Invest in memories, not stocks

            At the tender age of 12, I received a copy of The Wealthy Barber.  Essentially, it’s a book on how to become a millionaire by the time you die… or if you’re lucky, by the time you retire.   

            I was quite a young capitalist at the time because I took it to heart and proceeded to invest my summer earnings in mutual funds.  I was advised to invest in Asian and Latin American funds because of how well they were doing at the time.  My mutual funds advisor must have adhered to the old adage, “Buy high, sell low” because that’s exactly what he did. 

            My dad and I frequently debate over whether to invest in the markets or not.  Our experiences have not been entirely positive.   When I was about 25 and I had a whole $1,000 invested, my earnings were great.  Now my investments are a little bigger and well, we all know what’s happened in the last few years. 

            But if you’re watching the stock market day to day to see how your long-term investments are doing, you probably shouldn’t be investing.  The stock market is a terrible beast that cannot be tamed.  It’s irrational and run by men who think they can outsmart one another.  If you’re nearing retirement, you may be better off to invest in something more conservative.

            But if you’re young (by this I mean under the ripe age of 50), don’t pay any attention.  Over time, the stock market is still one of the easiest and productive ways to invest cash.  And I don’t think I’m just toting the financial advisor’s line here.

            Because if there’s someone I really trust, it’s the Wealthy Barber, himself.  In his second Wealthy Barber book, David Chilton claims the stock market is still one of the best ways to invest.  Just don’t expect miracles, invest over the long term, avoid high investment fees where possible, and don’t try to outsmart the markets by investing yourself.

            But remember, I didn’t advise you to do anything with your money (it was Mr. Chilton).  I was actually pleasantly surprised that investing wasn’t the central theme of his latest book.

            It’s really about being content with what you have.  What a refreshing view.  He advocates for spending less than what you make, instead of spending more.  Completely the opposite of what most Canadians are doing right now.  The average Canadian’s debt is now 150% relative to income.

            It’s been said over and over again in some form or another that material things don’t bring happiness.  Yet we’ve been brain-washed to believe that they do.  Most ads don’t talk about how their products may cause feelings of emptiness, depression and unfulfilled desires.

My new child-sized TV

            Chilton talks about our society being consumed by consumption.  Material things tend to cause us more stress than anything.  While it’s true that they can provide satisfaction to an extent, the thrill is usually short-lived. 

            When I bought a big-screen HDTV three weeks ago, I felt it would bring some fulfillment.  And it did.  And my six-month get-every-channel-you-could-ever-want promotion adds to that fulfillment.   But over time, I know it won’t improve my life or make me any happier.  I get far more joy walking 35 minutes home from work in minus 15 degree weather, knowing I not only beat my bus, but saved $2 while doing it.  Take that, city transit!

            Spending time with family, exercising, and working/playing outdoors will bring much more joy to your life than any big-screen TV (unless, of course, you’re watching with the family outside while exercising).

Dad doing the Lambeau leap

            Interestingly, Chilton writes that it’s money spent on experiences, not things, that gives us the biggest bang for our buck.  Buy something, and you lose interest after a while.  Pay for an experience (like a 16-hour trip to watch the Green Bay Packers), and you make memories that will last forever.   

Like when my dad streaked across Lambeau Field in the fourth quarter in front of 73,000 screaming fans.  Now that was a memory.

            A made-up memory, yes, but one that has value as well.