How I Lost Money by Not Spending

I am incredibly cheap.

It comes from a time where I had no choice but to make a living. I’d moved across the country from my family (for the second time) and all my friends. The only possessions I had were a used bed I’d bought from a local pastor on Craigslist, a handful of $1 plastic plates and utensils from Target, a small corner desk, a cheap task chair, and my computer (which my uncle was kind enough to ship across country to me).

I had literally no money to my name.

I had one gig that paid me $100/day. I had no idea how badly I was underpaid. At the time, I didn’t care – I just needed a job, and wanted an audio job.

I did so poorly – initially – that my first Christmas in Seattle, when “what do you want for Christmas”-talk rolled around (which is also “what do you want for your Birthday”-talk, they’re right around the same time), I just said “money”. Which I then had to explain that I could use to pay rent, so I didn’t sound like a complete jerk.

(Don’t worry, I’m well aware that I’m at least a partial jerk)

This was part of a big stretch in my life (both before and after), where I truly learned what $1 was worth. I couldn’t eat food without feeling like I was literally eating money. I was so scared to check my bank account that stress would physically manifest itself. When I did get myself to log into my bank’s website, I’d look away first and hold my breath – hoping I hadn’t screwed up, overdrafted, and become literally broke.

It. sucked.

But, I think you can understand why – with all that in mind – I’ve had an incredibly hard time justifying ever spending money on something that wasn’t a necessity.

When Thrifty Fails You

For the time – my mindset was right. I had no money to spend – therefore, I shouldn’t have spent any money on anything I didn’t need.

I needed to learn how to earn more. (I did)

I needed to learn how to properly manage my money, get out of debt, etc. (I have)

At some point, I stopped being worried about whether I could pay rent or not. I was cognizant of how much money I had, and made sure that I always could – but I wasn’t exactly immensely stressed over the bare essentials anymore.

I was playing a different game.

But, I never changed my playbook – I didn’t realize this until much later.

Surprisingly, that actually hurt me.

You see – the vast of money advice is really bad. (I actually think the vast majority of advice is bad – ironic, huh? Don’t worry, none of what I write will ever apply to all of you)

The vast majority of money advice is also horribly generic. Things like “save more than you spend”, “don’t spend beyond your means”, “ask other people what they charge to figure out a competitive rate”, “if you cut out your cigarettes and coffee look at how much money you’ll save!”

Very few people actually act on any of it.

I can’t – and I won’t – tell you how to run your finances. If you’re desperate for that advice, reply to me, and I’m happy to suggest the books that worked for me – but I can’t promise you’ll get results.

I can tell you, however, a lesson I’ve learned about how being cheap can be bad – and how to effectively, positively spend your money.

Spending Well

A month or so ago, I spent about $100 on a copyrighting product. Within 24 hours, it delivered on its sales promise.

In the last 2 years, I’ve spent ~$600 on a business membership site – which has paid for itself, and then some, each year.

A few years ago, I bought two books on personal finance – it cost me probably $25 or less. I cannot even calculate the ROI those books have had, because the percentage is too high for me to comprehend. My family has no debt, and I actively calculate net worth – I don’t spend tons of hours on budgeting anymore.

When my wife and I got married 5 years ago, we made a short list of big trips we would like to take early in our marriage. We picked one, because we knew we’d have to save while getting out of debt and it would take a while. Last year, we celebrated our 4th anniversary on Maui – just like we planned. Our room was upgraded because of hotel “status”, and I even splurged on nice plane seats (not first class) because it was worth it for comfort, the experience, and memories.

Last Christmas, one of my favorite bands in the world played their final shows as a band in New York City. I (without telling hardly anyone) flew across the country, met my best friend in the world and ran into another, caught one of those shows together, crashed in a hotel, and flew back to Seattle the next day. It was a memory neither me or my friend will ever forget.

All of this – and my family still doesn’t hurt for money. I also work for every penny. We’re also saving for a future house, car(s), kid(s), dog(s), and trip(s), at the same time. We’re just extremely calculated in how we spend, and we work to earn well.

(Don’t get me wrong – we’re still by no means rich. We rock the one bedroom apartment, always on top of each other lifestyle – and have for 5 years.)

But I don’t just buy shit.

I don’t care about plugin or gear sales. I don’t even hardly own any gear (blasphemy!)

If I buy video games – they’re generally last year’s big games or older. Spiderman sure looks sweet, but I also have a whole library of other crap to get to.

I’ve learned that what’s positive, forward thinking to spend money on – are what’s rewarding to you.

I can’t, unfortunately, tell you what that is for you. You’re going to have to do some thinking.

For me, it looks like this:

If I want to read a book, I buy it without thinking so long as it’s under $50
If I’m extremely certain it’s going to earn me money, I buy it
If it results in a worthwhile experience – resulting in great memories with my wife or friends – I buy it
If it will aid me tangentially in any of the above aims, or will help improve my life – I’ll likely buy it

So I spend money on plenty of books, engage in them, learn from them, and act on them as much as possible. I spend a decent amount of money on online courses and business-related material like pricing, copywriting training, networking memberships, programming, etc. I also take my wife on fun trips and experiences like hot air ballooning, a helicopter ride in Maui, cabin stays, and trips to the beach.

(Don’t get me wrong – I’m not a perfect husband. I don’t always do this. My wife and I fight too – we also have disagreements about money, and I can be a super jerk. This isn’t just Facebook highlights.)

To me those things are important, and we work diligently enough that we’re able to afford it.

What You Can Do

I’m sure a number of you can’t just “do whatever you want with money”

(If it seems like I can from all of those stories – you’re wrong. I get the “Facebook-ish” highlight appearance, but that’s not the case.)

But you can and should think about what you want to do with money.

Like – how much you want, how much you need, what kinds of things you want to do in your life and how much all of that stuff actually costs.

When you do, you may be in for a rude awakening. I certainly got mine.

This may be especially true if you have dependents and are thinking about getting into an audio career. It may not realistically be feasible – as much as that sucks to hear.

And if all of that sends you into a panic, you already have an audio career, and you’re not making enough?

That’s when I went “#&!*@, I actually need to learn how to set GOOD prices…” – and then, I bought the resources I could afford.

That last part is key – I bought what I could afford. If you have dependents, or you’re broke, and especially if you’re in consumer credit card debt – do not go buying anything I recommend to you. Maybe, maybe you’re free to go buy a book a two – that’s it.

Do that, and you’ll learn how you start to spend well, and intentionally.

For those of you aspiring and hoping to have a career in game audio (or, perhaps any creative art – so I’m told), I made such a resource for you. In my opinion, it’s pretty darn affordable.

You can find it here: https://adamtcroft.com/quit-aspiring

If you’re dying for other money-related resources, you’re welcome to let me know and I’ll show you what helped me.