Lazy Man and Money

Introducing Lazy Man and Wealth

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I used to think that money and wealth were the same thing. That was a long, long time ago when I started this blog. Now I know better.

When I think of money, I think of a currency that can be measured. For example, a person may say they have a net worth of $100,000 or $1,000,000 or even $10,000,000. That’s money. Wealth is applying money to live your best life.

Let me give you an example. We had quite a bit of money a few years ago, but I didn’t feel wealthy. Much of it was tied up in retirement accounts or real estate. If we had to access it, I would get a sick feeling. We still had to live a bit frugally. That changed when three things happened:

  • My dog boarding business took off. We had a lot more cash flow, so it was no problem to spend a little more.
  • We sold a rental property. We took much of the money and re-invested it in a brokerage account. While it’s not your typical “emergency fund,” it feels like one. The only penalty for selling the stock is paying the potential capital gains tax. There’s no penalty like there is with cashing out of your retirement money.
  • My wife got a promotion. That’s more cash flow.

The big change is more cash flow and access to a good amount of accessible money. That buys peace of mind, which makes me feel wealthy.

What Does Wealth Mean to Most People?

When Charles Schwab asked people what made them feel wealthy, it wasn’t a fancy car or designer clothes and accessories.

Most people said three things make them feel wealthy:

  1. Enjoying experiences more than buying stuff.

    I’ve long said that experiences are worth more than stuff. It’s fairly common in personal finance circles. Much of the philosophy behind FIRE is based on valuing your time (years of financial freedom) over flashy status symbols

  2. Eliminate Stress about Money

    Sometimes, when you go through a social media feed, you feel you must keep up with the Jones’. However, what makes people feel wealthy is being able to deal with a $600 car repair and not worry about it.

  3. Don’t Work too Hard

    People channeled their inner “Lazy Man” with this one. They appreciate work-life balance. So, for example, if you are a doctor or a lawyer, you might make a pile of money. However, you might work long hours and be on call. Many people wouldn’t think that they’re truly wealthy with that lifestyle.

That sounds a lot like me. The only one that I’m on the fence about is the first one. I’ve gone back and forth on experiences vs. possessions because some possessions lead to great experiences.

One very interesting part of the article seemed a little off the topic. Nonetheless, I love the idea. The thought was about being mindful of how you view your vacations. Specifically, this line stood out:

“Does a vacation feel as good as it does because you’re sunbathing on an island or because you’re uncomfortable at your current organization?”

I had to do a lot of introspection on this one. For me, it’s the time to reset from my usual routine. Working from home, I don’t get out much. When I do, it’s usually quick trips to grocery shopping. For a reset-type of vacation, I can do something cheap. However, there’s another factor to consider. We live in a closed-off community with little diversity. There’s a lot of value in a vacation that gets the kids exposed to different cultures. Those require more travel and aren’t as cheap.

Final Thought

Would it have been better if I named this blog Lazy Man and Wealth? I don’t think so. In the minute that they are deciding whether to read this site, I think “money” expresses the core concept of most of the articles. It’s up to readers to use that money to define their version of wealth.

Three Reasons I Will Never Be Rich

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Yesterday, I discussed Twelve Reasons I Will Be Rich. Today I’m going to look at the flip side and give you three things that are preventing me from being rich.

  1. I’m Lazy – The was an obvious one, wasn’t it. People who know the online Lazy Man, would argue that I’m always commenting, participating in forums and Google Groups, etc. Offline Lazy Man is the complete opposite. I procrastinate getting going is the mental equivalent of climbing a mountain. This is the reason that everytime I get a great idea for a product or service, it doesn’t lead to anything. I’m too lazy to follow through.
  2. I’m a Horrible Networker – Much like the previous point, online Lazy Man is the exact opposite of offline Lazy Man. Online Lazy Man has about 17 email thread going on with other bloggers at all times. Offline Lazy Man finds meeting people and extraordinary difficult thing to do. It may be simple shyness or it may be social anxiety disorder.
  3. I’m the Slowest Reader I know – I’d say I spend about 70% of my non-sleeping day reading. Whether it’s other programming code for work or websites, I’m usually reading. When I’m not reading on a computer, I’m reading magazines. Ironically, since I never read books, Energi Gal complains that I don’t read enough. The problem is that I’m such a slow reader that it takes 3 minutes a page no matter what the content is. It could be a picture book and it would take me 3 minutes to read a page. The only thing I have going for me here is that I have as close to perfect comprehension as I think there is. People ask me questions and I’m able to dig up references that I’ve read 9 months ago with a couple of Google queries and pass along the answer.

I’m not sure I’m ever going to overcome #1. I’m hoping to within the confines of it, utilizing my online work ethic. I think I can also overcome #2 to some extent. I read that if I read How to Win Friends & Influence People, it will be helpful. I’d like to work on #3. If anyone out there has taken any good speed techniques, I’d love to hear about them.

Perhaps these won’t prevent me from being rich.  More than likely, they are simply preventing me from reaching my full potential. Let me know in the comments.

Twelve Reasons Why I Will Be Rich

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Jeffrey Strain writes 10 Reasons You Aren’t Rich for The Street.com. He also writes the popular Personal Finance Advice. The ten reasons are great, but before we get there, I have a couple points of minor criticism.

The title says “rich”, but the introductory paragraph implies that means having a million dollars. Many would disagree in this world of inflation that a million dollars is equivalent with being rich. As an example, it buys a nice little home in my area, Silicon Valley.

My other criticism is that the title is present tense. It heavily implies that if I have followed all ten reasons to this point, then I am rich. Then that promise is broken in the opening paragraph with the words “or on your way to becoming [a millionaire].”

The ten reasons are well worth the read. I personally liked “9. You’re Financially Afraid.” It’s a big reason why I don’t tie up a lot of money earning 5% interest in a high interest bank account. After inflation and taxes, you’re lucky if you make a dollar or two. At the end of the article, I realized that I’m following all the rules, so I’m on my way.

I’d still like to add two more reasons reasons “why you are not rich”:

11. You Need More Time – If you do all these things at age 60, you aren’t going to be rich at age 62.

12. You Need to Have Income -  Many people will say this is not true, that’s it’s always possible to spend less than you earn.  Back in the Dot Com bust, I had lost all my income except for the occasional contracting gig.  I became a frugal maven out of necessity.  I would not have become rich with that life style though.