Description

In today’s episode, I discuss Parkinson's Law. Norcote Parkinson wrote a book called Parkinson’s Law where he isolates some limitations of us all and particularly focuses in on the behavior of individuals within a group. In Parkinson’s Law he writes, “Work expands to meet the time envelope allowed.” Meaning if we have 5 days to complete a task, it will take us 5 days to complete the task. If we were allowed 30 days to complete the same task, we would take 30 days to complete the task. Parkinson’s law also states that, “a luxury, once enjoyed, becomes a necessity” and “expenses rise equal to income” In a financial context, we can define Parkinson’s Law as: the more you earn, the more you spend. When our income increases, our expenses rise to meet or exceed that increase. We are always working against Parkinson’s Law. Bestselfco., Make Success a Habit! Use the Self Journal to organize and align tactical day to day tasks with larger life goals.   Key Take Aways:

• We can combat Parkinson’s Law is by establishing an wealth infrastructure and system to beat it within your wealth plan.
• You can set up a separate account in which you can make weekly or monthly deposits. These deposits can be set as a fixed amount or a percentage of the money you earn. This will ensure that a percentage of very dollar that comes into your personal economy is automatically captured in a separate account.
• You can automate this infrastructure so it removes the “human element” from it
• How your “wealth capture account”, is a great vehicle to build  liquid savings reserves that can be accessed for emergencies, as well as for capitalizing on investment opportunities.

Quote:

“It’s not how much money you make, but how much you keep and how hard you make that money work for you that will determine if you will be rich or poor.” - Robert T. Kiyosaki

  Recommended Book: Parkinson's Law, and Other Studies in Administration by Cyril Northcote Parkinson Recommended Resources: Mint.com, to establish a dashboard for your personal economy.  Show Sponsors: Audible, download any audio book for free when you try audible for 30 days. Leadpages,  is offering a free marketing automation course that includes:12 video modules with step-by-step strategies to leverage what’s working in your business. Thrive15.com, get a free month of access at www.thrive15.com/cashflow   Show Transcript   Enter the Launch Give away contest to win a $500.00 Visa Gift Card! During the first two months of our podcast we are giving away a $500.00 dollar Visa gift card.  To enter into the drawing, go to www.cashflowninja.com/Itunes and rate, review and subscribe to our podcast. Have some feedback you’d like to share? Leave a note in the comment section below and please share it using the social media buttons you see at the bottom of the post! If you enjoyed this episode of our podcast, please leave an honest review for The Cashflow Ninja Podcast on iTunes. Ratings and reviews are extremely helpful and greatly appreciated! They do matter in the rankings of the show, and I read each and every one of them. John Lee Dumas of EOfire.com made a video explaining how to leave a review you can watch here. You can also access step by step instructions how to subscribe, rate and review on Itunes from Apple here. Thank you for supporting our podcast and sharing it with friends and family! Live a Life of passion and purpose on your terms, M.C Laubscher