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I could argue with the detail in the math and the actual calculations made, but the point is the important bit.

You need to compute and track when you'll run out of cash, and how fast you're running out of cash.

You need to focus on doing stuff that makes you run out of cash more slowly, preferably negatively.

What gets measured, gets managed: http://news.ycombinator.com/item?id=1667248

I've recently started to apply this explicitly to my email backlogs and my filing backlogs. Both are improving rapidly, and I'm looking to see what else needs to come on board. Maybe it will only last while it's novel, but it's working for now, I'll surf the wave.




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