day tasks get done. That is akin to completing items on a to-do list. To do list items are based on deadlines, short term priorities, and other factors. It is a bit like day to day living: clean up, take the garbage out, etc.
4. Make sure that some blocks of time are dedicated to essential items not directly work-related: contemplation and meditation, exercise, family time, continuous learning, volunteering, etc.
SUCCESS AND HOBBIES
The last point is a bit counterintuitive. In a world full of workaholics, wouldn’t items one through three be most important? Well, yes. But for the financially independent, there is an increasing body of evidence that shows they also keep themselves sharp with hobbies, social interaction and items not directly related to work at all. Otherwise, in a highly competitive world, they would be prone to burnout. And, they would not have time to explore other skills and reinforce the ones they have.
Warren Buffett plays bridge. Mark Cuban and Bill Gates read. And, according to one source, the number one leisure activity of Ultra High Net Worth individuals is philanthropy, followed closely by various sports activities and hobbies.
WHAT THE UNSUCCESSFUL DO
As you might expect, the road map for unsuccessful people leads away from time management. When I say unsuccessful, I mean that in a way that is defined by finance only. I know plenty of people who are successful in my estimation, but who do not have a high net worth. I am talking about money only.
Mostly, that means that the “unsuccessful” often leave much of their time unstructured.
You see, the acquisition of wealth requires specific skills that are directly related to how time is used. So, drawing from the section above, here are the sorts of things that unsuccessful people do:
1. They do not know how they use their time or keep track of it.
2. Time use is not aligned with priorities—if they have priorities at all. It is important to dream—but only if you establish a plan of action to accomplish those dreams, and decide which need to be done first or are most important.
3. Day to day tasks are put off or are uncompleted.
What does this look like in real life? Well, for instance, Tom Corley notes that many of his poorer research subjects watch a lot of recreational television.
WHAT TO DO
So, what ensures success? Should people constantly monitor their time like time-obsessed hypochondriacs? Well, no. And it is not what the wealthy do either.
The process is not about regimented scheduling at all. Priorities should come first. So, dream and put together a plan for how to achieve those dreams. Set some priorities. Then dedicate blocks of time to achieve those goals and dreams. Time management will flow from that process.
A famous general once opined that the first thing to do after getting up is to make your bed. And there is a lot of evidence that most successful people do make their beds first thing. It is a part of an attitude that imposes order on the day and starts it out properly. That attitude is essential because it is a way of linking time (morning wake up) with a specific task (making the bed). So, this one small habit is symptomatic of the linking of control of time and action. Some sources even associate the habit with becoming a millionaire.
So, you may be asking, hey MMH, do you make your bed?
No, not usually. Not now. I retired early.
CONCLUSION
The financially independent view time as a precious commodity. They have leisure time, just not much completely unstructured leisure time. And the very wealthy have something we don’t: people whose job it is to shield the boss, structure her time, and schedule activities.
If you do not have anyone like that, you have to do it yourself. And you can.
SUMMARY:
- The financially independent tend to structure time by making goals and priorities.
- They also ensure that time is used to achieve the goals they set.
- Hobbies, exercise, and leisure are essential uses of time that can keep you fresh.
ACTION PLAN:
- Find out what you actually spend your time on. Track time for a week in half-hour increments—both at work and home.
- Review what you spend your time on. If it is spent on things you do not value or that make your goals and dreams come true, make some changes.
- Take the time to have leisure, hobbies relationships and other activities that make you happy and keep you fresh.
Disclaimer: consult with a financial professional before taking any steps outlined here. Not all advice is suitable for your circumstances or investment style.