Monday, November 3, 2014

Personal Asset Allocation

In the business world, asset allocation is defined as an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame.  You can use the same strategy for your personal assets which include your health, your relationships and your free time.  The way you allocate your time investing in each category affects your personal dividends.  Here are some ideas to help you maximize your results:
  1. Your health.  How much time are you allocating to this?  Are you cautious about your food choices?  When was the last time you visited your dentist?  If you have a high tolerance for risk, go ahead and ignore your doctor's advice.  There's a reason I go through my daily morning exercise routine – it's a wise investment.  There are both short and long term gains.  Commit yourself to a minimum daily contribution of exercise and healthy eating.  Increase your asset allocation as you see results.
  2. Your relationships.  Low asset allocation in this category = low friendship returns.  It's the same as garbage in, garbage out.  Neglect your friends and they will forget you exist.  A wise investor digs deep and finds out what's important to his or her friends.  Some relationships are toxic.  Stay away from those who suck the life energy out of you.  Cultivate your relationships with your true friends and remember them when they're struggling.
  3. Your free time.  This is a challenging category for me.  I'm striving to increase my asset allocation in this area of my life so I'm more in alignment with my loved ones.  The folks at my day job are helping me with my time off requests and I'm making progress.  Time is a precious resource.  One of the biggest highlights for me happened last week.  My wife and I met for a lunch date at a bowling alley near her work.  I was off but she was working.  It didn't stop there.  I surprised her with a home-made dinner of chicken fajitas barbecued on the grill when she came home.  Use your free time wisely and make the small moments count.
Business investing is all about tomorrow.  Personal investing is all about today.  Monitor your health, your relationships and your free time.  When it comes to your personal assets, choose to be an aggressive growth investor.  Please feel free to add your ideas in the comment section below.  I would love to hear about your personal asset allocation.  And if you find this story helpful, please share it with a friend.  Thanks for visiting.

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