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jimrandomh comments on A "Failure to Evaluate Return-on-Time" Fallacy - Less Wrong
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"Life refactoring" would work for people with a programming background.
edit: Although the pedant in me says it is a mix of optimisation and refactoring. Refactoring has the right connotations of single instance changes and less confusion from other sources than optimisation.
Best suggested phrase so far. And searching seems to indicate that it's unused.
Life hacking on the other hand is a widely used phrase with a similar meaning.