Thread by @kahome_steve

THREAD🧵

Everyone talks about how you should save and invest your money.

No one talks about how you should spend your money for maximum life satisfaction.

Here's why spending is more important than saving and how it affects your life.👇👇

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The Ant & the Grasshopper

In this story, the ant was glorified for working hard and saving up enough food.

The grasshopper on the other hand went hungry after spending the whole summer playing.

At the end, the grasshopper died for not having enough food while the ant lived on.

We all worship the ant for delaying gratification and saving for the rainy day.

But at what expense?

We forget that the ant could have been better off to play a little.

And that the grasshopper could have also been better off by saving a little.

The sad truth is that too many people delay gratification for too long.

They put off what they want to do until it's too late, saving money for experiences they will never enjoy.

They fail to convert their money to experiences that make them happy.

We forget that we die many deaths in our lives.

With time, the teenager in you dies, the college student dies, the single version dies.

When these mini-deaths happen, there is no going back.

You can delay gratification but not beyond a certain point.

We end up being the bookworm teenager who missed out on all fun in high school by making too many sacrifices for a bright future.

Then we become the middle aged dad who skipped irreplaceable experiences with his own kids hustling for job promotions.

We have two kinds of people; over savers and spendthrifts. The ant and the grasshopper.

In as much as saving money for retirement is important, spending money in meaningful experiences is even more important.

Here's why:

1/ Your life is the sum of your experiences.

The business of life is the acquisition of memories. In the end that's all there is.

You retire on your memories.

The ant would be better off to live a little and the grasshopper would be better off to save a little.

Many people are only saving money for retirement.

They forget that the main thing they will be retiring on will be their memories.

In as much as you invest in your retirement kitty, do not forget to invest in experiences that will pay you memory dividends in your retirement.

2/ If you spend hours and hours of your life acquiring money and then die without spending all of that money,

then you've needlessly wasted too many precious hours of your life.

3/ Invest in your health from a young age.

Most people spend a lot of money on their health in their old age.

One thing that prevents people from enjoying life experiences is their health conditions.

When you are old, you can barely travel for long hours.

4/ Invest in meaningful experiences early on.

When you travel to your dream destination when you are young, the experience will pay you memory dividends until you die.

Delaying that experience until you retire, means you will only receive memory dividends for a few years.

5/ Spending money on experiences makes us happier than spending money on things.

Experiences gain value over time and they pay memory dividends.

Material possessions seem exciting at the beginning but then depreciate quickly.

When you spend time or money on experiences, they are not only enjoyable in the moment.

They pay an ongoing dividend called the memory dividend.

How do you feel when you remember that amazing trip or concert you attended in young age?

That's the memory dividend.

6/ The ability to extract enjoyment from your money declines with age.

When you are young, you have fewer responsibilities and better health to enjoy what life has to offer.

As you grow old, you get more responsibilities and your body wears out limiting your experiences.

7/ People talk about saving for retirement.

But there are far fewer conversations about saving for excellent memorable life experiences that need to happen much sooner than the typical retirement age.

8/ You can't take your money with you.

Every shilling you don't spend at the right time will have far less value to you later.

In some cases it will bring you no enjoyment at all.

That's it on why spending also matters as much as saving.

Do note that this is my summary of the Book "Die With Zero by Bill Perkins.

If you would love to read more about this, check out the book.

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