How to Use an Impact-Effort Matrix For Your Finances

Sourced from https://www.thesimpledollar.com/financial-wellness/using-impact-effort-matrix-for-finances/

One of the most useful mental models I use for keeping my finances healthy is the impact and effort matrix. I use it all the time, almost unconsciously, to make decisions about my use of my time, money and energy. To an extent, we all do it naturally, but I’ve found that investing some effort into honing your impact and effort matrix pays off tremendously. It’s one of the biggest wins you can make with your finances and with your life.

How to use an impact-effort matrix for your finances
First, step up the matrix

Never created an impact-effort matrix before? Here’s how you start one:

Take a piece of paper, or your favorite digital drawing platform, and draw a horizontal and vertical line across the page that intersect in the center.
Label the horizontal line “Low Effort” on the left and “High Effort” on the right of the page.
Next, label the vertical line “High Impact” at the top and “Low Impact” at the bo… Read More

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