Experiences also pay dividends

Several years ago, when I started learning about investing, one of the things I looked out for was the quality of the dividends the investment would likely return over a long time.

The same model can be used when thinking about experiences. With this, it is easier to weigh the value of an experience not based on what it costs, but the dividends it pays.

Investing in a loving relationship for instance pays its dividends in more love, peace of mind, and calm. Investing in high-trust relationships pays long-term dividends in creating more ripples of trust. It makes it easier to be true to ourselves and those we interact with.

How about truly expensive experiences? Those we have to pay for. The same principle works too. Think about the dividends - not just the immediate gratification it brings - but the long-term value of the experience.

Paying for an experience doesn't just buy you the experience itself; it also buys you the sum of all the dividends that experience will bring for the rest of your life.

Several experiences compound. Others are just sunk costs.

There is wisdom in knowing the difference.