Managing your Life Portfolio
We only get one life and we all know that the “secret” to living a happy life is in finding balance. The vast majority of us spend our life searching for this balance. As an entrepreneur and investor, that balance has been very hard for me to find and maintain. Plus, the right balance will likely evolve over time. What is the right balance for you? How do you achieve and maintain it? How will this change throughout your life and how can you adapt accordingly?
By managing your life as you would an investment portfolio, viewing your your endeavors as your assets, and time is your currency, you can find and maintain a balance in a more effective way.
In this article I share a framework that has helped me become more disciplined about finding balance in my life (counteracting the shame I am prone to feeling when I am not being “productive” for 70+ hours per week).
Components
Your life portfolio is made up of different categories or “asset classes”. Below I describe the different categories along with the impact they have on our lives.
Career: This is probably front and center for most of us. I define career as all the pursuits you take on with the purpose of providing value to society. This includes your main job as well as any side pursuits. Note that working more hours does not necessarily mean more success.
Wealth: This is highly correlated with career but not the same. Wealth includes all aspects of your financial well being and is thus affected by your spending habits, and revenue generating endeavors (this can be your job or it can also be a house you bought 15 years ago that you currently receive rent payments on).?
Family and Friends: These are critical, however many of us fail to devote enough time to them or struggle placing boundaries. Much like your career, spending more time with family and friends will not necessarily lead to deeper or more fulfill relationships. You can spend a lot of time with others yet have toxic relationships with them. You need to build deep and healthy relationships that include boundaries and clear communication.
Romantic Relationships: Whether you are single or in a committed relationship, you likely spend a good amount of time thinking about how happy or sad you are with your romantic relationships (or lack thereof). Note that not having romantic partners is not a bad thing. Some people are content not having one and there is value to spending time alone and being comfortable with being by yourself.
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Health: This is self explanatory and encompasses both mental and physical health.?
Leisure: These are our hobbies and other things we do for fun. They could be anything from reading a romantic novel to going on a hike or simply watching your favorite TV show. They are activities that help us decompress.
Spirituality: This can be religious or secular. It focuses on your search for meaning, purpose, and impact in the world.?
Life Portfolio Allocation
Just like a diversified financial portfolio helps you weather economic downturns, a diversified life portfolio helps you weather hard times. Nothing in life is a constant upward trajectory. You will have ups and downs in your career, relationships, and other aspects of your life. If you have a diversified portfolio (ie. you are in good mental and physical health, have deep, healthy relationships with those around you, a good career and financial security), you can handle a career or financial setback. If you are not properly diversified (ie. you tied up your identity to your job or your romantic relationship), you will suffer immensely when things get difficult and your ability to recover from setbacks will decrease.
Your ideal diversification strategy will likely change over time. For example, in your 20s you may invest almost all of your time building a strong career. In your 30s you may start spending more time building wealth as your career will give you discretionary income you can use to invest, you may also start prioritizing your romantic partner and your family. It will take a lot of introspection to figure out what is right for you at different points in your life.
How Coaching Helps
A good coach will help you understand what your ideal allocation is, help you maintain it, and give you the tools you need to manage changes in your allocation over time. A coach does this by:
A portfolio approach to life will make it easier to use your time in a more strategic way. It will also help you uncover connections that are not as obvious (ie. You may realize that by investing a few hours on leisure activities as well as building deeper relationships with the people you love, you will become more productive and resilient at your job as you can deal with failure more effectively because your job does not define who you are). It will also make it easier for you to view things like going to the doctor and spending time with your loved ones as investments that enrich your life as opposed to things that get in the way of your job.?