This is Good. Measure By The Decade. Invest In The Day
Edition #3
In 1790 Benjamin Franklin set up a trust to gift $2,000 to the cities of Philadelphia and Boston. In 1990 the gift was worth over $7,000,000. Ben measured in decades. Twenty of them to be exact!
My son Chase recently turned 10. He has a stash of cash in his wallet that makes me jealous. He has always been a saver (he’s our firstborn). I wanted to give him a lesson on investing.
So, we did a fun exercise. We broke out the Nerd Wallet Compound Interest Calculator. I asked Chase, “If you invested $1/day in the stock market at an average 10% annual return for 50 years, how much would you have when you are 60?” Chase’s brain churned. What would you think? That’s $365 a year. 50 years. The total he would come out of pocket over the five decades is $18,250.
Chase’s mind was blown when he saw he would have $570,719. We laughed at how spot-on Einstein was when he said “Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn't pays it.”
I told Chase that God might have better plans but if I play my cards right, I could pull off at least 50 more years of good living. If I just contributed our Netflix ($8.99), Disney plus ($7.99), and YouTube TV ($59.00) subscriptions to his monthly total we would end up with $1,960,393. We would go very big on our 60th and 89th birthday parties. I have never seen Chase more motivated to decrease screen time!
The graph above is a depiction of our epic 60th and 89th birthday plan. The blue is the $1/day and binge-watching elimination. The most important part of the plan? Time. Small consistent investments over time. That creates the green portion. Here’s the big idea I want to share with you:
All of the most important things in life can be like this graph.
Relationships. Education. Mental Health. Growth. Joy.
Small and consistent investments that seem to make no difference when measured in the day, create unimaginable results when measured in decades.
THIS IS GOOD: MEASURE BY THE DECADE. INVEST IN THE DAY
And I am really bad at this.
Me on any given day:
“Yes, I would like the green portion of the graph now, please.”
(whiny voice) “That person has far more green than me."
“It won’t make a difference if I skip this investment in the blue today. I deserve this! YOLO!”
Basically, I tend to measure in the day. When I do, I falsely compare. My gratitude decreases. My fear increases. This is a no bueno combo - especially for those around me. My worst character traits come out. I tend to turn inward and project a false self.
This was a caution for me writing This is Good. I really like the efficiency of taking a few hours to explain a good idea. It feels like I know it. No need for consistent daily investment. Instant results.
In reality, the value created is similar to the “now” point in the x-axis of the graph above. We create far more value with ideas that we embody consistently. My best hope any given week is that “what is good” can be an idea we invest in.
Maybe we invest in this one. We can start by asking some questions:
What are the most valuable things in my life?
Am I currently measuring any of these by day?
What if I measured each by the decade and micro invested in the day.
There is no prescription here. Maybe just some keys to unlock a few answers. A few tips:
Question 1: Some are obvious. Others a surprise. Invest in both.
Question 2: This may sting. Let it.
Question 3: This may give you hope. Let it!
For the consistent investment, look for the answer that is the “one-foot bar” you can step over easily. The $1 a day equivalent. Make it so easy that you’re actually doing it. Better to invest $1 daily than $20 montly. Real life example, if I simply didn’t get “double steak” at chipotle, I could invest $1 a day. Author’s note: I eat at Chipotle a lot.
For the decade measurement, make it exciting. So much better is possible in ten years. What do you really want for this thing? Write that down.
Let’s just say (hypothetically speaking of course) that you might feel in over your head as a leader (cough):
Leadership Ability
How am I currently measuring in the day?
I compare myself to others. I do not have the capacity that I would like.
What kind of Leader do I want to be in a decade?
Better capacity to manage, understand and empower.
What consistent small investment can I make now?
Look my teammate in the eye in conversation and take the lead in asking helpful questions.
Ok, one more. Again completely hypothetical.
Relationship With My Son
How am I currently measuring in the day?
I just lost my temper (again). I feel like a failure
What kind of relationship do I want with my child in a decade?
We enjoy each other. He knows I am his biggest advocate.
What consistent small investment can I make now?
Lay in bed next to him at night and don’t talk until he talks.
Apply this to your list of the most valuable things in your life. Your finances. Your marriage. Your learning. Your health. Your heart.
Know what you want. Be patient. Be consistent. Measure by the decade and invest in the day.
POSTSCRIPT
There is a wretched result of measuring in the day. We become unable to really live. We tend to have shame about the past and fear for the future. We are too distracted by both to be present.
I heard a wise man describe this as being spread eagle having one foot in the past, one foot in the future …and peeing on the present.
Don’t pee on the present.
I should have used “Don’t pee on the present” as the title this week.
Measuring in decades gives a vision for the future, meaning for our past, and peace in the present. Just focus on one day at a time. Small investments today. Tomorrow will have its own worries.
Time is the most important variable in a compound interest calucation. When applied to the right consistent investment, enough time creates value beyond our imagination.
Consider with me the possibility that the most important things have an infinite timeline. A belief that made CS Lewis declare there are “no ordinary people”.
Imagine the best possible investment we can offer compounded over infinite time. What happens when goodness, or patience, or self-control, or love is compounded infinitely? It may be so great that it is impossible for our minds to conceive. That is really good.