Adventures in Mental Time Travel

I took the title of today’s post from a chapter in Annie Duke’s book Thinking in Bets: Making Smarter Decision When you Don’t Have All the Facts.  This is the latest book I have finished reading.  I found the information I gained from this book so useful that I wanted to share some excerpts and insights with you.  Today I will discuss how we can use mental time traveling on our journey towards financial freedom.

To quote a passage from Annie Duke’s book, “For all the scientific research on the battle between our immediate desires and long-term goals, a particularly succinct explanation comes from Jerry Seinfeld, on why he doesn’t get enough sleep: “I stay up late at night because I’m Night Guy.  Night Guy wants to stay up late. ‘What about getting up after five hours of sleep?’ ‘That’s Morning Guy’s problem.  That’s not my problem.  I’m Night Guy.  I stay up as late as I want.’  So you get up in the morning: you’re exhausted, you’re groggy. ‘Oooh, I hate that Night Guy.’  See, Night Guy always screws Morning Guy.”

Why do we have such a difficult time preparing for our future and planning for our future-selves?  Why do we spend (sometimes frivolously) now instead of saving in our retirement accounts?  Investing towards financial freedom means that we need to find ways of saving money or earning more money now, instead of placing the responsibility on our future self.  Don’t let your current self screw your future-self.

Temporal discounting is the tendency to favor our present-self at the expense of our future-self.  In a way, we are built to behave this way.  We use up the resources available to us right now instead of saving those resources for a future self that we don’t have any strong connection to right.  

So how can we get to know our future-self right now?  The future we can imagine for ourselves is usually based off our past.  One way we can get to know our future-self is to remember past experiences.  Putting our past memories together can help us remember and construct an idea of our future. 

Annie Duke goes on to say that “Night Jerry can access memories like oversleeping and missing appointments or dozing off during morning meetings that he can use to imagine how tired Morning Jerry will be or what’s going to happen to Morning Jerry’s schedule when he doesn’t want to get up or how his day will go when he can’t pay attention.”

“Wouldn’t it be great if Morning Jerry could travel back in time and tap Night Jerry on the shoulder to tell him to go to bed?”  

Studies find that when participants are shown software created images of their aged, older looking selves (complete with wrinkles, hair loss, and white hair), subjects allocated extra money towards their retirement accounts.  Getting a glimpse of how we will look in the future can be a powerful reminder of the importance of saving up in the present.  Thinking about our future situation can get us to think about the consequences of not properly saving for that future.  

Annie Duke says these types of apps can be a: “tap on the shoulder from our future-self. “Hey, don’t forget about me.  I’m going to exist and I’d like you to please take that into account.”

We’re not perfectly rational when we ponder the past or the future and engage our deliberative mind, but we are more likely to make choices consistent with our long-term goals when we can get out of the moment and engage our past- and future-selves.  We want Night Jerry and Morning Jerry colliding on the decision of when to get some sleep.

And we want our aged, wrinkly self colliding with us when we decide between spending more money now on something like a nicer car versus saving more money for retirement.”

Do you have older family members, colleagues, or friends that have failed to save for their own future?  What are their struggles?  Are they working much longer than they’d like because they don’t have a nest egg that can support them?  Are they dependent on their children or family members to take care of them and help them pay their bills?  Imagine if you were put into a similar situation.  Would you have any regrets?  How can you avoid the mistakes that led to these outcomes?

Harness the power of regret
While many consider regret to be an unproductive waste of time, Annie Duke argues that regret can be a powerful motivational tool.  Instead of sulking over something that has already occurred, she suggests moving regret to the front of our decisions.  This way regret can help us alter choices that could lead to poor outcomes.  

Look into your future.  Will you be struggling to get by due to poor retirement savings decisions when you were younger?  Will you be dependent on government checks to cover your daily expenses?  Will you be a burden on your family and friends?  Will you regret what you see in this possible future?  Are there any decisions that you’ve made in your past that you regret?  These moments of decision interruption can get us to imagine how we will feel in the future based on the decisions we make today.

Moving regret forward can also help us come to terms with accepting a bad outcome.  If we know what to expect, we will be less likely to be blindsided.  No one likes to hear the phrase “I told you so” - especially from themselves.  

The 10-10-10 question
Author Suzy Welch came up with the 10-10-10 guideline to help us think about our future situation, during our current situation.  When considering decisions, ask yourself the questions:

“What are the consequences of each of my options in ten minutes?  In ten months?  In ten years?”

This line of questioning gets us to mentally time travel in the future.  On the same concept, you can also use these questions to ask yourself how you feel about certain decisions you’ve made 10 minutes ago, 10 months ago, and ten years ago.  The 10-10-10 question can lower your risk of making poor choices that lead to unwanted consequences.  

I highly recommend reading Annie Duke’s book Thinking in Bets: Making Smarter Decision When you Don’t Have All the Facts.  It’s changed my outlook and perspective on many things in my life.  You can buy the book here on Amazon or check it out at the library for free like I did.

FWOTW: library books

It’s time for another frugal win of the week (FWOTW) post.  I’ve written about the library before but I just want to remind you all what a wonderful service the library provides.

Our local library recently started offering curbside pickup.  The process of getting books has never been easier.  We log into our online account, select the books that we want to place on hold, and then the library sends an email when the books are ready for pickup.  Once we get to the library, we call a number and someone brings our requested books out onto a sanitized table for us to retrieve.  The whole process is run extremely smoothly.

There is no shortage of books that we can get for our kids and ourselves.  Currently our kids are enjoying Pete the Cat, Little Critter and Wild Kratts books.  Checking out books from the library helps us adjust to our kids’ rapidly changing interests – and saves us a ton of money!

FWOTW: Dog grooming at home

Abby is getting pretty shaggy

This week we gave our dog Abby a full grooming at home.  This included cutting her hair, cleaning her ears, trimming her nails, brushing her teeth and finishing up with a nice bath.  Regular grooming is important for dogs to make sure their hair doesn’t get matted, ears and eyes don’t get infected, teeth don’t rot and nails don’t get too long.  This wasn’t the first time we groomed Abby at home.  In fact, we’ve been doing our own dog grooming for almost 6 years now!

Taking your dog to a pet groomer can be a very expensive ($35+ per session!) recurring expense.  It can also be extremely stressful for your furry loved one.  When we first got our dog, she was always scared to go to the groomer.  After 3 visits to the groomer, we decided to groom her ourselves.  Abby trusts her parents more than anyone in the whole world, and we should be the ones grooming her.  Today I want to share our dog grooming routine and favorite products.

Cutting hairCurrently we cut Abby’s hair with dog grooming scissors that have a blunted end.  We give her a nice relaxing haircut outside.  We don’t always cut all of her hair in one sitting; we may split it up over several days.  I’ve found the best time to cut her facial hair is when she’s resting on the couch.  Don’t forget to trim the hair between the paws! 

Brushing teethJust as we brush our own teeth daily, it’s extremely important to brush your dog’s teeth.  Poor mouth hygiene has been associated with tooth decay, gum disease, painful infections, heart disease, kidney disease and other serious health conditions not to mention bad breath.  We brush our dog’s teeth with a 3 sided dog toothbrush and enzymatic poultry flavor dog toothpaste.  We used to give our dog Greenies, designed to clean a dog’s teeth and gums as they chew.  However, our vet did not recommend Greenies due to risk of dental fracture, choking, upset stomach and intestinal obstruction.    

Trimming nailsWe use a guillotine style nail clipper, which works very quickly at clipping the nails.  I lay Abby on her back, gently hold each paw and then clip away.  It’s very important to start slow and cut just a tiny amount to avoid hitting the kwik.  In the event that bleeding occurs, it’s important to keep styptic powder nearby – we use Kwik Stop.  I have previously tried the dremel/rotary/grinder type devices for nails, but found that it took too long and my dog did not like the noises these devices made.  Regularly trimming dog nails prevents the quick (blood supply of the nail) from growing too long.

Washing furWe wash our dog in the bathtub with Pet Head brand of dog shampoo because it’s easy to use and smells great.  Since our dog suffers from allergies, we use Pet Head Life’s An Itch Soothing Shampoo.  The shampoo helps prevent our dog from getting too itchy.  Make sure you wash around the eyes and ears gently.  It’s easy to bathe our dog because she is small.  We use a towel to dry her afterwards.    

Have you thought about grooming your own dog?I’m no expert at grooming different dog breeds, but there are plenty of video tutorials on YouTube to watch and learn from.  Some dog breeds require specialty care – you can’t just take a pair of scissors to every dog’s fur.  If you own a dog and are staying at home, now is the perfect time to try your hand at dog grooming.  Even if you give your dog a bad haircut, the hair will grow back on its own.  We find that grooming our dog is stress free, relaxing and fun.  Saving $35 a month is also nice! 

FWOTW: Saving money on car insurance

Very few vehicles are on the road these days.

As the current stay at home quarantine continues, we have been looking for different ways to get organized and be productive with our extra free time.  With the vast majority of people staying home and limiting the amount of driving that they are doing, insurance accident claims have dropped tremendously.  Many car insurance companies are automatically refunding portions of paid premiums during the coronavirus outbreak.  Allstate is crediting customers with 15%, Progressive customers are receiving 20%, while Farmers and State Farm are reducing monthly premiums by 25%. 

We have been Geico customers for 7 years now, as they have consistently offered us the best deal on auto insurance.  Geico is currently offering a 15% credit on our next policy term.  While this is great, I figured that it wouldn’t hurt to call Geico to ask if they could offer us any additional discounts.  My wife has been working from home for the last 6 weeks and I have been going to the office only 2-3 days a week.  My commute is 6 miles each way.  I’ve read of some people calling their insurance companies to put their car insurance on hold (for at least 30 days) to save money.  This was an option we considered but I like the idea of having both vehicles accessible in case of emergency.

I set aside time to call Geico to ask for a discount to keep us as happy customers.  To avoid excessive telephone wait times, I used the automated system to connect me to the cancellation department.  I would consider cancelling our policy with Geico if they would not lower our rates.  I nicely explained our new driving situation to the customer service representative and asked if Geico could offer us a discount now, instead of at our policy renewal in a few months.  The Geico rep was very understanding and didn’t hesitate to recalculate our insurance rate due to our reduced driving and long 7-year history with the company.   

After a short conversation, the Geico rep offered me a refund of $204.30!  I accepted the offer right away.  My credit card account received this refund earlier this week. 

I’m glad I made a short phone call to save some extra money.  Are you willing to make a phone call to save money?

FWOTW: My wife continues to cut my hair at home

It’s time for another frugal win of the week (FWOTW) post – quarantine edition!  Since everyone is now staying at home and non-essential businesses are closed, I’ve had several friends and coworkers complain that they can’t get their hair cut anywhere.  After 3 weeks of quarantine, one friend has resorted to shaving his head!

My wonderful wife has been cutting my hair at home since May 2013 and she just cut my hair today while the kids were napping.  The entire process took about 15 minutes.  Afterwards, I hopped into the shower to wash away all the leftover prickly bits of hair.  There’s just something so refreshing about getting a haircut.  In the past, I’ve paid $28 per haircut twice a month!  Getting my haircut at home saves time, money, and fuel. 

If any readers are quarantined and cut their own hair or have a significant other do it - awesome, keep it up!  If you are quarantined and need a haircut, now is the perfect time to start practicing.  Even if you mess up, your hair will grow back.

Once you eliminate an expense, it is gone forever.  It’s not just about saving an amount for one time or one year, but saving that amount every year for the rest of your life!

FWOTW: another year of saving money on our internet bill

*after 12 months, your bill goes up to $65.991

It’s time to share another frugal win of the week (FWOTW) for our family!  

Every year, our internet service provider (Spectrum) gives us a new customer promotional rate that is good for only 12 months. Unfortunately, Spectrum is the only high speed internet provider in our area so we cannot switch providers.   We’ve been paying $44.99 a month (100Mbps) for our internet for the last year and our promotion is now over.  Our new bill was going to be $65.99, a $21 monthly increase!  I’d rather invest an extra $21 a month instead of paying more for the same service we already have.

When I checked out Spectrum.com, I saw that the current new customer promotion for high speed internet is still $44.99 a month for 12 months. I then called customer service to try to lower our monthly bill.  The representative offered to lower our bill to $54.99, a $10 increase from our current bill.  It’s a shame that these big corporations would rather reward new customers than try to keep existing customers happy.  Since the customer service representative could not match the new customer promotion, I cancelled our internet account. 

5 minutes later, my wife called Spectrum and signed up for the new member promotional rate for $44.99 a month.  Our internet service was down for 30 minutes while my wife drove to the local Spectrum store to return the previous modem (free with service) and pick up a newer modem for her new account.  This is now the third year that we’ve had to cancel and re-sign up for new service to keep our rate down. 

This simple act of canceling and re-signing up for internet will save us $252 over the next year!

FWOTW: Saving money off my dental procedure

It’s time for another frugal win of the week (FWOTW) post! 

One of the most frustrating things about medical and dental insurance claims is how confusing it can be to sort out the billing.

Since I have history of dental problems, I made sure to sign up for a premium PPO dental plan through my employer each open enrollment.  My wife also adds me to her PPO dental plan through her employer.

I had a root canal performed by an endodontist in December 2018.  The total billed amount from the specialist was $1,660.  My copayment was $100, and I thought that took care of everything.  4 months later, the specialist office and the 2 separate dental insurances finally finished processing the claim.  I just received a bill for $90.80, which was quite a surprise.

The first thing I did was contact the billing specialist at my endodontist office to make sure that I really owed the $90.80 balance.  After she went over all the charges with me, it was time to pay the bill.  Here’s how our conversation went:

Her: How would you like to pay your balance – check, debit or credit card?

Me: Can I get a courtesy discount?

Her: <pause>  Um… sure I can offer you a 5% discount for paying in full.

Me: Great, here’s my credit card number!

I ended up saving $4.54 just by asking nicely!  While this is not a significant amount of money, every bit helps along our financial journey.  I’m often surprised how many discounts you can get on services just asking nicely.

2019: Happy New Year, December side hustles and year end summary!

The great thing about doing side hustles to generate extra income is that you can hustle on your own terms.  The more hard work, time, and creative effort you put in, the more extra money you can make.  You can hustle as little or as much as you want, whenever you want.  It’s your extra money, and you can choose how you want to spend it.  Instead of focusing on what ideas don’t apply to you, try focusing on different side hustle ideas that you can implement to work for your situation.

Once a month (usually on the 1^st), I like to post a short summary of our personal and financial situation for the previous month.  While I don’t often post articles, I am committed to documenting all of my side hustle income.  Here I’ll share some of what’s been going on with our lives and our side hustles.  

Happy New Year! 

Did you have a good December?  It was quite a busy and fun month for us.  Life has definitely become more hectic with 2 kids.  In December, we attended several holiday parties, ate lots of delicious food, and hosted family members for a week during Christmas.

Our daughter turned 1 year old this month! I can’t believe how fast she has been growing and how fast time flies.  She just started talking, eating regular foods, and is close to walking.  To celebrate, we had a small party with close friends and their children at a local children’s gym. 

We gifted my sister in law’s family tickets to Legoland and we all enjoyed a great day at the park.  Since my work offers significant discounts, we decided to purchase annual passes to the park for our family.  We will definitely be back.  Legoland has a new Deep Sea Adventure ride, an interactive submarine ride through an underwater habitat full of sharks, sea creatures and Lego characters.  

Our son loved the ride so much that it was the only attraction we visited.  We probably went on the submarine ride over 20 times!  Thank goodness Legoland wasn’t crowded and we didn’t need to wait long between rides.

Our kids received a lot of Christmas presents from family.  Yet it’s so funny that they like simple household items – they really don’t need fancy gifts at their ages.  Here’s a picture of my son having tons of fun with a paper towel cardboard tube:

We took my sister’s family to the Long Beach Aquarium of the Pacific, one of our son’s favorite places to visit.  He is becoming quite the sea creature expert!

Here’s our monthly summary of side income that we have generated in the previous month of December 2018.

Cash Back

On 12.2, I received $10.23 deposit in my Discover Cashback Checking account.  This is 1% cashback from paying our rental property with my Discover debit card.

On 12.2, my wife received a $5.03 statement credit on her AMEX Gold card.

On 12.3, my wife received a $7.25 statement credit on her AMEX Gold card for 20% statement credit on all dining purchases up to $100 in credits made within the first 3 months.
On 12.3, my wife received a $15 statement credit on her AMEX Gold card from AMEX Offers.  This deal was $15 off $49 at Chewy.com, a website where we purchase our dog food and supplies from.

On 12.9, I received a $1.54 statement credit on my AMEX Blue Cash Everyday card from AMEX Offers. 

On 12.19, my wife received a $32.42 statement credit on her AMEX Gold card for 20% statement credit on all dining purchases up to $100 in credits made within the first 3 months.
On 12.29, I received a $5.23 statement credit on my AMEX Blue Cash Everyday card from AMEX Offers.  This was for 10% cash back on cell phone bill payments.

American Express has been very good to us with all of their cashback offers!

Survey Income

On 12.15, I received a $25 check for doing a medical survey with E-Rewards Medical

On 12.17, I received a $75 Amazon gift card for doing a medical survey with M-Panels.
On 12.20, I received a $20 check for doing a medical survey with E-Rewards Medical.

On 12.22, I received a $20 Amazon gift card for doing a medical survey with My Impact Network.

On 12.29, I received a $30 check for doing a medical survey with M3 Global Research
On 12.29, I received a $7 check for doing a medical survey with M3 Global Research

Doing medical surveys doesn’t take much time and they pay very well.

Rental Income

On 12.5, we received a net profit of $430 from our rental property.  Our rental income has been consistent without any hiccups in 2018.

Miscellaneous Income

On 12.2, we received a $83 account credit to our T-Mobile account.  This was a device trade in credit.

On 12.31, we received a $667 Mastercard debit promotional gift card from T-Mobile for device trade in credit.  Since my work reimburses my cell phone purchase and expenses, this was just free money! 

Monthly Totals:

We earned $76.70 from cash back
I earned $177 from survey income

We earned $430 from rental income
I earned $750 from miscellaneous income

All of this totals $1,433.70 from our side hustles for the month of December!  It was great earning money on side during this busy and expensive month. 

2018 side hustle totals:

We have earned a total of $14,802.47 in 2018!  While this is the lowest amount of side hustle income we have generated, we still feel very accomplished for the year.  We have been trying to balance earning more income with enjoying family time.  We have now been tracking our side hustle income for 5 years! 

In 2018, we earned $14,802.47

In 2017, we earned $15,307.76

In 2016, we earned $24,195.44
In 2015, we earned $19,178.54

In 2014, we earned $28,633.42

I am excited to see what 2019 brings for our family.  I will continue to post updates on our financial situation.  This keeps us accountable and also helps us track our financial progress.  It’s amazing that I have now been blogging for 7 years.  Last year, I focused on eating healthy and keeping our grocery costs down.  Doing all of our grocery shopping at Aldi and buying in bulk at Costco has helped cut our grocery expenses.

For the last 6 months, I have been practicing Intermittent Fasting (IF).  With IF, I have made my life simpler, healthier, more energetic, and I hope to live longer as well.  Fasting also gives me a much better appreciation for food and helps me be more thankful when I get to eat.  You can read a beginner’s guide to intermittent fasting written by James Clear here. 

This New Year I want to focus more on being in the moment and practicing more gratitude as I continue relentlessly improving every aspect of my life.  Our kids are our greatest motivation for working towards financial freedom.  At the same time, we want to appreciate and relish all the moments we can get with our family.

 

Let’s make 2019 another fantastic year together.  Thank you for joining me on this journey.