42 | Running on Empty
This past weekend, my dad and I were riding down to Pinehurst to meet up with my brother for a weekend of golf, college basketball, and quality time.
Pinehurst has been a special place to all three of us for many years - U.S Opens, golf weekends, and visits to my grandparent’s-in-law house.
Over the past 15 years, I'd bet that I have driven the route from Winston-Salem to Pinehurst somewhere between 25 and 30 times.
I know the route well - the food options, the golf courses we pass along the way, the exits with tons of options, and the exits without much of anything but an on/off ramp.
About seven miles away from the traditional turn off, we passed an exit with our last gas station option. As we drove under the overpass - the exit officially behind us - Dad said, "I think we should be able to make it to the next exit before we have to fill up."
At this point, the warning indicator read, "1 Mile to Empty".
For a few minutes we chuckled as we discussed the decision - how long has the light been on? Does the light coordinate with the mileage counter? Does "1 mile" mean 1 mile or does it mean 35 miles?
Based on prior experience, we sensed that we had some leeway, but the exact amount of leeway was unknown and the previously casual discussion quickly pivoted to how far we were from the next gas option.
After a few minutes, we began approaching the normal exit and saw big, orange barricades across the entire ramp - "EXIT CLOSED".
The innocent chuckles and "what ifs" of a few miles back pivoted further into somewhat nervous laughs and a quick glance at Google Maps to assess the reality of the situation.
At this point, we were winging it on what seemed like a gallon at the most and fumes at the worst.
The innocent decision to pass on an easy gas stop seemed like no big deal until the next option, which had been available every time before, was not available at the precise moment we needed it.
The reality is that cash in a savings account is a lot like gas in your car.
With a full tank of gas, you can access exponentially more destinations than you can even with a half tank. The next fill up is way down the list of things you need to be concerned about and you have the freedom to dream and adventure without being too concerned with immediate logistics.
When you're driving on fumes or even a gallon, you are constantly thinking about when, where, and maybe even if you will be able to fill up again. You're completely susceptible to any uncertainty that is thrown your way. Even routine trips begin to feel reckless because there's a chance it won't go as smoothly as it always has.
With the gas tank, it is easy to see the cause and effect. With money, that relationship is not as obvious.
Ample gas in the tank, or cash in the bank, can feel like such basic advice that it's easy to overlook under the presumption that you'll always have the ability to fill it back up.
No matter the car, if you run out of gas, you're stuck.
No matter the level of wealth, if you run out of cash, you're stuck.
Fortunately, the next exit was only a couple of miles down the road. It didn't have a gas station, but we were able to navigate back to the closed exit in a roundabout kind of way to fill up the tank and grab lunch.
For us, the worst outcome would have been waiting on the side of the road for AAA and possibly missing a tee time for the afternoon. A bummer, but not a life changer.
With finances, the stakes can escalate much more quickly. The AAA equivalent when you run out of cash in a savings account is carrying a balance on a credit card out of desperation, selling investments at an inopportune time, or being forced to say "no" to something that might have been an automatic "yes" with more cash on hand.
Don't run your household on fumes!
Additional Reading
How your bank balance buys happiness: The importance of "cash on hand" to life satisfaction by Peter M. Ruberton, Joe Gladstone and Sonja Lyubomirsky
"Could liquid wealth, or "cash on hand" - the balance of one's checking and savings accounts - be a better predictor of life satisfaction than income?"
How I Think About Cash by Morgan Housel
"When chaos hits, nobody has enough cash."
