Money and Convenience Are Basically The Same Thing


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?


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


“[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…

Can’t Handle FIRE? Try To HEAL!

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It’s 6 in the morning and I’m on a SkyTrain headed into Vancouver. From the looks of it, I’m the only one not on his way to work. The suit next to me is reading Bloomberg articles on his phone, and half the passengers are nodding off. I can’t imagine most of them want to be here. I’m listening to Taylor Swift on my iPhone and enjoying the ride because I have nowhere I need to be. My only goal for today was to write this, and I can do it from anywhere! This is the story of how I found freedom and lifelong happiness at 29. Hopefully, by the end of this post, you’ll be on your way too.

If you haven’t heard of FIRE before, it’s an acronym in personal finance writing that stands for Financially Independent, Retired Early. The Physician on FIRE guy? Not actually on fire. He’s just a family man who achieved financial independence at 39. You see “FIRE” kicked around a lot on the MMM forums too, and it’s a goal of many. It turns out most people don’t actually want to work for a living! I mean, given the choice between lounging by a pool in Guadalajara and a lifetime of office drudgery, most of us would be marching out on our bosses and guzzling Corona in no time! Well, I’m here to tell you things aren’t actually that simple. You might not actually want FIRE! To understand why, let’s take a closer look at its definition.

FIRE is generally defined as the stage a person reaches when the return on their investments is enough to cover their living expenses. A quick bit of math you can do to figure out your FIRE number is to take your annual expenses and multiply by 25. (If you spend $25,000/year for example, your FIRE number is $625,000. Start saving.) The reason for this is 4% interest is a generally accepted estimate of how much you can reliably make off the average portfolio. It’s somewhere between too-safe 2% GICs and somewhat-risky 7% index funds, and 4% just kinda became the default number. At any rate, I have no reason to dispute its logic. 4% certainly makes sense to people far smarter than I. However, FIRE is no longer a goal of mine. Part of the reason is the numbers are outside my grasp — I’ve done the math and I have no delusions about my ability to save — but I’ve also grown up a bit and experienced a different view of retirement. I now know what it’s like to barely work at all, and what I’ve found is it actually totally sucks! I needed to create value in the world to feel fulfilled, and sometimes, people were willing to pay me to create that value! Why wouldn’t I take the money? So what if someone might define that as “work”? Retirement sounds great on paper, but do you never want to work for anything ever again and just lie back and consume? Fuck, no!

With this in mind, I started optimizing my lifestyle. I needed freedom whenever I wanted, some work to feel useful, autonomy in my professional life, and enough money to have fun. FIRE wasn’t the solution because many FIRE followers try to frontload all their earning towards their early years working brutal hours, then they putter around not knowing what to do with themselves as soon as they retire! The Mad Fientist retired at 34, spent months travelling, then “realized it wasn’t making him happy”. Mr. Money Mustache basically went back to work doing construction and managing rental houses. If FIRE is so great, why are so many success stories plagued with ennui or employment akathisia? Well, it’s because full-on, work-hard-now-to-never-work-again FIRE is just too extreme. Fundamentally unbalanced, it takes too much effort in early life and too little effort in later life. In theory, it’s a great goal to work towards, but maybe there’s a better solution that can give you the good life now. I call it “HEAL”.

HEAL stands for Half Employed, Adjusted Living. It’s my way of describing a balanced lifestyle that involves half or less of a typical 40-hour workload, and adjusting your lifestyle to afford that freedom. You can achieve HEAL in a variety of ways, even if you’re young. For example, you can bump your income up so you only work 20 hours a week and spend the same as before, or you can go frugal so you can live off 20 hours of regular pay. For most, going frugal is easiest. Part-time work and frugality are key to HEAL. Some people even bump up their income and go frugal, and those people have it made. Though they might even achieve FIRE, they know “no work” isn’t the goal. What you want is the freedom to only work when you feel like it.

Here’s my situation: The last time I calculated my monthly spending, I arrived at $1,948.18. I’m bringing on a second roommate in a month or two, and the rent I charge him will cover my entire Bills category, eliminating at least $447.29. This puts me at just over $1,500 I’d need to cover in income. Working 20 hours a week at my low-pay liquor store job would net me about $1,100, and the remaining $400 could easily be covered by any photography booking! In fact, since I bill $400/hour to shoot weddings, even a single 8-hour booking covers me for 8 months! (The photography work is spotty, so I’m hesitant to provide monthly numbers. It fluctuates from $0 with no bookings to months like April 2016 when I somehow earned $6,353.41 without even shooting a wedding.) Naturally, any excess income from photography goes straight into paying off my debt, and once that’s taken care of, I’ll be trying to max out my TFSA! I’ve got this whole “HEAL” thing down! I’m “Half Employed” and my “Adjusted Living” made ~20 hours a week work for me!

If HEAL sounds good to you, here’s some recommended reading. First off, if you’re still unconvinced that you might actually want to work for the rest of your life, check out our previous blog post, “I Want You To Half-Retire (HR)”. Finally, consider picking up the Marcus Arce book, “HALF RETIRE – How to Escape the Rat Race Without Waiting to Win the Lottery!” At a cursory glance, the math in it checks out. I’m using strategies from it already.

By realizing I wanted HEAL and not FIRE, I’ve freed up my younger adult years to do whatever I want while working just the right amount to be even happier. Click the links in this post and all over this blog, and read them. People need work, and yes, I do intend to work even when I no longer have to! If you think of Work as a dirty word, it’s because you need a better job!

At 29, I’ve found the lifestyle I intend to have forever, and I didn’t even have to worry too much about retirement. What the heck is stopping you?