warren Buffett's 5/25 rule

5/25 rule by Warren Buffett

There is no better time than the New years to start smashing out your goals. 2021 is not going to be automatically magical without your hard work and effort. But setting haphazard goals will get us nowhere at the end of the year. I may sound like a broken records, but setting sustainable long term goals and habits is what is going to set us up for success.

If you are like me who would like to add learning to play the guitar, learning to speak French, and cook a new recipe every week, to a already long list of things to accomplish this year, then this 5/25 rule is for you.

5/25 rule is a three step process by Warren Buffett which is super helpful in focussing on your goals the entire year. (If you would like to know who Warren Buffett is, you need to google his name).

  1. List 25 goals you would like to achieve in your life. They could be long term goals, short term goals, or bucket list things. After the first 15 I had to dig in deeper to get 10 more that turned out to be quite valuable and more important.
  2. Circle top 5 goals. Determine the 5 goals that you absolutely are of highest importance, and urgency. These are the ones that are your calling. You feel like you need to achieve them.
  3. Give your everything to the top 5 goals. Avoid the other 20 at all costs, and dive right in to the top 5. These are of maximum importance, for your happiness, and life accomplishments. This way you are truly focussed on your life path. It allows you to master your skills. As Robin Sharma puts it, become the world’s best in what you do. Master your craft.

I do this exercise every few years and set up my goals to focus on for the year. Set up you top 5 goals on your vision board and get to work. It completely affects the decisions I make and I say no to anything that doesn’t align with my top 5 goals.

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