Optimal Finance Daily · Sunday, August 30, 2026
Steve Pavlina extends the concept of asset allocation beyond financial investments to personal life, including time management, relationships, and health. He suggests allocating time to different 'buckets' with varying risk-reward ratios, such as a secure full-time job versus a more volatile entrepreneurial pursuit. This approach aims to balance different areas of life for overall well-being and goal achievement.
“Consider how you allocate your time. You can think of your time as consisting of several buckets, each having a different risk reward ratio.”
“Maybe your job pays $20 an hour, and you have the option of trying to make $50 an hour doing consulting on the side. But your consulting efforts don't always pay off.”
“Intelligent asset allocation can help you consciously determine the right mix that keeps you in the sweet spot of balancing risk versus reward, work versus leisure, strength versus flexibility, solo time versus social time, and so on.”