How to Rebalance Your Life

In investing, there is something called rebalancing your portfolio. A portfolio has different asset classes in it (such as stocks, bonds, and cash), and there is a particular allocation that best serves your financial goals. Over time, however, your portfolio might go out of balance. One asset class might outweigh the others because its price increases rapidly. The allocation will then deviate from its ideal. What should we do then? How can we handle such a situation? The answer is rebalancing. Rebalancing is the act of getting the asset allocation back to its ideal. You do it by selling the asset class that’s overweight and buying the one that’s underweight. With this, your portfolio will once again be in a good shape to serve your financial goals. I believe that the idea of rebalancing also applies to life. You need to make sure that your life is balanced and if it’s not, you need to rebalance it. In investing, the asset classes are stocks, bonds, and cash. In life, the ‘asset classes’ are the five aspects of life: Spiritual: your relationship with the greater power. Health: your physical health. Work: your career and finance. Social: your relationships with others. Learning: your personal development. We need to rebalance our lives from time to time. Here are the steps to do that: 1. Find the aspects that are underweight. Look at each of the five aspects. Which ones do you think are underweight? Which ones do you think need more attention? 2. Find the aspects t...
Source: Life Optimizer - Category: Consumer Health News Authors: Tags: Time management Source Type: blogs