More, more, more
In the whirlwind of our hectic lives, we often get caught up in the chase for more:
more money, more possessions, more recognition
It is a perpetual cycle that engulfs us from our earliest days and lingers until our final breath. We tirelessly strive, day in and day out, to amass and accumulate, all in the name of building our wealth. The chase is exhausting, it is relentless, and it is never-ending.
But what if we were to pause for a fleeting moment and contemplate the true essence of wealth? What if, instead of fixating on the accumulation of material possessions, we redirected our focus toward the art of purposeful utilization?
I extend to you an invitation, a journey of exploration, where we delve deeper into the core of this notion.
Accumulation
“In this world, nothing can be said to be certain, except death and taxes.”
– Benjamin Franklin
In a capitalistic society (and to some extent, any society), we are taught and constantly bombarded with advertisements that suggest a successful life is closely tied to the possessions we acquire. The size of our house (the bigger, the better – who does not need four bathrooms and a jacuzzi?), the car we drive (nothing less than a Lamborghini will do), the clothes we wear (adorned with high-end brand labels from Paris and New York), as well as the jewelry and luxury timepieces (not just watches) we flaunt, are all highly sought after and necessary statements of a meaningful life. Or so we are led to believe.
To obtain these possessions (or even more modest versions of the aforementioned list), we trade our life for a paycheck, climb the corporate ladder, or generate alternative sources of income. We spend this hard-earned money on our basic needs (e.g., food, shelter, …) but in a lot of cases even more on non-essential wants (all the stuff above). The smart ones use it to invest their surplus funds to accumulate even more money over time. One of the most frustrating aspects, which nearly everyone complains about, is that a significant portion of this income is taken away through taxes even before it reaches our bank accounts. None of this is inherently bad, it is just how the system works, and who am I anyways to tell anyone how they should earn or spend their money?
Yet, I find myself questioning more frequently than ever the purpose behind all of this accumulation. Does it truly bring fulfillment? Is it worthwhile? Because in the grand scheme of things, being annoyed or complaining about tax payments or the perceived inefficiency in the use of tax money seems trivial compared to the inevitable arrival of the ultimate tax collector whom no one can evade: Death.
When death arrives at your doorstep to collect, it will not ask for permission but will take everything you possess. Suddenly, all the material possessions you own, the money in your bank accounts or investment portfolios, the fame you have garnered, the relationships you have formed, and everything else you consider as “yours” becomes worthless and vanishes in an instant. And that is if you are fortunate enough to experience a swift departure. For those who decay over the years, struggling to perform basic tasks, all that accumulated wealth diminishes significantly over time, slow but steady.
I am currently witnessing my mother slowly succumbing to cancer, watching her body wither away under the weight of the disease and its treatments. It has led her to contemplate the value of life, pondering whether death should arrive sooner rather than later, every single day. There is little enjoyment left for her, and everything that was once important has become a burden. The only solace lies in fond memories and relationships with loved ones, including her cat.
This experience vividly demonstrates that much of what we once considered assets in our lives ultimately turn out to be liabilities and meaningless trinkets.
So, what truly constitutes wealth?
Wealth
“The best investment you can make is in yourself.”
– Warren Buffett
In my perspective, wealth is a highly personal concept that is defined by an individual’s interests and the purpose they assign to their life (as discussed in my article on the Pillars of Life). However, there are certain assets that I consider generally beneficial when pursuing one’s life journey. These assets serve to achieve self-determination and agency, generate options and freedom, and should be seen as means to an end rather than ends in themselves. They are not static but change throughout our lifetime in predefined patterns.
- Time – It provides you with the opportunity to do things.
Time is the most precious one. Each day, you have one less day to live, and the clock keeps ticking relentlessly. In your youth, you can be considered a “time millionaire,” with roughly 30.000 days in your account but this asset diminishes constantly and cannot be replenished.
- Health – It enables you to do things.
Your health is another essential asset that naturally peaks in your early twenties and gradually declines afterward. You have only one body and mind, which are not easily replaceable. Fortunately, even bad habits can be corrected, and some of the damage can be undone. However, it is never too early to start taking care of your health. The earlier and more consistently you prioritize it, the better.
- Money – It allows you to trade for services and products.
Money serves as a versatile means to accomplish things. Depending on your background and inheritance, you may start with more advantageous financial circumstances than others. However, money is typically scarcer at the beginning of your life. As you age and gain experiences, skills, and reputation, your earning potential increases, enabling you to accumulate more money over time (assuming you do not spend it all involuntarily or foolishly). This accumulation continues until you retire or deplete your income streams.
These general trends throughout a lifespan unfortunately tend to be inversely correlated. When you have time and good health, you often lack the means to pursue the numerous activities you desire. On the other hand, after you have acquired the means to engage in these activities, you might find yourself lacking the time or health to embark on the most thrilling adventures.
Additionally, the responsibilities you carry also play a role, typically being fewer in youth, peaking in adulthood (involving family, career, and mortgages), and diminishing again after retirement.
Therefore, the question remains:
how can these assets be best utilized?
Utilization
“In the end, it’s not the years in your life that count.
It’s the life in your years.”
– Abraham Lincoln
By now, it should be clear that we do not like to be the richest person in the graveyard. Instead, it is important to utilize the assets at our disposal to create a rich life that aligns with our individual aspirations. This concept, borrowed from Ramit Sethi, emphasizes that a rich life differs for each person. It entails having the freedom to do what we enjoy, whenever we desire, and being free from external constraints.
However, we often stop at this point and fail to reflect on what exactly this rich life would look like. What would you do if there were no constraints? Can you answer this question for yourself? It is most likely more than just a million dollars.
For me, a rich life would involve starting the morning early with a good workout, enjoying a nice breakfast, engaging in creative activities such as writing or designing, savoring a cup of coffee in the afternoon, going out for hikes or other nature activities, cooking a delicious dinner or having a barbecue, and ending the day by curling up on the sofa with a cup of tea and a book or movie, surrounded by loved ones and friends. Additionally, I would embark on a couple of extended trips to new destinations on this planet each year, preferably with breathtaking landscapes, wonderful people, delicious food, and fantastic wine. Attending a few metal concerts and parties would also be enjoyable. However, material possessions such as Lamborghinis, luxury timepieces, or designer clothes do not excite me. The good news is that achieving this rich life does not require multi-millions in the bank account. It mainly requires prioritization, what is worth spending on and what is not, and being willing to make the relevant trade-offs. It also does not mean indulging in mindless spending or overconsumption but purposeful utilization of your assets.
But that is my perspective. You may have different desires, such as owning a yacht or a private jet and participating in lavish parties with Hollywood stars in the Bahamas. If that is what you want, go for it. It may require more financial resources and exposure, but it can be done.
The key is to be specific about your vision. The more specific, the better, as it enables you to make deliberate choices about where to allocate your assets generously and where to ruthlessly cut back. It also provides you with a clearer roadmap of which adventures to pursue first. For example, activities like weeklong hikes in the Himalayas, arctic expeditions, racing car challenges, or becoming a rockstar may require certain physical or mental conditions that you may not always have, so it is worth considering doing these things earlier in life.
The goal is to maximize fulfillment and minimize regrets about missed opportunities and chances when they were available. The sooner you gain experiences and create memories, the longer you can cherish and share them. Delaying living for some hypothetical future point is generally not advisable. Likewise, living solely in the moment and impulsively following every desire without considering long-term consequences is also unwise. As with everything in life, maintaining a good balance between the needs, wants, and options of your current and future self, without depriving either, is one of the best pieces of advice to follow. Be bold but not foolish.
Remember, these preferences and priorities may change over time. What seems important at one stage of life may lose significance while new interests and activities emerge. Embrace these changes and let go of things you no longer enjoy, even if you used to. Many things have their seasons, just like we do.
Personally, I was more conservative in my thinking, raised with a mindset of saving rather than spending. Looking back, I realize that I should have embarked on even more adventures during my youth. Fortunately, it is not too late to pursue some of these projects. Transitioning to part-time work, accepting a reduced income but gaining more time, has proven to be one of the best decisions I have made. The value of the time asset has increased for me far more than the corresponding reduction in the numbers on the paycheck.
While it would be ideal to plan everything perfectly and run out of cash exactly at the moment we die, as Bill Perkins framed it in “Die with Zero,” life is unpredictable. Therefore, it is likely that we should lean toward caution when it comes to managing our assets while avoiding excessive saving for hypothetical and vague future needs that may never materialize.
But what about my children and leaving a legacy?
Inheritance
“The most important inheritance we can give to our loved ones
is a life well lived, a life filled with purpose, joy,
and meaningful connections.”
– Joshua Fields Millburn (from The Minimalists)
Let us dive first into the topic of inheritance and how we can ensure our children and chosen causes benefit from it in the best possible way.
If you have the desire to contribute, why not do it now? Why wait until you are gone to make a difference? After all, why miss out on experiencing the impact your money can have?
Consider the inverse correlation between time and money. It is likely that your children would benefit far more from a financial windfall early in life, enabling them to gain valuable experiences and expedite their personal journeys. The same applies to the charities, foundations, or organizations you wish to support. And, as an added bonus, there may even be tax benefits to contributing early.
When it comes to leaving assets to your children, be mindful of what truly holds value. Valuable assets extend beyond financial resources. They include the cherished memories created while spending time together, the wisdom you pass on to help shape their values and character, and the education you grant them, which they can use to forge their own paths. So, leave behind what truly matters and avoid burdening them with possessions that no one else truly cares about.
Take the time to minimize your “worthless” stuff, ensuring that the clutter accumulated over a lifetime does not become their burden and responsibility after you are gone. Remember, you brought it into your life, it is your duty to take care of it, not someone else’s. This concept even goes beyond physical possessions and can extend to emotional and relational clutter as well.
Personally, I cringe every time I encounter clutter in my own life. Having had to clean out my dad’s cramped garage, overflowing with stuff, and witnessing my mother struggling with the excess in her house, I realized the importance of embracing minimalism. Living with less but enough, made a huge difference for me. In fact, I will be discussing this in more detail in one of my upcoming posts.
Along this train of thought, I find some merit in the idea of a “100% Death Tax.” This notion suggests that our entire inheritance should default to the government, ensuring that our wealth is put to good use rather than being accumulated purposelessly or used to build dynasties. In return, labor taxes could be abolished, granting us the freedom to utilize the assets we earn from our work on our own terms. Of course, this proposal is not without its complexities and debates. Questions arise, such as what incentives there would be to save and conserve instead of spending and consuming. Moreover, I am aware that the current tax system is unlikely to shift in this direction anytime soon. However, the discussions surrounding Universal Basic Income in the context of Artificial General Intelligence and rethinking wealth distribution are gaining momentum faster than we might anticipate. So why not start contemplating these concepts within our sphere of influence? Let us consider purposeful utilization rather than compulsory hoarding.
By being proactive and intentional with our assets, we can make a lasting impact on the lives of our loved ones and contribute meaningfully to the causes we hold dear. It is never too early to plan for a legacy that reflects our values and ensures a brighter future for those who come after us.
Legacy
“Carve your name on hearts, not tombstones.
A legacy is etched into the minds of others
and the stories they share about you.”
– Shannon L. Alder
Speaking about legacy, let us delve a bit deeper, and brace yourself, as what I am about to say might sound harsh and cold, but it is an undeniable truth:
Nothing we do or create will last forever
Throughout history, individuals have embarked on what is called “immortality projects” — endeavors aimed at ensuring their conceptual self transcends their physical existence. The powerful have erected grand statues, obelisks, and even pyramids, attracting the awe of thousands of tourists. Renowned artists have produced poetry, music, and paintings, displayed in prestigious museums or performed in illustrious concert halls. Philosophers and scientists have shaped revolutionary ideas, while entrepreneurs have created enduring companies and products that outlive their founders. Their names echo through time, are taught in schools, and are immortalized in history books.
However, let us not forget that this perspective is highly selective. The truth is the vast majority of individuals who have ever lived have been forgotten within just two or three generations of their passing. Even those luminaries we admire today have only been known for a mere couple of thousand years at best.
It is not surprising when we consider the grand scale of existence. Homo sapiens, or humankind, has only been present for a modest 500,000 years in the backdrop of our solar system’s five billion years, or the likely fifteen billion years of our known universe. To add further humility, whatever emerges and evolves on this planet will not endure beyond another billion years, when our sun will gradually expand into a red giant, rendering life as we know it impossible and potentially consuming our world entirely. And in another four billion years, the sun will exhaust its fuel and transform into a white dwarf, lingering for trillions of years.
Everything that has been created on this planet originates from stardust and will eventually return to stardust. Thus, any notion of a lasting “legacy” is fleeting when compared to the vast expanse of cosmic dimensions.
In light of this cosmic perspective, one might question the significance of leaving a legacy at all. But here is the beauty of it: our legacy is not about eternal fame or the immortality of our creations. It is about the impact we have on the lives we touch in the present moment. It is about the values we instill in others, the inspiration we provide, and the positive change we catalyze. Our legacy is a testament to our humanity and our ability to make a meaningful difference during our brief existence.
Life & Death
Memento mori, carpe diem
At first glance, all these thoughts could now be very depressing and scary. However, I find solace in using them as a source of comfort and inspiration.
They remind me that the true essence of life resides in the present moment – neither in the future nor in the past. It lies in the experiences we create, both for ourselves and in the company of others. It resides in the meaningful interactions and the appreciation of life’s little wonders, all while striving to make the greatest positive impact we can, improving the lives of both current and future generations.
Moreover, reflecting on life and death teaches me not to take things too seriously. It encourages me to place events and circumstances into proper perspective and to remain humble. No degree of fame or embarrassment can endure indefinitely. In the grand tapestry of existence, they are but fleeting moments.
I am reminded that the true wealth of life is not found in material possessions or superficial vanity. It lies in our ability to purposefully utilize the limited assets at our disposal.
These realizations may not always be easy to implement or practiced flawlessly each day. Yet, as long as we strive to stay true to our values and keep our priorities aligned, we can navigate our journey in a way that minimizes regrets when our final days draw near.
May we all find meaning and purpose in the brevity of our existence, cherishing the beauty of each passing moment.
In the words of the ancient adage, “Memento mori, carpe diem” — “Remember that you must die, seize the day.”
P.S.
I would like to acknowledge the inspiration drawn from several books, including “I’ll Teach You to Be Rich” by Ramit Sethi and “Die with Zero” by Bill Perkins. Additionally, the philosophical reflections shared by David M. Kipping, a professor of astrology at Columbia University and a YouTuber known for his channel Cool Worlds (particularly the episode “Earth Over The Next Billion Years”), have triggered some of these thoughts.
