Warren Buffet and His 5/25 Rule to Stay Focused on What Matters
When you hear Warren Buffet, you automatically think investing, riches beyond belief, etc. But THIS story about the famous investor has nothing to do with money.
So for this week's podcast, I talk about his 5/25 rule, which you can listen to below, or through Spotify or Itunes.
The origins of the rule came from a story circulating the internet of a conversation Warren had with his pilot, who had been working for him for over a decade.
Warren jokingly said something along the lines of "I'm not doing my job if you're still working for me after all this time" so he asked the pilot to write down a list of 25 goals he had in life.
Once the list was complete, he was asked to list it by importance, from most to least significant, and to circle the top 5.
And while most people think that the top 5 are the first priority, and the other 20 are secondary, Warren actually says those 20 just became his "avoid at all costs" list.
Not ignore, not "don't pay attention to." Avoid. At. All. Costs.
The rule plays on selective focus and realizing opportunity cost. Whenever you say yes or no to something, you're saying yes or no to literally everything else you can be doing.
And for some people, that can be crippling. To make meaningful progress in the things that actually matter to you, sacrifices are going to be made so it might as well be for the things that matter the most to you.
And having those 5 goals/priorities in mind also help with affirming your conviction by saying no to things that are cool but not meaningful or important to you.
That's the summary of the rule. It's a short one to explain, and easy to think about in the abstract, but when you're writing down your own 5/25 list, it suddenly becomes hard.
And that's okay. Nothing worth having in life ever came easy. But once you make those priorities, you'll be dramatically changing your future trajectory for the better.
The key to meaningful goals (at least for me) was to have ones that are things you can do daily. Instead of an arbitrary goal like "Learn xxx Korean words," it was simply "study Korean."
Which is actually the first of my priorities. The other four are: writing, read, school, and health.
They really help me narrow focus on the most important things I'd like to do. Especially with college taking up a lot of the excess time I had in the summer, time management and very selective focus are necessary to keep doing what matters the most to me.
What are your top 5? What were the 20 you have to now avoid at all costs? Let me know: comment below, text me, email me, contact me!