About Time, Money and Joy
Time, Money and Joy
“Finding the Balance”
By Glenn Frank, Fall 2020
Do you want to be happier? Do you want to make better decisions? I asked myself these same questions years ago. My expertise was with money not time management or psychology. As a financial planner our mandate has always been “financial optimizations” when in reality maximizing family happiness is what clients really want. I know that true wisdom lies in taking a number of variables, applying deep knowledge and experience in the subject matter and then tailoring to a client’s personal circumstances. I simply needed to add 2 more variables to the equation!
My research pointed to the now obvious – that Time, Money and Joy are almost always intertwined and invariably in tension with each other. Unlike happiness whose metrics are sketchy at best, time and money are quantifiable and in limited supply. So how do you integrate the nebulous with the tangible? How do you navigate the continual TMJ balancing act?
The following is a simplified step-by-step process. Like most problems we solve for, it begins with fact gathering, followed by analysis, perhaps an iteration or 2 before reaching a conclusion that may be altered later when new facts surface. The solution is not perfection – just worthwhile improvement!
Step 1 - What Are Your Numbers?
Yes money comes first as lack of funds now or later buys misery! Determine your lifestyle cash outflow number associated with your “necessities” post career + your savings needed number, if any. to cover your planned expenses . Social security, pension may be adequate. You may need a new paycheck. You may need to save a certain amount. This will all drive your career requirement -how long you need to work and for how much.
For example, assume you would like to spend $5,000/month- $60,000/year and social security will provide $40,000. As a result, $20,000 will have to be withdrawn from your savings every year. Assuming a life expectancy of 30 years and using an industry rule of thumb of a sustainable 4% drawdown, the savings accumulation needed is $500,000 (100 divided by 4% = 25 x $20,000). This assumes your financial assets are exhausted when you are! (note a much more precise calculation should be done than this very rough rule of thumb – see suggestions in Resources on this website). In this example $500,000 represents your “Work Optional” target!
Alternatively the gap could be filled with a new paycheck or spending less - see HPD below!
Note that “Your Numbers” are a crucial consideration in almost all financial decisions (career changes; housing; sales price for a business; portfolio risk; gifting…). If you are below “Your Numbers” these are clearly more difficult decisions.
Step 2 - The Joy Matrix
What actually puts a smile on your face and what doesn’t is driven by the chemicals your body produces. Observe yourself over time and then complete the matrix post activity.
Taking your dog for a walk may be something you “Must Do”. Deciding to play with Fido along the way may elevate this activity to the highest level, inducing an oxytocin “love hormone” surge.
The 11 o’clock news is in the “Your Choice” column. If the calamity du jour induces the stress hormone cortisol and also impairs your sleep, the lowest rating may be appropriate.
When completing the matrix, rank activities based on their overall impact on happiness. Factor in the implications of not doing the activity? For example, exercise may not be enjoyable in the moment but still warrants a high rating, as without it your cortisol levels might rise. Another example might be the stressful guilt associated when not fulfilling your responsibilities.
Some observations - the drivers of happiness usually involve, pleasure, purpose or pride. Having or lacking control is often a central issue. Where a person draws their “responsibility line” is key.
Relationship related activities are obviously huge. The “Your Choice” relationships are easier – spend more time with some people and avoid others. Problematic “Must Do” people in your life are more of a challenge. Perhaps selective avoidance in tandem with your personal goal of bringing out their best would improve the ranking.
Step 3 - HPD and HPH
Once you have a sense as to what makes you happy, is it affordable given that money and/or time may be scarce? How can you get the most “value” for these limited resources?
HPD
If you are you “financially challenged” then maximizing your “Happiness Per Dollar” is critical. When reviewing your cash outflows link them to your “Joy Matrix” to determine whether the expenditure is a happiness bargain or not. Often the best things in life are free or at least relatively inexpensive! You may be able to reduce overall expenditures while actually increasing joy. Note that if you can reduce outflows “Your Number” goes down which may mean that “Work Optional” comes sooner!
HPH
Often in the “Accumulation” career phase in life there are simply too few hours in the day -so maximize your “Happiness Per Hour”. When reviewing your schedule think about the “Joy Matrix” to determine what changes should be made.
Obviously try to replace discretionary activities that do not put a smile on your face with those that do.
Are the “yeses” on your calendar yours or someone else’s? Remember that “NO is a complete sentence” (Anne Lamont).
There may be lower rated “Must Do” activities that with some effort could be eliminated, delegated, automated or just intentionally procrastinated!
Step 4 - Conclusions?
After reviewing your financial projections, your schedule and after some heightened awareness of what is driving your joy, you may be at an “epiphany point” and changes are obvious. Then again, it may involve back and forth budgetary and/or calendar iterations before conclusions are reached. If there is a significant other in your life, their involvement in each component of the process is tantamount to the success of your plan. This will add a level of complexity and may cause some short-term debate. The benefits to your relationship however of the 2 of you reconciling Time, Money and Joy could be enormous!
Easy HPD/HPH - hug, laugh, meditation, sing, proper nutrition, daily progress, nature walk, mindfulness, practicing gratitude, plan and remember trips, socialize, dark chocolate, enough sleep, adequate exercise, first on the dance floor…
What’s Your Encore?
Yogi Berra once said “When you come to a fork in the road, take it”. If you have climbed the mountain and are taking in the view from the “Work Optional” peak - what’s next? Having a purpose is tantamount to your overall health and happiness! An infinitely more effective approach than Yogi suggests involves a serious Time, Money and Joy analysis. Keep in mind – To be happy help others!
Learn more in the TMJ Guide to Charity and Nonprofit Opportunities