Are You Collecting Memory Dividends?

I want you to picture this scenario. You are about to die. How will you know whether you lived your life to the fullest? On what basis will you judge it?

  • Your Net worth?
  • Hours spend in office?
  • The returns you generated?
  • Hours spend watching Netflix?
  • Number of luxurious items you collected?

It is highly likely that you would care less about these things. When you get towards the sunset years of your life, you will begin to realize that it is the experiences that you had that will matter more to you than anything else.

You might be knowing that when you invest in quality stocks, you get dividends. Just like this, when you invest in quality experiences, you get a “memory dividend”. The only difference here is that rather than receiving it in your bank account, you receive it in your mind.

When you are close to death, life humbles you and makes you more aware. We suddenly start thinking, “Why did I wait this long?”. Until this realization, we all go through life as if we have all the time in the world.


What Should You Do?

Don’t wait until you are retired to do all the things which you wanted to do. When people talk about financial freedom, they think that financial freedom is the destination. That is not the case. Financial freedom as a journey is enjoyable.

When people say they want to get out of the rat race, they get stuck in another rat race where their only goal is to reach financial freedom. Now, by any means, I don’t say don’t pursue financial freedom. But, at the same time spend on experiences. At do that early on.

Nobody has regretted spending their money on experiences — that unforgettable trip with your family, pursuing that hobby which you “didn’t have time” for, the pursuit of an entrepreneurial dream — all these things cost money, but the memories which they will give you will be everlasting.

A study found out that spending on experiences makes people happier than if they spent that money on things. Buying more and more stuff won’t ever make you happy. If you say, you want that Porche, or a Rolex, or a bigger house; believe me, you would care less about these things at the time of death. What will matter is how many memories have you collected — how much you have invested in experiences.

Whenever you think about buying the latest phone, or the hottest piece of clothing; just ask yourself these two questions?

  1. Do I really need it?
  2. Will I care about this at my death?

If your answer is “no”, you should probably use that money either on a memorable experience, or buying freedom, or a combination of both.

We buy things we don't need to impress people we don't like by working jobs we hate. The earlier you realize this, the easier it is for you to collect memory dividends. Click To Tweet


Till next time.

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