Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Warren Buffett’s Two Lists and Your Money
By Trent Hamm Posted on November 21, 2014
'A few weeks ago, there was a pretty great story going around various business and finance websites about Warren Buffett. According to the story:
One day Buffett went up to his pilot named Steve and jokingly said to him that “the fact that you’re still working for me tells me I’m not doing my job.”
“You should be out going after more of your goals and dreams,” Buffett reportedly said.
To help him with that, Buffett asked Steve to list the 25 most important things he wanted to do in his life.
Then Buffett asked that he review each goal and choose the five most crucial ones.
After considering a moment, he drew circles around five fantastic goals, confirming with Buffett that yes, indeed, they were his highest priorities.
And the rest?
“What about these other 20 things on your list that you didn’t circle?” Buffett asked. “What is your plan for completing those?”
Steve knew just what to say.
“Well, the top five are my primary focus, but the other 20 come in at a close second,” the pilot said. “They are still important, so I’ll work on those intermittently as I see fit as I’m getting through my top five. They are not as urgent, but I still plan to give them dedicated effort.
Buffett suddenly turned serious."
“You’ve got it wrong, Steve,” he said. “Everything you didn’t circle just became your ‘avoid at all cost list.’ No matter what, these things get no attention from you until you’ve succeeded with your top five.”'
This was just the beginning of the article. I thought it was an interesting insight into how to prioritize wants and needs and weed out the distractions.
Warren Buffett’s Two Lists and Your Money
By Trent Hamm Posted on November 21, 2014
'A few weeks ago, there was a pretty great story going around various business and finance websites about Warren Buffett. According to the story:
One day Buffett went up to his pilot named Steve and jokingly said to him that “the fact that you’re still working for me tells me I’m not doing my job.”
“You should be out going after more of your goals and dreams,” Buffett reportedly said.
To help him with that, Buffett asked Steve to list the 25 most important things he wanted to do in his life.
Then Buffett asked that he review each goal and choose the five most crucial ones.
After considering a moment, he drew circles around five fantastic goals, confirming with Buffett that yes, indeed, they were his highest priorities.
And the rest?
“What about these other 20 things on your list that you didn’t circle?” Buffett asked. “What is your plan for completing those?”
Steve knew just what to say.
“Well, the top five are my primary focus, but the other 20 come in at a close second,” the pilot said. “They are still important, so I’ll work on those intermittently as I see fit as I’m getting through my top five. They are not as urgent, but I still plan to give them dedicated effort.
Buffett suddenly turned serious."
“You’ve got it wrong, Steve,” he said. “Everything you didn’t circle just became your ‘avoid at all cost list.’ No matter what, these things get no attention from you until you’ve succeeded with your top five.”'
This was just the beginning of the article. I thought it was an interesting insight into how to prioritize wants and needs and weed out the distractions.
Well, Buffett unjustly assumed that working on other things on the list would delay the higher priorities, which isn't necessarily true.
Sometimes you can do more than one thing simultaneously without either one suffering - for example, waiting on the laundry machine while cooking dinner.
I prioritize things from 1 to 10, 10 being most important. Basic food and water would be a 10. Basic shelter a 9. Internet is an 8. Basic car (or a monthly transit pass if public transportation is used) is about an 8. Organic foods and a yearly vacation would rank about a 5. Gym memberships maybe a 3. Luxury cars a 1.
When I'm in a budget crunch, I eliminate everything with a rank lower than X.. the more severe the crisis, the higher the value of X.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
