2022: Money II

The way most of us worry isn’t exactly productive. And not just money-wise. We worry about worries. We get anxious about being anxious.

The solution Armstrong presents in How to Worry Less About Money is to identify the worry, ask the right questions, and arrive at an insightful answer.

Armstrong suggests that we only need four questions to reduce our worries:

1. “What do I need money for? That is, what is important to me?”
2. “How much money do I need to do that?”
3. “What is the best way for me to get that money?”
4. “What are my economic responsibilities to other people?”

After roughly a year and half, I’m back to living on my salary. If I’m being honest, I’m “kinda back”. It’s a whole process, but I’ve given up thoughtless spending, paid out big commitments and weaned my subscriptions. I’m second-thinking expenses and paying attention to receipts. I’ve deflated my checking account and committed the rest of my payouts to savings.

When I wrote about this in January, someone recommended I use an app called You Need A Budget, and it helped. I didn’t use the app as designed because I don’t actually earn in USD, but it helped me keep a record of my spending. (Recently though, I switched to Copilot, which is more automatic.)

My plan to stop bleeding money is in effect, and now I’m just saving with no short-term goals. Choosing not to action my savings is not for a lack of options (I’ve spoken to a few people for advice), but rather because I’m trying to find a philosophy that feels natural.

What do I need money for?

My life is largely simple and I don’t have dependants or liabilities. I spend regularly on food, app subscriptions, housing and travel. Occasionally I buy clothes, gifts, books and toys. And that’s about it.

Travel and housing make up a vast majority of my expenses. I’m currently renting two apartments and I’ve paid for travel accommodation seven times this year alone. (I occasionally feel wasteful, but the experiences have been worth every dime. One life.)

wuruwuru has also been a sink, but I’ve moved out most of the money we need to run it until the end of “Season 1” next February.

How much money do I need to do that?

Lagos is where I pay the cheapest for accommodation, and thankfully, I have enough rent and credit for the next year and a half, even if the city is not an option for me long-term.

Inadvertently, travel housing is what I need to worry about. Monthly stays are best because I can get a decent apartment for the price of a resident – roughly $2k per month. My monthly subscriptions are currently under $100, and including food and transport, I’ll round up conservatively to $3k.

Basically, if I keep hopping cities or move to Nairobi/Europe, I should expect to spend $3k per month at least. I guess I can work other travel costs e.g. flights around whatever’s left.

What is the best way for me to get that money?

The big idea is to make my salary my only source of spending. I earn in Naira and probably will continue to until I proper move (legal and stuff) so all of this is contingent on the exchange rate.

My Naira expenses are very minimal, so I convert most of my salary to USDT as soon as I can. I‘m hoping to save decently until the end of the year, which is when I hope to continue long distance travel again. Saving makes a lot more sense now that I have enough.

My salary is good enough to cover my expenses and some more. Otherwise, I have no other serious source of income. I get dividends and returns every now and again, but the payments are paltry.

What are my economic responsibilities to other people?

wuruwuru is my biggest financial responsibility at the moment, but there’s a clearly defined end to the experiment.

I send money to my folks and siblings sometimes, but not because I have to (thanks mum). I choose to help with big expenses when I can, there’s the Uber, Spotify and Apple Music family subscriptions, and I’ve spent a significant chunk of my payout on gifts and experiences for loved ones, but these are not obligations.

Largely, I have no economic responsibilities to other people. If something bad happened to someone in the family for example, I suspect this might change. There’s also bit of tension with my dad but I’m constantly trying to evade that dependency. For now, I’m mostly free of black tax.

This Is (By Far) the Best Book About Money I Ever Read

5 timeless lessons from “How to Worry Less About Money” by John Armstrong. (Link to baos.pub)

I was worried about money because I don’t want to be broke again, but from the indications, I think I’m good. I stumbled on a review of “How to Worry Less About Money” and it helped me keep it basic.

My financial safety net is mostly cash and a few investments (including some treasury bonds from when I was younger). It seems unwise, but it’s also just simple and that’s good for me. I’ll figure out what next when the time is right.