Know Parkinson's Law to Build Wealth

When it comes bettering our own personal finance, we should try to understand Parkinson’s law and make sure we don't follow it! The law is about how “…work expands to fill the time available for its completion.”

"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"

For example, according to Parkinson's law, if someone is given a week to complete a task that should really only take them a day to finish, they will somehow will stretch the task out to a week to complete it with unnecessary task or wasted time. This concept is very well-known to many of us as "procrastination."

For most high achieving students, they usually understand how to fill the time available in school to be productive rather than be a habitual procrastinator. They don’t let the time given to them go to waste between assignments. For example, if they are given a two-week time to complete an assignment, they would want to get it done as soon as possible or at least plan out their time to get it done soon, instead of waiting till the last minute to begin and/or to complete it.

Interestingly, quite the opposite in financial planning, savings and planning requires time and efforts. To be on top of our personal finance, we need to have great savings and spending habits as a foundation. After all, it’s all about being responsible and accountable for the time and money allowed to us.

By understanding Parkinson’s Law, whenever we are given or have more time, we instead will spend that time wisely to invest more in our learning, development, family, career, etc. When we are also given or earn more money, we will be able to save more and spend more wisely to keep focusing on our planning goals, making sure we are the one driving our finances and not letting it drive us.

So remember, to be the driver of our finances, so when we make more money, we don’t just spend more, but rather, be more accountable as we spend more wisely and save more! While many, however, may spend as much as they make and sometimes even more, you and I should learn to save for rainy days! By not understanding how to save, this is why many people would likely get even into more debt as they make more money, creating more financial and/or emotional stresses.