The Resource Triangle

Headspace - Time - Money

When I started a business in my early twenties it was clear what resource I had the most of was - my time. As I’ve moved through different life stages time has gone from being the most available resource to the least. Fortunately, I have an excellent tool to help me make decisions about how to approach solving a problem - The Resource triangle.

What is the resource triangle?

I’m not sure where I first heard about the “resource triangle” (please post in the comments if you can help me credit the creator) but here it is as I understand it… Broadly speaking we have three resources that we can use for problem solving.

• Time

• Headspace

• Money

This means that we can throw one, two or a combination of all three to a problem in order to solve it.

I think it is important to define headspace (money and time are obvious). Headspace is the ability to analyse and think through a problem in order to find a solution.

Why it is so important

All of life is just problem solving from one moment to the next. These range from small problems to much more complex ones. If we don’t allocate our precious resources efficiently to finding that solution we might end up wasting them.

e.g. In the middle of the work day, I am hungry. I have three options;

1. I could go home to make lunch before eating it and then returning to work. Time Intensive.

2. I could spend time researching the most exciting culinary experiences near my work space. Headspace + Money Intensive

3. I could go and buy the pre-made sandwich in the shop across the road. Money Intensive.

There is no correct answer to this problem. It all depends on what resources are least abundant in the moment. Currently I don’t have an excess of time or headspace (I’m reserving both of these for the work that I would like to complete) so I choose option 3 and I buy the sandwich.

Shifting abundance

Buying the sandwich was not always the obvious choice for me. When I was starting out, money was very scarce so the only option was to go home and make lunch.

I can also imagine a future where I do want to take my time looking for an exciting food experience.

Right now is not the time for either of these options.

So, you can see that being aware of what you have the most of in your resource triangle is very handy for making decisions.

This will shift over time (and not necessarily in one direction or another).

Resource Allocation Habits

I think that people generally have “resource allocation habits”. Even if there is an obvious choice which leaves us with the most resources available in our “war chest” we might automatically spend one resource rather than another.

I’ve identified that I heavily favour investing time into problem solving rather than money or headspace. I don’t even “think” my way to a solution, I just “brute-force” through it.

I know that this is irrational. Nevertheless, my hope is to start making decisions about how I approach roadblocks with a cooler head. I want to use the resource triangle and trust what it tells me.

The resource is a very simplified way to decide how you approach problem solving but for now I think it is helpful. Time, Money and Headspace are the most basic resources we have for solving problems. Time and Headspace are finite, and money can feel it too! Pick the one you have the most of and develop the habit of spending that one the most freely.

What are your resource allocation habits - comment below.