It is a bit sad if you have to look at your bank balances every day because you feel some incoming cheque will bounce, or you won’t be able to manage your budget. However, this cannot be a long-term strategy and will lead to burnout with the stress and adrenaline you need daily. Also, this anxiety of maintaining the bank balances is not doing any good to your cause of increasing your income or reducing your expenses.
Bank Balances are lag measures.
If you understand what is a lead and lag measure, you will understand what measure you need to focus on. Basically, a lag measure is something you cannot directly influence. Like the end of the year revenue, what you can influence is the sales you do or the work you do. Your [[lead measures]] are the sales or the work you need to put in to achieve your quarterly or yearly revenue targets.
List down your lead measures
Suppose you need to increase your cash flow you need to reduce expenses in say your food and grocery bills by forty per cent. Write down all items you need to cut off the grocery list, that is your lead measure. Once you analyse which all items in your expenses that could be cut off, you are finally getting a sense of control.
If you feel you are maxed out on the expense reduction process, see what actionable lead measures will give you the shortest route to increase your income.
Best lead measure indicators
If I was to advise people on what two areas they need to improve in their life. I would tell them
- Health
- Relationships
Your Health
The best indicator to see your bank balances improve is your health and energy levels. Make sure you remove all the issues and people who are toxic. Is fast food or canteen food a drag on your energy levels? Could you take some homemade food or eat fruit for lunch? What is preventing you from getting a good night’s sleep? Remove all the issues which are preventing you from a good night’s sleep.
Your relationships
I feel most of the issues are related to not having healthy relationships. Some relations just turn toxic when it becomes a power play. Interests are always shifting sands; one day, you are a priority, and another day you might not be so important. If you fail to hedge yourself against these dynamics, you might soon find yourself in deep trouble. Your relationships will reflect in your mental health, and you will err on the decision side.
End Note
It is not that I have mastered these issues; it is a delicate dance to balance. But every day, you need to learn and take feedback and calibrate your actions.