Think about this…

 

You go to work. At work you expend energy to create value to your employer and the market place. 

 

In return for your sacrifice of energy, you receive money.

 

So we could say that,

 

 

Now, with your ‘units of energy’, you can exchange them with other businesses to buy supplies for your basic needs. 

 

 

Or, you can trade your ‘units of energy’ for the pursuit of hedonistic happiness (short-term pleasure). 

 

 

You could swap your ‘units of energy’ for the pursuit of eudaimonic happiness (meaning and purpose). 

 

 

There’s nothing wrong with how you spend your hard-earned ‘units of energy’. It’s important to strike a balance between your basic needs, having fun and exploring meaningful pursuits. 

 

But, there’s another way you can use your valuable ‘units of energy’.

 

Instead of trading them for goods and services, you can ‘store’ them for future use.  

 

This is called savings. 

 

When you accumulate a surplus of stored energy in the form of savings, you begin to have more choices in life.

 

And that’s what 99% of the people I talk to want most.

 

 

 

Now, there’s a principle that says ‘if you don’t use it, you lose it’. 

 

If you’re not intentional with how you use your hard-earned ‘units of energy’, then they will disappear. 

 

(Remember entropy?) 

 

Storing your ‘units of energy’ in the form of savings is good, but it’s not enough. 

 

And this is because money depreciates in value over time. 

 

Why?  

 

Because when central banks print more money, the existing money in the system (your savings) gets diluted. And this means the purchasing power of your money goes down. 

 

That’s why it’s wise to convert some of your ‘units of energy’ (money) into a more productive form of stored energy (investments). 

 

When you exchange your energy (labour) for ‘units of energy’ (money), and then convert that energy into assets – you build a reservoir of stored energy that can be used in the future.  

 

Your stored energy reservoir will continue to grow bigger over time (thanks to compound interest). To the point where you will have so much stored energy you will no longer need to exchange your energy for money.  

 

At this point you’ve reached financial independence. 

 

So I encourage you to reflect on how you’re using your hard-earned ‘units of energy’.

 

– Are you using them to pursue long-term meaning?

 

– Are you trading them to chase short-term pleasure?

 

– Are you investing them to give you more choice in the future?

Have a great day,