Hacking Money

How much will it take to make you happy? Hint: the lower the number, the better.

Hacking Money ….

Several years ago, I began tracking my expenses.

I started by creating an Excel spreadsheet.

In my spreadsheet, I had the months going across the top row of the spreadsheet.

And in the first column of the spreadsheet, I had different expense categories going down.

In some categories, I had sub categories.

For example, the car category had gas, insurance, maintenance, AAA, repairs, parking.

The medical expenses category had premiums, copays, lab work, medicines, supplements, glasses, dental visits.

The cleaning products category had cleaning products, toilet rolls and tissues, paper towels, laundry detergent, fabric softener, and laundry machine operating cost.

I did not have a car payment.

Otherwise I would have created a sub category for that on my spreadsheet. and entered my monthly car payment as well.

After I created my Expenses spreadsheet, I started entering every expense in my spreadsheet.

I did this faithfully.

Every time I had an expense, it went into the spreadsheet.

I put my gas expenses into the gas category.

I put my car repair expenses into the car repairs category.

I put my oil change expenses into an oil change category.

Some expenses were four times a year expenses – like oil changes.

Some expenses were twice a year expenses such as car insurance.

Some expenses were unpredictable, like a sudden repair.

My total expenses (all categories) thus varied from month to month.

But I knew at the end of the year, I would know my average monthly expense and my total annual expense.

Having created the spreadsheet, I was diligent about making the entries.

Not a single expense was left out of the spreadsheet.

If I gave a dollar to a homeless person, into the spreadsheet it went.

If I bought a few things from Dollar Tree, I entered them in my spreadsheet, each item in its correct category.

If something didn’t fit into any existing spreadsheet category, I created a new category, or sub category for it.

As I went along, I realized I had to create a new sub category for haircuts, a new sub category for public transportation, a new subcategory for library fines, a new sub category for gifts, and a new sub category for donations, and so on.

In this way, every expense of mine during that year went into my spreadsheet.

By the end of that year, I had a clear understanding.

My biggest expenses were housing (which was rent) and car.

I was already living in a very modest apartment.

Further, space and privacy were important to me.

If it came to it, I knew I would have to rent a smaller space for me and my daughter.

Or take in a roommate, to share expenses with.

But I saved like anything to avoid that.

Because I really liked the privacy we enjoyed being on our own.

Likewise, I knew I couldn’t do anything about my car expenses.

I had a cheap Korean-made used economy car, and an ex-Hertz rental at that.

Sure I could cut corners by not having an AAA membership, or by buying bare bones auto insurance.

But I decided I wanted the extra peace of mind.

My spreadsheet made me think about every expense, and where I could possibly cut any corners.

Could I turn off lights, use the air-conditioner and heaters more sparingly, to bring down my PG&E bill?

Ultimately, I decided the comfort of a cool room in summer, and a warm room in winter, was money well spent.

So finally, it was in the area of disposable income expenses, that I chose where to be frugal, and where not.

Since I liked going out with friends, I didn’t cut corners on that.

But I cut corners on clothes, bedding, furniture, crockery and cutlery, appliances, haircuts, entertainment, and more.

Those who visited me would have seen my apartment was simple, and much of my furniture was worn.

I did have some one and done disposable income expenses that year.

I bought a TV.

And I also bought a router, a Roku device and a Chromecast.

Other than those expenses, I didn’t make any appliance purchases.

I saved as much of my income as I could.

I knew savings would be my ticket to deal with times of unemployment, as well as retirement.

Looking at that spreadsheet at the end of that year, I felt a great sense of calm.

I knew if I was able to maintain that level of expense going forward, I would have nothing to worry about.

The important thing was for me not to get self-indulgent.

Steer clear of flashy cars.

Steer clear of expensive clothes, haircuts, beauty treatments, entertainments and vacations.

I would be content with walking, reading, enjoying what the computer and internet could bring me, and getting together with a friend every now and then to go hiking, or have dinner, or take in a movie.

So I continued life just as it was.

I continued to stay in my rented apartment, which, if it was not gated, and did not have amenities like inside washer/dryers and heated pools, offered me good value for money in terms of safety and space.

My life in America is what most people would call a bare bones simple life.

But I don’t feel it lacks anything.

And I have never questioned my choices.

They are different from everyone else’s.

But we are all different, aren’t we?

Some of us just don’t need much to make us happy.

Perhaps you are a person like me.

Happy with covering just a few of life’s basics.

Nothing wrong with that!

Making money can be a soul-sucking experience.

With the life choices we make, we can make it less so.

I certainly did.