Hacking money, travel and points with Chris Hutchins

I enjoyed a podcast on “Hacking money, travel and points” with Chris Hutchins, the founder of a personal finance app, and Kevin Rose (VC at True Ventures and founder of Digg). Every few months, I seek out a refresher on how to think about personal finance. My objective is rarely about learning something new as the principles rarely change. But, I’m beginning to appreciate the value of revisiting important topics to further help me synthesize.

Nuggets / top reminders

  • Retirement: Multiply what you will need per year after retirement x 25 – that’s the size of your retirement fund. Most folks don’t know what their retirement fund should be (I didn’t think about this previously as well).
  • Learn to have conversations about your salary: After a certain point in your career, this ends up making a huge difference.
  • House: If you’re ever considering buying a house, consider it carefully. It’ll likely be the largest purchase in your lifetime.

Confirmation / Things I do (mostly)

  • Credit Karma: Monitor your credit card status – important if you live in the US.
  • Save.
  • Spend on happiness versus things.
  • Cook and eat healthy.
  • Use low cost ETFs via vanguard. Consider a target date retirement fund. That does what robo advisors like Wealthfront do.

Things I’m not sure I want to do

  • Credit card points: Their conversation about credit cards was fascinating even if I know I’d never go down that path. The principle was sound though – get a credit card that rewards your biggest expenses. Decide how much you want to optimize. Chase (for those in the US) has great cards.
  • Travel: If you travel a ton, optimize for points. Starwood points are the best points.

PS: If you’re interested in learning more about the topic, here’s an old learnographic on personal finance.

Rich conversations

This is the best time of the year for rich conversations.

My go to is to start every conversation with the question – what have been your biggest learnings or revelations in the past year?

Great conversations are focused on ideas. And, December’s natural propensity to be a reflective time of year lends itself beautifully to great conversations.

We have a lovely 30 day window to reflect and learn before we change direction and look forward again. Limited time offer only.

Let’s use it well.

The first zero emissions natural gas plant from Net Power

Every time the Quartz team introduces a new series, I sign up. Their current “Quartz Obsession” is a two week series on “The Race to Zero Emissions.” And, today’s series is about the world’s first zero emissions natural gas plant from Net Power.

The logic behind this is simple and powerful. There are two ways we can solve the over-heating of the earth’s atmosphere – a) find ways to reflect the sun’s rays back using, say, Sulphur particles in the atmosphere or b) reduce the amount of Carbon dioxide we send up.

There is no consensus on the downstream effects of the former and would require a lot of international cooperation. But, the latter becomes particularly interesting if we find a way to do so. Most of our emissions come because we burn fossil fuels to generate electricity. And, Net Power’s founders have found a way to create a zero emissions fossil fuel plant. By replacing gases like steam that power turbines with the excess Carbon dioxide from the burning of natural gas, they’ve created a system that is emission free and, as a bonus, more efficient than traditional plants.

This is an absolute game changer and will hopefully go live by early next year. The Net Power team hope to license this technology.

For this transformation to happen, we’ll need more new plants like Net Power created to service the growing electricity demand from electric vehicles. Many think tanks believe natural gas will be the best way to do that.

And, this technology would be a huge step forward.

PS: To learn more, check out the Quartz series on https://bit.ly/RacetoZeroEmissions.

The world will roll on

There’s a line that’s stuck with me over the years – “Be kind. The world will roll on without you.”

It is a simple and beautiful idea and resonates deeply with me as it is provides an instant dash of perspective.

That instant dash of perspective, in turn, adds so much calm to life. It reminds me that it is futile to to stress or panic about the little things. The world will roll on.

Instead, we’re better off staying engaged with life, keeping focused on what we control and doing our best to make this all meaningful.

Can do

I was faced with a small situation recently where I got a reasonable request in a constrained situation.

In normal course, the request would have been easy to get done. But, current conditions made things hard.  My initial thought was to write out an excuse note detailing why it isn’t possible.

But, I paused and asked around instead. Initial prognosis – not good.

Wrote up that excuse note.

I think of myself as persistent. So, I asked around some more. Still no alternatives.

Completed that excuse note. I’m about to press send and then I stop. Have I really tried?

This time, I chat with a couple of folks who are just brimming with a can do attitude – one I’m clearly lacking at this point given my half hearted attempts at solving the problem. They rapidly think through solutions. That inspires me to ask around some more. And, this time, against all odds, we found someone who could replicate what we were looking for.

Problem solved. I removed the excuse email and shared the solution.

I was reflecting on that experience and took away a couple of lessons.

First, even if we had failed, I know from experience that it would have been well worth our effort. This is the often unacknowledged benefit of attempting something whose results are far from guaranteed. These journeys are worth it for the creativity and camaraderie they inspire.

Second, I was deeply inspired by the can do attitude of a couple of folks through the process. The odds didn’t look good but they attempted to spin up solutions anyway. And, that built the kind of momentum that was necessary to solve the problem. We are the average of the folks we spend our time with. Make sure these are folks who possess a can do attitude.

It is these folk who understand the nature of life’s most interesting problems. They all appear un-solvable.

Until they are.

Answering questions

I was in a meeting recently where I was asked a flurry of questions. I responded by answering them.

That’s the natural thing to do, right? That’s what we were taught in school. Answering questions well is a good thing.

On reflection, however, I realized I spent more time answering question versus understanding the question behind the question. It isn’t the first time I’m realizing it – but, it is one of those moments when this insight crystallized.

I think I’ve taken two things from that experience. First, beware rapid fire answering of questions. If there are a flurry of questions, it is worth pausing and understanding the question behind the question.

Second, if you’re unable to understand the question behind the question, ask.

Finding opportunities to teach to learn

If you want to learn something, put in effort to teach it well. Good teaching deals with taking facts, knowledge and procedures and condensing them into mental models.

And, that process of synthesizing knowledge into mental models that drive action is exactly how learning is done.

But, where can you find a willing student? It turns out that you don’t need a willing student at a desk to learn how to teach. Here are a few ideas –

  • Write a great training manual for your next hire and share it for feedback
  • Put your thoughts down on a blog
  • Create a training program or improve an existing one
  • Explain it to your dog or a wall

At some point, all this practice will actually make you a good teacher. When that happens, willing students will find you.

But, as you probably have guessed, that is the just the by product of a good process.

Perspective and Politics

I define perspective as the trait which enables us to understand ourselves and our place in the universe. Politics, on the other hand, is the furthering of one’s idea on a basis other than merit.

Most of us experience some form of politics in our workplaces. Some of us experience it in our homes. And, for those who work on large non profits or community service initiatives, we definitely experience it in those. I’ve heard it said that politics simply requires two people in a room. Sadly, that is often true.

There’s a strong correlation between a lack of perspective and an individual’s propensity to engage in politics. As a friend beautifully expressed it – “It strikes me that the narrower one’s world-view is, the less perspective one has and the higher one’s propensity for politics in that narrow arena. E.g., the power-hungry mother-in-law whose entire world revolves around a household will be Machiavellian in creating wedges in the family.” 

I’ve also observed a strong correlation between a lack of perspective and unhappiness. The causation there is straightforward – narrow views and constant politics do not a happy life make.

If that is the case, where does perspective come from? And, how can we get more of it?

When I think of perspective these days, I think of this Joseph Addison quote.

“When I look upon the tombs of the great, every emotion of envy dies in me; when I read the epitaphs of the beautiful, every inordinate desire goes out; when I meet with the grief of parents upon a tombstone, my heart melts with compassion; when I see the tombs of the parents themselves, I consider the vanity of grieving for those whom we must quickly follow; when I see kings lying by those who deposed them, when I consider rival wits placed side by side, or the men that divided the world with their contests and disputes, I reflect with sorrow and astonishment on the little competitions, factions, and debates of mankind. When I read the several dates of the tombs, of some that died yesterday, and some six hundred years ago, I consider that great Day when we shall all of us be contemporaries, and make our appearance together”

If this doesn’t give us perspective, I don’t know what will.

It follows that I think perspective comes from being acutely aware of our own mortality. That, in turn, brings a strong sense of what actually matters in the really long run.

Dag Hammarskold once said – “In the last analysis it is our conception of death which decides our answers to all the questions life puts to us.” This quote sums it up beautifully. If we knew we have five days to live, we’d likely go about our work and life very differently. We’d pay less attention to petty arguments and turf wars and, instead, lavish attention and care to the things we care about.

That’s the approach to life that comes with perspective.

And, it is an approach I’ve learned to value above all others.