If you find the image inconvenient to read, here’s the text:

1. There are three states of being. Not knowing, action and completion.
2. Accept that everything is a draft. It helps to get it done.
3. There is no editing stage.
4. Pretending you know what you’re doing is almost the same as knowing what you are doing, so just accept that you know what you’re doing even if you don’t and do it.
5. Banish procrastination. If you wait more than a week to get an idea done, abandon it.
6. The point of being done is not to finish but to get other things done.
7. Once you’re done you can throw it away.
8. Laugh at perfection. It’s boring and keeps you from being done.
9. People without dirty hands are wrong. Doing something makes you right.
10. Failure counts as done. So do mistakes.
11. Destruction is a variant of done.
12. If you have an idea and publish it on the internet, that counts as a ghost of done.
13. Done is the engine of more.

My favorite is Point 6.

Stanza

My most favorite application is the Stanza app for reading ebooks.

It’s because of Stanza that I actually started to read more! Mostly because I can read a book anywhere and any time I want to. I also discovered some great books such as Siddhartha by Hermann Hesse because I could explore and download in a few clicks.

Maps built-in application

Google started giving driving directions in India a few months back and it rocks!

RunKeeper

The ability to see your pace at exactly every moment during a run is very handy. And I don’t have to carry any extra device because I’m already carrying my iPhone which also happens to be my iPod which I listen to while running. And the best part of the RunKeeper Pro app is that it announces by voice the distance and speed every 5 minutes which gives me the boost I need if I slowed down.

RememberTheMilk and Evernote

The RememberTheMilk app is one of the slickest iPhone apps I’ve used, but I started making daily todo lists which is a bad idea, so I wanted to think in terms of notes instead of lists, so I started using the Evernote app which was exactly what I was looking for.

The best part about Evernote is that I always have a notepad to jot things down whenever I have a thought. And after I started using Evernote, I realized this happens more often than you think! And it has gotten more useful with the 3.0 version of the app. For example, imagine searching for notes by the location where you created the note! Or make voice notes. Or saving photos of an article in a magazine and searching for the text in that article inside Evernote. Or sending a link to Evernote via email. And so on.

There is also the official Wordpress app for writing blog posts or tinkering with drafts.

MobileStudio and Dropbox

Whenever I need some files that I might need to use on-the-go, I transfer it via FTP to the MobileStudio app and then access it on my iPhone.

For example, in one incident, I was able to quickly open the tickets I had saved as a PDF on my phone since I didn’t have the actual printout.

Oh, and having Dropbox access online via the browser means I have all my files accessible any time.

TimeJot

See my earlier time tracking article.

tv.burrp.com

If you thought there was never interesting on TV, just visit tv.burrp.com and find out what’s on TV right now. It’s very very useful.

burrp.com

Find restaurants on-the-go. Once, a friend and myself were in Koramangala looking for a place to eat, and we discovered Fiorano Ristorante via burrp, and had nice authentic Italian food.

Reach people

I never have to worry about how to reach a person any more, I have all the methods – phone call, SMS, email, Skype, IM, Twitter. You name it, we got it.

TED Talks at night

It’s hard to turn off the music or movie and force myself to sleep. So I end up taking my iPhone to bed and watching a TED talk or two before sleeping.

Ambiance

There’s actually an app for listening to rain sounds or the crackling of a campfire or sounds of that sort. It comes in really handy when you just want to shut out all the noises outside and you’re not in a mood to listen to music. It gives you the background noise that you always wanted.

WordBook

Having a very handy dictionary on your fingertips is handy when you want to check if the word that you’re using means what you think it means.

Torch

Yeah, the Torch app comes in handy these days because of the frequent power cuts in Bengaluru.

Wishlist: ngpay

The one app that is missing on the iPhone is an ngpay app. I once called up their customer support and asked if they had plans for an iPhone app and they told me that “Sorry sir, the iPhone doesn’t support third-party applications.” I was speechless.

There’s an app for that

There are a lot of apps out there to use.

I’m just glad that I finally got a kinda-PDA device that I always wanted. Now I never get bored waiting for someone because I can actually spend that time finding out the latest news and I can check Wikipedia for the members of a rock band during a discussion with friends

I started using Twitter as an experiment, and it was the first and only social network I really participated in. It was great because I actually made new friends that I went on trips with, got the opportunity to follow the thoughts of interesting people, and whenever I was in a quandary, I just had to holler a question and would get plenty of answers and advice in return.

But I was uneasy because I was feeling jaded. I thought it was because of the typical “overdoing it” reason, but there was more to it. It was affecting my ability to think critically/deeply about a subject.

Why am I thinking so much about a social network? As David Allen once said, “Pay attention to what has your attention.” And clearly, Twitter had more of my attention than it should have.

Since my attention span was reducing from books to blogs and then blogs to tweets, I was being converted from “from a thinker to a clicker”.

So I’ve gone back and started reading books and paying more attention to offline friends. And I’m not alone on this, many people have expressed similar opinions.

Getting your Fix

I think of this situation as getting your fix. Think smoking vs. coffee. Both are stimulants. Both are legal. But since smoking actually affects others, people have to go outside to indulge in it. Hence, it is less convenient. Probably that’s why there are more people addicted to coffee. Because it is more convenient. There is a sufficient barrier to smoking. Even though this analogy may not be true, consider reading blog posts vs. reading books. There is a sufficient barrier of attention to the latter, that is why more people prefer reading blog posts. It is more convenient. The same for reading blogs vs. tweets. The latter is more convenient. Then, going down this path, your ability to think becomes restricted to 140 characters. Twitter gives you that instant high that you published or read something, which means you lose persistence which is required for longer reading, hence tend to think a lot less and quick wins prevent you from going after bigger wins.

The problem with the shorter fix is that you will indulge in it more often and it will have lesser stimulation in the long run. Consider the difference between, say, having a 5-day 9-hour work week with 2-day weekends vs. having 6-hour work everyday with no weekend and no holidays. Which one would you prefer? This is how I argue that a book once in a while will give you more stimulation than a hundred tweets. For example, consider the signal-to-noise ratio – only tools like filtrr.com can filter out #ipl talk, etc. whereas a book would give a broad understanding about a particular subject. In the long run, it is more enriching to go deeper into subjects, not to be “restricted” to a buffet of subjects.

As a sort-of substitute for Twitter, I’ve shifted to a del.icio.us network. After all, most of Twitter is sharing links and delicious doesn’t have the downside of frivolous tweets. Also, delicious shows how many people have bookmarked a link giving another indicator whether something is worth reading or not, and even better, they are tagged appropriately so I immediately know the topic to expect for an article, instead of “This is cool <insert link>.”

The Attention Psychology

Let’s think about attention in terms of psychology, which I am trying to understand a little about from The Mouse Trap blog:

Maximizing utility

U = E x V (where U is utility of act; E is expectancy as to whether one would be able to carry the act and if so whether the act would result in desired outcome; and V is the Value (both subjective and objective) that one has assigned to the outcome.

Maximizing Predictability

While selecting an action we maximize reward and minimize punishment, basically we choose the maximal utility function; while choosing which stimuli to attend to we maximize our foreknowledge of the world and minimize surprises, basically we choose the maximal predictability function; we can even write an equivalent mathematical formula: Predictability P = E x R where P is the increase in predictability due to attending to stimulus 1 ; E is probability that stimulus 1 correctly leads to prediction of stimulus 2; and R is the Relevance of stimulus 2(information) to us. Thus the stimulus one would attend, is the one that leads to maximum gain in predictability. Also, similar to the general energy level of organism that would bias as to whether, and how much, the organism acts or not; there is a general arousal level of the organism that biases whether and how much it would attend to stimuli.

As per my understanding, the first part means that because we expect much utility about something, it’s perceived utility is higher, making it’s value higher. And because Twitter gives that dash of randomness that we desire, it’s utility is much higher than it really is.

The second part means that we want to know more about the world in order to have lesser surprises, and hence we tend to read more and more, especially if it is information that we perceive as relevant to us.

Bottom line: I question whether more and more information and more and more immediacy is really necessary/required for us?

Think of all the great things that have been achieved whether it is a motor engine or a music stereo, would it have been created if the to-be-creator was constantly distracted and with low attention span? Where is the time to get inspired if we’re always mentally tired?

Why Can’t We Concentrate?

I will finish up with excerpts from this excellent article on Salon called “Why Can’t We Concentrate?”:

Here’s a fail-safe topic when making conversation with everyone from cab drivers to grad students to cousins in the construction trade: Mention the fact that you’re finding it harder and harder to concentrate lately. The complaint appears to be universal, yet everyone blames it on some personal factor: having a baby, starting a new job, turning 50, having to use a Blackberry for work, getting on Facebook, and so on. Even more pervasive than Betty Friedan’s famous problem that has no name,” this creeping distractibility and the technology that presumably causes it has inspired such cris de coeur as Nicholas Carr’s much-discussed Is Google Making Us Stupid?” essay for the Atlantic Monthly and diatribes like “The Dumbest Generation: How the Digital Age Stupefies Young Americans and Jeopardizes Our Future,” a book published last year by Mark Bauerlein.

You don’t have to agree that “we” are getting stupider, or that today’s youth are going to hell in a handbasket (by gum!) to mourn the withering away of the ability to think about one thing for a prolonged period of time. Carr (whose argument was grievously mislabeled by the Atlantic’s headline writers as a salvo against the ubiquitous search engine) reported feeling the change “most strongly” while he was reading. “Immersing myself in a book or a lengthy article used to be easy,” he wrote. “Now my concentration often starts to drift after two or three pages. I get fidgety, lose the thread, begin looking for something else to do. I feel as if I’m always dragging my wayward brain back to the text.” For my own part, I now find it challenging to sit still on my sofa through the length of a feature film. The urge to, for example, jump up and check the IMDB filmography of a supporting actor is well-nigh irresistible, and once I’m at the computer, why not check e-mail? Most of the time, I’ll wind up pausing the DVD player before the end of the movie and telling myself I’ll watch the rest tomorrow.

… What this commonplace crisis comes down to is our inability to control our own minds. You may, like Traister, need to buckle down and write, or you may, like Carr, pine for the deeply engaged style of reading we bring to books and New Yorker profiles. You may, like me, realize that your evening will be more enjoyable and more enriching if you commit to the full 110 minutes of “Children of Men” instead of obsessively checking out your friends’ Facebook updates or surveying borderline illiterate reader reviews — or, for that matter, browsing through the “Seinfeld” reruns in your Tivo Suggestions queue. In many cases, the thing we wish we would do is not only more interesting but ultimately more fun than the things we do instead, and yet it seems to require a Herculean effort to make ourselves do it.

What to do? For most people, bailing on the Web or e-mail or cellphones isn’t even feasible, let alone practical or ultimately desirable. (I shudder at the thought of living without my beloved Tivo.) Besides, modern life really isn’t making us stupider: IQ tests have to be regularly updated to make them harder; otherwise the average score would have climbed 3 percent per decade since the early 1930s. (The average score is supposed to remain at a constant 100 points.) And IQ measures problem-solving ability, rather than sheer data retained, which has grown even faster over the same interval. Each of us knows many more people and facts than our counterparts of 100 years ago; it’s just that the importance of those people and facts remains somewhat uncertain. Knowing a little bit about Lindsay Lohan and Simon Cowell (two people I recognize despite having no active interest in either one) can’t really be equated with knowing a bit about Marie Curie or Lord Mountbatten. We have more information, but it isn’t necessarily more valuable information.

Winifred Gallagher’s new book, Rapt: Attention and the Focused Life argues that it’s high time we take more deliberate control of this stuff. “The skillful management of attention,” she writes, “is the sine qua non of the good life and the key to improving virtually every aspect of your experience, from mood to productivity to relationships.” Because we can only attend to a tiny portion of the sensory cacophony around us, the elements we choose to focus on — the very stuff of our reality — is a creation, adeptly edited, providing us with a workable but highly selective version of the world and our own existence. Your very self, “stored in your memory,” is the product of what you pay attention to, since you can’t remember what you never noticed to begin with.

… Gallagher deserves credit for calling our attention to attention itself, specifically to the way it works neurologically. In essence, attention is the faculty by which the mind selects and then zeroes in on the most “salient” aspect of any situation. The problem is that the brain is not a unified whole, but a collection of “systems” that often come into conflict with each other. When that happens, the more primitive, stimulus-driven, unconscious systems (the “reactive” and “behavioral” components of our brains) will usually override the consciously controlled “reflective” mind.

If you’ve read so far, thanks, because you’re one of the few people who still have a healthy attention span. Half of the people who didn’t read probably found it “too boring” (which means it exceeded their attention span) and the other half didn’t read it because there were no bullet points or pictures.

BUT I’m still not saying that you should give up Twitter, you just have got to be careful on how you use it (duh!). All you have to do is just remember when was the last time you read a whole book every time you tweet

A couple of months ago, I was going through a “productivity drought.” I used to repeatedly bounce between tasks. I couldn’t concentrate enough. Work was suffering.

I thought to myself “Just how bad is the situation? Can I quantify it?” Then I started using a very old and boring concept: the stop watch.

Only that I used an iPhone application called TimeJot which is specifically a time journalling application meant for this purpose.

The idea was pretty simple:

1. Have 5-7 different categories of projects and actions that I normally engage in. Everything else is not considered productive time.
   • “Projects and actions” are defined as anything that needs to be done, whether at office or home.
2. Every time I start on one of these activities, start the timer.
3. Every time I get distracted or switch to something that is not part of the task at hand, I stop the timer.
4. The most important thing is to keep the timer sacred. It is okay to be not productive, but it is not okay to lie to yourself. If the timer is on, you are working with full focus on the task at hand. If the timer is off, you’re on a break, do whatever you want.

The Results

I have been following these 4 simple steps and I have learned a lot about myself and it has had a profound effect on my productivity:

1. Realization of how many context switches I do per day! Because I have to stop the timer every time I get distracted, it became really clear on how many times I started switching browser windows! Now, I have (almost) stopped reading tech news websites during work hours and certainly stopped twittering.
2. I started analyzing and experimenting on how to increase the number of productive hours. One of the best things that worked for me was the switch off WiFi during the first two hours of work everyday. Once I disconnect myself from the global consciousness, I tend to focus on the task at hand. Once in the flow, it is not easy to lose that focus. So switching on WiFi access (which is of course required for regular work) later is okay.
3. Now that I had the data, I realized how much I’m glued to the computer. So I started restricting myself on weekends to spend less time in front of the computer and more time doing other activities. This resulted in two things: (1) Spending lesser number of hours at the computer but more focused hours and (2) Finally getting around to the big pile of books that are waiting to be read.
4. Realizing that I’m not investing time in learning new things at all.
5. Realizing that I waste too much time pondering and not enough time doing. But again, what is needed is moderation not elimination. It is these ponderings that round up my thinking and learning, after all.
6. Realizing that I am more productive if I wake up early but I just love being a night-owl. A hard problem to solve.
7. Learning that I work best when there are big chunks of work as opposed to many small things.
8. Learning that when I focus, I really really focus. But getting to that point is difficult. An important aspect to know about oneself, because once I started accepting that there is a warmup period of several days before I really become productive with a new task, I was fighting myself a little lesser and going with the flow.
9. I count exercise time also as productive time, so on the days that I cycle to work, I get a bonus one hour of productivity that day and I feel good! And this has the side-effect of encouraging me to go for running and cycling which has drastically gone down these days.
10. The data provided a stark picture on how much time I spend on non-important things and I started ruthlessly cutting down on all the distractions. And I could prove to myself that I was successful in this initiative only from the data.

That’s a lot of things that can be learned about yourself with a simple stop watch

It’s Not That Crazy

If you think it is crazy to be doing this, then did you know that Matt Mullenweg, the founder of WordPress does time tracking as well?:

“One of my favorite programs that we didn’t make is Rescue Time. It runs in the corner of my computer and tracks how much time I spend on different things. I realized that even though I was doing e-mail only a couple of minutes at a time, it was adding up to a couple of hours a day. So I’m trying to reduce that. I have a WordPress plug-in that filters all my messages based on the sender’s e-mail address — so high-priority e-mails go into one folder and the rest go into others. Tim Ferriss, who wrote The 4-Hour Work Week, advocates checking e-mail twice a week, but that is too severe for me. Instead, I’m trying to implement Leo Babauta’s approach from The Power of Less. He suggests small steps, like checking e-mail five times a day instead of 10. It’s like dieting: People who binge diet gain it all back. That happens to me with e-mail.”

On the other extreme is Jim Collins, a business-books author:

Mr. Collins keeps this short list:
Creative 53%
Teaching 28%
Other 19%

That, he explains, is a running tally of how he’s spending his time, and whether he’s sticking to a big goal he set for himself years ago: to spend 50 percent of his workdays on creative pursuits like research and writing books, 30 percent on teaching-related activities, and 20 percent on all the other things he has to do.

These aren’t ballpark guesstimates. Mr. Collins, who is 51, keeps a stopwatch with three separate timers in his pocket at all times, stopping and starting them as he switches activities. Then he regularly logs the times into a spreadsheet.

He has a good jump, too, on another overarching goal he’s set for himself: to produce a lasting and distinctive body of work.

Within the sprawling and overpopulated world of self-styled gurus dispensing advice on management and leadership, Mr. Collins is in rare company. His last two books — “Built to Last” and “Good to Great” — were breakout hits, selling about seven million copies combined.

…

PART of the Jim Collins method borrows from other hypersuccessful people. He approaches every aspect of his life with purpose and intensity.

…

Oh, he sleeps with vigor, too. He figures that he needs to get 70 to 75 hours of sleep every 10 days, and once went to a sleep lab to learn more about his own patterns. Now — surprise, surprise — he logs his time spent on a pillow, naps included, and monitors a rolling average.

“If I start falling below that,” he says, pointing to the short list on his whiteboard, “I can still teach and do ‘other,’ but I can’t create.”

The whole article is worth reading. The premise of all this is that you only know what you measure.

Tools

If you’re convinced that time tracking is something you can try out (why not do a 30-day trial?), then here are some tools that I’ve come across:

• For all platforms: Klok (needs Adobe AIR)
• For Linux command-line folks: TimeBook
• For GNOME users: Project Hamster

I prefer to use the TimeJot app on my iPhone because my time tracking tool is independent of whether the task is at the computer or not. I have tried only a few of the above tools listed, so I can’t vouch for how good they are.

What Next?

I’m still debating with myself on whether time tracking is something that I should do in the long term, or should I do just enough to understand my productive patterns and then throw away the time-tracking tool. Then again, that depends on how much self-discipline I build up. Let’s see how it goes.

Nike Plus

I will end my thoughts with an excerpt from an interesting article from Wired on the Nike Plus, a gadget that runners can use to track their running statistics:

… But then something weird happened. The lighting was cut back to normal … and productivity still went up. In fact, just about every change the company made had only one effect: increased worker productivity. After months of tinkering, the work conditions were returned to the original state, and workers built more relays than they did in the exact same circumstances at the start of the experiment.

What was happening? Why was it that no matter what the Hawthorne plant managers did, the workers just performed better? Researchers puzzled over the results, and some still doubt the details of the experiment’s protocols. But the study gave rise to what’s known in sociology as the Hawthorne effect.

The gist of the idea is that people change their behavior—often for the better—when they are being observed (which is why it’s sometimes called the observer effect). Those workers at Western Electric didn’t build more relays because there was more or less light or because they had more or fewer breaks. The Hawthorne effect posits that they built more relays simply because they knew someone was keeping track of how many relays they built.

When you lace up your running shoes outfitted with the Nike+ sensor and fire up your iPod, you’re both the researcher and the subject—a self-contained experimental system. And what you’re likely to find is that the Hawthorne effect kicks in. You’re actively observing yourself, and just that fact not only provides information you can act on but also may modify your behavior. That’s the power of Living by Numbers.

Keeping track of our lives is nothing new. Athletes have kept training logs to quantify and analyze their workouts. Counting calories has long been a popular and effective way to lose weight.

In the past, that required two steps. First, there was the recording of the information, then the actual effort to modify behavior. In study after study, this extra work turned out to be a huge burden. Compliance fell, and the outcome suffered: People would stop monitoring their caloric intake, fail to change it, and fail to lose weight. Make the data-gathering easy and you remove one of the barriers to meaningful improvement in our lives.

With Nike+ and other tools, that first step has become almost effortless. Dieters don’t have to calculate the caloric content of meals manually; they can just log in to FitDay.com to enter the information in an online food diary. Keeping a training log doesn’t mean busting out a pen and paper at the end of a run. It’s as simple as listening to music on an iPod while exercising.

…

But the power of self-tracking is even more profound. It’s not just that collecting this data can help us change our behavior all on its own. Using the immensely powerful tools now becoming available, we can set up positive feedback loops: We keep track of something, see how the data matches up with what we’d like to have happen, and then use that knowledge to modify our actions.

The effect of feedback on attempts to change behavior is well established. A 2001 study in the American Journal of Health Behavior showed that personalized feedback increased the effectiveness of everything from smoking-cessation programs to interventions for problem drinkers to exercise programs. Feedback is important and powerful; it works.

That feedback can be internal, too, because when we start to do things to make ourselves more healthy, our bodies react. When obese people lose as little as 7 percent of their body weight, the levels of adiponectin in their blood goes up—reducing their risk of developing type 2 diabetes. Or consider the five-run threshold that Nike has seen in the data. It might be that runners not only like the information they get; they might be getting positive feedback from their body after five runs as well.

Think of it this way: It used to be that to lose weight, you’d keep a diary of everything you ate. Stepping on a scale is easy enough and gives one data point—about the system’s output, not its inputs. But develop a system that allows you to track not only your weight but also what you eat, how you exercise, even how you’re feeling, and suddenly you can start to pull things together. You can see how all those variables interact and then put that information to use.

We tend to think of our physical selves as a system that’s simply too complex to comprehend. But what we’ve learned from companies like Google is that if you can collect enough data, there’s no need for a grand theory to explain a phenomenon. You can observe it all through the numbers. Everything is data. You are your data, and once you understand that data, you can act on it.

Amazon conducted a poll just before the start of the year 2009 asking people on what are their New Year Resolutions. The top two resolutions were (1) Lose Weight and (2) Get Your Finances in Order.

What is strange is that you and I would think these are solved problems, right? But yet these are the top resolutions for the new year!

We all know how to lose weight – eat less and exercise more. But it requires discipline. We all know how to get our finances in order – spend less and earn more. But it requires discipline.

Our vision for the “Track Every Coin” system that we are building is to exactly help you do this – to help you spend less, save more, and in the process help you get your personal finances in order.

So what is the problem again?

We tried out many personal finance websites and software existing in the market, and we faced the same issue again and again – they are either cumbersome or are afterthoughts.

Most of the software that we tried out did not make it easy to make entries such as expenses and made it a boring chore. And yet, this is the starting point to use all their features.

The ones that work automatically with your bank account are afterthoughts – they are good for overviews and for viewing graphs at the end of the month, but do not help in actively managing your money at all.

So we started adding in our own ideas on what we would want to use.

So what is the product?

It consists of two parts:

• The active agent where you make your entries – which is either a hardware device or a mobile phone application, based on your preference.
  • The hardware device is for those who like to have a cool-looking gadget to carry around, and want to make entries within 10 seconds.
  • The mobile phone application is for those who have GPRS connections on their mobile phones.
• The data analyzer – which is a website where you get to slice and dice your data.

I like to think of it as analogous to the “iPod-iTunes” combination – the iPod was designed to do one thing well: play music, and it left the complicated parts of managing music to the iTunes software. We intend to achieve the same effect for personal finance. This is our unique twist.

Features

At its core, the system is an expense tracking system, simply because that is the first step that every personal finance writer recommends. If you don’t know where the money is going, you won’t know how to manage it.

The logic is simple : We need data to improve, whether it is the school score cards for your kids or the mileage for your car or statistics for your favorite cricketers. We bring over the same facility to you for your money!

Now, how is this different from a spreadsheet? Well, the data collection mechanism, obviously, and lots of features, but most of all – this is a specific system that helps you with so many aspects:

1. Expenses
   • Know what you are spending on – categorize, tag and add notes to your expenditure
2. Reimbursements
   • Know how much money you have to get back from your company – save time wasted in filing expense reports
3. Income
   • Plan your money – How much money from your income is budgeted for expenditure and how much money goes to savings and goals
   • Never forget to pay your bills on time again – Reminders will be automatically be saved as expenses
4. Goals
   • Buy that thing you really want – Save money every month towards your goal, whether it is downpayment for a car or that big trip you’ve been dreaming of
5. Budgets
   • Never overspend again – Set limits on how much you want to spend and you will be reminded every time you are about to spend
6. Sharing
   • Never worry again about splitting bills – Keep running counts of expenses shared with your roommate or when you go for dinner with friends, and settle easily
7. Events and Trips
   • Know how much an occasion will cost you – Stay within your trip budget, know how much a weekend trip will cost you, know how much transportation accounts towards your trips, and more.
8. Graphs
   • Analyze where your money is going – Know if you are spending more on fuel, if you are spending too less on your hobbies, or how much money you need on an average day.

To know more, visit our website www.TrackEveryCoin.com

We aim to launch the product in July 2009. Sign up now at the website to get special offers when we launch!

We’ll be writing more about how we have designed and built TrackEveryCoin on our company blog. We look forward to your feedback either here on this blog or via email.

This style of working is explained further in “Don’t Multi-task When You Can Use Chunking”.

What does your day look like?

But what is personal finance? I like how Ranjan Varma puts it:

Whenever I tell acquaintances that I have a website on personal finance, the first and last question I get is, “Now, you can tell me where to INVEST”

By the time I finish saying that personal finance is not just investing and there are things like setting financial goals, budgeting,….., I get a feeling that I have lost them. They move on to another topic like the Rakhi Sawant’s latest reality show or something similarly interesting!

…

Personal Finance can be represented with a simple equation:

Income(t) – Expenses(t) = Savings(t) + Investments(t)

where time t signifies moving money, or purchasing power, backward and forward in time.

So personal finance is not just about Investing but also about maximizing your income, optimizing your expenses and your savings.

When I was looking for information with an Indian context, I was disappointed with websites like PersonalFN which are great sources of information if you already know what you’re doing, but they don’t help you to get started which is the problem in the first place!

I did find their Crorepati calculator interesting. It said that if I invest 50,000 rupees every year with a 15% interest, I’ll be a crorepati in 25 years. I realized then why compounding interest is important!:

Check this scenario out: You start investing at age 25, investing $2,000 each year until age 35. Then you STOP–never touching that money again. Your dumb friend doesn’t start until age 35, but he invests $2,000 a year for 30 years (compared to your 10). Who has more by age 65?

You! Actually, you’ll have over $70,000 more than your friend.

But 25 years seemed a long way off. Then I thought that I was asking the wrong question. The question is how to spend those 25 years well instead!

I found that most personal finance bloggers had reached the conclusion that their Goal is Financial Freedom / Financial Independence. I wanted in too.

But the aim can be different for different people. For example, your question may be When can I retire and live off my investments?

I wish colleges had taught stuff like this because it is an important life skill, especially concepts like Pay Yourself First.

The gist of what I learned are in these links:

Overall Picture

• Everything You Ever Really Needed to Know About Personal Finance on the Back of Five Business Cards
• Three Principles of Personal Finance
• 12 Steps to Financial Fitness
• Financial Planning section in the “Money Today” Indian magazine (brought to you by the ‘India Today’ people)
  • Financial Mistakes We Make
• Financial Planning reading list

Habits

• Monday is Money Day / Weekly Routine
• Personal Financial infrastructure – Once you have a system set up, it’s very easy
• Invest in index funds ( howto )
• Build an emergency fund / Ways and Means fund
• I think there is a lot more here that I haven’t come across yet.

So, how do I start?

Read the Financial Literacy month articles at the Get Rich Slowly blog, especially:

• 9 Methods for Mastering Your Money in 2009
• The Balanced Money Formula

If you think all this is not important, then I’ll mention that Google has a section called Google TipJar where people share money saving tips. If Google is into it, it must be important, right?

I’m personally looking forward to Ranjan Varma’s upcoming workshop where he mentions these topics:

• What is Personal Finance?
• Overview of Financial Products.
• Financial Goals.
• Magic of Compounding.
• Rupee Cost Averaging.
• Playing with Numbers.
• Conscious Spending Plan.
• Insurance Cover
• Mutual Funds/ETF
• Stocks
• Real Estate Planning
• Credit Cards
• Documentation/Legal Aspects(Wills)/
• Planning for your Children
• Retirement Planning
• Scheduling a Money Day
• Tax Planning

There are just so many aspects! And it just surprises me that money being such a life-enabler, I neglected it for so long.

What is your ideal personal finance life? How are you achieving it?

The good

Things that I thought was important but didn’t turn out to be:

It has been one year since:

• I had to do something because I had no choice.
• I had a boss.
• I had to attend meetings.
• Since I have been answerable to someone.

Things that turned out to be important:

Discovering things about myself that had been previously masked. For example, discipline is about doing things even when there is no one watching you. I realized how bad I was at this, and a year later, I’ve significantly improved.

Equally important, I’ve discovered many of my strengths. And learning how to build on those.

For example, I ended up jumping in full-time into our own startup – we have three guys in our little company, and I’m learning how to leverage each of our strengths as a team. Why is this different from previous experiences? Because I was told to do things. Here, we are the ones deciding what to do and the guys actually doing it. In all this decision making, I realized what areas I have a good nose for, and which ones I don’t.

The bad

One year flew by and I don’t even know how. Definitely not a good thing.

I’m simply not satisfied with the results.

Back to the drawing board…

The ugly

It has been one year without a salary.

Thoughts

Like a wise man once said “Only when you’re truly lost do you begin to find yourself.”

This is exactly what happened to me. When I quit, I had all sorts of visions that my freedom would be exciting and I can do anything I want. In fact, the first month was exactly that and I had lot of fun. The second month was disastrous, it is amazing how depressing one can get if there is nothing to do. An idle man is a DevD’s workshop.

I started thinking about what it is that I want out of life and what it is that I can do. Even though I still don’t have an answer, I have a far better understanding of what the answer would be like, than I previously did.

I have many things to look forward to, especially some exciting things coming up with our company. Lots of things to learn. And most importantly, focusing on lots of things to do.

Still a long way to go.

If you don’t know what a mind map is, think of it as writing a single topic idea on a piece of paper, then drawing out a tree with new ideas as branches. You can draw as many branches and sub-branches as you like. That’s it.

There are two purposes for which I use mind maps:

1. Brainstorming

Nothing gets my brain thinking and crazily jotting down thoughts like a mind map can. This happens because it is not a linear format and encourages branching out in different directions. At the same time, you can group related ideas together which means you don’t have to detail each idea, the phrases should have quite obvious meanings from the branching hierarchy.

2. Attention Economy

“Pay attention to what has your attention” is another gem that I learned from Arif.

I have forced myself to spend an hour every week and update a mind map that lists my actions in the past week. If my intentions on how I would like to spend my ideal week does not match my actual actions, then, the problem becomes quite obvious. Otherwise, it will be yet another case of “What? A week is already over. Time just flies…” and then months and years fly by (and it has) and you’ll wonder what you’ve been doing all along.

To break this chain, I started being conscious of what I’m doing. At first, I was shocked at the drastic gap between inspiration and execution. But by constant review of this attention mindmap, I’m getting better at todo lists.

XMind

The best mind mapping software that I’ve come across is XMind. It also happens to be open source and cross-platform.

It has a very nice simple and fluid interface, intuitive keyboard shortcuts, nice handy marker icons and most importantly, feels like a coherent software.

Install XMind and try this:

• Click on the “Central Topic” rectangle. Press F2. Type “Life” and press enter key.
• Press the Tab key. Press F2. Type “Career” and press enter key.
• Press the Enter key. Press F2. Type “Finances” and press enter key.
• Press Shift+Enter keys. Press F2. Type “Family” and press enter key.

That’s it, you’ve now created a mind map and got a feel of the keyboard shortcuts.

But there is more.

• Click on the ‘Finances’ rectangle.
• Right click → Markers → Smiley → Boring
• Click on the ‘Career’ rectangle.
• Press F3. Add tags like ‘monthly review, skill’.
• Press F4. Add your notes.
• Press the Tab key and add subtopics like ‘The Big Goal’.

Continue filling out this mind map and you would have created your “World mind map”.

P.S. I’ve been thinking about writing more about productivity and lifehacks, so if this post was useful for you and would like to read about more such topics, please let me know.

The biggest problem for me was seeing that unread count number^*. It was intimidating and I quickly started procrastinating reading the articles, which was ironic, because we mostly read RSS feeds to procrastinate from doing real work

I thought to myself: “There must be a way to list all my favorite blogs and websites, I can add them and forget about it. Whenever I want to get updated, I just visit the page and read all the latest, and then go away again. There is no need to keep memory of how much I read and how much I did not read.”

I started looking at My Yahoo! to list the websites I follow. It allows to add RSS feeds and will show you the latest 5 posts from that RSS feed. But then, MyAlltop came along and solved it more elegantly for me:

• MyAllTop is easy to scan, i.e., read because of the newspaper-style 3 columns of blocks, compared to My Yahoo!’s big horizontal blocks (maybe there’s a way to get the layout of your liking, but I couldn’t find it).
• When you mouseover a link in Alltop/MyAlltop, it will show a few paragraphs from the article which makes it easy to discern whether the title is misleading or if the article is really interesting.
• The Alltop directory is very useful (which reminds me of the origins of Yahoo! – a directory of websites) in finding the best blogs on a particular topic, which is a harder problem than I imagined. I don’t know if Google Reader’s “bundles” had solved this problem, but I definitely find this a good resource.
• I used to regularly visit india.alltop.com to read the latest news but used to get annoyed by irrelevant-to-me blocks. Now I can just add the ones that I’m interested in to MyAlltop page.

In the end, I’ve switched from Google Reader to my.alltop.com/swaroopch and I’m finding it far more fun to read this way. This is also useful if you ever wondered what blogs I read, it’s all in one page.

If you have any other “How to control your information input” tips, please comment.

^* And if you wondered that I must be nuts to get bogged down by the unread count number, let me tell you that I’m not nuts, I’m actually a Inbox Zero freak. I tend to reach inbox zero on email every week regularly. If only I could say the same about my todo list…

Update on June 13, 2009: I wanted to try a new idea – to randomly see the list of feeds every time, so I ditched MyAllTop and wrote a small html file that uses Google AJAX Feeds API to display the feeds list. Let’s see how this experiment goes.