The Idea

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.
2. “Projects and actions” are defined as anything that needs to be done, whether at office or home.
3. Every time I start on one of these activities, start the timer.
4. Every time I get distracted or switch to something that is not part of the task at hand, I stop the timer.
5. 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.”

Note: I no longer work with IonLab since Nov 12 of 2009.

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.

Here is a typical day of someone who sent this to Caterina Fake:

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

What does your day look like?

I have been reading personal finance-related blogs for a while now. But due to obvious reasons, it had become very important to have proper habits so that I have a healthy personal finance, and hence I started doing more research on it.

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?

It has been exactly one year since I quit my last job.

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.

Ever since I read about how Arif Vakil uses a “My World Mindmap” to organize his life, I started using mind maps. It is such an utterly simple concept but yet I still find it fascinating.

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.

About six months ago, I had stopped reading all RSS feeds because I wasn’t managing my information input well. Over the past few months I was slowly creeping back into the same RSS habit and I didn’t like it.

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.

I had grown up among engineers, and I could remember the engineers of the twenties very well indeed: their open, shining intellects, their free and gentle humor, their agility and breadth of thought, the ease with which they shifted from one engineering field to another, and, for that matter, from technology to social concerns and art. Then, too, they personified good manners and delicacy of taste; well-bred speech that flowed evenly and was free of uncultured words; one of them might play a musical instrument, another dabble in painting; and their faces always bore a spiritual imprint.

– Aleksandr Solzhenitsyn, in his book “The Gulag Archipelago”

Though the Lok Sabha elections are just a month away, more than 50 per cent of voters in Bangalore still do not have Electoral Photo Identity Cards (EPIC).

Ramakrishna blamed lackadaisical attitude of citizens, especially software professionals, for low EPIC coverage. “People working in IT and BT firms show indifference towards EPIC. Even though our officials go to their doorstep on weekends, they do not respond. They say that EPIC is of no use of them,” he pointed out.

However, there has been a good response from those living in slums, the official added.

– Deccan Herald on March 20, 2009

I had a great time at BCB8. Even though I had ranted previously on the tech focus this time, the planners made it clear that all topics are welcome and Barcampers kept the same familiar atmosphere going.

To be honest, I don’t go to Barcamp for the sessions per se, it is mainly for the people and this is one of the most relaxed ways to catch up with friends and make new ones. I met a lot of people and had very good conversations.

My own session on webdev frameworks and their relation to newer technologies such as cloud databases had a rocky start because there were lot of first-time Barcampers and were expecting a talk-style session. Luckily, I was saved by 3-4 guys in the audience who got it and we had a lively discussion. The takeaway is that, yes, there are interesting possibilities when we natively integrate our webdev frameworks and cloud databases (via modifying the ORMs) and cloud computing facilities. A few people were interested in my suggestion to carry the conversation forward in some sort of mailing list. So please join the “evolving-webdev” mailing list if you are interested in exploring these technologies.

The other interesting session I attended was on philosophies of yoga by Shashikant Joshi. As expected, he gave a very different take on yoga than what we normally hear. He started off by explaining the meaning of the word ‘yog’ as “state of mind” and what our ancient scriptures say on how to attain bliss and remove sorrow. It was hard for me to not be reminded of GTD philosophy, especially the “mind like water” concept. I felt guilty that there is so much already written by our ancestors that we ignore and wait for people to rediscover it and preach it.

I missed Shree Kumar’s calligraphy session because it was at the same time. Oh well.

Besides that, there was a whole lot of hallway conversations.

Gopal was teaching people how to solve a Rubik’s cube. He has it nailed down to a few algorithms, I can’t even fathom how he had the patience to derive those algorithms. We timed him solving it. The first time he took 1 min 57 seconds to solve it. The second time he took 1 min 36 seconds. Phew.

Then in another freewheeling conversation, we were talking about Zeno’s paradox and all sorts of stuff like that.

All in all, two non-stop days of fun reiterated why Barcamp remains one of my favorite events.

Thanks to all the planners (@ashwin, @daaku, @dkris, @fagunbhavsar, @hnprashanth, @viralsachde and others) who made it happen, and to Yahoo! for sponsoring the venue.

You can read more about what happened via the #bcb8 tag.

A big question that keeps coming up for an attention-deficit person like me is “How do you get into the flow?”

There are two things that work for me and I find them at loggerheads against each other. The problem is that it has been difficult to stick to either of them.

One is called being a night-owl, the other is called the MIT factor.

I love to work late nights. Life is completely undisturbed, you’re not going to get phone calls, there are no noises, nobody’s expecting email replies from you, nobody around to disturb you. All good.

But being nocturnal ain’t easy. Your whole life is thrown off-balance as well as your body’s natural cycle. Yet some of the best hackers I know are night-owls. They hack away their code and leave the rest to management. I’m not sure that’s a viable option for us in a startup where we do everything including working with many partner companies. Besides, I don’t wish it to go to such depths of imbalance, for example, I want to maintain my regular running but it is not possible when you wake up late. And running in the evenings on Bengaluru roads is defined as insanity. The struggle is productivity/flow vs. life balance.

The second is called “The MIT Factor.” Do the Most Important Task first thing in the morning. It’s that simple. Don’t think about what’s ahead in the day, don’t think about what bills are pending, don’t think about planning to reach office on time (just have a fixed deadline when you have to start getting ready and think no more about it). Just switch on your computer or take out your pen and paper as soon as you wake up and start working on it. The important thing is Don’t think. Just start working on it.

The problem with the second option is that if you don’t wake up early, you again end up in the daily grind where you may not get focus. And you need to have the discipline to immediately start working. Whatever you do at the start of the day sets the mood for the rest of the day. For example, you check email first thing in the morning? You’ll tend to do the same activity for the rest of the day.

The bottom line is I think there is a psychological concept where you have to load the entire problem, the entire domain on what you’re working on into your head and that takes time, say 15-20 minutes and then you suddenly start solving problems. But if you subconsciously know that you’ll get disturbed any time in those 15-20 minutes, the brain almost gives up and doesn’t think it’s worth putting in that investment to get into the flow if it is going to ultimately get disturbed. Is this true? I have no idea, just a theory that I’m beginning to believe (I can’t remember if I read this somewhere or just an opinion I’m forming for myself).

I wonder how other people approach this concept of “getting into the zone.”

Further reading:

• Flow in Psychology as defined by Mihály Csíkszentmihályi
• Geek to Live: Control your workday by Gina Trapani
• Disconnecting Distraction by Paul Graham – I’ve been applying some of the ideas here and so far I’ve had good success.
• Want to Remember Everything You’ll Ever Learn? Surrender to This Algorithm