Buying Peace of Mind.
I used to be really into financial stuff. I read all those books “The Millionaire Next Door” “Rich Dad Poor Dad” etc. Of course, I’ve been a subscriber to “Get Rich Slowly” for a while too. (Got linked there a few months ago) And then I threw all that shit out the window and have never been happier. I used to check my bank balance constantly, I monitored my credit card bill all the time and generally stressed about money at every chance I could. Don’t get me wrong, it allowed me to save a lot of money but it made me miserable. I do still think it’s important to keep a check on your credit score however. As this article from lendingexpert.co.uk demonstrates, you can be rejected for a credit card or personal loan on the basis of your credit score. But I’ve still had to make some changes.
Today was the final straw. Look at this list of ways to save money at GRS:
* Get rid of cable television.
* Unplug all appliances.
* Drive less.
* Buy generic.
* Cook from scratch.
* Drink only water.
* Don’t eat out.
* Never buy garbage bags.
* Minimize the use of heat and air conditioning.
* Buy used.
At what point does frugality trump enjoying life? You work everyday but you don’t deserve soda? There is a fine line between self-discipline and self-flagellation. That stuff infuriates me, it’s about control not efficiency. We work so we may fully experience life, afford ourselves opportunity for meaning and satisfaction. Why on earth would you nickel and dime yourself in that way? I would assert that the humiliation of scrounging for trash bags isn’t worth the 2 dollars you’d spend on a box of them. The air conditioner was invented to make life in a house more pleasant, cheaply. So use it. I could keep going, and explain the reasons that a used clothing, awful home cooked dinners, bicycling, appliance-less lifestyle is cheap for a reason, but it’s not worth the time. All I have to add is this:
For the first time in my life I’ve stopped caring about money. I ceded control and just let it ride. I’m working more than I ever have for relatively little but it doesn’t bother me. It will all work itself out in the end. I’m investing in my happiness instead of some arbitrary number. What’s that line Ray Liotta said in “Blow,”…”money isn’t real, people just think that it is.” The benchmark I use now is “Would I pay someone to take this off my mind?” and if the answer is yes, I consider the consequences the cost and proceed without worry. Sometimes–as Tucker pointed out to me–they’ll be high but all the lows will even it out. Isn’t ridding yourself of the burden worth it? How enjoyable can life be when you refuse even the most basic sustenance technology?
So seriously, throw away the all that shit–your recycling box, your parking tickets, you neurotic habits–and see if your quality of life improves. I’ll bet you’ll be more productive and happier. The money you don’t save in the process is just payment for services rendered and I’d say that’s a pretty good deal.
Let me know if you really did throw the books out the window. I am willing to buy it from you for fair market price.
It appears you swung too far to one side of the pendulum and as a reaction are now swinging to the other side.
I would be cautious with the approach you plan on taking. One of the most valuable skills you can have is being financial literate.
With the article you just wrote, you come off as a sucker.
Quotes from Angles, Hustlers and Suckers by Robert Greene.
“You can’t learn con by memorizing words. Every mark and every play of any con game is different. You have to memorize the elements of con.” A sucker wants formulas he can memorize and plug into situations. He has no flow because he is so rigid in his mind. The hustler has flow because he plays for the overall game, knows the elements, can improvise and make angles where no one else sees them.
“I don’t lag my bills like a sucker.” Suckers have the wrong relationship to money. They try to save pennies here and there, or grasp for the big kill that has all the odds stacked against it. Money brings out all of their neuroses. A hustler understands money. It is a tool for power, for con, and a resource for pleasure. And he always knows the odds.
Here is a great quote from Rich Dad Poor Dad.
“Today we live in times of greater and faster change than these men did. I suspect there will be many booms and busts in the next 25 years that will parallel the ups and downs these men faced. I am concerned that too many people are focused too much on money and not their greatest wealth, which is their education. If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer through the changes. If they think money will solve problems, I am afraid those people will have a rough ride. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.”
If you are willing to keep an open mind, I have a lot more information I would like to contribute.
Most of us will never get rich, but there is easy ways to avoid getting suckered. We will eventually have to make financial decision that will play an important part in our lives. From mortgage, loans, credit cards, investing, savings, etc… You can compare it to Tim Ferris 4-hours work week book. The majority of people will never live his life, but they can take simple steps in reaching a level they might feel content with. Does that count for something?
Time is money. You have plenty of time to make money so there is no reason you should have to settle for a used product you hope will last versus a new product that costs a little more of your time. Work 45 hours instead of 40 and you can afford the new one and a warranty. There is a line where buying a new product would be dumb when the used works fine, but for most things there is a good saying: If it was returned, there is a reason they returned it. People decline 15% of total product cost repair protection agreements from my business. If it has an engine in it, it will need to be repaired. But they would rather save a few bucks ($15-60) and delude themselves that it will stay new forever, some even not knowing a mechanic that could fix it outside of the store ($80+ each).
The city picks up my recycling with the trash, but even if they didn’t I would still do it. A few minutes a month to be better than the average mouthbreather? I will do it. And if everyone threw everything away, that much more trash we have to bury.
Taking life too seriously can suck, factoring money in there can too. Thanks for sharing, Ryan.
Taking life and money too seriously can suck. Your blog is great. It helps me to find someone writing about things that matter to a young man trying to do good. Good work.
Robert,
You’re just wrong. There is a difference between being financially illiterate and being literate but rejecting the message. I’m putting myself in the latter category now.
It’s just not worth the daily grind of pinching pennies. Why waste all that time, energy and stress when you could pay a little to take it all off your shoulders?
A lot people die wishing they’d been happier but very few wish they’d left more in the bank. And I can’t think of anyone who enjoys not owning trash bags.
I think what Robert was trying to get at was the idea of having a financial reserve from which to draw in times of crisis or if an opportunity presents itself. I agree quite a bit with what you say about the casual, everyday things, but when it comes to things like automobiles (who have notorious depreciation issues the minute you drive a new one “off the lot”) and the latest tech gagdets, buying used probably is smarter.
I don’t check my 401K,IRA,etc on any regular basis, but what I am cognizant of is the retirement talk I attended at age 21 (in the mid 90s) in which the speaker said the primary reason to have multiple accounts/investments was not to travel the world and live in luxury, but to be assured that you could afford healthcare of some degree. Even though I don’t agree with that premise, this seems pertinent given the looming impact of the baby boomers’ demise, and the future of soc. security, healthcare, and quite a few other things after that generation is gone.
As an aside – since you’re so physically active, I would think you’d prefer not drinking soda or eating out since you could better control your diet vis-a-vis your goals for conditioning, by cooking for yourself (which is a skill everyone should possess, IMO).
I enjoy reading your blog, please keep up the good work.
I hear from a lot of people that they have to earn money to support their wife/family/cats/whatever.
If you spend your whole life being a supportive breadwinner who never achieved anything else, you know what happens at the end. You die, same as someone who lived life to the full from moment to moment.
I couldn’t respect myself, and I wouldn’t expect others to respect me, if I merely existed rather than lived.
“The best investment you can always make is in yourself. If you want to secure your financial future, invest in your own knowledge.”
“Evaluate your lifestyle. People forget that sometimes the best investment they can make is in wisely buying things they know they will use. If you track what you use and consume, whether its gas vs bus fare, buying bulk quantities or other discretionary spending, you can save more and earn a far greater return than you could in the stock market. If you can save 10pct per month on a hundred dollar per month budget, thats 120 bucks you can put in the bank. Thats the equivalent of earning 12 pct on a 1k dollar investment. If you can cut 100 bucks per month off 1k dollar monthly budget, thats like earning 12 pct on 10k dollars. Thats pretty darn good. Spend smart, put your savings in risk averse, interest earning offerings.”
-Mark Cuban
“The most obvious failure of our education system is the number of ‘educated’ people who are financially illiterate and seem to have no concept of personal responsibility.”
-Steve Olson
I agree with you about the penny pinching, but I disagree with your disregard to educating yourself financially.
You don’t have to take my word, but if you get a chance look into reading the articles I linked below.
Mark Cuban
My Investment advice for 2006
http://www.blogmaverick.com/2006/01/02/my-investment-advice-for-2006/
The Stock Market is for suckers….
http://www.blogmaverick.com/2006/01/03/the-stock-market-is-for-suckers/
Investing – The Good News – The Longtail of Investing
http://www.blogmaverick.com/2006/01/04/investing-the-good-news-the-longtail-of-investing/
Steve-olson
Personal Responsibility is the Cornerstone of Financial Literacy
http://www.steve-olson.com/personal-responsibility-is-the-cornerstone-of-financial-literacy/
You’re misreading Cuban. His point is that if you invest in yourself now, in activities that help you (books, dvds, trips, etc) they will eventually pay for themselves many times over. That’s my point here. What dividend are you reaping by wearing used clothes? Does shopping at Goodwill really pay off in self-esteem, in first impressions, in efficiency, in quality? Of course not.
And Rob is right. If saving money helps you live a life of meaning then awesome, but in most cases it’s about creating a meager existence, which is awful.
As for soda and eating out–my time is worth a lot, to me and to other people, so I’d rather not waste it cooking. And for the record, there is nothing wrong with rewarding yourself. Ever.
Pop finacial self-help books are shitty way to learn about finances. It’s good to hear someone else has learned to stop let money use them, and start using money.
peace of mind hmmm