Archive for January 2022

My money motto: “what do you have to show for it?”

Have you ever had a job, stint or contract, which is long in the rear view mirror, which you are not only happy it is in the past, but was a bad experience? We have all had these jobs and experiences.

But not appreciating that job is different from gaining something out of it: if not the experience, then the money at least! It may be in the past, but have something to show for it, mainly some saved money.

From March 2017 through March 2020 – a stint ended by Covid – I drove part time for Uber. That is 3 years of working long weekend hours, night shifts away from my family and young son, and lots of mileage of wear and tear on my car. And while I did generally enjoy the job and learnt a lot from it, it is not something I would want to do again. It was a once and done type of thing. But here is the thing that made it worthwhile: in addition to using the income to pay for things, bills and vacations at the time, I also got to save more than half of that money. I wanted to be able to look at it when it was all said and done and be able to show something for this sacrifice I made. And yes, I considered the job as a sacrifice as it put me away from my family for long hours and nights. Not to mention, it was my second job besides my FT job. So it was tiring on the body.

Fast forward to March 2020, when the Covid virus started spreading and all the ensuing lockdowns, I quit my Uber driving job, and started working from home for my FT job. While working from home in the first two weeks, the stock market started to decline dramatically, to the point where a lot of stocks lost more than 50% of their value. I kept watching the market and by March 22/23, I made my move and bought several blue-chip, high yielding stocks, at amazing bargain prices. All, or at least most of it was from money I had saved from my Uber driving!

So I basically diverted this hard earned money to investment that has since gone up by over 35%, and I am getting regular and compounding dividends. As of last check, I am just over $1,500 in annual dividends.

Compare that to the alternative where I work Uber for 3 years, earned decent money, but never made that simple decision to save some of the money earned. I would basically have nothing to show for it. Thank god the reality is one where I get to enjoy the fruits of my decision to save a lot of the money earned, and be lucky to have had that money during a generational market downturn.

No matter what your revenue source is, be it a full time job, an online or driving gig, a side business etc.: always treat it like it won’t be there forever and need to save some money from it to make it a worthwhile investment of your time, effort and sacrifice.

It is a no brainer you need to save money. But it is even more important when it is a difficult side gig, one that puts you away from family and loved ones. The least you can do is to save some money from it so that you can look back at it and have something to show for it.

New Saving Idea for 2022: ‘Junk to Health to Wealth‘

I am no slave to junk food. I may eat it once or twice a week, sometimes with the family. But despite it not being a daily habit, it still goes a long way towards causing damage to both my pocket and health, especially with the rising prices for food of late.

So for 2022, I have a new saving goal in mind, which will help improve two hugely important areas of my life: my pocket and my heart, both in an almost literal sense.

Junk to Health to Wealth

The idea is simple: on the days I know I would go out and eat junk (usually over the weekend) I will withhold those purchases and instead save that money. At first, I thought I would just keep the money and spend it on something else, since it was part of my ‘personal spending money’ anyway. But I thought it is more effective if I diverted this saved money to a new saving program or even into a piggy bank. Why? To be able to physically see the result of this diversion initiative. In other words, in 6 months or 1 year from now, I will not only be able to go on the scale and see a difference in my weight , I should also realize some nice financial savings from this junk food boycott or reduction.

Putting it in OKR terminology

If you are thinking this in terms of ‘Objectives and Key Results’ , it could read something like this:

Objective: (based on historical data of how often I ate at junk food places and how much I spend) : To save $500 a year and reduce my weight by 7 lbs for the year by reducing how often I frequent these places.

Key results:

  • Visit max of once a week (from two)
  • Spend a max of $7.50 a visit
  • Skip at least once a month from the remaining regular visits.

If I eliminate my visits from 2 to 1 visit a week , this alone would result into savings of $375 per year, based on 50 weeks. If I can also eliminate one extra visit per month, that is another $90, putting me close to my goal of saving $500 from this ‘Junk to Health to Wealth‘ initiative.

While the numbers look clear and the advantages are numerous, this will not be without challenges and distractions. There will be those random days and weeks where you are out with the family and are too far from home or can’t wait , so you just do the easy thing and buy junk. That is fine. We should almost build those in and try to make up by skipping the next visit to eat junk.

Good luck if you decide to do this and let us in the comments below how it goes.