96 | The Cost of Doing Life

The idea of 3% waste came from a friend who read it in a tweet. I’ve searched to try to give credit, but alas, I have not found the original thinker. I imagine and hope he or she would appreciate this elaboration on the idea if they were to come across it.

The general gist is that there is a baseline level of waste in everyone’s experience with money and…

That is OK.

If you’re wasting more than 3%, you’re probably being a little aloof.

If you’re wasting less than 3%, you’re probably trying to control more than can be controlled.

But for every $100,000 in income a year, we’re talking about $3,000 that will be regretted, second-guessed, forgotten, or just have less impact than originally hoped for or expected.

The 3% figure passes my sniff test, but I’d probably call it the inevitable “cost of doing life” instead of “waste”.

We’re talking about…

The convenience meal that totally disappoints.

The monthly subscription that continues many months past the last use.

The cost of groceries at a tourist destination.

The exercise equipment optimistically purchased only to collect dust in the corner.

The price increase because you waited a few more weeks to buy something that was cheaper when you first started looking.

The hidden fee that presents itself at the 11th hour of a decision.

The list is endless, but the feelings of frustration or disappointment are often eerily similar.

I think the rule of thumb is less a hall pass to freely waste, and more of a clipper for financial hangnails that have the ability to drive us crazy and even hurt if we don’t deal with them and move on.

These things don’t have to go on a permanent ledger to remind us of our mistakes.

They are better used as a mental note that might better inform the next time, and a gentle reminder that perfection is often the enemy of very good.