Asset Allocation of Life?

"Beware the barrenness of a busy life." - Socrates


"The unexamined life is not worth living." - Socrates


"As if you could kill time without injuring eternity." - Thoreau, Walden

I spend a ridiculous amount of time (apparently 2% of my life...  see below) reading about personal finance and making sure I have a clear plan on my investments.  I make sure that my investments are on track and that I am doing everything I can to ensure I am managing my money wisely...  So why am I not doing the same thing with my life?


Time is money.  Time well spent.  As a society, we frequently refer to time as currency.  There was even a movie made regarding the concept...  it wasn't bad at all actually.

JT rocks.

This had me thinking that my time is currently spread across so many different things.  The influx of 24 hour news is a constant distraction as I am inundated with Facebook status updates, tweets, stock prices, NFL news, etc.  I really doubt my brain is consuming 1% of all of this.  I equate this to a stock portfolio with hundreds of stocks that were bought on pure impulse whenever a news article came in.  If I was an financial advisor for this type of portfolio, I would prepare for a complete overhaul...  after I stopped ranting about how awful a portfolio this was.


So, here is my attempt to gauge my current life allocation and then lay out what changes I think need to be made.


My methodology is based on 8,736 hours in a year (24*7*52).  I estimated the amount of time I spend on a given activity into "hours per year."  This number divided by 8,736 gives me the percent of my life I spend on something annually.  My estimates are severely subjective, qualitative, and anecdotal -  and I am an English major - so please don't look too deep into my data. 


Here is my current life allocation as I see it.

And yes...  I do love pie charts.

And for those who don't think I actually put some math into this little exercise, here are my underlying assumptions.

Group	Category	Pct	Explanations
Mandatory	Sleep	33%	8 hours a night on average.
Mandatory	Administrative	2%	4 hours a week to do the things required in life. With no kids or wife, this is easy and consists of dry cleaning and minimal grocery shopping.
Work	Employment	30%	10 hour days times 5 business days. Includes travel time for work. I have also assumed that when I am at work but doing one of the other activities on this list, that time is NOT counted in the work estimate.
Life	Ross Poker Tour	1%	My ongoing monthly poker tournament that is in its 8th year. 1 night a month for 7 hours. 1 hour a month on average for admin.
Life	NFL/Fantasy Football	4%	10 home games, 12 hours each. 10 hours every week I am not at the game. I am counting pre-season because I am a super fan. 3 hours a week for fantasy football. 8 hours every weekend for playoffs. 2 hours a week for 6 months during the offseason. 12 hours for the NFL Draft (which is awesome).
Life	Personal Finance	2%	4 hours a week. Microsoft Money, trading, stocks information, articles, blogs, forums.
Life	Reading	2%	4 hours a week reading true paper and not random drivel on the interwebs.
Life	Pointless Internet	17%	Because I don't watch TV… this is my time suck. 4 hours a day on average. Includes youtube, Facebook, yahoo articles, emailing, this blog, Diablo III (damn you Cubbage), and the randomness of whatever appeals to me at that exact moment.
Life	Going out/Dining Out/Hanging Out	9%	I am crippled right now but usually 15 hours a week I would say. This includes happy hours, dining out, and general socializing with friends and family.

You may be thinking...

...  but this is the good part.  Here are my thoughts on the above:

1. Pointless Internet.
• I dropped my cable and overall TV watching back in January of 2011...  yet I have filled its worthless space with just a different time suck.
• I am addicted to internet and I know it.  There is no methadone or rehab for this.  I need some higher force to make sure that I only get a known allocation... I am like a child who needs some structure...  so why not get an electronic parent?  Enter the EZ internet timer.  http://www.internettimer.net/
• I am going to hold myself to 14 hours a week (2 hours a night average).  That would be a 50% decrease in the amount of time spent.  Some things I plan to do is setup my new services to send me a daily email summary. Do I really need real-time information?  No.  I can check out recent happenings in the world in a daily email and proceed with my life.
• Is this too bold?  No.  Nothing miraculous or life changing will happen while mindlessly scouring the internet with no true purpose.  Instead...  I will increase my allocation of...
2. Going out/Dining Out/Hanging Out
• The best things that happen in life are when you are with other people.  I cannot think of a single awesome memory where I was alone.  So why am I not investing more of my life into something that has much higher upside?
• To get back to our portfolio example above, pointless internet is like sticking money under your mattress.  It feels safe but you are ignoring the effects of inflation, interest, dividends, etc.  Hanging with friends and family is more like investing in the stock market.  Sure there are going to be highs and lows with some unexpected volatility but in the long run, you will be much better off.
3. Reading
• My brain processes true paper-based reading way better than it does anything on the computer because I am focused on just one thing.  On the computer, I am listening to music while watching youtube and reading finance forums.  My brain is flooded with information.  It is like the entire Dallas Cowboy Cheerleading squad seductively dancing for you.  It is awesome but you can't remember one detail about any of the girls.  It is just too much to take in.
• I like reading.  It relaxes me and allows me to slow down.  I need to increase this as well.  If I am going to be alone somewhere, I would prefer reading rather than pointless internet
4. Everything Else...
• People need hobbies.  Mine is NFL, personal finance, and poker.  When I look at these items, they are either social and/or profitable.  These are good ways to spend time in my humble opinion and I enjoy them.
• My work/life balance is fine.  Everybody can find something to complain about their employment (I know I have my fair share) but in the end, you have to ask yourself "is it really that bad?"  I have a job that challenges me and I like the people I work with.  At the end of the day, those are the two basic things I need to be happy in my job...  oh...  and a decent wage...  but that goes without saying.

I hope to make some changes as I get back on my feet and being able to look back at these posts will be a reminder to stay focused on how life is spent.  

In the scope of the world, how I spend my time is trivial but stopping to assess one's life is powerful.  If more people took the time to do a little introspection and empowering themselves to correct the areas that are lacking, we might actually have some people that want to do the same thing for America (become good politicians... is that an oxymoron?).