The Behavioural Economics Of How We Spend Our Time | Koen Smets | Modern Wisdom 127

Unlocking Productivity: Insights from Behavioral Economics on Managing Time

In episode 127 of Modern Wisdom, host Chris Williamson interviews Koen Smets, an expert in behavioral economics. Smets discusses the subtle art of managing one of our most finite resources—time—and offers strategies for enhancing productivity and decision-making both in personal life and within organizations.

Core Concepts and Philosophies

Smets introduces the concept of time as a scarce resource, similar to money, where every unit of time spent is a unit not available for something else. This scarcity necessitates deliberate decision-making about how time is allocated, stressing the importance of managing time as meticulously as one would manage financial resources.

Practical Strategies and Advice

• Opportunity Cost Awareness: Recognize the opportunity costs associated with time—every hour spent on one task is an hour not spent on another potentially valuable activity.
• Mental Accounting: Allocate specific times for tasks, similar to budgeting finances, to avoid overspending time on less critical activities.
• Strategic Multitasking: Use "dead" time (like commuting) effectively by listening to educational podcasts or planning tasks mentally.

Supporting Evidence

Smets cites various studies from behavioral economics to support his views on time management, including experiments that demonstrate how people's time valuation changes under different circumstances.

Personal Application

Smets shares his personal routine of using podcast listening as a productive way to spend commuting hours, turning potentially wasted time into an enriching experience.

Recommendations for Tools and Techniques

To implement his advice, Smets suggests using tools like time-tracking apps to better understand where one's time goes and to help in reallocating it more wisely. He also recommends setting clear boundaries and goals for time use daily.