Experimenting with Cal Newport's Productivity Technique to Avoid Financial Exhaustion
Burnout isn't just a workplace issue; it's a common struggle in our financial lives as well. Even in wealthy households, 50% of people live paycheck to paycheck, regardless of income. Many of us have heard about the low savings rates in the U.S. and paltry average savings, but financial stress isn't exclusive to those with lower incomes.
I've had the pleasure of working with several wealthy families for the past 30 years, and no net worth number has ever eliminated financial stress. However, there is a method to overcome it, and we can learn from productivity expert Cal Newport. Cal is known for his evidence-based insights and living by what he recommends. In this piece, we'll discuss how Cal's principles can help us manage our time and money more effectively.
The Number One Problem
Newport highlighted that the number one problem we're facing is saying "yes" to too many things at once. While he may have been referring to work, I believe this problem is prevalent in personal finances as well. Overcommitment to expenses and projects can result in financial stress, regardless of income.
For instance, when my family moved from Charleston, SC to Atlanta, GA nine months ago, we mistakenly underestimated the cost of relocation. While each individual expense seemed reasonable, accumulating them all led to a depletion of our savings and unexpected financial stress.
Stress Reduction Through Two Lists
When we have too many priorities, it's challenging to identify what truly matters. Cal Newport recommends maintaining two lists to manage our priorities: Active and Holding. The Active list should only include a couple of projects, while the Holding list is reserved for new incoming projects and expenses. Once an active project is completed, you can move the next priority from the Holding list to the Active list.
By concentrating on fewer priorities, we can actually achieve more and with less stress. James Clear, the author of "Atomic Habits," echoes this sentiment when he mentions, "The myth of multitasking is that it will make you more effective. In reality, remarkable focus is what makes the difference."
Embrace Financial Recovery
Life, work, and money all have the tendency to push us toward burnout. That's why it's important to build in periods of rest and recovery. Newport often chooses to endure busier seasons, dedicating himself to a specific task, then clearing his calendar for a period of months to focus on promotion. Similarly, we should schedule periods of financial rest and renewal.
For instance, my wife and I decided to pause all new purchases and projects for our house, focusing on replenishing our savings. It's like intermittent fasting for your finances. By giving ourselves a break from constant spending, we can avoid financial burnout and make better financial decisions in the future.
Conclusion
Fortunately, financial burnout is a problem we can overcome by learning from productivity experts like Cal Newport. By managing our time and money effectively, prioritizing what matters, and giving ourselves permission to slow down, we can achieve financial well-being. It's important to remember that our attention is our most valuable currency and that financial management is not just about the numbers on a spreadsheet.
Instead, let's direct our attention to making intentional decisions about our budget, setting thoughtful priorities, and giving ourselves time to recover. And if you're looking for more inspiration, newport's latest book, Slow Productivity, and Deep Work by Cal Newport, are excellent resources to start with.
Tim Maurer, a behavioral finance expert, emphasizes the importance of addressing the root cause of financial stress: saying yes to too many things. This issue is not exclusive to income levels, as even wealthy households can struggle with financial overwhelm. Maurer suggests implementing a two-list system inspired by productivity expert Cal Newport, with an Active list for top priorities and a Holding list for new projects. By focusing on fewer tasks, individuals can achieve more, reducing financial stress. Layoffs and unexpected expenses can also lead to financial burnout, making it crucial to build periods of rest and renewal into our financial lives.
In his book "Slow Productivity," Cal Newport emphasizes the myth of multitasking and the importance of remarkable focus in achieving our goals. By embracing the principles of productivity and focusing on intentional decisions about our budget and priorities, we can navigate the challenges of financial burnout and achieve financial well-being. Tim Maurer advocates for preserving our most valuable currency: attention, which is just as vital to effective financial management as understanding personal finance and task management principles.
