Navigating the balance between earning and saving money to support ourselves, our families, and our retirement often feels like walking a tightrope. Yet, when we look back on our lives, what we cherish most are the memories we've made along the way.
In retirement or our later years, it’s unlikely that we’ll reflect and think we should have saved more money, bought a bigger house, or worked longer hours. Instead, what we’ll likely value are the experiences we enjoyed and the memories we created.
I often find myself caught on the hedonic treadmill, always striving for the next milestone. For instance, I might think, “I’ll take that family trip once my business reaches a certain turnover.” This mindset leads to deferring valuable experiences and missing out on the memories that could enrich my life. I am then focusing on material possessions that seem exciting at the beginning but depreciate incredibly quickly.
A concept I find useful is “memory dividends,” which refers to the ongoing joy and value we gain from revisiting past experiences. Just like financial dividends, these memories can compound over time, becoming more rewarding with each recollection.
For example, this past weekend, we went on a family ‘Pirate Cruise.’ The kids dressed up as pirates, steered the ship, and shot water cannons. Each time I look back on this experience, it adds to the richness of the memory. Similarly, the kids will likely remember this adventure with happiness and fondness.
To maximize the impact of any experience and increase your “memory dividends,” consider these three steps:
Lengthen and Intensify the Experience:
Be fully present during the experience. Minimize distractions and immerse yourself in the moment. For the pirate cruise, I set my phone to “Do Not Disturb,” actively engaged in the activities with my kids, and made the experience more memorable by being fully involved.
Expand the Experience:
Take note of all the elements of the experience. Appreciate the surroundings and details. During the cruise, I enjoyed the scenic views of the canals and docks, which enriched the overall experience and made it more memorable.
Value the Experience:
Reflect on why the experience is valuable and what it means to you. For me, this trip was an opportunity to focus on my kids' enjoyment and to help them build confidence and positive memories. Recognizing the significance of these moments can enhance their impact and longevity.
To truly benefit from memory dividends, consider having meaningful experiences sooner rather than later. Visualize the people you want to share these moments with and the lasting joy you’ll gain from them. The more opportunities you give yourself to create memories, the more rewarding they will become over time.
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