I’ve spent a good bit of time digitizing paperwork over the past couple of years. My primary weapon in this battle has been a sheet-fed scanner, though I sometimes snap pics with my iPhone and turn them into “scanned” pdfs using JotNot.

While it feels to good to be working toward a paperless financial world, however, the issue of whether or not these scanned documents would be acceptable has always bothered me. Having a store refuse a return because I didn’t have the original receipt would be annoying; having the IRS reject my documents could be a disaster.

So… Does the IRS actually accept scanned documents?

As it turns out, yes… They’ve actually accepted electronic documentation since at least 1997, when they issued IRS Revenue Procedure 97-22, which states:

This revenue procedure provides guidance to taxpayers that maintain books and records by using an electronic storage system that either images their hardcopy (paper) books and records, or transfers their computerized books and records, to an electronic storage media, such as an optical disk. Records maintained in an electronic storage system that complies with the requirements of this revenue procedure will constitute records within the meaning of § 6001 of the Internal Revenue Code.

Section 6001 of the IRC essentially requires you to keep and make available sufficient records to show whether or not you’re liable for taxes. It further states that such records must be retained “so long as the contents thereof may become material in the administration of any internal revenue law.”

The general requirements of the “electronic storage system” referenced in the quote above are that it:

…must ensure an accurate and complete transfer of the hardcopy or computerized books and records to an electronic storage media. The electronic storage system must also index, store, preserve, retrieve, and reproduce the electronically stored books and records.

There are some additional requirements, but the essence is that you can digitize your documents as long as they’re clearly legible (both on-screen and in hard copy) and easily retrievable. Just be sure to keep your data safe. In our case, we maintain both local and online backups of our data, so our digital documents are probably safer than hard copies.

And don’t forget to secure your files to protect them from prying eyes. The last thing you need is for your cache of sensitive data to fall into the wrong hands.

Of course, I’m not a tax pro, so I suggest that you check out the details and decide for yourself. The relevant guidelines can be found in this document from the IRS. The pertinent section (Rev. Proc. 97-22) starts on page nine.

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I would argue that mastering your time is the key to success at work and home. That being said, here are three free tools that save me three hours each and every day.

1. Focus

This is especially important if you have a family, a job and maybe even a second job. This pretty much describes my life, and the only way I can handle it is to do one thing at a time. I just don’t have time to engage in time-wasting activities.

I have time slots set aside each day for each activity. When I check my email, that’s all I do. I also treat e-mail like I do paper. It’s been said that you are best served by touching paper only once, and the same thing is true of e-mail. In other words, I don’t let it pile up in my inbox.

Instead, I immediately answer my e-mail, delete it, or put it in a folder for someone else to deal with. Once I’ve gone through my e-mail, I make client calls. During that time, I don’t take incoming calls or review e-mail. One thing at a time eliminates distractions and lots of wasted time. Sweet-a-kimbo.

How to use this:

Steal my idea. Do one thing at a time and that’s it. Tell everyone you work with that this is your new method of operation. Kindly ask people not to disturb you during your day unless it’s an emergency. Stick to your schedule and, if you get distracted, get back up on the horse.

If you are at home, there is no reason why you can’t take advantage of the same technique. Just because you aren’t at work doesn’t mean you’re sitting around watching re-runs of “Gilligan’s Island” all day. If anything, there are more demands on your time than on those in the office.

Schedule your day and don’t let anyone or anything distract you unless it’s an emergency.

2. Accountability partner

I try to have accountability partners for different aspects of my life, and business time management is no exception. This is simply too important to ignore. I keep a spreadsheet on Google Docs for my accountability partner to review. On it, I note what I’ve accomplished and what I’ve yet to do. Just knowing my accountability partner has random access to this document keeps me motivated to get my work done on time.

How to use this:

Once you’ve written out your schedule, show it to someone you trust, like, and want to emulate (with respect to efficiency). Get feedback. Have you over-scheduled yourself? Have you provided enough downtime for yourself? Are you executing everything well? Meet with your accountability partner once a month to discuss how your plan is working.

3. Technology

You already know how important it is to track your cash flow. How about tracking your time?

I keep a spreadsheet open on my desktop. In that spreadsheet, I note how I spend my day. I’ve discussed that above. I also have day planning software which isn’t free, but is well worth the cost. The program I use is called Goldmine, but you can use Act! or anything else. This is a day timer, and it plans out what I need to get done and when.

The software blocks off times for client meetings and reminds me each day what I need to do. Nothing falls through the cracks this way. This is far more efficient than trying to remember or jotting things down in a notebook. I can easily synchronize my schedule with my Android phone so I always know what my schedule is.

How to use this:

Once you’ve taken steps 1 and 2 above, you have to keep track of what you are actually doing. Don’t guess… Actually keep track. This is what will help you and your accountability partner make changes to your schedule.

Bonus tip – DELEGATE!

I try to only do those things that only I can do in my business. For everything else, I try to hire people either as consultants, freelancers, or team members (staff). I look for the best people I can find and treat them well.

Here’s an example: I recently needed to renew my liability insurance for my small business. Rather than get all the quotes myself, I asked my assistant to get four quotes, review them, make notes and recommendations, and then provide me an overview. This is great because the woman in my office is really good at this kind of thing, and it saved me a ton of time.

I don’t try to do everything myself because I know I can’t. There are flocks of people who can do plenty of things far better than I can. It’s a waste of time for me to try to master all these skills, so I just delegate everything I possibly can and use my electronic day planner to keep track of who is doing what and I hold them accountable.

How to use this:

If you have the financial resources, hire people to take care of things that take too much of your time. There are plenty of people who use Craigslist to find a second job. Place an ad. They’re free, and you may just uncover a diamond in the rough. You might bring in someone to do the laundry, run errands, buy groceries… Whatever. The list is endless.

These are the 3.5 rules I use to manage my time. They allow me to run my business, write my blog, and lead a fairly balanced life. What tips do you have to manage time better? Please share your thoughts in the comments.

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The next time you go to a book store, take a stroll through the “Personal Finance” section. You’ll literally see hundreds of books all saying just about the same thing. Oh sure, some say it better than others, but… At the end of the day, it’s all about spending less and earning more. It doesn’t matter if you’re trying to get out of debt or retire now.

The reason the stores are full of these books is because people like you and I buy them. I’m not a huge fan of people buying new books in the first place, but that isn’t why personal finance books make people worse off.

The reason that most of these books are dangerous is because people often act as if the purchase itself is the answer. I’m not saying you shouldn’t educate yourself. Reading to learn about finance is great. It’s important. But whether you want to get out of debt quickly or invest your money properly, you don’t need lots of different ideas at the same time. You need to take action.

We don’t like to admit it, but most of us are procrastinators. We don’t like to finish what we start, mostly because we don’t like the work involved. That’s why we buy books. They make us feel good about ourselves for awhile… And then (often) we don’t do anything.

I once read that most people who buy books only get to the first chapter and then lay them aside forever. Don’t believe me? Look at your nightstand. How long have those books been laying there? If you’re like me, way too long.

Do you know why bookstores have a return policy? Because it helps you make a buying decision with (perceived) low risk and then do your thing… Which is to procrastinate. Even if you want to return the book, you probably won’t get around to it. Again, the problem isn’t the waste of money on personal finance books. The problem is a lack of focus.

The act of buying a personal finance book or (worse) some expensive CD program helps us stay stuck. The cycle looks like this:

1. You realize that you are having trouble with debt, investing or some other aspect of your financial life.
2. The trouble becomes a problem to the point that you commit to doing something about it.
3. You buy a book (or another book) that looks like the “silver bullet,” and you start going through the exercises.
4. You don’t get out of debt instantly, improve your credit score overnight, or whatever, and you quickly lose interest.
5. You set the book aside for awhile since you aren’t getting that instant payoff. And before you know it, six weeks have passed and you haven’t done any of the prescribed work.
6. Your financial situation gets even worse and the pain starts building. At this point, you re-start the cycle back at step 1. You convince yourself that the problem isn’t your lack of action or patience, it’s that you simply have the wrong “silver bullet.”

I’ve done this, and I bet you have, too. We do it with money, we do it with productivity, and we do it with health and fitness. These are often the hardest things in our lives to change, so we seek refuge in books.

Do you know why there are so many books on these subjects? Because people buy them. The book itself becomes the relief mechanism, and it blocks you and I from finding real solutions and taking action.

So what’s the answer?

One teacher at a time

You probably have several good personal finance books. I’m not worried about that. Focus on the problem you want to solve, and then find the best teacher possible to address the issue. Remember… You only get to choose one.

Clear the decks

Get every other book off your nightstand. Take everything else off your desk. If the problem you are addressing is serious, it requires all of your attention and focus. You can’t afford any distractions.

Commit to attacking the problem

You may already know that I am a huge fan of having an accountability partner. You can’t commit to results, but you can commit to doing the work and following through. Create an accountability document where you record what the problem is, the steps you are going to take, and when you will take them. Then, update that document every day or week and make it available to your accountability partner.

Acknowledge your weakness

You will want to quit. When things get tough or you’re not quite sure what to do next, you’ll look for comfort by doing something else to distract you from those feelings of inadequacy. Who knows, maybe you’ll respond by running out and buying a different book on the subject.

Resist the urge to quit (or take a break) at all costs, but be aware that you will likely feel this way. I know this is difficult. In just the time spent writing this post, I’ve wanted to stop several times and check my e-mail 3 times.

Get back on the horse

If you do fall off the horse, don’t beat yourself up. Just get back up there and get going again. If you get distracted and start looking for a different “silver bullet,” recognize what you are doing, chuckle at yourself, and get back to work.

Nobody is perfect. We’re just human. Genius isn’t perfection. Genius is fortitude and action in the face of imperfection.

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Why you need a coach

As I see it, there are three situations when you need a coach:

1. Your life/business stinks and you are convinced you can’t do anything about it.

Well, you could be right, but you only know what you know. You might be surprised. Folks sometimes assume that their life or business situation is set and can’t be changed. Never assume something as dangerous as this. There are wonderful people out there who can help you transform your situation. They’re just waiting for you to ask.

Just the same, if you really felt that your situation couldn’t improve, you probably wouldn’t be reading this post. That means, by definition, you do have hope. That’s encouraging.

2. Your life/business stinks and you have no idea what to do about it.

If this describes you, you are the perfect candidate for a coach. Read on.

3. You are satisfied with your situation.

I’m a huge fan of finding satisfaction in life regardless of the circumstances. Things could always be worse. You are blessed if are content in life. But that doesn’t mean you should go live in a cave. Anyway, if you have read this far, you’ve told me that there are some elements of your life or business you’d like to change.

Be clear and specific about where you need help

When I started my career as a financial planner, I had absolutely no idea how to sell, how to do financial planning, or how to run a business. I also had no money and needed to get up to speed fast.

When I started my blog, I was also at a complete loss. I had zero technical skills, and no understanding on how to make any money blogging. I wasn’t even convinced I should have a blog.

Both these situations created tons of anxiety and I can’t stand living in anxiety. I knew that the only way I’d ever get clarity would be to ask help from people who have what I wanted. I was really clear and specific on what I wanted help on.

Pinpoint who can provide it

In both of the situations described above, I was clear on what I wanted. All I had to do was to find people who had it already.

That was easy. With regards to my financial planning career, I just looked within the firm that hired me. I observed the most successful people and I got to know as many as I could. I was looking for people who seemed to be interested in others, not just themselves. It didn’t take long to find lots of great candidates.

On the blog, I just threw myself out there. I commented on other blogs and made friends. Fortunately, in the personal finance blogging world, almost everyone is happy to help. That goes from the top bloggers to the newbies. Everyone seems to be delighted to lend a hand.

The approach

Hiring a coach for free is far better than paying a coach. Someone who joins your team without being compensated does so because she cares about you. She’ll go far beyond what a paid coach will do. OK, so how does someone come to care about you?

People care about you when they realize you care about them. You can’t fake this. You have to actually care. Express interest and mean it. Find ways to serve your would-be coach without being asked. Don’t manipulate. It won’t work. Find a place within yourself that really cares about this other person and express it by deeds.

Once you’ve established a caring relationship, ask your future coach for a 5 minute conversation. Tell them what you are struggling with and ask if they would be willing to help you. If you’ve done your homework, the answer will be ‘yes’ 90% of the time.

During your 5 minute talk, ask if they would be willing to take short calls from you from time to time. Don’t abuse your relationship. Everyone is busy, so make appointments and don’t call them randomly. Get to the point and respect your coach’s time whenever you call. At the end of each call, ask your coach what you can do for them. Even if she says there is nothing, look for ways to be helpful and deliver.

For example, let’s assume I ask you to help me understand how much money I need to retire, and you help me do the calculations because you’re a math wiz. Clearly, I can’t help you in the same area… But maybe you need to earn some extra money. I can put the word out and really go the extra mile to help you find those opportunities… Right?

Why your coach would love to help for free

Your coach got help along the way to success. Also, the most successful people in life love people. Look around and you’ll see it’s true. Let me ask you this: how do you feel when you know you’ve helped someone else? There isn’t a better feeling in the world, is there? That’s why your coach wants to help you (as long as you show that you care about them and respect their time).

Have many coaches and let some go

Over time, your coach will have taught you what you need to know. You’re needs will change and you might need the assistance of someone else. There is nothing wrong with that. Just remember to check in from time to time with your old coach. They care about you so let them know how you’re doing – and continue looking for ways to help them.

Be a coach

When all is said and done, you learn more as a teacher than a student. That’s another reason coaches love to help you. They learn too. When you get into a position to be helpful to others, take advantage of it. Look for opportunities to do so. When you see someone struggling, lend a hand. The only way you’ll ever get into that position is if you ask for help when you need it.

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I’m not kidding. You really should stop studying and just get out there. Once I did, I became a lot more successful.

I can best explain the true cost of learning when I tell you about launching my blog.

Two years ago, I didn’t know what a blog was.

A friend convinced me to launch one in order to market a book I was writing, so I decided to “look into it.”

The more I looked into blogging, the less I understood it. As a result, I went deeper.

I bought every book on the subject I could.

I paid gurus to lead me to the blogging “promised land.”

I participated in programs that offered to teach me what to do.

I literally spent six months (and a big chunk of money) learning about blogging before I wrote my first post.

Don’t get me wrong; I did pick up some very valuable nuggets – but I learned volumes more in the first month of actual blogging.

In retrospect, I was lying to myself.

I was frightened.

And I was wasting time studying. It was my excuse to justify why I wasn’t actually doing the work. Who was I kidding?

Only myself.

I share this with you because you might find yourself in the same trap someday.

Let’s say you’re about to launch a new project.

You’ve decided you need to:

• Budget better.
• Invest smarter.
• Install a sink.
• Get the right kind of life insurance.
• Buy the right car.
• Get your business out of debt.
• Improve your credit score.

You realize that if you want a good result, you’re going to have to invest some time and possibly money. But why not try to save as much of both as you can?

Here are three steps to help you do just that:

1. Clarity

Be crystal clear on exactly what you want to do and why you want to do it. Don’t worry. Later on, as you learn and experience more, you can change you mind. But be clear on your direction before you leave base camp.

Say you want to get out of debt. Even on a subject as straightforward as this, there are many opinions on what the best path is.

Is your goal to get out of debt quickly, or is it just to get out of debt and never get back into debt? Believe it or not, depending on your answer, you might take different actions.

Think hard about what exactly you want to get done.

2. Anoint your gurus carefully

There are so many experts on each subject, you’ll drive yourself crazy if you follow more than one guru. That was my biggest problem when I started learning about blogging. Each guru – even though they were all very successful – had a different message. I figured that if I could take the best that each had to offer, I’d be a sure success.

Wrong.

This was the biggest time waster I could have imagined. I followed one person’s ideas just long enough to get interested in someone else’s thoughts. As a result, I spent hours and hours chasing my tail. Don’t repeat my error.

Pick your mentor carefully and follow his/her direction.

Of course it’s important to keep asking questions. But if you are clear about your goal, pick the best person you can to help you achieve that goal and follow their lead. And put your blinders on.

Along the way, a little voice inside will tell you to veer off course. That you need to study someone else’s ideas.

Don’t listen.

If you’re trying to get out of debt for example, you don’t have to read a ton of books on the subject. You probably don’t need to spend hours and hours researching it either. You need to find one trustworthy expert and just follow that person’s direction.

3. Got Grit?

There’s a great John Wayne movie called “True Grit.” I recommend you rent it sometime.

It’s the story of a person who takes on a task without having all the tools and equipment he needs. But he makes up for that with determination. That’s what you need.

Don’t be afraid of making mistakes. They can be fixed. And be patient. Solutions take time.

Don’t be afraid of refining your goals and changing direction. Once you embark on a path, you can always make adjustments. It’s easier to do that once you leave port. But you’ll never reach your destination if you stay in port.

Every time you make a mistake, you’ll learn a ton and you’ll get much closer to your ultimate goal.

Your homework assignment

Pick the most important item on your “to do” list and take action.

Make a list of the steps you need to take in order to make that wish a reality.

If you want to improve your credit score (for example), the first step is to get your FICO score so you’ll know where you stand.

Next, get a credit report and start correcting any errors you find. Finally, take other steps to boost your credit score.

It will take patience and time but you can knock these pins down… One at a time.

Expect to do it wrong and be OK with that. Expect to make mistakes. Just put put the books down. Stop doing research.

Get going — and remind me to do the same when I get caught in the trap.

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The thought popped into my head while my wife and I were on vacation in New York. (Side note – the vacation was debt free!)

While there, we visited two of our best friends – Lori and Nathan. This couple (and their two amazing kids) are a family we love dearly.

My buddy Nate is uber-successful. He is second in command at one of the largest financial institutions in the world – and he’s only 46 years old!

I want to be like Nathan, but I’m not.

I’m delighted for Nathan and honestly not jealous.

But while I was visiting him, I noticed I was beating myself up pretty good.

I asked myself why I wasn’t as successful as my buddy.

I came up with many reasons – some of which I have no control over. I’m not stupid, but I’m not a genius like Nate. Not much I can do about that.

But I did come up with one reason for which I found no excuse – impatience.

Don’t get me wrong. I’m really grateful for where I am in life. But had I been more patient at any number of turning points in my life, things would have been easier and (possibly) better.

Once I came to this realization, I asked myself how to use that understanding to do better rather than as an excuse to put myself through the ringer. Could I use this to improve my small business? Could I harness the power of that realization to improve my investing results?

I came up with a great idea.

I decided to go against myself.

Attack your weaknesses

By nature, I want to get it done and move on to the next issue as quickly as possible. Sometimes I move on too soon.

I decided to be ultra patient in any business or interaction that was on my plate even though it was the last thing I wanted to do.

I committed to slow down and hold myself accountable to others.

The result has been very positive so far. If nothing else, I feel more relaxed.

I’ve also realized that success in certain areas that I’m working on are going to take time. I’m going to force myself to be OK with that.

And once I feel comfortable with my ability to be more patient, I’m not stopping. I’m going to keep listing my character flaws (news flash: I have many). Then, I’m going to go against myself again. My character flaws cost me too much. I’m going to put everything I have into going against the grain.

How can this help you?

Simple.

Find your flaws

Ask yourself what is the one thing that has kept you from where you want to be in life.

Are you impatient like me?

Are you selfish?

Do you fail to think things through?

What is it?

This is super important. It’s painful, but you have to be completely honest with yourself if you want the payoff – and believe me, it’s worth it.

If you’re having trouble coming up with the answer, ask five people you trust and respect. Tell them you are trying to overcome your main character flaws and you need their help to identify them.

Ask your boss and spouse. Ask your co-workers. Your workout partner. Five people.

Once you have identified your main character flaw, write down how it’s impacted you in the past. What has that flaw cost you?

Has your impatience created credit card debt?

Has your laziness resulted in not having the right life insurance?

Has your selfishness kept you from getting your budget under control?

Has your anger made it difficult for your small business to thrive?

Write it down

If you want this exercise to have its full impact, you must actually write this down with a pen and paper. There is something magical about actually writing (as opposed to typing) that I can’t explain. Do it, then tell me if you don’t agree.

Once you’ve done your writing, don’t put your pen and paper away. You’ve got more work to do.

Let the past go. Don’t beat yourself up.

Instead, think about what your dealing with right now.

Are you putting together your estate plan?

Are you trying to launch a new business?

Looking for a new career?

Trying to help your kids get on track?

Think about how your character flaw, if left unattended, is going to make your job harder.

Now write it down. See yourself shooting yourself in the foot. Describe how that character flaw is going to make it harder to accomplish your goal.

Look to the future

Now, map out a different course.

See yourself NOT giving in.

See yourself NOT being lazy, but doing your homework before you buy that life insurance.

See yourself NOT being selfish but thinking of others before you create your estate plan.

Can you see how taking contrary action is going to get you closer to your goals?

How does that feel? Can you write that down too?

Lather, rinse, repeat

The great news is that you don’t have to stop there.

You can use this exercise to master other character flaws in your business and personal life.

Are you willing to do it?

Have you ever undertaken an exercise like this in the past?

What was the result?

Do you have any other ideas that can help others overcome character deficiencies?

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To be honest, I’ve never been a big fan of New Year’s resolutions. Since they’re often overly-ambitious and ill-defined, most resolutions are doomed from the start. At the same time, New Year’s resolutions also offer a convenient excuse for deferring action until later.

After all, the year is already halfway done. Why change now when you can just wait until 2011 and make a clean start? Right? Wrong.

Today I’m issuing you a challenge. Whether you want to get out of credit card debt, pay off your mortgage early, start saving for retirement, lose ten pounds, start running, etc… Set aside your excuses and take a concrete step toward satisfying at least one of your goals this week.

Simple steps include listing your debts and prioritizing which you want to pay off first, setting up an additional auto-payment toward your mortgage, surfing over to Vanguard or Fidelity to fill out an account application, skipping that second helping at dinner, or completing the first (and very easy) workout in the Couch-to-5k running program.

Whatever it is that you want to achieve, it won’t happen unless you take that first step. Enough excuses. Just make it happen.

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I’ve thus become increasingly dependent on automated reminders to keep things on track. I first started out using 4info.net as a complement to my paper planner. This allowed me to create text message reminders to be sent at a future date, but I ultimately found that to be too clumsy.

In the end, I wound up switching to Google Calendar and haven’t looked back since.

Tracking appointments

I originally started out with just two calendars — Home and Work. These calendars hold all of my professional and personal appointments, our kids’ medical appointments and game schedules, travel dates, and so on.

Depending on how important each of these things are, and whether or not my attendance is required, I also set create custom reminders. For example, professional appointments get an e-mail reminder 3 hours in advance and a text reminder 30 minutes in advance.

This means that my morning appointments are sitting in my inbox early in the day and my afternoon appointments are there by lunch or shortly thereafter. The text reminder serves as a failsafe in case I get distracted (and I often do).

Expanding the system

Since I first started with Google calendar, I’ve create a third “Reminders” calendar to track random, and often infrequent, items. For example, I typically create reminders for things like life insurance premium due dates, tax due dates (though I forgot to set these up for 2010), and other financial deadlines.

I’ve also begun tracking major home maintenance items that need to be done on a periodic basis. These include flushing out our water heater (yearly), pumping out our septic tank (every three years), replacing our furnace filters (every 1-3 months), paying our property taxes (now that we’ve paid off our mortgage and no longer have an escrow account), etc.

Depending on the frequency and importance of these items, I usually set up something like an e-mail reminder 7 days in advance with another one coming a day in advance just to be sure I don’t miss it. Because most of these items are recurring, I can also enter them just once and set them to repeat at the desired interval.

Working the system

This system works great, but it’s only as reliable as the data that gets entered. I’ve thus been training myself to immediately enter any appointments or reminders as they crop up. This has been made much easier by a combination of my iPhone and a fantastic app known as CalenGoo. Yes, it’s a dumb name, but CalenGoo is a very powerful Google Calendar client.

Benefits of automated reminders

One of the biggest benefits of this system is that it frees up a ton of mental space and lets me focus on what I’m doing instead of what’s coming up. In other words, it’s a very effective stress reducer. Aside from that, we’ve saved a good bit on late fees by making payments that we might have otherwise forgotten.

Sure, you can use automatic bill pay (and we often do) to achieve some of the same things. But even if you do, it’s still a good idea to set a reminder to check your bank balance and/or transfer the necessary funds to avoid overdraft fees.

Finally, it’s well known that you can save money through regular home maintenance. By using this sort of reminder system, you can be sure to get all of your preventative maintenance done before problems arise.

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Lets face it, one of our biggest expenses outside of our mortgages is the cost of keeping our bellies full. Unfortunately, eating is a necessity. We have to get food, and most of us aren’t willing to eat other peoples garbage.

There are tons of ways you can save money on groceries like growing a garden, clipping coupons, buying bulk, and tracking cyclical prices. While these are all great ways to reduce your costs they should all be parts of a bigger plan.

Plans are the keys to success in just about everything we do. Football teams plan for the next game, architects draw up plans to build a skyscraper, and you should plan your meals in advance to save you time and money.

Here are the steps you should take weekly or monthly to maximize your savings and save some time.

Plan your meals

This is the first and most important step. Sit down and plan out your meals for the next week, two weeks, or month. This should include both the main course and the side(s). If you make your lunches every day and cook breakfast, make sure you include those meals in the plan.

By the time you are finished you should have a list of at least seven days of meals that should look something like this:

Make a list

Now you need to sit down with your plan and write down every ingredient you will need throughout the week to make you meals. Be sure to include any staples you may need like bread, milk, orange juice, or cereal. This is why planning your meals in advance is so great. You can easily make a list of everything you need for the week and not have to worry about forgetting anything.

Check it twice

Now that you have a list the first thing you should do is go through the list and determine what you already have. Go through your fridge, freezer, and pantry. Mark off every item you already own and don’t need to buy. This will help you eliminate duplicate purchases.

Find the deals

For the remaining items on your list start researching the best prices available in your area. This usually means looking through the Sunday circulars to find the best bargain for your buck. Once you have located the best deals, circle them and stack your circulars up. You won’t need to drive all over town to get the best deals, just take the circulars to Wal-Mart and have them do a price match.

Hunt for coupons

This might take you a little bit of time, but coupons are free money so get to work. Online coupons are all the rage these days, and both stores and manufacturers are getting in on the game. I like to sit down with my list and find as many coupons as possible. I scour the internet for any coupons related to those products, print them off, and take them with me.

Go alone, shop swiftly

Now you just need to load up your coupons, circulars, list, and money. Head off to the store, but go alone. You already know what you need, and bringing another person will only distract you. Move swiftly through your list picking up only those items you have identified as needs. I say swiftly because the longer you linger, the more time you have to be tempted by ads and wandering thoughts.

Once you get to the checkout line, put your stuff on the belt, but leave anything you want to price match until the end. Put the circulars on these items so your intentions are clear. Finally, pay your bill and get out of Dodge.

Closing thoughts

If you actually take a bit of time to sit down and go through each of these steps, you’re guaranteed to save yourself both time at the store and money in your pocket. An added benefit is you get to prevent the inevitable question… “What are we going to have for dinner tonight, dear?”

Do you have any tips for planning meals in advance?

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…so if you’re wasting time, you’re wasting money. Keep this old adage in mind as you read through this article.

“Time is free, but it’s priceless. You can’t own it, but you can use it. You can’t keep it, but you can spend it. Once you’ve lost it you can never get it back.”

-Harvey Mackay

As you consider what I’ve written, please keep in mind that you can always earn more money, but you can never earn more time. From birth, the precious time each of us is allotted begins slipping away. Whether you are a homeless, alcoholic bum or the the President of our great United States, you only have so much time.

How are you using the time you have been allotted in this life?

Please note that some of these “pastimes” may be used properly and productively but, more often than not, they’re nothing more than time sucks. In other words, while they may be fun or beneficial in some ways, they’re far from being a necessity.

Top five time sucks of the average American

1. Watching TV

There exists no device or “leisure activity” that wastes more time than the old boob tube! Don’t believe me? The following breakdown lists the average number of hours that Americans spent watching television in 2007:

• Men = 4hrs 35mins
• Women = 5hrs 14mins
• Teens = 3hrs 21mins
• Children = 3hrs 25mins

Have you had a chance to see the movie Wall-E? Well… If we don’t change our habits, we’ll soon be a country of obese shut-ins just like in the movie.

Or are we there already? After all, we currently nearly double the television watching statistics of any other country in the world. Now that you know this, get out from behind that time sucking vortex and go do something productive!

2. Internet

A close 2nd to TV, is the sometimes glorious, sometimes notorious World Wide Web! This is by far my biggest time drain. Yes, I use it for business, but I also waste a lot of time playing around with this virtual cornucopia of information.

Self-restraint and time management practices are absolutely crucial if you wish to utilize the power of this beast without letting it steal away untold hours of your precious time. I could go on for days about this, but a few of the biggest time sucks are social networking sites like Twitter and Facebook. Trust me, I know first hand.

3. Gadgets

• Mobile phones: These little suckers have been popular for less than 10 years, and yet they’re everywhere! Don’t believe they’re a huge time-waster? Next time you’re waiting in a public place, take a look around and check out how many people are staring into these hypnotic little electronic goodies just-a-wastin’ time away.
• Video games: If you’re not careful, you can spend 10 hours straight trying to “beat” or “solve” one of these little buggers. Sure they’re fun, but in the hands of the undisciplined soul… They can quickly become your purpose in life.
• iPods: From the first time you contemplate the purchase an iPod – whether you admit it or not – it sucks a ton of your time… And for what? You research the purchase, research the best price, make the purchase, read the manual, play with the device, install the software, play with the software, search through your worthy CDs, rip your CDs, download music… You get the picture. It may be fun… But this is a huge time suck.
• HDTVs: Like other gadgets, one can spend a tremendous amount of time researching, saving for, shopping for, setting up, learning, tweaking, and paying off this impressive piece of modern technology. At the end of the day, HDTVs are very nice examples of human ingenuity, but they do little in the way of helping us reach our goals.

4. Sporting events

Although I’m a huge football fan, I have to admit that watching sporting events is a huge time suck for the average American. One example is fantasy football. You would be amazed at just how much time one person can spend playing a fantasy sport!

I would have to say that I used to spend at least 10 hours/week setting up my team. I then spent another 10 hours per week watching games, checking scores, etc. What was in it for me? Nothing but entertainment — and bragging rights.

Do yourself a favor. Turn off the TV, put away your foam #1 hand, and go spend some meaningful, quality time with your family and friends.

5. Personal appearance

Yes, it’s important to be clean, presentable, and dressed appropriately, but…

Many people take their personal appearance to such an extreme that they spend the better part of every day consumed with how they look. This near obsession with personal appearance can, in many cases, be tied to a lack of self-confidence brought on by things like a constant barrage of advertising.

Our consumeristic society wants us to BUY BUY BUY, but what’s truly important in life? The 20 pairs of shoes and 50 different outfits in the closet? Do yourself a favor. Reduce, simplify, focus on necessities, and stop spending so much time trying to impress others with your appearance.

Unless you’re something like a fashion model, copious amounts of shopping, primping, and posing will not help you accomplish anything of lasting value.

In closing…

As I noted above, some (if not all) of these things can be used properly or productively but, more often than not, they are nothing more than a waste of time.

Less popular alternatives include: working, giving, volunteering, loving, reading, studying, learning, hobby-ing, journaling, goal setting, and goal striving. That said, it’s important to remember that nearly anything can become a time suck if you let it. Moderation and balance are the keys.

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Examples of the Pareto Principle

The Pareto Principle is named after Italian economist Vilfredo Pareto (1848-1923), who observed that 80% of the land in Italy was controlled by just 20% of the population. Intrigued, Pareto looked to other countries and found similar ratios. More recently, a 1992 United Nations study revealed that 80% of the world’s wealth (actually 82.7%) is controlled by 20% of the population.

Looking more broadly:

• It’s been long recognized, or at least assumed, that 80% of sales come from 20% of clients (or 20% of salespeople).
• Microsoft has noted that, by fixing the top 20% of bugs, they could squash 80% of errors and crashes. (Note: I wonder when they’re planning on doing this…)
• In 2000, 20% of taxpayers paid 81.2% of US income taxes. (Note: This is perhaps not surprising given the large share of wealth that they control.)
• 20% of employees account for 80% of absenteeism.
• It appears that fellow blogger J.D. Roth wears 20% of his shirts 80% of the time (if not more).

And the list goes on.

Why the Pareto Principle matters

To see how this principle can help you in everyday life, it might be best to turn it around…

What would you do if I told you that 80% of your efforts are (in many cases) largely wasted, producing only 20% of your results? I’d be willing to bet that you’d take a closer look at how you spend your time and make some changes.

While it’s arguable whether or not the numbers really work out to 80/20 in any particular case, the larger point still stands… The majority of your productivity typically comes from a minority of your efforts.

By looking critically at how you spend your time/effort, you can dramatically improve your productivity. Try to identify the things that produce the most results and focus on doing them. Likewise, try to shun (or at least streamline) activities that don’t produce much in the way of results.

The same principles can, of course, be applied to things like spending. While you may have certain critical things that are indispensable, yet only used rarely, I’d bet that you only regularly use a small fraction of your “stuff.” If you can learn to look at your purchases with a more discerning eye, your money will go further, and you’ll wind up with far less clutter.

Have you ever evaluated how you spend your time/efforts/money in this way? If so, what did you find? And what (if any) changes did you institute?

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While I realize that we won’t be able to go completely paper-free (e.g., what about things like official birth certificates?) I’ve been gradually working to create a (largely) paperless system in our household. We’ve transitioned to e-statements for as many of our accounts as possible, we rely heavily on our bank’s online billpay system, etc.

My efforts have also been helped along by the addition of a Fujitsu ScanSnap document scanner as well as my iPhone. When these tools are combined with services such as Qipit, Evernote, and DropBox, I can rapidly capture, archive, and synchronize all kinds of information.

Given the above, I was thrilled to read Gina Trapani’s “Complete Guide to Going Paperless.” It’s chock full of great tips and links on topics such as:

• Reducing unnecessary postal mail
• “Printing” and scanning to pdf
• Digitizing your signature for e-mailing documents
• Bypassing paper entirely with electronic information capture
• Organizing what little paper you have to keep

It’s definitely worth a read if you’re interested in this sort of thing. Beyond that, if you have any tips of your own for implementing a paperless personal finance system, please don’t hesitate to share them in the comments.

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Pausch delivered this talk just over three months after being told that he had “three to six months of good health left.” As such, he’s a self-proclaimed authority on talking about “what to do with limited time.” Certain parts of his talk really resonated with me.

The time/money relationship

Pausch’s talk spanned more than an hour, and covered topics including how to set goals, how to avoid wasting time, how to deal with a boss, and how to delegate to people. But a recurring theme was the relationship between time and money.

He argued early on that, while Americans are accustomed to dealing with money as a commodity, we’re not good at dealing with time as a commodity. As such, we do a very poor job of equating time with money, and are far too willing to waste the former while keeping track of the latter.

Turning money into time

Near the end of his talk, Pausch revisited the time/money point when he argued that people should go out of their way to turn money into time. That’s right… Rather than using your time to earn more money, you should use your money to free up your time. He went on to argue that this is especially important for people with children and/or other family commitments.

This really hit home for me, as we’re constantly short on time. Between working a full-time job, managing our business endeavors, and raising four kids, we’re swamped. While we’re now in a position where we can afford to “outsource” some of our less desirable tasks in the name of creating more time for ourselves, it hasn’t always been this way. On top of that, my wife and I are both do-it-yourselfers by nature, which makes it very hard for us to let go.

But guess what? Our kids are getting older every day. I know that this sounds a bit melodramatic, but… Bit by bit, our time with them is slipping away. It’s not really something that we notice on a daily basis, but it only takes a quick glance through a photo album to see how fast they’re growing up.

Putting words into action

If we want more time with them while they’re young, then we need to change our mindset. I’ve argued in the past that it’s okay to spend money — and not just on needs, but on things that you want, as well. That’s the whole point of having your finances in order, isn’t it?

Well, I want a less hectic life. I want more time with my family. I want a better balance. And I’m willing to pay someone to help out with some of the more mundane tasks around here in order to achieve these things.

If you’re curious about Pausch’s talk, you can view it below. Note that you can safely skip to the seven and a half minute mark if you’re not interested in the introductory remarks. Also note that Pausch authored a book called “Time Management” that was published posthumously.

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Back in college, I had one W-2 each year, no investments or additional income, and I just took the standard deduction. I didn’t really need to think about taxes until tax time came around. But now that I’m older, things are a bit different.

We still don’t have the craziest tax situation, but I do have at least a dozen different pieces of paper that have important numbers, not counting receipts. I run two businesses, and both my wife and I have day jobs. I’m not the best organizer, and it’s beginning to show. And that’s why I want to share a little tip with all of you this tax season. Begin filing your tax-related documents NOW rather than waiting till next year.

Step 1 – Set up a filing system
For us, I have a single folder called “Tax Documents,” and whenever I get anything that could be considered income or a deduction on next year’s return, I stick it in the folder. For instance, receipts from business meals, website hosting, malpractice insurance premiums, and anything else that probably won’t get mailed as a single statement early next year go into the folder. Last year, I found that a single folder worked fine for us, but this year I’ll have to revise the system.

Since we’re now launching a third business (a nutrition consulting business, as my wife is a licensed and registered dietitian), and we’ve already had some expenditures, I need to begin splitting personal expenses from business expenses. That means a few more folders, and maybe some envelopes for the smaller items like receipts. There are pre-made systems for sale out there, but a manila folder will do just fine.

Step 2 – Create a reference sheet
It’s great that you’re filing all your stuff into one or a few folders, but how do you know what’s in there? Last year, since we only used a single folder, I just wrote what I added to the folder right on the front of the folder. I actually made categories like income, expense, investments, etc. and would just write in the document name or description in the appropriate category. Next year, I’ll probably do the same. But for those of you with more receipts and documents than us, you may want something a little more complex than a marker — but don’t think that you need to spend money on something! All you need is a sheet of paper or maybe a spreadsheet application to keep track of your documents.

Step 3 – Uh, I don’t think there is a step 3
The system you use doesn’t need to be overly complex. Actually, the simpler, the better. The goal here is to keep track of your records as soon as you receive them rather than letting them float around and potentially get lost. Keep everything tax-related together throughout the year and you’ll find tax time much less stressful each year.

So this year, if you found yourself scrambling to find all those receipts from last January, try out this method. I’ve learned that we each have our own ways to organize things, but the important thing is to at least do something!

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What follows is a list of ways you can use an internet-enabled phone to help you manage your money when you’re out and about. To be fair, some of these things can be done with a regular phone, or a simple PDA. That being said, a smartphone lets you combine all of this functionality into one handy little package.

» 1. Online Banking - An increasing number of banks are offering mobile-friendly web sites that allow you to check balances, transfer funds, and pay bills on your phone. For example, Bank of America (our brick and mortar bank) offers mobile banking at http://www.bofa.mobi/ (they also have a demo).

The biggest surprise here is that online-only banks aren’t really taking the lead on this. In fact, of the three banks where we have online savings accounts (ING Direct, HSBC Direct, and Emigrant Direct), ING is the only one that offers a mobile-optimized interface. While ING’s interest rate has been slipping, this is a pretty compelling feature.

» 2. PayPay Mobile - Did you know that PayPal lets you send money on the go? Simply send a text message PayPal (729725) saying something like this:

send 10 to 2025551414

or:

send 10 to name@domain.com

You can also call 1-800-4PAYPAL to send money, which you can do even if your phone isn’t capable of texting. This is a pretty cool application of mobile technology, and I think this sort of thing has the potential to revolutionize the way people handle cash transactions.

Think about it… The next time you meet a stranger in a parking lot to buy something off craigslist, there’s no need to carry a wad of cash in your pocket. Rather, you can check out the item in person, then whip out your phone and text the money to their account.

» 3. Check Prices - Have you ever been out shopping and wondered if a certain price is actually a good deal? Well, wonder no more. Simply hop on over to Google Product Search for Mobile and check out what it would cost you online. Alternatively, you can shoot a text message to Google (466453) saying something like:

price nikon d80

or:

ipod nano price

» 4. Track Your Finances - Software packages such as Pocket Quicken or MS Money for Windows Pocket PCs allow you to carry your entire financial history around in your pocket. Also not that online financial data aggregator Yodlee offers a mobile solution.

» 5. Manage Your Passwords - Last but not least, recent years have seen a dramatic increase in the number of usernames and passwords that we have to manage. And what good are uber-convenient mobile financial services if you can’t remember the access information? Fortunately, there are a number of password-managers out there that allow you to encrypt your private data on your phone or PDA. The best of these apps allow you to synchronize your data with your computer, such that your login information is always at your fingertips.

Being a Mac user, I’ve used Web Confidential for years, and have also dabbled with their Palm version (which works great, by the way). More recently, I’ve been playing around with SplashID which likewise offers computer and handheld versions that can be kept in sync, and also offers a more flexible interface with fully customizable categories and fields.

So there you go… Five tips to get you started managing your money on the go.

If you have any of your own, please don’t hesitate to leave a comment.

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I’ve reverted to my trusty Quo Vadis Trinote Weekly planner. This is actually a planner that I stumbled upon at a mall calendar kiosk shortly after New Year’s a number of years back. I picked it up for 50% off and rapidly fell in love with the format. The problem was that I couldn’t find refills for it. That is, I couldn’t find refills until I found TheDailyPlanner.com a couple of years ago. But now I can, and all is (once again) good in the world.

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Sure, my computer has a fax modem. But it’s a pain in the butt to get it working, and I’m always left wondering whether or not the fax went through. And if you need to sign or annotate the pages that you’re faxing, then you need to scan it first, adding to the inconvenience. As an added bonus, this particular fax machine (along with many others) can make photocopies. Granted, the copy quality isn’t that high, but it’s a heck of a lot easier than scanning and printing when you need a quick copy.

All in all this was a great purchase. I’ve already used it a few times for faxing in paperwork for some medical reimbursements, and I’m hooked.

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