You can afford anything but not everything.

And that's true not just of your money but also your time, energy, focus, attention,

any limited resource in your life.

So how are you going to spend these scarce resources to create the best life possible

for you in the way that you define that?

My name is Paula Pat.

Host of the Afford Anything Podcast, the show that explores how to make smarter decisions

and spend your money, time, and life more wisely.

It's the first Monday of the month which means it's time for...

Ask Paula, the episode in which I answer questions that you've submitted.

Today's first question comes from Elizabeth.

Hi Paula, this is Elizabeth Colling from Canada.

I've been investing in index funds for a couple of years now and I have a question about

rebalance in your portfolio.

So how I rebalance my portfolio is I'm constantly investing more money in it every month or

two and then I have certain percentages that I'd like each index fund to be and so I

kind of balance it out that way and just buy more of whatever fund is lower.

But whatever I read about rebalancing portfolios online, everyone seems to suggest selling

whatever is high and buying more of what is low which makes sense but since I'm investing

on a regular basis I'm just trying to balance it out as I go along.

Anyway, I'm not sure what the right way to do this is or what you think about portfolio

rebalancing but I'm interested to hear what you have to say.

...