Besides his enormous wealth, Warren Buffett is also well-known for his incredibly valuable wisdom. So when I found out the “Oracle of Omaha” had a rule that could make you both wealthier and happier, I had to listen in and share it.
I won’t keep you in suspense, here’s what Warren Buffett’s ’20 Slot Rule’ is, and how you can start using it:
When he spoke to a group of USC students, Buffett said they would be much more successful if they thought of their lives as punch cards, with only 20 slots available.
“Under those rules,” he claimed, “you’d really think carefully about what you did and you’d be forced to load up on what you’d really thought about. So you’d do so much better.”
Quite simply, by narrowing down these opportunities beforehand, you can focus on the successful ones with your limited resources, instead of jumping at every opportunity that presents itself.
Use Warren Buffett’s 20 slot rule to increase your wealth
Unlike Buffett, most of us don’t have billions of dollars to spend freely. That doesn’t have to always be the case – if you frame your wealth in finite terms of ‘slots,’ you’ll begin noticing plenty of opportunities to grow it.
If you’re using your ‘slots’ on handbags and designer clothing, for instance, you’re missing the opportunity to grow that wealth through investing. This rule can help you separate short-term wants from long-term success opportunities. The mega-successful look at the opportunity cost of each dollar, and you should too.
Use it to increase your productivity
Multitasking is seen as a revered trait, and almost every job posting label it as a “must-have.” While tackling numerous projects at once might sound good in theory, in practice it’s proven to slow down your productivity and success for each task you do.
Instead, you should follow Warren Buffett’s rule, by focusing in on every “slot” with your full and undivided attention instead. If you follow that process, you’ll be laser focused and devote 100% of your attention to each project. The best way to do this is to prioritize – you won’t only avoid multitasking, but you’ll use your dwindling mental strength on the most important things too.
Do you have any success tips from Warren Buffett? I’d love to hear them–give me a shout-out on Twitter!
If you want to learn more about investing, check out my firm LexION Capital’s website to learn more.