Andy Free's Blog - Posts Tagged "value"
Being Thrifty is Good - But Is Saving Money Holding You Back?
Is "stupid thrift" holding you back in your creative endeavors? I'm writing about a certain type of thriftiness that I have learned to mock in myself, because it is so damaging in its effects.
What is "Stupid Thrift?"
Everywhere I turn, I see people expending large amounts of money – or time, which is far more precious and irreplaceable – in order to save small amounts of money. I do this too – we all do illogical things relating to money and time. For example:
• Getting a hybrid or electric vehicle that is so much more expensive than a regular car that, with depreciation considered, you’d have to drive around the planet every month to break even.
• Clipping coupons and driving all over town (in your brand new hybrid or electric vehicle) to comparison shop and get the best deals.
• Buying a $5.00 cappuccino at Starbucks at the mall (because you’re now tired from all the driving around).
• Coming home exhausted, after the caffeine and sugar high is gone, and therefore not _____ (fill in the blank: doing the hobby you love, spending quality time with friends and family, etc.)
The last example is the highest cost of any of the examples, because it is the opportunity cost – the opportunity you missed out on because of the other choice you made.
My background
I work as a project manager on large technology projects. I’d like to think I do a pretty good job at that. By training I am a Finance major (summa cum laude at a good school) and have an MBA. I also have a music and writing business on the side that is coming along well. But I had to laugh at myself one day as I was on my third (and so far unsuccessful) attempt to build a high quality home recording studio. I thought to myself, “Boy, you really are a dope as a project manager in your own life!” Here’s why:
Back in 2000, I went to the local music store to get advice on how to set up a home studio. They said, “Get a Mac, Macs dominate the industry and have 80 – 90% market share among professional users.” Now, I’m not here to argue the benefits of one platform or the other – I use PCs and Macs and they each have their advantages and disadvantages.
What I’m trying to focus on is a quirk of behavior that many of us fall victim to. I call it "Stupid Thrift:" the strong urge to save money that overcomes the perception of or thought process about value. So, when I heard about how much the Macs cost versus PCs (about triple at the time), I was offended. “There is no way I am going to spend that kind of money,” was my reaction.
Clues to Stupid Thrift at Work
And perhaps that is clue number one: These ingrained habits of thought usually are expressed in emotional and categorical ways.
Clue # 2 - the Parental Culprit
That, in turn, leads to clue number two: If you listen carefully, you will often hear a parental overtone to that inner, highly opinionated voice. Parents, in their well-meaning way, often stress the life lessons they think are important. Enough parental repetition, and those simple ideas about saving money being a good thing become ingrained.
Why is this a Problem?
The problem is, these ingrained emotional sayings tend to short circuit real thinking about value. Now, I use those sayings (when they bubble up from whatever brain swamp they come from) as red flags. “Hmm,” I tell myself, “That sure sounds opinionated. Bet there’s something stupid and counter-productive lurking there somewhere.”
So What Are Others Experiencing?
Is stupid thrift a factor in your life? Is it holding you back from creative pursuits, or making them harder and slower than they need to be? Remember this: You are a person with irreplaceable and unique gifts. And guess what, regardless of what you may believe about the afterlife, you are not immortal in this life. Money is a means to an end, and nothing more. Using it wisely for true value can mean spending it, sometimes in significant quantities.
Avalon: Companions
What is "Stupid Thrift?"
Everywhere I turn, I see people expending large amounts of money – or time, which is far more precious and irreplaceable – in order to save small amounts of money. I do this too – we all do illogical things relating to money and time. For example:
• Getting a hybrid or electric vehicle that is so much more expensive than a regular car that, with depreciation considered, you’d have to drive around the planet every month to break even.
• Clipping coupons and driving all over town (in your brand new hybrid or electric vehicle) to comparison shop and get the best deals.
• Buying a $5.00 cappuccino at Starbucks at the mall (because you’re now tired from all the driving around).
• Coming home exhausted, after the caffeine and sugar high is gone, and therefore not _____ (fill in the blank: doing the hobby you love, spending quality time with friends and family, etc.)
The last example is the highest cost of any of the examples, because it is the opportunity cost – the opportunity you missed out on because of the other choice you made.
My background
I work as a project manager on large technology projects. I’d like to think I do a pretty good job at that. By training I am a Finance major (summa cum laude at a good school) and have an MBA. I also have a music and writing business on the side that is coming along well. But I had to laugh at myself one day as I was on my third (and so far unsuccessful) attempt to build a high quality home recording studio. I thought to myself, “Boy, you really are a dope as a project manager in your own life!” Here’s why:
Back in 2000, I went to the local music store to get advice on how to set up a home studio. They said, “Get a Mac, Macs dominate the industry and have 80 – 90% market share among professional users.” Now, I’m not here to argue the benefits of one platform or the other – I use PCs and Macs and they each have their advantages and disadvantages.
What I’m trying to focus on is a quirk of behavior that many of us fall victim to. I call it "Stupid Thrift:" the strong urge to save money that overcomes the perception of or thought process about value. So, when I heard about how much the Macs cost versus PCs (about triple at the time), I was offended. “There is no way I am going to spend that kind of money,” was my reaction.
Clues to Stupid Thrift at Work
And perhaps that is clue number one: These ingrained habits of thought usually are expressed in emotional and categorical ways.
Clue # 2 - the Parental Culprit
That, in turn, leads to clue number two: If you listen carefully, you will often hear a parental overtone to that inner, highly opinionated voice. Parents, in their well-meaning way, often stress the life lessons they think are important. Enough parental repetition, and those simple ideas about saving money being a good thing become ingrained.
Why is this a Problem?
The problem is, these ingrained emotional sayings tend to short circuit real thinking about value. Now, I use those sayings (when they bubble up from whatever brain swamp they come from) as red flags. “Hmm,” I tell myself, “That sure sounds opinionated. Bet there’s something stupid and counter-productive lurking there somewhere.”
So What Are Others Experiencing?
Is stupid thrift a factor in your life? Is it holding you back from creative pursuits, or making them harder and slower than they need to be? Remember this: You are a person with irreplaceable and unique gifts. And guess what, regardless of what you may believe about the afterlife, you are not immortal in this life. Money is a means to an end, and nothing more. Using it wisely for true value can mean spending it, sometimes in significant quantities.
Avalon: Companions
