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Treat Your Life as an Investment Portfolio
Like a healthy portfolio, life is a long game — be patient and allocate your time wisely
Better diversification works for many investors.
It reduces risks and protects your money whilst you take advantage of compound interest for as long as possible.
But great investors don’t over-diversify— it can reduce your returns without meaningfully decreasing its risk.
Diversification works better if you know what product to pick, when to invest and how much to allocate to each investment product.
Like a healthy portfolio, life can be treated as an investment of time in the critical areas of life: professional (work, money, personal growth), social ( family and friends) and health (nutrition, exercise and rest).
All of those three areas of your life need the quality investment of time to lead a better life. If one of the areas suffers, you are likely to feel the impact on other significant areas.
Great investors balance their portfolios to meet their personal goals. They review their assets once in a while, measure their progress and rebalance the allocation of investments where necessary.
Life as an investment portfolio is about thinking hard about how you use your time, spend your time and what you are doing with your life.
It’s also about rebalancing how you are currently spending your time and refocusing on the meaningful things in life.
“Much of life is about the return on investment – your relationships, life, and career are reflective of what you consistently invest into them,” writes Polina Pompliano.
Make time to reflect, reset, and rebalance your life
The important question is: are you wasting time, spending time or investing time?
Spending or investing time is like investing.
