How to use the Parkinson’s Law in your advantage

James Justin Financial Health Leave a Comment

“Expenses always rise to meet income… Therefore, learn to control your expenses and build lasting wealth.”

According to the Parkinson’s Law, it’s doesn’t matter how much money people earn, they tend to spend the entire amount-Their expenses rise in lockstep with their incomes. Many people are earning today several times what they were earning at their first jobs. However, they seem to need every single penny to maintain their current lifestyles. No matter how much they make, there never seems to be enough. Can you relate to this phenomenon?

Prior to becoming wealthy, I used to spend all my money. Sometime, I even spent my paycheck before I received it. It wasn’t until I identified my goals, developed a plan and hired a financial coaches that my financial health transformed. Now, I automate my saving, investing and giving to keep building wealth.

Likewise, if you want to build wealth, I encourage you to save and invest your money. It’s ok to spend some of your money to enjoy life. First thing first though, automate your saving, investing and giving plan before spending all your money.

What’s the Parkinson’s Law?

Parkinson’s Law is the adage that work will expand to fill the time allotted for its completion. Deadlines can cause procrastination or even prompt people to fill their time with trivial matters. Parkinson’s Law is one of the best known and the most important laws of money and wealth accumulation. It was developed by English writer C. Northcote Parkinson many years ago, and it explains why most people retire poor.

How do you use Parkinson’s law to your advantage?

According to Parkinson’s Law, a person will spent all of the available time to complete a task regardless of the tasks size. This tendency leads to inefficient use of time, money, resources that affect performance. As you get started with Parkinson’s Law, use time management skills such as making a list of your daily tasks, and dividing them up by the amount of time it takes to complete them. Then give yourself half that time to complete each task. You have to see making the time limit as crucial. Treat your daily plan like any other deadline schedule. Enlist the help of your team for efficiency and accountability.

Also, you can use the Parkinson’s Law in your advantage to build wealth by making a list of your financial goals, develop a plan and enlist the help of your team to maximize your time and resources. The more you study this law, the more you can use it to your advantage.

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