10x Return on Expenses

Not all expenses are created equally.

Some expenses just have to be paid, and you move on. Things like property tax bills, utilities, car repairs. There’s not much return for those dollars spent. They’re 1:1 on the ROI scale.

Other expenses may have a 3:1 return. You get three times the joy for one dollar spent. That could be a watch to celebrate a big event, clothing, trying a new restaurant experience, or a new laptop.

They’re nice upgrades and you enjoy them, but they slowly become the norm and have less value overtime.

Lastly, some expenses have a 10:1 return. They have so much value, you couldn't care less about the money you spent and would do it again in a heartbeat.

I don’t mean to be cliche, as this is different for everyone. But for me, that’s been hosting friends and family.

My mom just retired after 5yrs of considering it. My brother and I rented out a restaurant for her closest family and friends, decorated it really nice, got a photographer, and got to spend a really great time together.

Another 10x return expense was renting a beachfront property to work and surf all day with close friends. For an extended weekend, being able to tell stories, sit and stare at the ocean, and surf all day is a memory that makes me happy when I think back.

Ramit Sethi, financial advisor influencer, says to find “Your Rich Life” and relentlessly cut off the rest. For post-exit folks, I think that’s a reminder to search for 10:1 expenses and shave the sub-optimal ones.