Is the Juice Worth the Squeeze?

Last night I played an open mic at a biker bar.

did you Ever See Pee Wee’s Big Adventure? When he does his dance on the bar to the song Tequila?

Yeah, that kind of place.

It felt like we (the performers) had invaded their space, and the crowd could have cared less about what we were doing.

I played my 3 songs, had a couple of beers, and was on my way.

As i drove home, I was thinking to myself, I am not sure the Juice is worth the squeeze at this place.

Sometimes it seems like my life is lived in a perpetual state of the 80/20 Rule.

What do I mean by that?

I seem to constantly apply the Pareto Principle to how I spend my time and to the “perfect—not perfect” lifestyle changes I make and keep.

The basic idea is simple: find the 20% of activities that produce 80% of the results you’re after.

Walking 15,000 steps per day appears to be one of those activities for me.

It generates a huge percentage of the health and fitness outcomes I want with a relatively simple daily habit.

In this case, the juice is definitely worth the squeeze.

There have been periods when I convinced myself it wasn’t.

And what happened?

I gained back a significant chunk of the weight I had previously lost while consistently walking those 15,000 steps.

The same kind of thinking applies to much bigger lifestyle decisions.

Post-FIRE Work

Suppose you’ve reached Full FIRE—or even a modest Fat FIRE.

Your investments comfortably cover your expenses, and you’re able to pursue many of your dreams.

Sure, having more money would allow you to pursue even more expensive dreams.

But earning that extra money requires giving up more of your time.

So the question becomes:

Is the juice worth the squeeze?

For example, I’ve considered taking a seasonal bartending job.

Yet I keep resisting the idea because other priorities continue to take precedence.

What would I gain?

• I could live somewhere new for three or four months and experience what it’s really like.

• I’d almost certainly meet interesting people and make new friends.

• I could party like it’s 2066.

• It could be near a beach, eliminating much of the appeal of owning a second home there.

• It would be fun to dust off my long-forgotten college bartending skills—mixing drinks, serving customers, and talking with some colorful characters.

Yeah…

It sounds like fun.

But is the juice worth the squeeze?

The jury is still out.

Buying a New Car After FIRE

Now let’s look at a bigger financial decision.

Suppose you have a $50,000 budget for a new car, or perhaps a one- or two-year-old certified used vehicle.

Now suppose you’re like me.

Your current car is almost fifteen years old.

It’s in excellent condition.

It’s been serviced twice a year by outstanding mechanics.

Every recommended repair and maintenance item has been completed.

It currently has about 130,000 miles on it, and it’s the kind of vehicle that’s well known for lasting 250,000 to 300,000 miles.

Most of my driving is Highway to Yeah driving—long highway trips rather than stop-and-go city driving—which is generally easier on the vehicle.

Annual ownership costs look something like this:

• Approximately $2,000 per year for maintenance, oil changes, detailing, and repairs.

• Around $110 for registration.

• Roughly $1,400 for insurance.

• Tires as needed.

In short…

It’s a fine automobile.

So what would make buying a new one worth the squeeze?

A new $50,000 vehicle immediately begins depreciating.

That same $50,000, if left invested, might reasonably earn around $5,000 per year.

A quick Google search suggests that owning a $50,000 vehicle costs roughly $6,500 per year when depreciation, insurance, maintenance, registration, and other ownership costs are averaged together.

Over five years, that’s approximately $32,500.

Now compare the two choices.

Buy the New Car

• $50,000 purchase price

• Approximately $32,500 in ownership costs over five years

• Approximately $25,000 of forgone investment returns

Total cash committed: roughly $107,500.

Meanwhile, the vehicle continues depreciating.

Keep Gandalf the White

(Yes, that’s the nickname for my trusty old car.)

• No capital outlay.

• Roughly $20,000 in ownership costs over five years.

• Continue earning approximately $25,000 from keeping the investment portfolio intact.

The result?

My investments essentially pay for the car’s operating costs while continuing to grow.

Is the juice worth the squeeze?

Not this year.

Someday? Absolutely, as I put more Miles on Gandalf The White

But this quick analysis reminds me that I don’t need to pull that lever today.

Oh…

And did I mention the gorgeous supermodel I’m dating?

Just kidding…

Sort of.

But seriously, you don’t need a fancy car to become a high-value, attractive individual.

This entire article actually started because I was considering another idea.

I Had Heard you can turn part of Your property into an Airbnb campsite where travelers could pitch a tent or park an RV for a few nights.

After thinking it through, I quickly decided the juice wasn’t worth the squeeze.

Sometimes the best financial decision isn’t asking, “How can I make more money?”

It’s asking,

“Is the additional money worth the additional complexity, responsibility, and time?”

How about you?

What lifestyle changes are you considering?

And when you honestly weigh the costs and benefits…

Is the juice worth the squeeze?

Note: This is only a quick back-of-the-envelope comparison. It also doesn’t account for the additional investment returns that could be earned by keeping the difference in ownership costs invested rather than spending it on a newer vehicle.