We talk a lot about investing for financial returns: growing our savings, building wealth, and securing our future. And rightly so! Financial security is a cornerstone of a well-lived life. But what if I told you there's another kind of investment that doesn't just grow in value but actually compounds over time, enriching your life in ways money never could?
This idea struck me powerfully when I read Bill Perkins' thought-provoking book, Die With Zero. In it, Perkins introduces a concept he calls "memory dividends," and it’s a game-changer for how we think about living a fulfilling life.
What Are Memory Dividends?
Think about your best vacation ever. Perhaps a trek through a national park, a vibrant city escape, or a relaxing beach getaway. The immediate enjoyment of that trip was fantastic, right? But the "memory dividend" is all the good stuff that comes after the initial experience.
Unlike a new gadget that loses its shine (and value) quickly, experiences actually gain value over time. Every time you:
Relive the moment: You recall a funny anecdote, a breathtaking view, or a delicious meal.
Share the story: You show photos to friends, tell your family about a hilarious mishap, or remember with those who were there.
Offer advice: Someone asks about your trip, and you find yourself excitedly sharing tips and recommendations.
Each of these acts is like receiving a "dividend" from your original investment in that experience. It's an ongoing payoff that enriches your present and future. Here's where it gets really interesting: memory dividends aren't just one-time payouts. They can actually compound, just like your financial investments!
When you share a memory with someone, you're not just recalling the past; you're creating a new experience in the present. You're connecting, laughing, bonding, and sharing a part of yourself. This act of sharing amplifies the original memory, making it even more valuable and vibrant.
Maximizing Your Memory Portfolio
So, how can we actively cultivate these memory dividends?
Prioritize experiences over possessions: While material things can be nice, they rarely offer the same long-term return on investment as experiences.
Be present: Fully immerse yourself in the moment. Put away the phone, engage with your surroundings, and soak it all in.
Capture the moment (strategically): A few well-timed photos and short videos can serve as powerful triggers for future memory dividends.
Share your stories: Don't keep those amazing memories to yourself! Share them with loved ones, allowing for that valuable compounding effect.
Invest in relationships: The memories you create with your loved ones, especially your children, are some of the most precious and long-lasting memory dividends of all. These shared experiences form the foundation of your legacy.
Investing in memory dividends isn't about reckless spending or ignoring financial responsibility. It's about a strategic approach to living a fulfilling life, recognizing that true wealth extends far beyond your bank account balance. It's about consciously choosing to create a life rich in experiences that continue to pay you back, long after the moment has passed.
Let's Talk Money!
What's one experience you've had that continues to "pay dividends" in the form of cherished memories and stories?
In what ways could you more actively create opportunities for "memory dividends" in your life this year?