Many of us are aware of the importance of creating a balanced financial portfolio, but do we know how to create a balanced life?
Having an out of balance lifestyle leads to poor health, career burnout, chronic stress and depression. In a recent study , researchers found that obese individuals reported significantly lower life balance scores and much more stress. It’s likely that a chronically imbalanced lifestyle leads to obesity and other health concerns. Researchers have documented the emergence of a new personality type that emerges from increased the stress and burnout created by an imbalanced lifestyle. A type D person is distressed and often exhibits certain personality traits including negativity, pessimism, depression, anxiety, and loneliness, and a decreased ability to relax and enjoy leisure time.
You can avoid these negative outcomes and achieve a more balanced life by concentrating on building a balanced life portfolio. A solid financial investment fund is managed carefully to provide a diversity of investment vehicles that provide the greatest return while limiting losses. Balancing investments against each other ensures that when some investments fall others will rise to cover the losses. We can use this portfolio metaphor to help us achieve balance in our lives as well. Below I identify three ways in which you can use your financial wisdom to help you achieve more balance in your life.
Diversification is the key to life balance and security.
You can organize your life portfolio into seven different types of investments:
- physical environment (home)
- spiritual life
- physical health & self-care
- personal growth & development (intellectual, emotional, and creative growth)
- recreation & fun.
Think of the time, attention, and money you have as resources that you can invest in each of these seven areas. Make choices to invest your time and energy in alignment with your values and priorities. Rather than viewing these as individual choices, we can consider them as a part of our life portfolio.
For example, you may place a high priority on your career and make time and energy choices accordingly. But what if something happens that makes pursuing your career no longer possible or desirable? What else are you investing in that will balance that loss so that you are still living a fulfilled and happy life?
Diversification does not need you to place equal investments in each of the seven areas of your life. But it does need you to pay attention to each and investing in your goals for this area of your life. Do you see investments in each area in your calendar and checkbook? How we spend our time and money reflects our values and priorities. If one or more of these seven core life areas do not appear in your monthly schedule and budget, your life is likely out of balance.
Life balance is the reflection of your choices.
You are the one who decides where to invest your resources. The concept of investing your time highlights the centrality of choice. We always have a choice in how we spend our resources, not matter how limited those resources may be.
Too many times we complain about our lives being out of balance as if we are not the ones directing the show. Imbalance is a product of abdicating our power of choice to others. It is also the result of refusing to make choices based on our priorities.
In this brief video , I explain how we give our power to choose away when fail to distinguish “should” from “must”. “Should” focuses on what others want from/for us. Yet, “must” is driven by our life purpose and core values. Identifying our “must list” pulls us forward, creating energy, productivity and joy in our lives.
Thus, we need to gain clarity on our purpose and core values to build a life of balance. If you are not yet clear on these two items, this is the first step to your balanced life. You can sign up for a free life planning toolkit to help you specify your life purpose. You can also take a free on-line survey to help you identify your core values. The survey will also show whether your core values are out of balance in your life.
Life balance requires regular assessment.
You must check the performance of your investments at regular intervals. The concept of investment also reminds us to make and test these choices in light of future goals. You are not “spending time” doing an activity, you are “making an investment”. Like financial investments, we can expect that the “return” on the investment increases.
What are your goals for your relationships? What are your willing to invest in those relationships to achieve that goal? How will you know if you have achieved or are on target to achieve your goal? As you can see, life balance requires that we have clear and measurable goals in every area of our life. This is what enables us to assess whether we are on target or need to revise our investment strategy.
Moreover, regular assessment allows us to keep our life portfolio balanced over time. The only constant in life is change. We start new relationships, end previous careers, get new interests, develop different health needs. Each of these life events produce change in other areas of our lives.
Every financial broker will tell you that diversification is not a one-time action. Some investments will outperform others. Thus, the most balanced financial portfolio will become out of balance without readjustment. This is why you need to reallocate your acquired resources to reflect your goals.
Reallocation is needed in our lives as well. The changes we experience in our lives require reassessment and reallocation of our time and money. When we do this based on a concrete assessment of our goals and progress, we make sure that we are continually creating a life of balance.
Put your life in balance.
Balance isn’t just something you do. It is a never-ending, and limitless, act of being. By practicing the tools described in this article, you are inviting this state of being into your life. Once you have mastered the concepts and applied the strategy of choosing to focus on what matters most to you, the opportunities, joy and passion your life will expand to fill the horizons of what you can dream. I challenge you to fully explore the possibilities of this evolution of self.
Think of how you currently or are planning to allot your available investment of time and energy. Which of the seven areas (environment, career, relationships, spiritual life, health, personal growth, recreation) are strongly supported in your investment fund? Write down your top three goals in each of the seven areas. Have you allotted enough time and energy to meet all three values and priorities consistently? Which areas are “underfunded?
Make a commitment today to reallocate your life portfolio to create more balance. Do not allow your precious resources to be “wasted” or spent based on other people’s values and priorities. Now that you are clear on you priorities in each of your life areas, commit to funding your goals. You have enough time for everything that matters most; it’s up to you to decide what matters most.
Congratulations! You are well on your way to creating the energy, time and balance you need to live the life of your dreams! If you’d like more support in balancing your life portfolio, feel free to contact me or post your questions and challenges below.