Published at: 5/11/2017 1:59:08 PM
The ability to handle multiple activities at once has become something of a badge of honour. But the jury is out on whether our brains are really hardwired to focus on more than one task at a time.
As well as being a source of stress, multi-tasking can be counterproductive. According to the University of California, Los Angeles, multi-tasking doesn’t let us take in the full picture, making us more prone to mistakes.
Multi-tasking might mean getting more done, but we’re probably not getting it done particularly well – and when it comes to your financial goals, that’s a problem.
Here are a few simple tips to take yourself from financial fluster to effective money multi-tasking.
Saving for a single purpose is relatively simple – but if you’ve got a bunch of different goals on the go, it’s important to take time out of your day to manage your money, rather than just hoping the savings just ‘happen’. (Spoiler alert: they probably won’t just happen.)
Properly multi-tasking your money means setting aside time, so you can focus on your multiple finance goals and check on how your savings strategy is doing.
Not all savings accounts are made equal. Some are better suited to certain goals than others – including saving for short-, medium- or long-term targets – and a good savings strategy takes that into account.
A term deposit might be the ideal option for a long-term saving goal like an apartment renovation, while an online savings account can be a good choice for medium-term goals like an overseas holiday or just saving for a rainy day.
An everyday account is well-suited for short term, budgeted spending like clothing, accessories, hair and make-up. Check that you’re not being charged regular account-keeping fees – those will eat into your savings, and hobble your personal saving goals.
Our brains may not be designed for multi-tasking, but technology is, and online banking tools make it effortless to money multi-task.
Manage the flow of cash into various savings accounts by setting up automatic transfers, allocating different amounts to each account. Time the payments with pay days to avoid overdrawing your everyday account; after a few weeks you probably won’t even notice the cut in spending money.
In today’s fast-paced world, most of us take on too much. Sure, it’s probably better to focus on one thing at a time – but the reality is that our multi-tasking lifestyles are here to stay. With the right plan in place for your savings, it’s still possible to work towards multiple financial goals without overloading your brain or draining your spending money.