Money success equates to managing income and expenses. There isn’t a single way to manage these two sides of the money scales to have success. I’m a bit biased, but I think both should be managed to see financial progress at the end of the month, so I prioritize accordingly.

One strategy Mrs. TFC and I use to live our lives fully and see consistent financial progress is through intentional spending. It sounds obvious at face value. I’m well aware every time I swipe my credit card or hand over cash, so all spending is intentional.

For as much as I stress the importance of saving and investing, spending intentionally is equally important. I’d like to take you through a few ways Mrs. TFC and I spend our hard-earned dollars intentionally.

The Brokerage Eats First

I’m sure there is a better heading out there, but as weird as it is, this is the phrase I use. Most budgets have three general categories: income, expenses, and savings. These categories are all fine and well, but they deserve to be in a different order based on prioritization.

We start with savings. By savings, I’m referring to allocating funds to savings, investments, and/or debt paydown. If a CRNA takes home $12,000 per month, the first dollars that leave the bank account go towards savings, investments, or debt. Everything left over goes towards expenses.

We send the majority of dollars from this category towards a self-managed brokerage with Vanguard. Paycheck arrives on Friday. Transfer happens Monday. I send Vanguard almost all of my gas passing dollars. Mrs. TFC’s net income remains to cover our expenses.

Making this investment automatically allows us to meet our financial goals every month. We have an emergency fund set aside for a rainy day, so I don’t need to keep any additional money liquid. And lately I have been keeping a bit more than usual in a money market account, so it’s easily accessible.

Mrs. TFC’s paycheck covers the bills. Even if we spend every penny by the end of the month, our financial goals have been met.

Value

When we go out to eat (or do anything really), we commonly rate the items in a variety of categories. A given dish may be flavorful and unique earning a taste rating of 9/10. The service at the establishment is respectable earning an 8/10. However, the price of the 12-ounce ribeye steak is a bit high at $95 -- 4/10.

We consider all factors and provide an overall assessment of 7/10. That’s the value. A scrumptious meal at a hefty cost.  

Little Caesars pepperoni pizza is high on the value scale making it a more common selection than other options based on overall value.

Taste: 4/10

Cost: 10/10

Consistency: 10/10

Hot N’ Ready: 10/10

Value: 9/10

The quality of LC’s pizza pie does not match my 4-day cold-rise dough recipe. Topped with home-made San Marzano tomato sauce simmered for hours. Layered with fresh, low-moisture mozzarella cheese. All of this baked at eyebrow-singing heat on a pizza stone.

It’s a lot of work to make everything by hand. And the foresight to start a meal day in advance creates inconvenience. Flavor is amazing, but the value isn’t a 9/10 like LC’s.  

When people are asked to provide a rating on a 0-10 scale, they most often choose 7. It’s a value that is respectable as to not offend but leaves room for improvement. If you want an honest answer from your spouse next time you cook, ask them to rate the dish, but 7 is not an option. Their rating of 6 or 8 will show you what they really think.

I make light of “value” with culinary examples, but there is far more to it. Time is an important consideration. When is it beneficial to exchange money for time?

I don’t have many days off, so traveling qualifies. I value my time to the point where Mrs. TFC and I have spent triple on airfare because it saved us a few hours AND fit our availability.

My current position lacks flexibility, so I’m stuck with Saturday morning departures paired with Sunday afternoon arrivals. These aren’t cheap flights, but it comes down to being where I need to be versus missing something important. This time versus money transaction is intentional and worth every penny.

Chores have a place in this category. Companies will perform chores such as lawn care, snow removal, pet care, food delivery, dry cleaning, etc. Think about all of the areas where you can purchase time and convenience to create value. Which juice is worth the squeeze?

Two Week Wait

I have never been an impulse shopper. I’m more on the “analysis paralysis” end of the spectrum. To this day, I have items that I know I will purchase, but continue to delay the event.

I create friction in the transaction process. This provides ample opportunity to decide if a purchase is worthy of my hard-earned dollars. Amazon has taken advantage of peoples’ spending impulses and implemented a one-click checkout. This has equated to an additional $2 billion in sales. And this is a conservative estimate.

CNBC reports the average consumer has spent $5,400 on regrettable impulse purchases. Most online retailers using a one-click checkout report an increase in average transaction size of up to 1.7x since the inception of the one-click checkout.

These likely apply to all of us without our awareness. I recognize my faults as a human, so I attempt to tame my impulsivity by implementing a waiting period. It’s not perfect, but it ensures that my purchases are well thought out.

Happiness Factor

They say money can’t buy happiness. I’m not in a position to agree or disagree. I can safely say, if given the option and all else equal, I would rather have money than be broke.

Money buys a certain amount of happiness. Certainly food, water, and shelter. Even security. Arguably connections and a rung on the socioeconomic hierarchy. All nice things.

Money buys experiences. New adventures that create memories. Can’t put a price on that.

Money buys time. Who doesn’t enjoy having more time to do what you enjoy? Spending time with family. Or deep diving into hobbies. More time exploring your passions and the things that bring true joy.

Money buys options. Managing money intently allows financial independence. The ability to work part time or retire altogether. Maybe monetize your hobby or passion and do it full time. It doesn’t need to pay well if intentional living has created a nest egg that sustains your cost of living.

Not only does happiness contribute to your happiness, but it spreads to others. There are endless ways you can make a difference. Mrs. TFC and I genuinely enjoy donating to the small causes in the workplace.

The surgery secretary accepted a position with a different department. Surgery staff wanted to have a thank you sendoff with a burrito lunch, a “goodbye cake”, and a certificate for a massage at the local parlor.

A $20 bill is all I usually carry. I said they really need to notify me farther in advance so I can load up my wallet with a bit more cash next time. Everyone was happy to help the pleasant young gal who runs our scheduling and manages all of the paper records.

On a serious note, Mrs. TFC and I recently discussed our legacy. Now that we have a respectable net worth, it is only appropriate to have a plan if something were to happen to us. Neither of us were sold on simply leaving it to our future dependents.

Based on our conversation, I suspect we will look to give back to a mix of local charitable organizations. That’s something we both feel great about.

Purchase with Caution

Major purchases come with consequences. I’m definitely NOT saying to avoid big purchases. Years ago, I built a target centerfire rifle that I absolutely adore. From a gun builder, the package would cost around $10,000, but I built it for half of that. It was about 2 years in total between the research and execution.

The rifle system cost about $5,000. The first Summer between load development, leisure shooting, and club matches I went through 1,500 rounds. This cost $1,000 plus countless hours of handloading. I didn’t expect to shoot this much, but it happened.

Due to powder and primer shortages, costs are 50% higher today. And I can’t skimp on reloading components when I know the rifle system is capable of producing 0.1” 5-shot groups when I do my part.

The point is, building a rifle cost me WAY more than the cost of the components.

Take a house. This is not a discussion as to whether it is a good investment, but rather the consequences that come with spending.

Our house needed a new roof. That was $11.5k. Plus, we replaced flooring, new trim, painted everything, redid cabinets, and many more small fixes. We also figured maintenance costs. We replaced a microwave for $250. Then the oven went out, but we salvaged it with a new heating element for $30. The list goes on but the point is the same. One major purchase may lead to further costs.

Now that we upgraded to a 1,450 sq. ft. 4 bed 2 bath house, it will be tough to downsize or downgrade. We have a new baseline standard. We have adapted to this new quality of life. Our next dwelling will be a disappointment in anything lessor. And there are costs with that.

How about other toys like a Sunday car? The initial cost is one thing. Now we have licensure and insurance. And a Sunday car belongs in a garage stall. The car requires regular maintenance despite not being the daily driver. And like a house, upgrading is the only way to go.

Always consider ongoing costs, upgrades, and time commitments. Estimate favorably. Thanks for reading!