In the financial world, return on investment refers to the ratio between net profit (over a period) and cost of investment (resulting from an investment of some resources at a point in time). A high return on investment means the investment’s gains compare favorably to its cost. As a performance measure, return on investment is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.
Recently my wife and I have come to terms with the fact that, because we have kids, we will not:
a) live forever. As a matter of fact, we think the “kids make you live longer” research is bullshit,
b) never get enough sleep,
c) never have the nest egg in our bank account that we desire.
So, we both figured. Fuck it, maybe we should throw caution to the wind a little and invest in our kids’ experiences. Perhaps we should show them some things that might be in the history books instead of them being told about it in school. We did set parameters:
We will not clear out our bank account;
We will not spend any of our retirement;
We will not borrow money from anyone or any entity.
We scrounged up the little money we had in investments from when I was younger, budgeted the funds that we had, and picked up some odds-and-ends jobs. But, most importantly, we had to redefine what an investment meant.
When I was younger, with not much money, I started to dabble in things such as ETFs, bonds, and futures, I loved looking at ways that I could grow my wealth. I would read the prospectus of different companies (who the hell actually reads those), look through the tickers on all of the financial networks, and check out the financial history of prospective companies that I could invest in. I was really hardcore!
But as I got older, I started to question how long I would hold these investments. I began to wonder what an investment really was. Especially after having our first child and needing a bigger house, a more dependable car, and diapers. God! Diapers!
Is a child an investment? In what? Futures?
What is the rate of return? When do I start to account for profit or loss?
How will I know if the current rate is running in the positive or negative?
The answer: You don’t, and you never will.
A child is a super heavy, crazy large investment. One that is hard to analyze or compute your return on that investment. Sure, it is all nice and dandy to say, “Every child is a gift that will last a lifetime,” but it is really freaking hard to keep telling yourself that when your rate of return is rolling their eyes when you have a simple request. Or, when your precious investment breaks a different investment because they won’t stop bouncing the damn ball in the house as you told them not to do 100. But, I am not angry.
Not that angry…
Now that we have decided to invest in family, what does that look like?
Basically, it looks like us saying yes to a bunch of expenses that we would normally say no to. It looks like we are going to spend our money on experiences rather than things, which is good, because it allows me to go into the house and announce, “Okay, we are getting rid of your shit! We are minimizing! Round up the stuff you plan to donate!
My wife says, “You will need someone to push that wheelchair to the home, you know?” I hope that is true. Yes, I hope they are good people. Yes, I hope they give me grandkids, but I would be lying if I did not admit that I would love it if they would place me in a charming home and come visit me every now and then.