Author:: [[Tiago Forte]] DateFinished:: URL:: https://fortelabs.co/blog/you-need-a-budget-13-parallels-between-money-and-productivity/ Rating:: Tags:: #📩 #🟥 # You Need a Budget: 13 Parallels Between Money and Productivity  ## Highlights Mecham recommends sitting down with your spouse or partner, and really taking the time to answer the question, “What do I want my money to do for me?” Everything else depends on the answer: if you value freedom and autonomy, your decisions will look very different from someone who values security and stability ([View Highlight](https://read.readwise.io/read/01g2q198wp9bhhnk96aya3yazx)) YNAB recommends replacing closed-ended, binary questions, such as “Am I within my budget this month?”, with open-ended ones, such as “Where can I pull funds from to balance my budgets this month?” This inquisitive attitude activates your curiosity, opening up new options you may not have previously considered ([View Highlight](https://read.readwise.io/read/01g2q17t5nsd0b4m518h8xfz3k)) - Note: YNBA recommends you treat your finances with more flexibility. You change your budget based on your priorities for a month. YNAB recommends creating accounts for each of the “emergency” expenses we are likely to encounter at any point in the future, and to fund them up to a reasonable level. This ensures that when your dog needs a vet appointment, you have funds ready and waiting, instead of scrambling for cash. ([View Highlight](https://read.readwise.io/read/01g2q1667k4ktae2msr3ak7n5d)) The same is true of managing a to do list. Many weeks it may seem unnecessary to perform a Weekly Review – emptying your email inbox, clearing your computer desktop, closing browser tabs, etc. But if we don’t do these things regularly, they tend to blow up right at the worst possible moments. Your computer runs out of space just as you need to download a large file ([View Highlight](https://read.readwise.io/read/01g2q16nfv0fdtb3n0z3qqtcnf)) YNAB recommends funding an account only until it has enough funds, and then stopping. Instead of one giant “emergency savings” fund that is never quite big enough (and so tempting to “borrow from”), you have a series of smaller, more targeted savings accounts designated for specific purposes. Once all your accounts have been funded, you’re free to spend anything left over however you want! ([View Highlight](https://read.readwise.io/read/01g2q1azcxs7jwn1cry2f1msxz)) The same mechanism is valuable in productivity. Punctuating the never-ending flow of tasks with milestones – project completions, weekly reviews, and finishing the to do list – are not nice-to-haves. They are absolutely necessary for providing closure and fulfillment. After reaching a milestone, you are free to spend your time and energy as you want. ([View Highlight](https://read.readwise.io/read/01g2q1b298bxaq7prg9gt6fp9e)) When funds dry up, that is the exact moment when you need to decide what’s most important, and what can go. Talking to a financial planner recently, he said the biggest mistake people make is waiting until they’ve “put their ducks in a row” to talk to a planner. ... The same is true of work – an abundance of time often leads to wasted effort, lack of direction, aimlessness, and unclear priorities. Having a full-time job or a family to take care of can be a [beautiful constraint](https://fortelabs.co/strategically-constrained-how-to-turn-limitations-into-opportunities-4d20295c1a94/), forcing you to approach your goals from an unorthodox angle. - Note: Scarcity makes us more deliberate with our time and energy.