Sunday, 16 December 2007

One source of wealth you may not be fully aware about: daily 1.4K deposits on your life account

Once in a while each of us occasionally stumbles upon a very powerful idea or thought that has a very strong influence on our lives. It may come to you from another person, from a book, or even from a web post. One of such wisdoms is about one great asset that everybody has access to, but not everybody uses well, pretty much like everything else in Life.

It seems that every person in this world is born unequal to the others. We have different parents, different racial and cultural origins, and different bodies. Some of us are born in safe economically developed countries, have rich parents, eat well, and are healthy. The others are born in poorest countries, do not have one or both parents, starve every day, and struggle with various disabilities.

Some of us complain about this unfairness of Life, the others take it as given. Some are unhappy about their personal lives and their surroundings, while the others seem to enjoy Life’s event most insignificant events. One of the traditionally biggest sources of “unfairness” complaints has been money, or the lack of it. Many people say: “If I were rich, then I would do….” or “if I had a million dollars, then I could …”

Well, guess what? It looks like that in at least one very important aspect your life is very fair in comparison with lives of all other people. Every single day, each person receives a deposit of a precious asset. It is the same for everybody, every living human being. It is equal to 1,440 deposit units. Every single day during his or her life (including weekends and holidays!), each person gets this deposit. Its value is objective, and it does not appreciate or depreciate over time (it can do so only in a person’s own subjective perception). Every month, it sums up on average to 43,200 units, and every year it is a whopping 525,600 units.

These units can be traded, exchanged, donated to other people, consumed, invested, or let expired worthless. The downside thing is that they expire immediately unless we put them in any use right away. We can make these funds start working for us early in our lives and generate huge future returns. It is true that some people are better in managing these funds than others, but the beautiful thing about them is that everybody can learn how to use and invest them properly. One can make mistakes and misallocate some of these deposits, but there is so much of them and they are paid with such regularity that even relatively large losses can be compensated later.

What are these magic deposits and what is the asset? The answer is simple – the deposit units are minutes, and the precious asset is time. Can you say that anyone is treated unfairly in this allocation? I admit that the person may be stripped of these deposits early in his/her life, before reaching a certain level of consciousness. It is like with everything. But once you can walk, talk, eat, and sleep on your own, you are fully entitled to your deposits of magic everyday minutes.

How you spend every single one of them during each day of your life determines what you get later in your life. You may invest them wisely in your physical and mental health, personal and professional development, and education, which will deliver huge benefits later in your life. You may share them with the other people you know or do not know and may donate them to help others. Alternatively, you may waste them on destructive or meaningless activities, which are either useless at best or harmful to you and the other living creatures around you.

The great thing that I love about our Life is that the same general principles apply to very different aspects of our individual lives. Time is one of our most valuable assets with a huge potential, and we can certainly say that the key rules applied to asset management and money investing apply to time management as well. Like with money, the following several steps do magic with your generous time endowment and can generate great returns for you:

(1) Write down a list of well-defined long-term and short-term objectives;
(2) Develop a set of clear and specific strategies to achieve these objectives;
(3) Regularly invest your time to activities that are a part of these strategies;
(4) As time progresses, adjust your goals and strategies if necessary.

How to master the wise use of our daily time deposits? There are different effective time-management techniques, and I would like to share them in my future posts. For now, I will mention just one of them: the principle of taking slow baby steps that do not stop.

The old saying that I heard somewhere can be rephrased as follows: “You need to slow down to go faster. Go as slow as possible, but never stop, and you will arrive at your destination point in the shortest time.” One of the most important tricks to achieve the long-term success in anything is to break up the long-term project/plan into tiny everyday pieces, as tiny as 5-10 minute intervals a day. The most difficult task is to find enough stamina to do these five-minute particles every single day over years. The key to success is everyday discipline and determination to achieve and to progress.

This is the powerful approach, which definitely has proven to work for me before and which I am still trying to master in my time management and other aspects of my life. I currently apply my slow non-stopping baby steps towards my debt reduction and equity investing. And, of course, every day I try to remember about my generous 1,440 daily deposit and try to productively allocate it among several things that are a part of my long-term goals.

No comments: