The rented suit liability is something business and finance people know well.
Here is the story in the words of Warren Buffet –
“A man was traveling abroad when he received a call from his sister informing him that their father had died unexpectedly. It was physically impossible for the brother to get back home for the funeral, but he told his sister to take care of the funeral arrangements and to send the bill to him. After returning home he received a bill for several thousand dollars, which he promptly paid. The following month another bill came along for $ 15, and he paid that too. Another month followed, with a similar bill. When, in the next month, a third bill for $15 was presented, he called his sister to ask what was going on. “Oh”, she said. “I forgot to tell you. We buried Dad in a rented suit.”
Rented suit liabilities are not just about finance and investing and money.
Rented suit liabilities are all too common in almost all aspects of our daily lives.
This is also true of decisions we make every day. That’s the reason a lot of highly productive people simplify their lives and adopt routines.
What happens when someone simplifies their work wardrobe by replacing their clothes with a whole lot of identical outfits? They are eliminating the need to choose what to wear and the need to make a decision everyday. It’s one rented suit liability that disappears from their lives.
This is extremely common in our workplace. Any process or element of a work process that can be eliminated but is not, can be called a rented suit liability. Most legacy systems and processes that can be automated but are not, are rented suit liabilities.
If you were to take an inventory of all the things in your personal, work and home life, I assure you that you will find many many things which will qualify.
Here is where I picked up the finance and investing relevance from-