2921: The Gift of Subtraction by Rich and Regular on Financial Priorities

[00:00:00] [SPEAKER_00]: This is Optimal Living Daily Episode 2921, The Gift of Subtraction by Julian Saunders of RichandRegular.com

[00:00:08] [SPEAKER_00]: and I'm Justin Malik. Welcome back to our usual Sunday bonus episode where I share an episode from one of the other podcasts in the Optimal Living Daily Network,

[00:00:16] [SPEAKER_00]: usually overlapping with the kinds of themes that come up here. Today's episode comes from Optimal Finance Daily.

[00:00:22] [SPEAKER_00]: You can follow or subscribe to that show wherever you're hearing this if you enjoy what you're about to hear.

[00:00:27] [SPEAKER_00]: So let's get right to the post and commentary from Diana as we optimize your life.

[00:00:37] [SPEAKER_01]: The Gift of Subtraction by Julian Saunders of RichandRegular.com

[00:00:43] [SPEAKER_01]: Whenever we're faced with a challenge that must be overcome or an opportunity to take advantage of something cool,

[00:00:49] [SPEAKER_01]: our instincts kick in telling us, what can we do? Is there an app we can download or a website we can look at real quick?

[00:00:57] [SPEAKER_01]: Can we ask Alexa or Siri, should we reach out to such and such to help us think this through?

[00:01:03] [SPEAKER_01]: Let's add it to the to-do list on the shared drive so that we can revisit this thought later.

[00:01:09] [SPEAKER_01]: We're get it done kind of people, so our natural instinct is to immediately jump into action.

[00:01:15] [SPEAKER_01]: This is all fine if it helps to accomplish things we've set out to do,

[00:01:19] [SPEAKER_01]: but we've learned that an even better way of getting things done is by having less and having less to do.

[00:01:25] [SPEAKER_01]: Simple concept, but not an easy one.

[00:01:28] [SPEAKER_01]: So many people, us included, treat their overwhelm with addition.

[00:01:33] [SPEAKER_01]: We habitually add things to our lives like products, services, features, subscriptions, calendars, houses, cars, lists, bells, whistles, phones, apps,

[00:01:43] [SPEAKER_01]: and responsibilities instead of just simply saying, nah.

[00:01:48] [SPEAKER_01]: This revelation really sunk in years ago as we visited the Grand Canyon.

[00:01:52] [SPEAKER_01]: It's earned its right as a wonder of the world based on the views alone,

[00:01:57] [SPEAKER_01]: but after we listened to how it was created with no human intervention, we just stood there in awe of its scale.

[00:02:04] [SPEAKER_01]: There's something about standing over a cliff in complete silence that makes you realize what really matters, not falling.

[00:02:11] [SPEAKER_01]: How little you really need to be happy, colonel and water to be exact,

[00:02:14] [SPEAKER_01]: and how small we are in the grand scheme of things, pun intended.

[00:02:18] [SPEAKER_01]: The same is true with our money.

[00:02:21] [SPEAKER_01]: As odd as it may sound, one of the key reasons we've been able to save as much as we have,

[00:02:26] [SPEAKER_01]: increase our net worth by $95,000 during the first six months of 2018,

[00:02:31] [SPEAKER_01]: stay on pace to achieve financial independence despite Mr. R&R quitting his job

[00:02:36] [SPEAKER_01]: and buying a new house is because we've learned to appreciate the gift of subtraction.

[00:02:42] [SPEAKER_01]: Quite simply, we have more by having less.

[00:02:45] [SPEAKER_01]: We choose these words carefully because, yes, we certainly want and desire more in some areas, just not in all.

[00:02:53] [SPEAKER_01]: That concept is at the core of being rich and regular,

[00:02:56] [SPEAKER_01]: because we encourage each other to spend on the things that really matter to us

[00:03:00] [SPEAKER_01]: to ignore the things that don't and to stay regular along the way.

[00:03:05] [SPEAKER_01]: While we understand the concepts of frugality and minimalism,

[00:03:09] [SPEAKER_01]: we just don't believe those strategies will meet our family's needs over time.

[00:03:13] [SPEAKER_01]: Eventually we would grow weary of the monotony and the deprivation would likely lead to a destructive relapse.

[00:03:20] [SPEAKER_01]: Instead, we choose a path where we maintain a long-term investment outlook,

[00:03:24] [SPEAKER_01]: making daily trade-offs between things we could enjoy immediately

[00:03:28] [SPEAKER_01]: and things we could enjoy for years to come.

[00:03:31] [SPEAKER_01]: This way, whenever we got a pay raise, promotion, paid off a debt that freed up cash

[00:03:35] [SPEAKER_01]: or tripped and stumbled into a shit ton of money,

[00:03:38] [SPEAKER_01]: we resist the temptation of upgrading everything along the way in exchange for the ultimate prize,

[00:03:45] [SPEAKER_01]: the option to retire early.

[00:03:47] [SPEAKER_01]: For example, we posted a picture a few weeks ago on our Instagram account

[00:03:51] [SPEAKER_01]: and received some really inspiring feedback and comments.

[00:03:54] [SPEAKER_01]: The picture is of the parking spot outside our old home

[00:03:57] [SPEAKER_01]: and is one of many examples of our trade-offs.

[00:04:01] [SPEAKER_01]: Sure, we could have upgraded our home and parked our cars in a shiny new garage a long time ago,

[00:04:07] [SPEAKER_01]: but we made the decision to live small for the first three years of our marriage

[00:04:11] [SPEAKER_01]: and so far that decision, and many more, has proven to pay off remarkably.

[00:04:16] [SPEAKER_01]: Did it suck on hot days? Yes!

[00:04:19] [SPEAKER_01]: Does it suck even more on cold and rainy days carrying a baby? Absolutely!

[00:04:24] [SPEAKER_01]: But the long-term benefit of turning our old primary residence into a debt-free rental was worth it to us.

[00:04:31] [SPEAKER_01]: The gift of subtraction is one that keeps giving.

[00:04:35] [SPEAKER_01]: That's just one example though.

[00:04:37] [SPEAKER_01]: Following is a list of other subtractions and things we've delayed or traded off over the years.

[00:04:44] [SPEAKER_01]: In our home, we grind coffee beans and brew our coffee almost every morning.

[00:04:50] [SPEAKER_01]: Rarely will you catch us in a Starbucks unless we have a gift card.

[00:04:53] [SPEAKER_01]: We still don't have cable.

[00:04:55] [SPEAKER_01]: We opt for Netflix, Amazon Prime TV and Hulu with no commercials.

[00:05:00] [SPEAKER_01]: We also get HBO through Hulu.

[00:05:02] [SPEAKER_01]: If you're on the fence with cutting the cord, well, you shouldn't be.

[00:05:06] [SPEAKER_01]: We just took advantage of a great offer for AT&T Fiber last week.

[00:05:11] [SPEAKER_01]: For years we opted for their high-speed DSL service and it worked fine,

[00:05:15] [SPEAKER_01]: but decided to upgrade. So far so good.

[00:05:18] [SPEAKER_01]: Mr. Arunar cooks 80% of baby Arunar's food.

[00:05:23] [SPEAKER_01]: He also cooks most of the meals we eat at home including lunches that can be reheated and brought to work easily.

[00:05:29] [SPEAKER_01]: Most of baby Arunar's food is the same as what we eat.

[00:05:33] [SPEAKER_01]: Just cut differently, seasoned lighter and cut into smaller pieces.

[00:05:36] [SPEAKER_01]: This makes our lives easier and our baby healthier.

[00:05:39] [SPEAKER_01]: Check out our Instagram highlights for an example of this.

[00:05:43] [SPEAKER_01]: We buy store-brand products often but not exclusively.

[00:05:46] [SPEAKER_01]: Notably pantry products and dry goods like cereal, paper, plastic, nuts and beans.

[00:05:52] [SPEAKER_01]: We lean heavily towards a plant-based diet for health reasons

[00:05:55] [SPEAKER_01]: but still enjoy meats and seafoods regularly.

[00:05:59] [SPEAKER_01]: Fruits, vegetables and grains are also less expensive than meats and seafood.

[00:06:03] [SPEAKER_01]: Our old home's kitchen was completely done by IKEA.

[00:06:07] [SPEAKER_01]: Our new home's closet system and a few other pieces are also done by IKEA.

[00:06:12] [SPEAKER_01]: Our cars.

[00:06:14] [SPEAKER_01]: Mr. Arunar drives a Honda Accord with just over 160,000 miles.

[00:06:19] [SPEAKER_01]: The rear seat ceiling fabric was flopping so he broke out the gorilla glue and fixed it.

[00:06:25] [SPEAKER_01]: It looks terrible.

[00:06:27] [SPEAKER_01]: Mrs. Arunar drives a Lexus 250 with over 150,000 miles.

[00:06:32] [SPEAKER_01]: Mr. Arunar can't sit in the front without his knees being smushed against the glove box

[00:06:36] [SPEAKER_01]: and baby Arunar has to be cradled to be placed in the back seat

[00:06:40] [SPEAKER_01]: just to avoid being decapitated upon entry.

[00:06:43] [SPEAKER_01]: It's cozy to say the least.

[00:06:46] [SPEAKER_01]: Our credit cards.

[00:06:48] [SPEAKER_01]: We put the vast majority of our spending on one joint credit card

[00:06:52] [SPEAKER_01]: to optimize the cashback value and use the points to pay for most of baby Arunar's stuff.

[00:06:58] [SPEAKER_01]: It's paid in full every month.

[00:07:00] [SPEAKER_01]: Every month.

[00:07:02] [SPEAKER_01]: Our personal stuff.

[00:07:04] [SPEAKER_01]: Mrs. Arunar does her hair mostly on her own instead of going to a salon.

[00:07:09] [SPEAKER_01]: Mr. Arunar gets a haircut every three to four weeks.

[00:07:12] [SPEAKER_01]: Maybe.

[00:07:13] [SPEAKER_01]: Mrs. Arunar uses a capsule wardrobe.

[00:07:16] [SPEAKER_01]: This enables her to cost-effectively mix up her styles

[00:07:19] [SPEAKER_01]: and reduce decision-making in the mornings.

[00:07:22] [SPEAKER_01]: Mr. Arunar only buys his clothes from a handful of stores

[00:07:25] [SPEAKER_01]: and typically uses a coupon for at least 25 to 50% off.

[00:07:30] [SPEAKER_01]: Most of his clothes fit a general color scheme, blue, so it coordinates seamlessly.

[00:07:35] [SPEAKER_01]: We've spent less than $100 on toys and books for our son in his first year.

[00:07:40] [SPEAKER_01]: Everything else was a gift from friends or family.

[00:07:43] [SPEAKER_01]: Instead, we opt to go to playgrounds and parks where he obsesses over pine straws, sticks, and car watching.

[00:07:49] [SPEAKER_01]: Some of these are huge cost savings.

[00:07:52] [SPEAKER_01]: Other are small cost savings, and others are time savers.

[00:07:56] [SPEAKER_01]: The point is, together they are a set of deliberate choices

[00:07:59] [SPEAKER_01]: that represent the subtraction of stuff we don't value today.

[00:08:04] [SPEAKER_01]: This frees up capacity and money, which enables us to have a surplus of the things we do value.

[00:08:10] [SPEAKER_01]: Time.

[00:08:15] [SPEAKER_01]: You just listened to the post titled The Gift of Subtraction

[00:08:18] [SPEAKER_01]: by Julian Saunders of richandregular.com.

[00:08:22] [SPEAKER_00]: Look around. Smartwatches, Wi-Fi enabled LED bulbs.

[00:08:26] [SPEAKER_00]: It's no secret that the world keeps getting smarter, so your e-commerce business should too.

[00:08:31] [SPEAKER_00]: Whether you're looking for incredible efficiency or your business has simply outgrown your old shipping solutions,

[00:08:36] [SPEAKER_00]: our sponsor ShipStation helps you take the next step.

[00:08:40] [SPEAKER_00]: I love that ShipStation's automations allow you to smoothly print shipping labels at the click of a button.

[00:08:45] [SPEAKER_00]: This kind of robust automation and reporting combined with the simplicity of ShipStation's dashboard

[00:08:50] [SPEAKER_00]: make it so easy for anyone to scale their business faster than ever before.

[00:08:55] [SPEAKER_00]: And with industry leading carrier discounts, it's the fastest, most affordable way to ship products to your customers

[00:09:01] [SPEAKER_00]: with discounts up to 89% off UPS, DHL Express and USPS rates.

[00:09:08] [SPEAKER_00]: Unsurprisingly, over 130,000 companies have grown their e-commerce businesses with ShipStation

[00:09:13] [SPEAKER_00]: and 98% of companies that stick with ShipStation for a year become customers for life.

[00:09:19] [SPEAKER_00]: Lead your e-commerce business into a smarter future with the shipping software that delivers.

[00:09:25] [SPEAKER_00]: Switch to ShipStation today.

[00:09:27] [SPEAKER_00]: Go to ShipStation.com and use code OLD to sign up for your free 60-day trial.

[00:09:32] [SPEAKER_00]: That's ShipStation.com, code OLD.

[00:09:37] [SPEAKER_01]: Such great points here from Julian, and I love all the specific examples he shares.

[00:09:42] [SPEAKER_01]: Another way of thinking about this concept of subtraction is really just simplifying.

[00:09:47] [SPEAKER_01]: As technology advances and there are ever more things to buy,

[00:09:51] [SPEAKER_01]: it seems like our lives get more and more complex.

[00:09:55] [SPEAKER_01]: Choosing to simplify your clothing or meal prep or finances is a great way to just keep your head on straight.

[00:10:02] [SPEAKER_01]: Another benefit of simplifying is that it allows us to go deeper into the things we choose to keep in our lives.

[00:10:08] [SPEAKER_01]: So for example, in figuring out what form of exercise is sustainable for me,

[00:10:13] [SPEAKER_01]: I've realized that big room yoga, long walks and hiking are what I'm into.

[00:10:18] [SPEAKER_01]: Rather than continually experimenting with new forms of exercise, which I still do from time to time,

[00:10:24] [SPEAKER_01]: I've made a decision recently to just go deeper into these three forms of exercise every day.

[00:10:30] [SPEAKER_01]: I've done the same thing with my social circle, even though meeting new people is my absolute favorite thing to do.

[00:10:36] [SPEAKER_01]: Probably driven by the pandemic and having my social life restricted,

[00:10:40] [SPEAKER_01]: I've been able to deepen relationships with the friends I have now

[00:10:44] [SPEAKER_01]: with standing weekly zoom calls, dinners and activities to make sure we're getting regular quality time together.

[00:10:52] [SPEAKER_01]: Along that same vein, I used to have many different tools to keep me organized,

[00:10:56] [SPEAKER_01]: but I've now pared down to a bullet journal and a calendar to make sure I'm not forgetting anything.

[00:11:01] [SPEAKER_01]: And that's a wrap for another Monday show. Have a great rest of your day

[00:11:06] [SPEAKER_01]: and I'll be back tomorrow where Optimal Life awaits.