The Resilient Investor – Book Review

Invest in your best life.

You will never look at the word investment in the same way after reading The Resilient Investor. Investing is about more than money, it is about your life.

The full title of the book by financial advisors Hal Brill, Michael Kramer, and Christopher Peck is The Resilient Investor: A Plan for Your Life, Not Just Your Money. That should give you a clue this is not your typical investment 101 book and you will not be learning how to get rich by investing in the stock market. What you will gain is a broader perspective about investing and a toolkit to help you create your own resilient investment plan.

The Resilient Investor Book CoverI was interested in reading this book for two reasons. First, I was curious. I wondered if it was possible for three money guys to speak about non-financial matters in an understandable and useful way? Second, I wanted to learn more about investing in people, communities, and companies that are taking the long view and working towards keeping Earth habitable now and in the future.

Book Review

“Does the challenge of making informed decisions about your life seem far more complex today than it did even a short time ago? Does the future—your own and that of the world—feel highly uncertain, perhaps even precarious? We can sense you there, nodding in agreement.”

When I read the first few sentences of The Resilient Investor (above), I thought, “Yes that is exactly how I feel.”

Before reading this book, I would have automatically associated money with the word investment but I think the authors’ expanded version is much more useful because it encompasses your whole life and that is what is important.

“…try this on for size: investing is something that we all do by directing our time, attention, energy, or money in ways that move us toward our future dreams, using a diverse range of strategies.”

Readers as you move through the book you will learn about the Resilient Investing Map (RIM), a handy tool for making notes and organizing your thoughts about what you want to keep doing, stop doing, or start doing when it comes to investing in your life. You can work on your own RIM as you read the book, read the whole book and then use the RIM, or skip the RIM entirely and use your own method. I am taking the middle approach. I have read the book and now I am doing my RIM.

You will learn how to recognize your real net worth and about close to home, global, and evolutionary investment strategies (remember it is not just about money). A discussion of possible future scenarios encompasses a full spectrum of outcomes from doom and gloom to a bright new world. These scenarios combined with various investor profiles will help you identify your own worldview, where you stand, and what is important to you.

To help you evaluate your own situation and create a resilient investing plan the authors provide a step-by-step guide and examples from their own lives.

The book wraps up with a review of sustainable and responsible investing (SRI) an approach that screens investments for environmental, social, and governance factors as well as traditional return on investment financial measures.

The Bottom Line

Not surprisingly, tax season is what led me to read The Resilient Investor and write a review about it this April. I do not know about you, but money is usually on my mind when I am collecting and organizing information for our income tax returns. To me, this seems like the ideal time to expand my thinking about investing and to create my own resilient investing plan. I hope you think so, too.

The authors of The Resilient Investor, Hal Brill, Michael Kramer, and Christopher Peck are managing partners of Natural Investments, a B Corporation specializing in sustainable, responsible investments. Jim Cummings is a writer who works with Natural Investments and is the editor of the book.

Admittedly, Brill, Kramer, and Peck are not a diverse trio. They describe themselves as “three college-educated white guys who all co-own a specialty investment company.” However, they do have decades of resilient living and investing experience and a compelling vision for a resilient future.

The book is short (less than 200 pages) making it easy to read and carry around. The writing style is conversational and straightforward. A companion website offers more information and downloadable blank and example RIMs.

“In the end, despite our continued positing that the idea of investing needs to be expanded, there comes a time to drop the distinctions that divide our daily lives into categories. There is only one activity that we are all engaged with all the time: we are simply trying to live our lives the best we can.”

Reader Note: I first learned about The Resilient Investor while reading a newsletter from Natural Investments. Our financial advisor is a member of the Natural Investments team. When I asked him about the book, he offered to give me a copy. I chose to invest my time in writing this review because I think readers may find the book informative and useful.

Featured Image at Top: Purple Flower in a Metal Spring with Loose Petals on a Wood Surface – Photo Credit Shutterstock/Alta Oosthuizen

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Food Waste Reduction Challenge – Let’s Eat the Food We Buy

Would you toss a $10 bill in your garbage can every week? Probably not, yet millions of Americans spend that and more buying food and later throwing it away. 1

Growing crops and raising animals for food requires a massive amount of land, water, and energy, so does the harvesting, processing, packaging, transporting, storing, selling, preparing, and disposing of it. Food loss and waste occur during every phase of food production and consumption including on farms, at processing plants, on the road, at stores and restaurants, and in our homes.

Crops Being Watered by Sprinklers

In 2012, 34.7 millions of tons of food ended up in U.S. landfills. At 21.1%, food made up the largest category of waste by weight. 2

When we fill up landfills with food instead of filling up people, we squander all the resources that went into producing it, waste its valuable nutrition, and throw away a huge amount of money.

It is up to each one of us to do our part in reducing food waste and we can begin today by figuring out how to stop wasting food in our own households.

Why Do People Waste Food?

If asked directly, I expect most if not all people would say they do not purposefully waste food; however, an enormous amount of food is indeed wasted. This is a case of saying one thing and doing another. Clearly, our society views wasting food as an acceptable and perhaps unavoidable practice. I believe this is the root of the problem.

As you push your shopping cart around the grocery store or wander through the farmer’s market, I doubt you are thinking, “I wonder what food I can buy that I won’t eat and will eventually throw in the trash.” I believe we intend to eat the food we buy, but we chronically overbuy, prepare too much food, and are overly optimistic about what our family members or we will and can actually eat.

Woman Scraping Uneaten Food off Plate into Garbage Can

Extra food finds its way into our shopping carts. We grab a bunch of kale because we know we should eat it (even though we hate kale), we load up on hamburger because it is on sale (but forget to freeze part of it when we get home), or we pick up a baguette on the way to the checkout stand (adding it to the two loaves of bread already in the cart).

We do not want to run short of food at meals so we make extra, especially on special occasions when we anticipate people will want seconds or even thirds. At the end of meals, we scrape uneaten food into the garbage disposal or kitchen trash, and the un-served food either follows or is spooned into leftover containers and put in the fridge in hopes that someone else will come along and eat it.

Be honest, does any of this sound familiar?

Our Food Waste Reduction Challenge

Fortunately, my spouse is a dedicated leftovers eater, but we still waste food. A few days ago, I snapped some photos of food waste around our kitchen and later my spouse and I discussed how to avoid wasting food like this in the future.

Oranges

Plate of Oranges with One Spoiled OrangeLast week, we bought a 5-pound bag of oranges at the farmer’s market. The grower does not spray the oranges with chemicals to extend their shelf life, which we appreciate, but the oranges began to spoil before we could eat them all. This is not the first time this has occurred. Our supposed savings for buying in bulk vanish when we end up putting rotten oranges in our composter.

We could start squeezing some of the oranges for juice, but we do not do that now and are unlikely to start. We decided to keep it simple and buy fewer oranges (duh).

Fresh Herbs

We enjoy cooking with fresh herbs but it is difficult to use them up before they dry out or spoil. Sometimes smaller bunches of herbs are available in plastic cartons but that seems more wasteful than wilted herbs ending up in the compost pail.

We could grow our own herbs and cut what we need, but honestly, we are not going to do that. Not buying fresh herbs seems too drastic. We decided to avoid buying fresh herbs sold in plastic cartons and redouble our efforts to use the herbs we do buy.

Salad Dressing

Open Hardly Used Salad DressingsIt was actually my salad dressing collection that prompted this post.

Several months ago in a quest to expand my salad dressing horizons, I bought a new flavor. It was okay but I did not really like it so I bought another bottle, then another and another. As I surveyed these open hardly used bottles, I realized this was a wasteful and costly practice. Technically, my salad dressing collection is not food waste yet, but it would be eventually.

We decided not to buy another bottle of salad dressing until we use all the bottles we currently have on hand, probably not on salads, but in marinades, sauces, and anything else we can dream up.

To make it fun, we will put a $5 bill in a jar on our kitchen counter every time we use up an old bottle of salad dressing. When it is all gone, we will treat ourselves with the money we saved.

Try Your Own Food Waste Reduction Challenge

Games are popular with people of every age and nowadays workplace learning is undergoing gamification in many companies. I believe games can be an effective way to help people learn and change their behavior by making it fun.

Whether you have kids at home or not, or live on your own, identifying and reducing food waste in your home can be educational and fun. Here are a couple of thought starters to get your creative juices flowing.

Food Waste Survey Game

Pink Piggy Bank on Top of Stack of CoinsObjective: to learn what food you throw away and how much it is worth.

Game Play: record each food item you dispose of for a month (a minimum of two weeks if you cannot hack a month). Do not include plate scrapings, but do include leftovers you throw out. At the end of the month, tally the cost of the discarded food by estimating or using receipts. Place that amount in cash and coins in a jar on the kitchen counter and let it sit there for at least two weeks, then donate it to a food bank.

Food Waste Reduction Game

Objective: to reduce food waste in your home and learn how much money you can save.

Game Play: place an empty bowl in a prominent location on the kitchen counter. Find something to use as markers, such as poker chips, pennies, or elbow macaroni and place a hundred or so in a jar (add more later, if needed). Determine the value of the marker; say $0.50, $1.00, or whatever works for you. Each time someone eats leftovers, or crackers from the open box or a piece of produce on the edge of spoiling, put a marker in the bowl (it may be useful to determine ‘acceptable’ actions ahead of time). At the end of the month, count the markers and decide what to do with the money you saved.

Do you have an idea for a food waste reduction game? Share it with other readers in the comments section.

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References

  1. NRDC – Saving Leftovers Saves Money and Resources, last revised 2014/11/19
  2. U.S. EPA – Municipal Solid Waste Generation, Recycling, and Disposal in the United States: Facts and Figures for 2012, February 2014

Resources