Simple Living

This Hack Will Help You Think Opportunity Costs

March 29, 2021 By Nagesh Belludi Leave a Comment

Goals and Anti-Goals---Opportunity Cost Making decisions is all about opportunity costs. For instance, every time you spend money to get something, you should ask yourself what else, perhaps of better value, you could get with that money—now or later.

The problem is, when forced to choose between something immediate and concrete and something else that’s comparatively abstract and distant, the opportunity cost could lack clarity.

Duke University behavioral economist Dan Ariely proposes the notion of “anti-goals” to help examine the trade-offs you’re forced to make. Ariely encourages pairing goals such that if you satisfy one, you’ll impede the other. For example, when choosing to spend $100 on an evening out today, you can consider a tangible anti-goal—say, saving for the family’s summer vacation—that’ll be held back.

Idea for Impact: Thinking about what you want to avoid—the anti-goal—is a potent tool. It allows you to focus on things that really matter.

Five Ways … You Could Prevent Clutter in the First Place

March 17, 2021 By Nagesh Belludi Leave a Comment

Go paperless. Arrange for electronic delivery of all your bills and bank statements. Organize important papers into a filing system. Gather anything you want to keep for future reference and scan it to a computer. Shred or recycle the rest.
Look out for clutter magnets, those areas of your home or office that become enticements for clutter: the kitchen counters, the dining-room table, the chest in the hallway, a chair in the bedroom, and the ‘floordrobe.’ Place a crate near your closet where discarded garments can land until they can be sorted.
Turn down freebies. Before taking commemorative swag at a conference or nabbing hotel toiletries, consider if they’re things you’ll actually use or if they’ll become yet other objects that you’ll have to make space for.
Have a spot for everything. Store related objects together—that’ll spare you the pain of figuring out where things should go, and you can see if there’re already two or more of each item.
Institute a 15-minute quick tidy-up routine every night. Clear the kitchen counter, fold and put away laundry, and toss out the garbage. Save a whole lot of time when it comes to the weekend or deep-cleaning days.

Bonus: Clean-as-you-go throughout the day. Little clean-up routines can make your mind clearer and the time you spend with your loved ones less fraught.

Marie Kondo is No Cure for Our Wasteful and Over-consuming Culture

February 11, 2021 By Nagesh Belludi Leave a Comment

Tidying Up with Marie Kondo (2019) on Netflix

I recently watched Tidying Up with Marie Kondo (2019,) the popular Netflix series featuring the Japanese decluttering evangelist. The show is based on her bestselling manual, The Life-Changing Magic of Tidying Up (2011.)

In each episode, Kondo cheerfully proclaims, “I love mess!” With certain calm, she calls on various families and goes about clearing their tat-filled homes and bringing order to their chaos. Her trademark sense of minimalistic bliss is informed by Japanese aesthetic and a Zen-sense of orderliness.

Apparently, Marie Kondo isn’t attuned with Christianity.

Interestingly, Kondo has clients kneel on the floor and “ask” their dwelling for “permission” and “cooperation” before they get started. “I’d love for you to picture your vision for your home,” she pleads. “Communicate that to your home.” She encourages saying “thank you” to their piles of clothes as they sort and fold them. She daintily treats inanimate objects as living things and speaks to them. She encourages her show’s audiences to do the same.

That’s Buddhism/Shinto in force. Some flavors of native Japanese spirituality focus on inanimate objects’ sacredness. Several of Kondo’s critics in America have insisted that her methods aren’t compatible with Christianity. Kondo’s rituals of treating objects as if they have feelings, these critics have declared, is to be discouraged because her ways invoke animism, the religious notion that objects possess some sort of spiritual essence.

“Kondo-ing” Has Become a Verb.

With a translator in tow, Marie Kondo never treats her patrons as victims, and that’s exceptionally impressive.

By eschewing a victim mentality, Kondo encourages and empowers people in a way that actually brings about lasting change. Audiences particularly love her advice on organizing wardrobes and storage spaces and routinizing tasks into maintainable systems.

Kondo emphasizes prioritizing joy. She doggedly insists upon keeping only those objects that “spark joy” (she uses the Japanese intransitive verb “tokimeku,” roughly, “to flicker.”) Her “if in doubt, throw it out” commandment has helped millions of people ward off hoarding tendencies.

Kondo has become a cultural sensation, appealing to all sorts of homes bursting with cheap consumer goods. The “Marie Kondo Effect” is directly responsible for increasing donations to thrift stores and charity shops worldwide.

Marie Kondo isn't attuned with Christianity

Keep what sparks joy. Own less stuff. Pursue what’s meaningful.

If you’d like to downsize or declutter without letting go of things you love, take the KonMari method to heart. But don’t go too far. Be careful about shedding items to which you have a deep sentimental connection. Put it into operation earnestly to get rid of clutter. Find joy, significance, and sacrament in simple everyday objects and tasks. Simplifying your priorities and refocus on things that you tend to overlook in the busyness of life.

Only Consume What You Need. Supplement the Konmari method of paring down your belongings with the ongoing strategy for minimizing additional purchases. Buy only those things that will “spark joy” and continue to do so for many years. Never mind that the economy depends upon endless undifferentiated consumption.
Reduce, but Don’t Refresh. If you have a bunch of empty space, be selective in how you fill it up. Cutting down your possessions isn’t an invitation to revert to a situation where decluttering again becomes necessary after a while. Restrain that impulse to acquire the new and the shiny—that’s what overwhelmed Kondo’s clients in the first place.

The real magic of Tidying Up with Marie Kondo is in shedding anxiety, living in the moment, and being your best self. Your happiest moments come when you’re lost to a conversation or an experience. You’ll avoid the helter-skelter of life has the power to deny and neglect what’s most important in your life.

Will the Marie Kondo Effect alleviate haywire consumerism?

The more profound significance of decluttering and minimalism is to help make better choices when making purchases in the future.

And beyond the individual convenience, it would be more productive to build up collective awareness and confront the modern consumption economy. It only presents overwhelming incentives to mass-produce and overconsume superficially appealing items.

Collectively, humanity needs to start questioning whether we should be pursuing growth at all. The economic system we have now can’t sustain forever. Our ecological systems can only sustain so much life. We’ve grown so much as a population, and we’ve started consuming so much that we’re straining the earth’s ability to support us. Hyperconsumerism needs to stop.

Will the Marie Kondo Effect alleviate haywire consumerism?

Idea for Impact: Negligent hyper-consumerism is shameful and embarrassing, even to this “card-carrying” capitalist.

Ironically, after making us get rid of everything, Marie Kondo has started peddling such things as therapeutic tuning fork and crystal ($75,) compost bin ($175,) and food storage container ($60) that are guaranteed to “spark joy.”

At any rate, I hope Marie Kondo and her ilk inspire a collective self-loathing at how much we consume. Utility should be the principal criterion for what we buy and keep.

I urge you to make strides towards more mindful consumption and consciously differentiate wants and needs.

Buy what you need. Buy the best quality stuff you can afford, and keep them for longer. Choose things that can be easily repaired—if possible, repurposed and recycled. Encourage businesses that peddle goods that are manufactured as responsibly and mindfully as possible.

Lessons from Secret Millionaires: The Great Compounding Machine That’s Time

January 11, 2021 By Nagesh Belludi Leave a Comment

Ronald Read (1921–2014) of Brattleboro, Vermont, worked as a gas station assistant and a custodian at a J. C. Penney store. He was a thrifty man, and he even held his coat together using safety pins. Upon his death, he left $2 million to his stepchildren, caregivers, and friends, and another $6 million to the local library and a hospital. Read had built up a secret wealth by starting small, studying businesses that he understood, buying their stock, and holding them for the rest of his life.

Grace Groner (1909–2010) of Lake Forest, Illinois, lived a frugal life in a small one-bedroom cottage near Chicago. She got her clothes at hand-me-down sales, didn’t own a car, and worked most of her life as a clerk for Abbott Laboratories. Groner willed a $7 million scholarship endowment at Lake Forest College. The money came from three Abbott shares she had purchased in 1935 and let grow, reinvesting the dividends.

Time in the Market is a Great Compounder Agnes Plumb (1905–95) of Los Angeles left a $98 million estate to four hospitals. Plumb had amassed that fortune after liking cornflakes when they were first marketed and having her dad buy her Kellogg’s shares during the company’s early days. She allowed her investment to compound, and by the time she died, she had accumulated 1.3 million shares of the Kellogg Company. She was collecting some $437,000 just in dividends every three months.

Jack MacDonald (1915–2013) was a coupon-clipping, bargain-hunting Seattle lawyer. He even wore sweaters with holes in them, and people assumed that he was broke. When he died at age 98, he left a surprising fortune worth $187 million to various causes, including Seattle Children’s Hospital.

Kathleen and Robert Magowan (1925–2011, 1925–2010) of Simsbury, Connecticut, died within a year of each other. These twins lived as hermits throughout their lives and built up a fortune through wise stock market investments. They left $10 million worth to various civic institutions.

Curt Degerman (1948–2008) was a can-collecting street bum living in Skelleftea in northern Sweden. For three decades, “Burk-Curt” (‘Tin-Can Curt,’) as he was called, roamed the streets of his town in tattered clothes. In between collecting cans, Degerman spent much time in the town library studying business media and examining the stock market. He used his tin-can incomes to buy mutual funds and gold. When he died, he left more than $1.4 million to his cousin.

Time in the Market is a Great Compounder.

There’s one thing not apparent in these live-modestly-and-invest-prudently anecdotes. The fortunes of these seemingly ordinary, generous folks became so big due in no small part to their age.

With time, money has the chance for a heck of a lot of compounding. Money grows 10.83 times every 25 years if you consider a 10% historical mean return on equities. To take a prominent example, Warren Buffett, who’s now 90 years old, has made 99.7% of his fortune after 52.

Idea for Impact: Time in the stock market is infinitely more important than timing the market. Start investing early. Watch over your health. Live a long life. Grow your money. A long time horizon will enable your investments to grow through the “magic” of compounding.

That Extra Salary You Can Negotiate Ain’t Gonna Make You Happy

October 13, 2020 By Nagesh Belludi Leave a Comment

This well-cited study shows that people with high incomes aren’t actually that much happier than their less-earning brethren. This is something many people know empirically. Never mind that subjective happiness is a nebulous condition that’s not easy to measure.

The belief that high income is associated with good mood is widespread but mostly illusory … People with above-average income are relatively satisfied with their lives but are barely happier than others in moment-to-moment experience, tend to be more tense, and do not spend more time in particularly enjoyable activities.

Of course, there’re situations wherein more money can make a real difference in your well-being: nirvana from living paycheck-to-paycheck, freedom from debt, and adequate savings for retirement. Yes, being poor makes people miserable.

The Extra Salary You Can Negotiate Ain't Gonna Make You Happy But, beyond a reasonably upper-middle-class living (better health care, lavish-enough vacations and celebrations, affording one partner who could stay at home, the ability to buy conveniences, and so on,) additional income doesn’t create enough incremental happiness to justify all the compromises the extra income entails.

Even people who had big wins in the lottery winded up no happier than those who had bought lottery tickets but didn’t win. Sure, these people will be more content with their new toys for a short time, but that delight typically fades away quickly. After that, they’ll seek out yet another indulgence. Soon, that’ll wear off too, at which point they’re already on the hedonic treadmill.

Idea for Impact: Be mindful of what you’re trading away in the pursuit of a higher salary. Wealth and status are false gods.

What Happens When You Talk About Too Many Goals

February 28, 2020 By Nagesh Belludi Leave a Comment

Matthew Pritchett's cartoon: Labour For the Many Brexit Positions Not the Few

To supplement this illustrious sketch by the British cartoonist Matt Pritchett, an excerpt from HuffPost’s article on “How Jeremy Corbyn Lost The Election,”

One big problem was the sheer size of the [Labour Party] manifesto and the number of policies on offer. Candidates complained that they didn’t have a single five-point pledge card like the one Tony Blair made famous. While the Tories had a simple message of ‘Get Brexit Done,’ Labour lacked a similarly easy ‘doorstep offer.’ “We had so much in the manifesto we almost had too much,” one senior source said. “It felt like none of it was cutting through. You needed to boil it down.”

“We tried to give a retail offer and also a grand vision and ended up falling between the two stools. To get across ‘you’ll be better off with Labour,’ we should have made our position clearer much earlier.”

Idea for Impact: Distill your goals into simple messages that others will find relevant and timely. When it comes to persuasion, clarity and conciseness are critical. Weak messages meander. Smart messages immediately express what’s important and help rally your resources towards your mission.

Never Enough on the Hedonic Treadmill

February 10, 2020 By Nagesh Belludi Leave a Comment

In Enough: True Measures of Money, Business, and Life (2008,) mutual fund pioneer John C. Bogle puts emphasis on the virtue of contentment:

At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds, “Yes, but I have something he will never have … enough.”

Enough. I was stunned by the simple eloquence of that word—stunned for two reasons: first, because I have been given so much in my own life and, second, because Joseph Heller couldn’t have been more accurate. For a critical element of our society, including many of the wealthiest and most powerful among us, there seems to be no limit today on what enough entails …

We chase the false rabbits of success; we too often bow down at the altar of the transitory and finally meaningless and fail to cherish what is beyond calculation, indeed eternal. That message, I think, is what Joseph Heller captured in that powerful single word, enough.

The Hedonic Treadmill: Never Enough American entrepreneur Seth Godin describes the never-ending ratchet of consumption:

It used to be that a well-tended lawn of 50 by 100 feet was wasteful indeed. Today, it’s in the by-laws of the local housing association. You could impress the neighbors with a new Cadillac, now you not only need a Tesla, but you need a new Tesla. And you could show off by flying first class, but then you needed to charter a plane, then charter a jet, then charter a bigger jet, then buy a fractional share, then own the whole thing, then get a bigger one and on and on.

Conspicuous consumption is not absolute, it’s relative.

It’s sort of a selfish potlatch, in which each person seeks to demonstrate status, at whatever the personal or societal cost, by out-consuming the others.

It’s a lousy game, because if you lose, you lose, and if you win, you also lose.

The only way to do well is to refuse to play.

In times of yore, the Roman stoic philosopher Seneca the Younger counseled about the excesses of desire in his Ad Lucilium epistulae morales (Moral Letters to Lucilius; tr. Richard M. Gummere; 1917):

It is not the man who has too little, but the man who craves more, that is poor. What does it matter how much a man has laid up in his safe, or in his warehouse, how large are his flocks and how fat his dividends, if he covets his neighbour’s property, and reckons, not his past gains, but his hopes of gains to come? Do you ask what is the proper limit to wealth? It is, first, to have what is necessary, and, second, to have what is enough.

Our consumerist society encourages us not to be grateful for what we have.

Consumerism encompasses dissatisfaction—if people are happy with what they’ve got, then they are less concerned about getting more.

Idea for Impact: Why is more and more always better if it can never be enough?

Avoid Decision Fatigue: Don’t Let Small Decisions Destroy Your Productivity

January 20, 2020 By Nagesh Belludi Leave a Comment

Making some decisions depletes mental resources for making more important ones

Every decision you make impacts the quality of successive decisions you’ll have to make, even in unrelated situations.

That’s because, according to the much-debated “muscle metaphor” of willpower, your mental stamina is limited.

As Roy Baumeister and John Tierney explained in their bestselling book on Willpower: Rediscovering the Greatest Human Strength (2011; my summary), you have a finite strength of will for making prudent choices. As you go about your day, your willpower is depleted and “decision fatigue” sets in. Consequently, you’re likely to employ one of two cognitive shortcuts in decision-making: you avoid the act of deciding altogether or make a less-thoughtful, sub-optimal decision.

Don’t get overloaded with so many pointless decisions that your cognitive productivity ends up falling off a cliff.

President Barack Obama claimed that he makes deliberate efforts to avoid decision fatigue so that he can devote his mental energies to things that matter. Michael Lewis quotes Obama in the October 2012 issue of Vanity Fair,

You’ll see I wear only gray or blue suits … I’m trying to pare down decisions. I don’t want to make decisions about what I’m eating or wearing. Because I have too many other decisions to make. … You need to focus your decision-making energy. You need to routinize yourself. You can’t be going through the day distracted by trivia.

In the same way, Facebook founder Mark Zuckerberg sports a limited wardrobe. He has previously declared that doesn’t waste time and energy to pick his daily outfits: “I really want to clear my life to make it so that I have to make as few decisions as possible about anything except how to best serve the community.”

Avoid Decision Fatigue: Don't Let Small Decisions Destroy Your Productivity

Idea for Impact: Establish healthy routines that can eliminate unnecessary deliberation

Life is the total of all the mundane and momentous choices you make. Being monotonous in handling the former enables you to excel in the latter. Limit decision fatigue by

putting as much of your life as possible on autopilot using routines / rituals and checklists,
limiting the choices you have (read Barry Schwartz’s The Paradox of Choice: Why More Is Less), and
delegating decision-making where possible.

Good routines can provide structure to your day, protect you from your more effective negative impulses, and bring order and predictability to your life. Besides, according to renowned career coach Marty Nemko, “modern life, increasingly defined by unpredictability, can be anxiety-provoking, and routines provide an anchor of predictability.”

Yes, This is How Money Can Buy Happier Times

October 7, 2019 By Nagesh Belludi Leave a Comment

Is you're overwhelmed, could money buy you some happiness

Harvard consumer psychologist Ashley Whillans’s cover article in the January 2019 issue of Harvard Business Review considers why the pursuit of money may not bring you joy.

As a society, we really have more time to spend than in previous societies (a result of convenience and mechanization.) Yet, she observes, we tend to use our free time to work yet more and expand our bank accounts, rather than invest that time in things that can provide us with more happiness—meaningful relationships, for example.

The article (and the related podcast) explains how to value your time over money, in particular by hiring help. Here is a précis:

You may not be able to change how many hours you work in a week, but you may be able to change how much of those non-work hours you’re spending on chores.

If you are having a really busy weekend and you have four or five hours of chores to do at home, that means you’re going to have four or five less hours to spend in any other ways that could promote meaning and happiness.

When considering how we can use money to increase our happiness, most of us think of investing it in positive experiences like Hawaiian vacations. But it’s also important to think about how to eliminate negative experiences from our day. Take small actions—don’t do anything too drastic, but just sit down and think about whether there’s anything you can outsource that you really don’t like, that stresses you out a lot, that you can afford.

Idea for Impact: Money allows you to compress some of your routine tasks, should you so choose

If you feel increasingly strapped for time, use the mental model of opportunity costs and consider earmarking a fraction of your discretionary income to hire a personal assistant. Buy yourself some more of that most valuable of life’s supplies, free time.

Start by asking your friends for referrals for a reliable assistant. Outsource your housework, shopping, errands, and other tasks that you dislike. Use the salvaged time to seek activities that bring you joy—recreation, relationships, spiritual and intellectual nurturance, or even productive work.

However, farm out your personal chores in moderation. According to the aforementioned article, there’s some evidence to suggest that people who outsource too much have the lowest levels of happiness, perhaps as a consequence of indolence.

The Simple Life, The Good Life // Book Summary of Greg Mckeown’s ‘Essentialism’

August 21, 2019 By Nagesh Belludi Leave a Comment

One of the great struggles of modern life is the intense complexity, chaos, and exhaustion of activity and reactivity. We have a tendency to take on too much, become accountable to too many people, and say ‘yes’ to too many demands on our time and our energy.

As I mentioned in my world’s shortest course on time management, the merits of ignoring the trivial many and focusing on the vital few is often overlooked. The need for essentialism—less responsibility, less fame, less money, fewer possessions, less mess—is something that’s easy to identify with, but requires abundant self-discipline to put into consistent action.

Business consultant Greg McKeown’s Essentialism: The Disciplined Pursuit of Less (2014) is an excellent reminder that a rich, meaningful life entails the elimination of the non-essential:

Essentialism is more than a time-management strategy or a productivity technique. It is a systematic discipline for discerning what is absolutely essential, then eliminating everything that is not, so we can make the highest possible contribution toward the things that really matter.

McKeown’s wide-ranging discussion covers insightful get-a-hold-of-your-life principles—frugality, sufficiency, moderation, restraint, minimalism, and mindfulness—reframed in the essential-avoidable dichotomy. Here are prominent insights from Essentialism:

Get to grips with selectivity—whenever you can, judiciously select which priorities, tasks, meetings, customers, ideas or steps to undertake and which to let go. “The basic value proposition of Essentialism [is,] only once you give yourself permission to stop trying to do it all, to stop saying yes to everyone, can you make your highest contribution towards the things that really matter.”
Most top performers have one thing in common: they accept fewer tasks and then fixate on getting them right. “Essentialism is not about how to get more things done; it’s about how to get the right things done. It doesn’t mean just doing less for the sake of less either. It is about making the wisest possible investment of your time and energy in order to operate at our highest point of contribution by doing only what is essential.”
If you don’t arrange your life, someone else will. “When we forget our ability to choose, we learn to be helpless. Drip by drip we allow our power to be taken away until we end up becoming a function of other people’s choices-or even a function of our own past choices. In turn, we surrender our power to choose. That is the path of the Nonessentialist. … The Essentialist doesn’t just recognize the power of choice, he celebrates it. The Essentialist knows that when we surrender our right to choose, we give others not just the power but also the explicit permission to choose for us.”
Pop out at least once a year to reflect and ask questions about what you’re doing and why. “The faster and busier things get, the more we need to build thinking time into our schedule. And the noisier things get, the more we need to build quiet reflection spaces in which we can truly focus.”
Pursue a well-lived, joyful, meaningful life. “The life of an Essentialist is a life lived without regret. If you have correctly identified what really matters, if you invest your time and energy in it, then it is difficult to regret the choices you make. You become proud of the life you have chosen to live.”

Recommendation: Speedread Greg McKeown’s Essentialism: The Disciplined Pursuit of Less. It will remind you of the wisdom to think through—and act upon—what really matters. Essentialism is chockfull of useful instructions on how to say ‘no’ gracefully, exercise your freedom to set boundaries, discover the power of small wins, and harness the power of routines to evade the pull of nonessential distractions that can subsume you easily.

Simple Living

Wondering what to read next?

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Apparently, Marie Kondo isn’t attuned with Christianity.

“Kondo-ing” Has Become a Verb.

Keep what sparks joy. Own less stuff. Pursue what’s meaningful.

Will the Marie Kondo Effect alleviate haywire consumerism?

Idea for Impact: Negligent hyper-consumerism is shameful and embarrassing, even to this “card-carrying” capitalist.

Wondering what to read next?

Time in the Market is a Great Compounder.

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Making some decisions depletes mental resources for making more important ones

Don’t get overloaded with so many pointless decisions that your cognitive productivity ends up falling off a cliff.

Idea for Impact: Establish healthy routines that can eliminate unnecessary deliberation

Wondering what to read next?

Idea for Impact: Money allows you to compress some of your routine tasks, should you so choose

Wondering what to read next?

Wondering what to read next?