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…

We Use 66% Less Electricity Than Our Neighbours

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Over the past few months, we’ve gotten pretty good about optimizing our finances, but our obsessively geeky need to optimize everything eventually led us to the website of BC Hydro. For those of you not in BC, BC Hydro is our main electricity distributor, serving about 1.8 million customers across the province. Since I moved into my place seven years ago, I’ve been paying bills from them every two months. They keep the lights on for us, but I never turn on too many. That’s why I suspect we’re one of the most energy-efficient households in our area. Pull up your own numbers and play along. It’s kinda fun being able to see your stats. Here’s ours.

BC Hydro has a thing they call Team Power Smart. You click a button and they start tracking your kWh usage for the next 365 days. Reduce your energy consumption by 10% from the previous year, and you get a $50 credit on your bill! Obviously, $50 is peanuts, but the seed had been planted. With raw data in front of me and graphs to show my progress, my goal now wasn’t just 10%. Now the question was, How low could I go? From November 2016 to November 2017, I somehow blew through 4,600+ kWh. To qualify for my credit, my goal from November 2017 to November 2018 is 4,191 kWh, but my stretch goal is actually 3,000 kWh. I crunched some numbers, and we seem to use 10.08 kWh per day on average, or 302.4 kWh per month. I briefly lamented not being on track for my stretch goal, but then I looked up average electricity usage in BC. “Households in BC Hydro’s service area average just over 900 kWh per month”! We’re literally 3x more efficient! This only strengthened my resolve. If BC Hydro was giving me $50, I might as well use it for good. Time for some online shopping.

A few nights ago, I came home to a package waiting for me: the Kill A Watt P4460 I’d been eyeing for months. The order total was $45.84, but I knew this’d save me more in the long run. With the ability to plug it into just about anything and immediately see a cost forecast by week, month, or year, it’s giving me the data I need to be smarter about energy consumption. I no longer use a PS4 as my main streaming device, and now use an Apple TV I got through a barter. According to this, a PS4 “consumes 89 watts per hour when streaming video”, “35 to 40 times more power consumption” than an Apple TV. Because I was an idiot just a few years ago, I once had five PlayStations all humming away in my living room. Now: one Apple TV. I haven’t noticed any decrease in life satisfaction. In fact, I think I’m happier.

Our light bulbs are almost all CFL now too. Technically, LEDs use less electricity, and buying them kinda makes sense, but not really. Computers also go to sleep more often, and I’m even reading about energy-efficient cooking (except that barely even matters).

Annnnnd… that’s kinda it. There’s pretty much nowhere else we can be more efficient. I limit screen time anyway, so instead of a 50” HDTV running all the time, I listen to audiobooks on my iPhone. (Current binge: “Happiness by Design” by Paul Dolan.) Also, I went back in my BC Hydro history, found the oldest bill I had, and I’m apparently paying 18% less per bill now. See why I’m a data geek? Saving hundreds now means thousands later. We’ll most likely revisit our energy consumption this November and see how we did on our challenge. In the meantime, I’ll try not to seem like such a weirdo typing on his keyboard in the dark.

If you’ve got weird energy-saving tips, let us know in the comments. How do you think we’re doing? Is 10 kWh/day a lot for three people? Let’s get competitive and save some money.

PS: We pay a base cost of $0.18990/day, and $0.08580/kWh. What’s your rate?