We had a rare mild sunny day here in Portland last week so we took advantage of it by going out to run around some nearby parks. First we went to feed the pigeons with a couple pieces of stale bread. The pigeons have been listless lately because it has been so cold, but today they didn’t disappoint. They were really hungry and there were more than 50 of them aggressively swarming us (plus about 8 seagulls.) Baby RB40 had a ton of fun feeding the pigeons and chasing them around. I pointed out the bird poop on the ground and told him not to touch them (cue ominous music…)
He harassed the birds for a while until I dragged him to another park. This park has a bunch of grassy hills and he loves to run up and down the slopes. He was doing fine until he fell down on his butt and his right hand landed on a piece of dog poop!!! His latest favorite word is yucky and he has been pointing out yucky stuff all day long. And as you can imagine, this damp pile was quite yucky. Anyway, he got a bit distressed and wanted to wipe his hands on my jeans. OK, normally I let him wipe his wet or dirty hands on my jeans, but dog poop? I told him, don’t touch anything and let’s go home. He got even more distressed and kept repeating “yucky yucky” so I had to let him wipe his hand on my jeans…
After he wiped his hand, I told him not to touch anything and started heading home. About 10 steps into it, he suddenly wanted to hold hands. Yes, the poopy right hand. Really? The guy was refusing to hold my hand just a few minutes ago. Fine, I figured his poopy right hand will be safer in my hand. He had been touching his face because he had a runny nose and I really don’t want him to do that with a “yucky” hand. Anyway, we rushed home, washed both our hands REALLY well, and threw our jeans into the hamper for momma. We called at work to let her know what happened and she had a good laugh out of it.
So what’s the point of this story? If I was still working for a corporation, I wouldn’t have had this dog poop story to tell. I never had this much fun at work and I hadn’t felt happiness in the office for many years. The office was pure drudgery for me and the only reason I stuck around was for the paychecks.
The next day, I caught a clip on NPR – Can Money Make You Happy? It was short, but interesting. For us regular people, we know money is related to happiness. We need enough money to pay for necessities and that will prevent us from being poor and unhappy. Once we reach a balance and start spending on luxuries, then each dollar spent brings only a little more happiness. It’s an intricate relationship and it can be difficult to figure out how to exchange money for happiness. I don’t want to write too much about the detail of Happiness Economics because I’m not an expert so you can read more at Wiki if you’re interested.
At the end of the program, one speaker asserted – “if money isn’t making you happy, you’re not spending it right.” That got me thinking about how I spend money because as you know, I am a pretty cheap guy. I have been pretty tight lately because my current income is just a small fraction of my old salary. However, I am much happier every single day. What’s going on here?
In my case, we have to think a bit differently. I gave up about $60,000 per year in take home pay when I became a stay at home dad/blogger. Giving up money is the same as spending money in my book so you can say I am spending $60,000 per year to spend more time with my kid. That seems like a lot of money, but I think it is well worth it. I am doing much better than when I was stressed out all the time. Baby RB40 is happy and healthy. He can read numbers from 1 to 10 and most of the alphabet. Mom is also happy and she mostly likes her job. Interestingly enough, she is also less stressed than when I was working.
Can money buy happiness?
If I stayed with the job I hated and had an extra $60,000 cash to spend every year, what would I do with that money? Can that much money buy the same amount of happiness? First of all, we can take $15,000 off the top for daycare so I’d have $45,000 left to spend.
In real life, I probably would just save and invest that money, but this is a thought exercise so let’s see what I can buy with $3,750/month.
- $400/month – Lease BMW 328i convertible
- $100/month – Smart phone
- $750/month – I would need a massage every other day to get the kinks out of my knotted shoulders and back.
- $100/month – Yoga every few days to calm down
- $400/month – Maid service, twice a week. (1750, still 2000 left…)
- $400/month – Regular baby sitter
- $600/month – 5 dinner delivery service/week
- $1,000/month – 2 very nice dinners out per week.
Wow, $3,750/month went by quicker than I thought. At the beginning of the list, I was having a little trouble spending much money. However, once I started buying services, the money went pretty quickly and I didn’t even get to traveling yet. Oh well.
The real problem is that I started in a hole of discontentment. Since I hated my job, I need to spend a bunch of money just to get back to parity. I don’t think it would even be that effective really. If I was happy at work (or at least NOT unhappy), then I could focus on spending that money more wisely.
Spending the right way
Experts on happiness recommend spending money on experiences and on others rather than things if you want to be more content with what you have. We love traveling and that’s what I should spend money on. As for giving, I’d probably concentrate on the local food bank. Nearly a half-a-million Oregonians were food insecure in the latest survey by USDA. That’s just not right.
Happiness can be elusive so if you have it, don’t let it go. If you are unhappy, figure out how to change the situation. The corporate job was draining so much out of me that I had to make a major change by giving up my engineering career. I could have tried changing jobs, but as long as I was doing contemplating the move, why not try something drastic? If you have money and are unhappy, you’re not doing it right. Figure out what really makes you happy and focus on that. I did, and I am much happier. Poopy hand and all.
Do you think money can buy happiness? What would you spend if you have $3,750/month of extra income?
For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.