The Super-Power of Discretionary Income

Life is a series of experiences. Some are trivial like brushing your teeth, others are memorable, like your wedding day, or that cruise you took to Alaska. Some experiences are fun (maybe your last vacation is on your list of fun experiences), some are neutral (your list depends on your personality, washing dishes is on my list), and some suck (like getting a root canal). The most awesome power of having discretionary income is that you can opt out of some of the things you hate doing and opt into some of the things you love.

When I was younger, I didn’t understand this super-power you gain as you develop a discretionary income. I thought of money as something your exchange for goods. Paying to opt out of an experience is a more abstract transaction – you give away money but you don’t get an object in return. Of course, when I was younger I also didn’t have discretionary income so it was hard for me to understand its power. Sadly, this super-power is somewhat limited — you will still have to get that root canal yourself, no matter how much discretionary income you have.

When the Child talks about money, she always talks about the things she wants to buy – a huge mansion with a pool, a fancier car, the latest cell phone. She doesn’t yet understand that this is not where the power of money lies. Lots of adults also either don’t know this super-power or just don’t agree that it is awesome–based on the choices they are making with their money. Maybe owning the newest cell phone does optimize their happiness profits but somehow I doubt it.

There are lots of things I enjoy doing that other people outsource. For awhile we had a person who cleaned the house and I hated it. I don’t like other people in the house, I don’t like the weird chemicals they use, and I always worry about the pets. That service wasn’t optimizing my happiness profits. On the other hand I will call a repair person for the simplest things. I don’t like fixing things. It makes me anxious, it always takes more time than I predicted, and much of the time I have to call the repair person anyway. Instead of spending 5 hours trying to fix a leaky faucet, I can have an expert fix it in 5 minutes and I can spend my time messing with the yard which I love.

Today, I decided that I will have someone else build the website for this blog. I feel slightly guilty about it because I know I am perfectly capable of figuring out how to do it myself. But I only have so much time, I have a full time job, a child I am homeschooling (schools are closed because of the pandemic), and I am taking classes to complete my Masters in Finance. I don’t want to give up any of these things and I want a nice blog so outsourcing is the logical move.

I am a big fan of Mr. Money Mustache. His followers would vehemently disagree with this post. Mr. Money Mustache lives on a ridiculously low budget and in part he achieves that by not approaching problems from the perspective that he can just spend money to fix the problem. I am pretty sure he repairs his leaky faucets himself. I admire that attitude and I agree – if you want to minimize your spending that is the way to go. But this blog is not about minimizing spending, it is about optimizing happiness profits so on this particular topic I will not follow his advice.

One important caveat to this post. Notice that the super-power of opting out of experiences exists only if you have discretionary income. When I was younger and didn’t have discretionary income, I did fix my own leaky faucets and much more. Those experiences weren’t fun but I don’t recommend buying yourself out of experiences if you don’t have enough money to meet the basic needs of your family.

Having super-powers is awesome and it is worth working hard to get them!