Are The Extras Holding You Back?

Have you ever heard a financial independence enthusiast use the term I pay extra for that? *I pay extra for childcare, or I pay extra for *a cleaning lady. It seems like we use this code to apologize for the fact that we aren’t doing something ourselves. There is a frugal way, and a non frugal way, and sorry but we chose to spend! While I truly understand why this sentiment arises, I also wonder if we are setting our expectations too high. Are you really shooting yourself in the foot? Are the extras holding you back from financial independence? Or is it ok to spend for convenience?

A Basic Misunderstanding

I stumbled for years on the concept of financial independence. I kept on trying to figure out the optimal salary, the optimal net worth for early retirement. The fallacy of those early days, however, was that I was completely oblivious to the spending and budgeting side of the equation. No wonder why I couldn’t understand the definition of enough, I had no idea what a comfortable budget looked like.

After reading extensively, I set out to track my spending. I quickly realized that enough looked quite different depending on how I used my discretionary spending.

What followed was a maniacal tail spin into cost cutting. Could we get rid of our help around the house? Could we jettison one of our cars?

The more I considered, the more fat I found to cut from the budget.

Are the extras holding you back?

Why yes, yes they are!

Possible Vs Plausible

The further down the path I ran, the more I started to question my original assessment. We could get rid of our babysitter who also did the laundry and dishes three days a week. That could cut our budget radically and trim hundreds of thousands of dollars off our FIRE number. But then, was I going to leave my high paying day job to vacuum floors and wash dishes? While I don’t mind housework, would this make me feel more in control than the work I was already doing out in the world?

As opposed to asking are the extras holding me back, should I not be wondering if, conversely, the extras are setting me free?

I don’t enjoy mowing the lawn. If I work an extra thirty minutes a week, I can pay for that. Is it worth it? Which activity leads to more personal happiness?

Decisions

I faced these difficult questions earlier this year when I left my concierge practice. At that time, I had enough work to keep me fully engaged Tuesday through Thursday. My Mondays and Fridays would be completely open after a couple of hours rounding in the early morning.

This schedule provided the perfect opportunity to cut the budget. I could get rid of our housekeeper and extra childcare, and do the work myself. Mop the floors, clean the toilets, do the dishes and laundry, grocery shopping. I would have at least ten hours a week to devote to these various activities

Or, I could take on a new lucrative consulting opportunity that had bubbled to the surface unexpectedly.

The Pleasure Principle

Ultimately, I decided the answer was no. The extras are not holding me back. Financial independence, for me, was not only about spending reasonably but also making a large W2 income. I would gladly spend more money avoiding something I found unpleasurable in order to free up time and energy to create new revenue.

Hour for hour, the consulting gig seemed a heck of a lot more fun and interesting than cleaning the house, stocking the pantry, and vacuuming the floors.

It was personal decision to increase happiness.

Isn’t that the point of money?

How about you? Are the extras holding you back? Did you find your path to financial independence shortened by insourcing?