The Eisenhower Matrix for Personal Finance

It happens to the best of us.

You tune out for a second.

Then all at once your rent is due, rego's around the corner, and it's almost Christmas.

Here’s a way you can create a money matrix to figure out where best to focus your finances.

(Keep in mind, this shouldn’t be taken as personal financial advice. We think it’s an interesting tool to add to your arsenal, but we haven’t considered your personal circumstances and you should consult with a financial advisor if you have questions about your specific situation.)

What’s the Eisenhower Matrix?

The Eisenhower Matrix is a time management tool. It can help you figure out what you should focus on when you have competing priorities and deadlines.

The first step is to categorise your tasks into four groups. Each group has a different level of urgency and importance.

Here's what they look like.

1. Tasks that are urgent and important

Neglecting to do these tasks will have an immediate negative impact.
According to the Eisenhower Matrix, you should focus on completing these tasks first.

2. Tasks that are important but not urgent

There may not be immediate negative impacts to skipping these tasks. But it's still likely to have a long-term impact.
According to the Eisenhower Matrix, you should schedule these tasks. This is because they may not be urgent but it’s still important to get them done.

3. Tasks that are urgent but not important

Skipping these tasks may have a real negative short-term impact. But they're less likely to be important in the long-term.
According to the Eisenhower Matrix, you should try to delegate these tasks if you can.

4. Tasks that are not urgent and not important

These are tasks you could generally skip without any short- or long-term impact.
According to the Eisenhower Matrix, it's safe to ignore these tasks.

How can you use it as a money matrix?

The Eisenhower Matrix helps you prioritise your focus.

Legend has it US President Dwight Eisenhower developed the tool. He used it to climb from US Army general to President.

Which made us think: what if we used this to help prioritise competing money tasks?

Especially when we're not sure where to start.

Where do you start?

So glad you asked.

Here are some ideas for where money tasks could go in your Eisenhower Matrix.

Remember, everybody is different. What counts as urgent or important for you will be different for others. So use this as a starting point.

Urgent and important personal finance jobs – “Do these first”

Urgent and important money jobs will have an immediate impact if you don't do them. For example, you could lose your ability to tend to basic needs such as rent, transport, and food.

Such jobs could include:

Financial emergencies, such as if your car breaks down, you have to take an unplanned trip, or you lose your job. You might need your emergency fund, emergency budget, or to get financial help.
Paying overdue bills, especially if they’re related to your basic needs, such as housing and food.
Fixing financial mistakes, such as missing superannuation.

Important and not urgent - “Schedule these”

Important but not urgent money jobs may not have an immediate impact if you don't do them. But they can add up and have a real impact on your future.

Such tasks could include:

Setting up your budget. This can include researching to find the budget format that works for you. Getting better at managing your money has immediate and long-term benefits. Here are some ideas.
Creating an investment plan especially if you want to build long-term wealth. Time in the market matters, and putting it off could cost you money. Start here.
Upskilling your money knowledge. This can make a huge difference to your future, and may be easier than you think. We’re big believers that financial knowledge compounds over time. We also think that learning what not to do can be a powerful move in itself.
Setting money goals so you can take actionable steps to the life you want to live.

Urgent and not-important - “Delegate these”

We would argue that artificial time pressure drives urgent but not-important jobs. Such jobs may have very little return on investment. You may ask yourself if focusing on these stops you doing something more valuable.

Again, it’s up to you to choose what goes in this category.

Comparison shopping. Finding a good deal can be a huge buzz. But if you don't genuinely love the chase, it can be a huge time suck. Especially if it's only netting you a couple of dollars here or there.
Daily monitoring of your long-term investments. This is one of the easiest ways to make yourself panic. Are you confident in your investments and timeframe? If so, how often do you want to check in on them?
Over-optimising your budget. Focusing on small tweaks can mean that you lose sight of the bigger picture.

Not urgent and not-important - “Stop doing these”

You could pretty much quit doing anything on your not urgent and not-important list. You'd be unlikely to see a negative impact on your short- or long-term future, according to the matrix.

Ideas include:

Impulse purchases such as ‘buy one get one free deals’ and the middle aisle at Aldi.
Reading financial doom and gloom. Financial press trades on fear and greed, and everybody has a different interpretation. Consider how much you need to be across everything.
Comparing your finances to somebody else’s and feeling bad about it. Here’s why money FOMO is not your friend, and what you could do if you succumb to it.
Spending time on r/WallStreetBets and FinTok unless you really find it helpful for you. Be discerning about the financial influencers you follow. It could have impacts, both for your mental health, and your bottom line.