Why This Is The Better Alternative To Setting Goals

However, there is this ONE list that can help you create the results you desire in your life. Before I share the details of this list, allow me to tell you a little story.

This is about the one thing that stands in the way of attaining your objectives:

The dilemma of having too many options.

When Choice Paralysis Came Knocking

If you’ve too many goals, you may become overwhelmed, and your goals may be lost or abandoned after a while.When you’re faced with too many options, you’ll experience what’s known as choice paralysis.

If this happens, you may not be able to achieve any of your objectives. You may even give up the idea of setting goals.

Imagine standing in an ice cream aisle in a store, unable to select between 35 different types of ice cream. Making decisions can trigger unpleasant emotions, leading to decision fatigue or a delay in making the decision.

According to Barry Schwartz, psychologist and author of The Paradox of Choice, infinite choice is debilitating and taxing for the human psyche.

It leads to us having unrealistic expectations, second-guessing our actions before making them, and blaming our failures completely on ourselves.

Setting Goals: Why Less Is More

Schwartz affirms that the lesser choice you have the better it is. Because when you have more choices, you make worse decisions. And too much choice leads to ‘choice paralysis’ which impedes you from making any decision at all.

Part of the human psyche is you tend to spend time mulling about the choices you did not pick. You grieve the more options you feel you’ve “missed out on,” rather than being pleased with the ones you’ve made.

Hence, choice paralysis can exhaust you to the point where you lack the energy to carry out the action.

When it comes to choices and priorities, no one does it better than the most successful investor on the planet. Warren Buffett has an incredibly simple yet effective tool that can help you achieve tremendous results in your life.

Warren Buffett’s simple 25/5 Rule is one technique that might assist you in making the best decisions. Whether you’re creating goals, prioritizing important activities, or just trying to live a happy life.

Setting Goals The Warren Buffett Way

Warren Buffett has a unique strategy when it comes to setting goals. This is his famous 25/5 Rule. This 25/5 Rule can be traced back to a conversation between Buffett and the pilot of his private jet.

According to his pilot, Michael Flint, he asked Buffett how he could achieve his career goals more effectively. Buffett took him through a 3-step process of setting goals:

Step #1 – Your Top 25 Goals

Flint was asked to spend some time thinking about the top 25 things he wanted to accomplish. After that, he is to write it down.

Step #2 – Review And Select Your Top 5

Next, Flint was to review the list he wrote. He must then decide on his top 5 goals. Once he has made his selection, he is to circle them.

Step #3 – Now You Have 2 Lists

At this point, Flint had two lists. He labeled the list with the 5 items circled as List A. The remaining 20 items on the list became List B.

At this point Buffett asked Flint how would he approach the two lists. Flint affirmed that he would begin working on List A straightaway since those are his top 5 goals.

The List “To Be Avoided At All Cost”

When Buffett asked Flint about the List B, the 20 goals that were not selected. Flint replied that he would work diligently on List A and work on List B intermittently since they’re less urgent.

To which Buffett displayed his approach of saying ‘no’ to goals that take his attention away from his main focus:

“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 5.”

When it comes to setting goals, Buffett’s formula for success is to stick to the ONE list. The list that will bring tremendous results in your life.

This will be List A, the one where you have selected your top 5 goals. Put your whole-hearted attention and focus on this list.

Eliminate The Inessential

Life is about making choices. Or to put it in more appropriate terms – selecting the choices that matter most to you. This is especially true when it comes to setting goals.

Even though the second list, List B meant something to you, it is not your priority at this moment. The 25/5 Rule calls for ruthless elimination. It is a choice forced upon you but for the greater good.

In an interview with Investment News, when asked about his secret to a consistent yearly increase in profits, Buffett answered:

“I’ve said ‘No’ more than any other time in my career.”

So, knowing when to say ‘no’ is the key to assuming control of your life. Even if it means saying ‘no’ to your not-so-essential goals.

The Truth About Buffett’s Brilliant 25/5 Rule

You’ve just learned about the 25/5 Rule. And now that you’ve seen how it could affect your priorities and objectives, let me tell you another story.

In a story as told to CNBC, where curiosity about the 25/5 Rule led to this question for Buffett:

“Mr. Buffett, I’ve heard that one of your ways of focusing your energy is that you write down the 25 things you want to achieve, choose the top five and then avoid the bottom 20. I’m really curious how you came up with this and what other methods you use for prioritizing your desires?”

In which Buffett responded by saying:

“Well, I’m actually more curious about how you came up with it.”

That respond by Buffett brought with it a few moments of awkwardness followed by a bout of unrestrained laughter. But the fact is that even though 25/5 Rule did not originate from Buffett does not diminish its value.

The 25/5 Rule puts your top goals in perspective. It also makes you aware of where your focus should be when setting goals. But the rule in itself is just a guide.

The 25/5 Rule, in order to become a reality, requires your discipline, dedication, and extreme focus.

The 25/5 Rule In Your Daily Life

Buffett’s 25/5 Rule is not confined to goals alone. It’s about getting rid of distractions and putting your time and focus on the most important things in your life. And you can use this tool to many areas in your life.

You can apply this rule to maintain a healthy lifestyle by eliminating unhealthy habit. Your top 5 healthy habits could be regular exercise, eating balance meals, sleeping early, waking up early and meditation.

If you are running your own business, think about your top 25 business goals. Then, for the time being, choose the five that are most important to you.

Make it a priority to complete these 5 tasks and devote all of your attention to them.

This strategy can also be used for relationships, personal pursuits, and daily and weekly to-do lists.

By prioritizing your top 5 goals, you have eliminated unnecessary distractions and avoid spreading yourself too thin. You only have a limited time and energy.

Therefore, by doing this you have just created some extra time and energy for yourself.