Everyone loves a good vice. Whether it’s a steaming cup of premium coffee or the relaxing drag of a joint, these little pleasures often make the daily grind bearable. But when it comes to saving money and building wealth, these indulgences become the usual suspects for financial advisors’ cost-cutting lists. The common advice? Cut out the lattes and the weekend drinks, and you’ll save a fortune.
The Reality of Vices
Let’s face it – life without any form of indulgence seems pretty dull. Vices, in moderation, aren’t just splurges; they’re small tickets to happiness, stress-relief, and, in some cases, social bonding. For many of us, telling ourselves to stop enjoying what we love just for the sake of a few extra dollars in the bank doesn’t just feel like a tough pill to swallow – it feels like a full-on identity shift.
The Vice Equation
Consider the math. For someone who buys a cup of coffee every day, or maintains a steady supply of cannabis, the annual costs can be staggering. It’s easy to dismiss these expenses as inconsequential daily decisions, but compounded over time, they represent a significant financial opportunity cost.
The Personal Vice Audit
It starts with a personal audit. I looked at my expenses and noticed that while coffee doesn’t do it for me, my regular cannabis consumption was costing me a pretty penny. Between $1,800 to $3,600 annually goes up in smoke – literally. Over a decade, that’s $36,000 that I could have saved or invested. With a modest 8% return, that’s an additional $16,000 I’d miss out on. At a 20% return? That’s an eye-watering $57,000 on top of the initial $36,000. That’s a down payment on a house, a hefty retirement fund, or the financial freedom to take a year off work and travel the world.
A Logical Conundrum
Logically, quitting and redirecting all that money into investments is the best choice for future wealth. But we are emotional, habit-driven creatures. We value our present comfort and rituals – those 4/20 celebrations, the social gatherings, the creative sparks that come post-consumption.
The Vice Challenge Proposition
So, here’s the proposition: The Vice Challenge. It’s not about giving up what you love; it’s about matching your vice spending with investment spending. Every time I pick up weed, I’ll put an equivalent amount into a stock investment portfolio. It’s a way to ensure that the habit of indulgence doesn’t outweigh the habit of investing.
The Potential Outcomes
This approach has two possible outcomes: I either increase my income to sustain both my vice and my investments, or I cut my vice consumption in half. Either way, I win. I continue to enjoy my pleasures while building a nest egg.
The Bigger Picture
The Vice Challenge isn’t just about matching dollar for dollar; it’s about reevaluating our relationship with our vices. It’s recognizing that the ease and regularity with which we indulge in these habits can be leveraged to foster a similarly robust habit of investing.
The Vice Challenge Journey
I commit to documenting this journey, sharing the highs and lows of balancing indulgence with financial acumen. Each investment made will be a testament to the power of habit – proving that we can turn even our guilty pleasures into vehicles for financial growth.
The Call to Action
I invite you to join me on this challenge. Whether it’s coffee, cannabis, or cabernet, let’s turn our vices into a force for good in our financial lives. It’s about making responsible choices without relinquishing the joys that make life sweet.
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The Vice Challenge isn’t just about money; it’s a lifestyle shift that embraces the complexities of human behavior, acknowledging that with a bit of creativity, we can find balance and perhaps even thrive. It’s a challenge that’s realistic, attainable, and most importantly, doesn’t ask us to sacrifice the small joys that bring us happiness.
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