I have a big project I'm working on (secret for now, haven't decided if I should write about it yet or not), and I've been seriously procrastinating.
It's not that I don't want to do it. It's something I arrived at myself, is very inline with my Life Nomadic goals, and will be very exciting to complete. It's my perfect project.
I'd been working on it for a week, though, and had been getting very little work done. To use a rough estimate, I had done maybe 5% of the work in a week. Twenty weeks until completion is way too long.
I would work on it for a few minutes, hit the most minor of stumbling blocks, and then find myself checking uncrate.com for the fifth time that day, to see if some new useless gizmo was being showcased. Then I'd head over to fmylife.com and read some funny trite horror story that someone probably made up to get on the site.
I was sitting around engaging in unqualified wastes of time. One day passed, and although I had checked my one stock twenty times and facebook twenty times, I had only added about .25% to the completion.
Something had to change.
I couldn't just force myself to work. Creative work isn't like moving rocks, where you can hate every second of it and still do a good job. The times when I would force myself to work resulted in such poor quality that I knew I'd have to redo it.
Then I stumbled across a Firefox plugin called LeechBlock, and I had an idea. If I was going to procrastinate, I was going to engage in quality procrastination. I know that when I'm in the mood to work I produce like crazy, so I may as well fill my "wasted" time with useful projects and then when inspiration strikes I can work on my main project.
LeechBlock is a plugin that lets you set specific restrictions on sites you can visit. You can block them entirely, block them between certain times, or allow X minutes in X timespan, like ten minutes every hour.
I entered in every site I could think of that was wasting my time, enabled all of the possible protections against cheating, and uninstalled Chrome (so that I couldn't just use the second browser). I allowed myself fifteen minutes of time wasting every twelve hours.
The very next day I could tell the difference. I totally ignored useless sites, and breezed through the ones I cared about, like my forums. And then I was left with a bunch of time. The funny thing to realize is that it's not the sites that are addicting, it's the habit of checking them. Once you remove the ability to check, you stop caring about most of the sites (not the forums, though. I love you guys).
If I started doing something that was a waste of time I added the site to Leech Block. After my subconscious got the idea that it wasn't going to be allowed to waste time, I started being useful.
I still couldn't get much creative work done, but I read two or three books and several web sites on tax code. I decided that it was necessary for me to become an expert on taxes, particularly as they relate to travel. Some of the travel rules are so obscure that I wouldn't count an an accountant to know them. Plus, I can change my life in small ways to greatly reduce my tax burden.
I spent additional hours reading the direct tax code on the IRS web site. It's actually not so dense once you know what all the terms mean.
Now, for the first time ever, I understand taxes, how they work, and how to minimize exposure. I filed an amendment to my corporation to change it's tax classification (C to S), since I now actually understand the differences. I also created a spreadsheet to journal certain tax related travel expenses and activities.
Believe it or not, I felt guilty because it was so much fun to learn about taxes. I now consider it a hobby.
When I finally exhausted all of the relevant information I could find on tax law, I then started reading about trusts, which are also very interesting (did you know that you can set up a trust and title your car to the trust? Then no one can get your personal info by writing down your license plate).
At the end of the day I went to bed exhausted, with a whole new set of strategies relating to legal structures and taxes.
The next day was today. I was so charged up by being productive yesterday, that I immediately started back on my main project. Now it's sixteen hours after I woke up and I'm just now finishing my work for the day. I did an additional 7.5% of the work necessary to complete the project. That's 150% as much as I did in the first week.
Best of all, I'm now pumped up to get back on it tomorrow. I think I might be able to do another 12.5% at least. I'd like to keep working now, but I'm tired to nearly the point of delirium, which should explain the rambling and possibly typo filled nature of this post.
To wrap it up, here's what I've learned:
If you're procrastinating (zero productivity), don't feel like you have to switch gears into full work mode (100 percent productivity). Just make yourself step it up a notch or two to get the ball rolling.
You just gave me 1825 more productive hours this year (5 hours a day by 365 days). Couldnt thank you enough.
Yes, please write a tax article covering what you learned! Since you've done the work already, it would be awesome if you could share - this kind of stuff is especially great for self-employed people making interwebs money. I know you can cut taxes through things like S Corps and being out of the US for a certain amount of the year, but I'm fuzzy on specifics. Thanks!
Tynan: I use GNUCash for my personal bookkeeping, and Quickbooks for my business. I like GNUCash because it's a simple Assets/Liabilities/Revenues/Income presentation and a lot quicker because of it. It's also rock solid.
My recommendations for learning double-entry accounting are to find some resources for learning it. Old edition textbooks for intro-accounting can be picked up for a few dollars on Amazon (but might be too heavy for your world-trekking), or this website seems to have a good overview of a lot of the concepts: http://www.dwmbeancounter.com/tutorial/Tutorial.html
Basically, my practices are to make asset accounts for all my bank accounts and big assets, expense accounts for all my categories of expenses (and you can give them tax statuses that will be reflected when you prepare taxes), income accounts for all my income sources (again, can have seperate tax statuses), and liabiliies accounts for all the things I owe.
If you keep track of tax statuses, bookkeeping software generally keeps track of it be specific lines on various tax forms, so you know where to enter it. It also helps make decisions about which account a new entry can go under, because there might be different tax statuses possible depending on how you book the entry.
What resources do you recommend to kick things off in terms of learning taxes? I'm an attorney as you might know, and still find the stuff rather confusing (but that's because tax case law is different than the tax code itself -I hope).
Glad you guys like the software. There are some REALLY cool features on it. For example, I now block the useless sites entirely until 4pm, so that I will start the day with productivity.
Also, I get to play quadradius again! I stopped playing because I would play all the time, but now I limit myself to 70 minutes a week which is only enough time for one 45 minute game (plus waiting, and possibly going long).
Mark: Thank you VERY much for the excellent recommendation. I'm reading about it now and am fascinated. Do you use it for pesonal bookkeeping too? Any tips would be appreciated.
Tynan, if you are learning tax systems, you should learn double-entry accounting. It will be a natural complement to the knowledge of tax code, and will allow you to comprehend of why you might take something as a revenue expenditure rather than taking it as a capital asset and running MACRS on it to accelerate depreciation write-offs.
Also, it will give you a better idea of exactly where your money goes, and can help you build a balance sheet to determine what the things you own are worth (can include goodwill created by your blog as an asset). You can combine this with keeping track of expenses for the ultimate in personal finance.
BTW, GNUCash is a great free program for keeping books
When I was a kid, my parents would tell me to do something reasonable like clean my room. I'd probably do it, or at least make a token effort. Sometimes I wouldn't do it, and my mom would do it for me. Or maybe I'd be out at school and she'd be sick of me having a messy room, so she'd just clean it without asking me to do it first. In school I'd be assigned stuff to do. Usually I'd do it, but when I didn't, there weren't really any consequences. I'd get worse grades, but the impact of one assignment on a grade always seemed so tiny, and I never really cared about grades beyond not getting in trouble with my parents.
I got used to the idea that if I was supposed to do something, but didn't do it, it didn't really matter. Maybe someone else would just do it for me, or maybe the problem would just go away. There are probably a million different reasons that people procrastinate, but this was probably the biggest one for me. It wasn't that I thought that I would prefer to do something later-- it's that I sort of subconsciously thought that if I didn't do it now, maybe I'd never have to do it.
In real life, though, this isn't how things work. If I don't do something right now that needs to get done, then I'm going to need to do it later.
I remember the first time I came face to face with this. Two thousand three was the first year I made a significant amount of money gambling online. I think it may have also been the first year my parents stopped filing taxes for me. They told me to take care of my taxes and even told me how to take care of them. April fifteenth came around, and I kept thinking about how I should realy get to those taxes, knowing I wasn't actually going to do them. On the sixteenth, taxes felt just like a missed assignment. Too late to do anything about it now!
One of the more important challenges for running a successful modern nation-state is figuring out an answer to the question of tax coverage.
The vast majority of people believe in at least some taxes, and practical statesmanship sees that outside of a few rare cases (a state controlling natural resources), you need to have decent tax coverage to fund your treasury and run your administrative programs.
Again, this question is totally orthogonal to what should be taxed and what tax rates should be. Regardless of where you stand in political opinion and practical evaluation on those questions, if a country has poor coverage, they stand to get in lots of trouble. My personal opinion from the history books is that a main contributing reason to the German Empire losing World War I is having poorer tax coverage than the Allies.
Taiwan, and indeed, much of Asia had and has poor tax coverage. Again, it's not about the rates -- it's about getting people to pay the rates. In a country where there's many more small vendors and independent shops, it's easy for people to artificially decrease their revenues.