Experiences, not possessions
First, some questions
About five years ago, I walked around my office asking coworkers a simple question – “Why do you work?” I got a lot of surprised looks. They were working sixteen-hour days, not seeing their kids grow up. They took pride in not using up all their vacation days. What kind of a question was that to ask? “Tell me why you work,” I would prod.
Their answers fell into a few broad categories: saving for kids education, trying to pay off the mortgage, having enough for retirement. I would then offer them another scenario: What if you could take the equity in your home and buy a property outright in another part of the country? What if that part of the country has in-state tuition that’s so low that you don’t need to worry about saving for college? Two major reasons for working just went away. Would you still work?
Today I ask, “What will you do when you retire?” When they tell me, I respond, “Why don’t you just do that now?” Most people’s fantasies of retirement are tied into what they will do once they have accumulated a certain amount of money. If your future is tied into money and having certain amounts of it, then yes, you have to wait. In the new world where time is currency, focusing on money is a sure way to live an unfulfilled life.
Turning money on its head
20th century thinking held that you had to own things in order to be successful. You had to have a better car, a better house, more money, a better job. Success was measured in terms of things. In order to have more things, you had to have more money. In the 21st century, technology and connectedness have made it possible to have experiences without the burden of owning something. The transformation that has occurred is that experiences are more readily available for a fraction of the cost. It turns out that’s what we wanted all along. Why own a designer dress when you can rent the runway?
Here’s what it costs to own a car in America in 2015:
Does this still make sense in a world where you can call up a ride via an app on your phone and be driven anywhere you want? Will it make sense in a world of autonomous vehicles?
Technology enables experiences
There’s a factoid I keep hearing at social gatherings and repeated ad nauseam in watercooler conversations that goes like this:
Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.
What is interesting is that this has become a mainstream topic of conversation. The quote comes from a piece by Tom Goodwin. Later in the same article, he captures the essence of what’s at play:
The Internet is the most powerful mechanism we can imagine to match perfectly individuals that need something, and people with something to offer.
The ability to share experiences drives down the total cost of ownership of the things we own. Suddenly, money is not as important as it once was. You can have a richer life with less money than you thought you needed.
Hacking your stuff is a conscious decision you make to live a more fulfilling life in this new world of experiences that’s driven by technology. The less stuff you own, the more time you have to spend on what’s important.
More reading
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Could Self-Driving Cars Spell the End of Ownership?
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