Dream Economics: Investing Wisely

Dream Economics is about understanding the “currencies” at our disposal—for example time, attention, effort, and networks—and using them strategically to build the life we envision. It’s a framework for pursuing dreams not just as lofty ideals but as achievable goals shaped by careful investment and intentional action. Drawing insights from psychology, management, and cognitive science, this edition explores how to channel resources for personal growth and fulfillment.

In previous newsletters, we explored the foundational principles of uncovering talents and embracing risk. This installment ties it all together, focusing on how to invest your unique resources strategically to realize your dreams.

Step 1: Finding Your Dreams and Talents

Every successful journey begins with a clear understanding of what truly drives you. As Simon Sinek famously advocates in his “friendship test,” think about what your friends would say you’re naturally gifted at. René Carayol in his book ‘Spike’ suggests a similar approach: gathering feedback from personal relationships rather than colleagues; in any case a source without strategic interest. The talents you identify here are those that often feel effortless but have a profound impact. (We explore this process in more detail in a previous newsletter).

But most importantly, ensure your aspirations are authentic. Strive for alignment with your core values and isolate them from societal pressures or fashion. Dreams rooted in intrinsic motivation are the most sustainable and rewarding.

Step 2: Recognizing the Currencies You Hold

Once you’ve identified your dreams, the next step is recognizing the "currencies" you possess—those resources that can be traded, spent, or invested to bring your vision to life:

1. Attention: As a finite resource, your focus is immensely valuable. Research by Nilli Lavie , Aleksandra Hirst , Essi Viding and others on selective attention emphasizes the need to focus it so that the load is at (or below) a level that still keeps our decision-making power intact.
2. Skill: Your abilities, both innate and acquired, can be cultivated for higher returns.
3. Money: Whether modest or substantial, financial resources can be a powerful enabler.
4. Mindspace and Emotional Space: Investing these carefully includes protecting them from draining environments. (Competing claims on attention drain the mindspace.)
5. Energy: A renewable but limited currency that needs mindful replenishment.
6. Time: Arguably the most precious currency, as it is finite and non-renewable, as Warren Edward Buffett once famously remarked.
7. Connections: Your reputation and network are intangible assets.

Understanding the interplay of these resources allows you to see not just what you have, but also what you might need to acquire or protect.

Step 3: Investing Wisely

The final piece of the puzzle is learning to invest your currencies in ways that maximize returns while balancing risk. What are the returns? They often look like getting more of the above currencies.

Being experimental and at once intentional is key. Dan Ariely says: let 1000 flowers bloom and see what works. I would be a bit more precise. Where do your currencies flow easily? Where is it edifying to spend them? Attention that is not brain rotting but brain building, money that achieves high return/impact, emotional space or effort that feels elevating when invested. Where can you become really good at something, where do these currencies yield the highest self-improvement? Time spent that you enjoy. Where can you increase your currencies while investing them: connections that build more connections. The more positive your answer on these for investing in a particular talent or dream, the higher the dream’s investment priority.

And avoid the opposite: brain rot, expensive low quality, emotional drain, bad connections who only take rather than exchange or combine wins.

Careful investing includes trial and error, this far Ariely is right. Tim Harford is right too in that we need to fail fast so we can move on. And course-correct after failure, as Amy Edmondson emphasizes. If you do this often enough, you will be able to reduce your natural loss aversion and move towards the right level of risk. In any case it is important not to lose the overarching goal: you want to maximize the return on your dreams.

Conclusion: Bringing It All Together

Dream Economics teaches us that achieving our dreams is not just about ambition—it’s about smart investments. By uncovering your talents, assessing your resources, and deploying them strategically, you create a framework for growth that’s both sustainable and fulfilling.

So ask yourself: Are your current investments optimally aligned with your vision? If not, take this opportunity to recalibrate. Whether it’s redirecting your attention, cultivating your network, or taking calculated risks - let’s make every decision count.

Yours sincerely,

Rebekka

PS What 'currency' are you best at spending? Comment below.