Tools, practices and methods
The world is full of amazing tools that may be perfectly suited to accelerate our journey, but often we only discover them through chance encounters, and can lose years being stuck in sub optimal loops.
Our endeavor is to catalog a growing list of tools and eventually match them to you based on your context.
SWOT Analysis
SWOT analysis is a strategic planning tool used to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture. It is a comprehensive framework that helps organizations and individuals understand their internal capabilities and challenges, as well as external factors that may impact their success.
The 50/30/20 Budgeting Rule
The 50/30/20 rule is a budgeting principle that recommends dividing your after-tax income into three main categories: allocate 50% to essential needs such as housing and utilities, 30% to discretionary wants like entertainment and dining out, and reserve 20% for savings and debt repayment, encompassing contributions to savings accounts, retirement funds, and debt reduction.
The Envelope System
The envelope system is a budgeting method that involves allocating and managing cash for different spending categories using physical envelopes. This system is designed to help individuals and households control their spending, prioritize financial goals, and avoid overspending in specific areas.
Pareto Principle(The 80/20 Rule)
The Pareto Principle, commonly known as the 80/20 rule, suggests that roughly 80% of results often come from 20% of causes or efforts. It highlights the disproportionate relationship between inputs and outputs, emphasizing that a small portion of factors typically contributes the most to outcomes. Applied in various fields, including personal finance, it helps identify crucial areas for focus, resource allocation, and optimization to achieve more significant impact with less effort.
Help us build this list, please suggest any tool / method or practice that you know.