Sometimes we live through life as if we have an endless supply of tomorrows. We delay, we postpone, we tell ourselves "someday." And yes, delayed gratification is a cornerstone of sound financial planning. But there's a dangerous tipping point where prudent saving crosses into unhealthy hoarding, where we sacrifice living today for a tomorrow that may never come.
Time passes whether we use it or not. We can never recapture moments that have slipped away. Your children won't be young again. Your body won't always be capable of that adventure. Your parents won't be here forever. It makes no sense to let meaningful opportunities pass by simply out of fear of "squandering" our money.
Financial skill isn't just making money, it's also deciding what makes you happy and then deliberately converting your wealth into those experiences. This requires a fundamental shift in how we think about spending.
Consider this: life experiences have an expiration date. The timing of when you spend your money matters enormously because different experiences suit different life stages. Backpacking through Southeast Asia hits differently at 25 than at 65. Playing on the floor with your toddler can only happen while they're toddlers. Certain windows close, and they don't reopen.
Without deliberate planning, we simply coast on autopilot toward our final destination. We accumulate, defer, and repeat, until suddenly we're out of time.
Hence, I believe in accumulating memory dividends. Unlike financial investments that compound in your portfolio, memory dividends compound when you share them with others. When you invest in experiences, you don't just live a more engaged and interesting life, you create more of yourself to share with the people around you.
Think about how often your best conversations revolve around shared experiences: "Remember when we..." These memories become the fabric of your relationships, the stories that bind you to others long after the moment has passed.
Sometimes we are too fixated on the financial metrics, say for example investing in a property: loan terms, interest rates, potential appreciation, rental yield, etc. I'm not saying these are not important, but we often completely ignore the other side of the equation: How will we use this property to invest in our own personal experiences?
Could this home be where you create irreplaceable moments with your children? Where your family gathers for decades of holidays? Where your friends feel welcomed and connected? These aren't soft considerations; they're the actual returns that will matter most when you look back on your life.
The same principle applies to smaller decisions. Before automatically cutting that daily coffee to save for a year-end trip, think it through deliberately. Maybe that morning ritual with a colleague is actually creating meaningful connection.
Many wealthy people fall into a peculiar trap: as their wealth accumulates, they keep moving their financial goalposts. First, it's $1 million, then $5 million, then $10 million. The target keeps receding into the distance.
However, if you spend countless precious hours of your life acquiring money, and then die without converting that money into life, you've wasted those hours. Time is the one asset you can't earn back, no matter how good your returns are.
You might think that as people age and their mortality becomes more salient, they'd spend more freely, racing to enjoy their wealth before it's too late. The data shows exactly the opposite. Spending actually declines as people age. We become more conservative, more fearful, more focused on preservation rather than utilization.
This means we need to actively counteract our natural tendencies. We need to learn how to maximize our lives with the money we have. Once money is ours, we should be exchanging it for whatever will help us live the best life we can, not just for ourselves, but for the people we love.
The message isn't to spend recklessly or abandon financial planning. It's to recognize that the point of money isn't the accumulation itself, it's what that money can do for your actual lived experience.
Start investing in memory dividends early. Be deliberate about creating experiences at the right life stage. Don't wait until death is knocking to ask yourself what you've been doing all this time.
Your money has no value sitting in an account after you're gone. Its only value is in how it enriches the finite time you have on this earth.
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