Do you want to know how to set bigger goals and accomplish more in your life? Goal setting is huge and something I’ve covered before to help you elevate your life. In today’s blog I’ll go over Warren Buffett’s 5 life goals process also known as the 5/25 rule. (In case you were wondering, Buffett is one of the greatest investors and richest men in the world, currently worth over 100 billion USD).

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There are many different ways to set goals. I’m sure most of you have heard of the SMART technique. This stands for specific, measurable, achievable, realistic, and time related. While this is a great metric to set your goals by, I wanted to dig into Buffett's simple yet effective 3-step process.

“You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life.” - Warren Buffett

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If you don’t set goals you will simply drift along in life. Having a vision and a plan of where you want to go is critical to your success. If you’re wondering how you got to where you are today, it is the sum of your previous actions and thoughts over the previous years.

As the story goes Buffett was about to take off in his private jet one day. He was speaking with the pilot who had been employed for a while, Mike Flint. He said to Flint “The fact that you’re still working for me, tells me I’m not doing my job. You should be out, going after more of your goals and dreams.”

Buffett then went on to describe a simple 3-step process to Flint to help him grow. I highly suggest writing these down and trying the process for yourself. It will help you understand and gain clarity on what’s important to you and where you want to go in life.

“I always knew I was going to be rich. I don't think I ever doubted it for a minute.” - Warren Buffett

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Warren Buffett’s Goal-Setting Technique

Step #1:

Make a list of the top 25 things you want to do in life.

This simple yet effective tactic works wonders. Step #1 helps you to get clear about the things that are important to you in your life. You can write down anything you desire like: become an entrepreneur, live in Hawaii, earn a million dollars, spend more time with family and friends, and whatever else your heart desires.

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This step involves brainstorming on the things you enjoy doing and where you want to go. Very few people take time to sit with their thoughts and put them on paper. This step alone will help you gain the clarity you’ve been searching for.

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Step #2:

Circle Your Top 5 Goals

It's time to narrow down your top goals. Now, this may seem difficult as all 25 items will be important to you, that’s why you wrote them down! You need to figure out what the top items are. Remember, these may shift and form overtime but what really matters to you right now?

If you focus on too many things at once you will tend to get nothing done at all. By limiting your focus to the top 5 items on your list, you will be able to put in maximum effort into the areas where you want to progress the most.

Step #3:

Focus on Your Top 5 - Forget the Rest

You need to know exactly where you want to go and who you want to be. By only focusing on your top 5 items you are increasing your chances of success right off the get go.

Put in all your extra time, effort, and energy into these top 5 items. If one of your items is to live a healthier life, focus on following a gym routine, meal plan, and sleep schedule. Start tracking everything and anything when it comes to your health.

If you want to improve anything in life I found tracking it helps greatly. If you want to improve your financial situation, track everything to do with your finances. How much you earn, spend, invest, give. Where is your money going?

Tracking what you want to improve will help you on your journey. I have used this process for a long time and it has helped me grow in many areas.

“Price is what you pay. Value is what you get.” - Warren Buffett

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Buffett’s 5/25 rule is a great way to figure out what’s important to you and where to focus your efforts. I highly suggest giving this activity a go for at least 30 minutes as soon as you can. If you can invest 30 minutes of your time I’m sure you will get a lot of great information down.

Most people don’t know where to start or where they want to go. This simple process will help create that clarity for you in your life. Whether you're young or old you always need to continue to learn and grow. This will ensure you live a healthy, wealthy, and free life for years to come.

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Sign up for my goals course here! It's FREE!

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Chris M Wilson