Jacob Schroeder is an American freelance writer on personal finance subjects. Over the Christmas break he posted a blog on earning, saving & investing money which we found to be thought provoking. Having dwelled on his blog for a couple of weeks, we think there are 3 different ways in which what Mr Schroeder is saying is relevant to almost all of us.
Firstly, there is a whole bunch of things in life which matter far more than money, investing and returns. Quoting Jacob Schroeder:
“The cost of children is an admission to adventure, love, pain, joy, despair, loss, fulfilment – all that life can and should be. Then one day it’s over. The ride comes to a stop – hopefully, much later than sooner – and that emptiness is a bittersweet debt. It is a debt that can never be repaid. You are left desperately wishing to repay it only to take it out again so you can relive it all over, desperately wishing to take out a second mortgage on all the spills, the cuts and bruises, the breaks, the heartaches, the tears, the smiles, the hugs, the laughs, the I love yous and the goodbyes, enough to get you angry at the unfairness of it all…
The pursuit of what’s easy often leads to a life marked by dissatisfaction. We frequently deceive ourselves into believing that the easy path will lead to happiness, but experience shows us otherwise. It’s an intriguing paradox in human nature that while we often crave “easy,” we tend to value “hard” all the more…
Happiness lies not in the mere act of decluttering, but in understanding what truly gives our lives deep, meaningful purpose. Material possessions may either complement this purpose or detract from it. The issue arises when possessions become our primary source of meaning. I think a good critique of our material culture isn’t necessarily that we have too much stuff, it’s that we have too little meaning.” [emphasis in bold is ours]
Money can’t help with any of the aforementioned stuff.
Then Mr Schroeder highlights many different aspects of how we spend money and how profoundly that impacts our happiness and our emotions. For example:
“When done within one’s means, splurging can be a healthy expression of personal financial management, allowing for enjoyment without compromising financial security. If you can’t spend money just for the joy of it every once in a while, then what’s the point? And if you feel hesitant, here’s a bit of advice: get yourself a margarita and forget about it…
When it comes to spending money on friends or experiences with friends, consider giving yourself more freedom than you would with anything else. A hard lesson no one wants to learn: all the money you need to become financially independent means nothing, absolutely nothing, if you have no one to spend it with.
As we acquire more, our expenditure grows, making us yearn for even more of both. It’s akin to expanding a highway to ease congestion, only to see it grow busier. The presumption is that more money will give us greater control and happiness, yet the cycle never ends….” [emphasis in bold is ours]
The third dimension in Mr Schroeder’s thought-provoking blog is how money gives us a lens to think about how we want to live our lives. Mr Schroeder writes:
“The purpose of saving anything — money, health, memories — is the people we love….
Self-awareness goes hand in hand with financial self-awareness. Master one and the other becomes second nature. This is because a better understanding of your situation and tendencies can translate into a better handling of your finances. As has been said countless times, money is a good servant but a bad master. All told, if you make money everything or make it nothing at all, you’ll likely get more than you’ve ever wanted….
Money, as a source of purpose, is inherently flawed. It can provide opportunities, but it makes for a poor foundation for a meaningful life. Spend money on what is unnecessary but meaningful. Find what gives your life authentic purpose, and then use your money to support those things.”
If you, like us, spend your life oscillating between the need to get richer and the desire to live a more fulfilling life, we suggest you read Mr Schroeder’s blog in full not least to understand the paradox of money – we need it to live a meaningful life and YET money, as a source of purpose, is inherently flawed.
If you want to read our other published material, please visit https://marcellus.in/blog/
Note: The above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. The information provided is intended for educational purposes only. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India (SEBI) and is also an FME (Non-Retail) with the International Financial Services Centres Authority (IFSCA) as a provider of Portfolio Management Services. Additionally, Marcellus is also registered with US Securities and Exchange Commission (“US SEC”) as an Investment Advisor.
