Money and Convenience Are Basically The Same Thing

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Hot pot is glorious. Somewhere, deep in my childhood memories, I have vague recollections of bubbling broth, delicately rolled sheets of meat, odd dipping sauces, and questionable food safety, and it somehow became one of my favourite ways to enjoy a meal. Looking now to recreate it – which I did this past weekend with spectacular results – I’d found myself standing in the veggie aisle of an Asian supermarket. In small packages, there were cremini, enoki, shiitake, and white button mushrooms, but there was also a “hot pot mix”, cleverly portioned out to be exactly what I needed. In a moment of weakness, I ignored the $8.98 price tag and put them in my basket. Given a choice between “I could buy the individual packages and get more mushrooms for the same price” and being a bad chef, I became a bad chef. I chose convenience over money. After all, like everyone else, I may as well pay for convenience… right?

This got me thinking though. When you get right down to it, that’s all we ever pay for. You buy a car to avoid walking multiple kilometres to work every day. You buy a computer to avoid doing all your scheduling, task managing, and socializing via pen and paper. You buy meat so you don’t have to raise chickens or gut a deer. Perhaps, if all you want is to live a wealthier life, it may be as easy as letting in some inconvenience!

I know this is certainly true for me. I eat takeout and $8.98 mushrooms more than I care to admit, and I still haven’t ventured into brewing my own beer. We’ve also talked about not owning things if you can help it, but I still have so much crap, I have to give/throw stuff away regularly. Suddenly, I wanted to know what an inconvenient lifestyle looked like, based on my daily expenses.

Wake up.
Brew my own coffee.
Make myself a sandwich for work.
Bike to work.
Drink tap water.
Eat the sandwich on my break.
Bike home.
Make a quick dinner.
Drink a homebrew.
Read articles online.
Go to bed.

This is, of course, regular daily living for countless people and the joie de vivre of many a Mustachian. I decided to go ahead and define my barriers to success.

I would need to buy a coffeemaker.
I would need to make more time for grocery shopping.
I would need to buy another trike (because the last one was stolen).
I would need to purchase equipment for homebrewing, and I don’t have a passion for it.

That’s it! At this point, I found it genuinely weird I’d have to buy things to make my life more inconvenient on my terms, but as it’s such a simple fix, it may be worth investigating. The coffeemaker, for instance, could be a great investment. Coffee currently costs $0.55 at the local 7-Eleven, but coffee at home is more like $0.08. It seems pretty insignificant, but a year of coffee at home instead of 7-Eleven java saves me $171.55, enough for many coffeemakers! Now, I just wish I liked homebrewing…

The obvious takeaway is introducing inconvenience means more money in our pockets. Getting back on a trike would save me from $60 tanks every month for an extra $720/year. Add car maintenance – my last bill was $715 – then add the coffee, and I just pulled $1,500+ out of my ass by slightly inconveniencing myself!

Try doing a similar exercise to the one above, and ask yourself, “How inconvenient can I make my life?” It shouldn’t be too scary at all. Determine your barriers to success, and figure out how much money you’d save. I’m not telling you to dumpster dive or use toilet paper stolen from library bathrooms, but think about it this way: With virtually every consumable, you can either choose to walk away with Money or Convenience.

How rich do you want to be?

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Pleasure-Purpose-Purchase, or Should I Buy This?

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“[H]appiness is experiences of pleasure and purpose over time.”
– Paul Dolan

Now that we know happiness can be quantified in numbers – (Read this first.) – I suddenly realized this was a massive breakthrough. In our last post, we applied a pleasure and purpose metric to activities to figure out how happy they were making us, but we missed the obvious: What if we applied the same pleasure and purpose metric to purchases? We’re a personal finance blog after all. It’d be stupid to not talk about money.

Anyway, I adopted this scoring system for any purchase over $10 I was considering. The first number is the pleasure I can expect from my purchase rated from 1-10, the second number is its anticipated purposefulness from 1-10, and the third bit is whether or not I bought it. Score anything you’ve recently wanted to buy accordingly! Recent pleasure-purpose-purchase scores for me have been stuff like:

Allergy medication: 4-9-Y
4-pack of rare beer: 7-5-Y
New Fitbit wristband: 6-2-N
All-you-can-eat sushi dinner: 7-4-Y
New audiobook: 6-3-N

In order for me to say yes to a purchase, my pleasure and purpose scores must add up to at least 10 out of 20. Otherwise, I put it back on the shelf. (For you, your score may be different. You might have something be 2-4-Y after mentally justifying it, and you might even set your purchase threshold at 8 out of 20 or lower.) Even now, this is stopping me from making purchases that won’t make me significantly happier. Look at what else I’ve been saying no to:

New 4K 55” TV: 6-2-N ($400)
Profoto A1 camera flash: 3-6-N ($1,000)
6-pack of craft beer I’ve tried before: 5-3-N ($15)
Food mill: 5-4-N ($45)

These are all things I want, but after scoring them all, I realized the money was better saved and invested. Besides, I already had a 50” TV and old flashes, which is why I ranked purpose relatively low. Let’s say I would’ve bought all that stuff this month were it not for the P-P-P score. I would’ve spent $1,460. Invested using the 10X rule, that’d be $14,600 by retirement in one month alone!

Can applying this scoring system to your discretionary spending save you tens of thousands of dollars? I think it will. Think about this and score your next few purchases, then comment below with your findings.

In the meantime, I’m gonna have some of that 7-5-Y beer. Mmm, unnecessary luxury…