# 1 Experiences Are Worth More Than Stuff
The first lesson is simply a reinforcement of one we learned long ago. The happiness literature is very clear that you are more likely to buy more happiness by buying experiences shared with those you care about than buying things. It turns out that not only does the happiness boost from buying stuff fade very quickly (often before you get out of the store) but then you have to store and maintain that item for the rest of your life. On this trip we had some pretty awesome experiences- snorkeling, SCUBA diving on the second longest barrier reef in the world, visiting some Caribbean Cays, cave-tubing, ziplining, seeing the jungle with its howler monkeys, toucans, wild turkeys, snakes, and cotimundis, visiting the ATM cave (easily in my top 10 coolest places I’ve ever been), and touring the ruins of Tikal, Guatemala. We can’t do any of that stuff at home. Did we buy anything? Not much. The kids will each get a very inexpensive gift.
# 2 Time Is Money Is Time
Like many of you, the most expensive part of a trip for us was the opportunity cost of not being at work. We spent less than I would have earned staying home and working three or four shifts, even after taxes. With that perspective, we were very careful to avoid trading time for money on the trip itself. That typically resulted in a higher expense. For example, during the planning phase at home I could spent more time looking for a deal, or I could just buy the most convenient thing and move on. Instead of trying to figure out what the best value would be, I just asked “What’s the best?” and bought that. The best hotel in town. The best tour guide in town. The best diving company in town. The best restaurant in town. Etc. Now, that doesn’t mean we traveled the most expensive way possible (for instance we flew coach, used a water taxi instead of a small plane to reach the Cays, and usually stayed in the cheapest room in the nicest hotel) but it did reduce the amount of time required to plan the trip.
In fact, if we really wanted to, I think we could probably do this trip for perhaps 75% of what we paid if we had been willing to pour a lot of time over the preceding months into it. We could have flown to Cancun, taken a bus to the Belizean border, and taken a water taxi to Ambergris Cay for half the price of the way we did it, for instance. But 25% of $5K is only $1,250, and it doesn’t take that long to earn that. Certainly less time than a 5 hour bus ride through Mexico. Likewise, our rental car probably cost 33% more than if we had just purchased transportation a la carte. But I only had to arrange transportation once, and we also enjoyed the convenience of being able to come and go as we pleased, saving more time. Time is money is time. Try not to lose track of the relationship and understand the rate at which you can personally trade the two.
# 3 Infrastructure Matters
Belize is easily the nicest, most socioeconomically advanced country in Central America. As the former British Honduras, it enjoys the benefits of having been a former British Colony (much better than a former Spanish colony it turns out) with its rule of law. Plus everyone speaks English. That said, even in Belize the infrastructure has a dramatic effect on your life. Consider that the largest, most busy highway in the country is a two lane road without a center dividing line (much less a shoulder) and with big speed bumps every couple of miles. The economy is primarily tourism, agriculture, and fishing. With an unemployment rate of 20%, being a tour guide is a major profession. Only elementary school is mandatory, and schools are 1-2 room outdoor affairs. While we worry about how to get a home with granite countertops in the nicest school district, have burnout due to administrator’s demands and think a used car is 2 years old, the Belizean people seem just as happy driving the car you refuse to drive anymore, living in a cinder block house, and giving the same tour four times a week for 20 years. Take a trip every now and then. See how the rest of the world lives. If you don’t return home feeling like a king I’ll be surprised.
# 4 We Have an Entire Other Lifestyle Available To Us
As we sat by the pool one afternoon I pointed out that we could stay here indefinitely. I could do all my WCI stuff (aside from the speaking gigs) anywhere in the world with an internet connection a la Tim Ferris. We could simply move hotel to hotel throughout the world, home schooling our kids and supporting the family on the internet. It is absolutely within our reach. But, by the end of the conversation we realized we didn’t want that. We like living where we live. We like being involved in the activities we’re involved in. I like practicing emergency medicine in the USA. But it feels a lot better CHOOSING what we’re currently doing over every other possible option. If you keep having some dream about living on a sailboat in the Caribbean, traveling the world, practicing in New Zealand, or retiring early, I’d encourage you to go explore it temporarily. Just don’t be surprised if it turns out that you would prefer to be living like you are now. You’ll be happier for having tasted the dream and realizing it isn’t really what you want.
# 5 The World Is Your Oyster If You Have Money
Going to a developing country will teach you a simple fact about the world- money can buy you all kinds of things. Want someone to show you something cool, take you someplace, serve you a meal, make you something etc? If you throw enough money at the issue, you can probably solve it. That applies in the US too, it’s just the price is higher. I think this experience is most easily experienced by staying in a nice hotel. Everyone is so nice and accommodating. But you know why? Because you are paying for it. If you stop, your experience won’t be nearly so nice. Seems a good reason to boost your income, save your money, and manage it well to me.
# 6 Insurance Questionnaires Are Stupid
I went SCUBA diving for the first time on this trip. It was one of those Explore SCUBA deals, where you get about an hour of instruction including a “pool dive” next to the dock, and then they take you out to the reef, hand you a tank, and take you on a real dive. An hour after I first heard of “Explore SCUBA” I was 75 feet below the surface of the water. Regulators are pretty much magical, it turns out. But what surprised me about all of it was just how easy, safe, and easily managed it was. If you’ve bought life or disability insurance before, you know they ask about rock climbing, flying private planes, skydiving and SCUBA diving. Having spent a lot of time rock climbing and landing on non-runways in Alaska, it’s bizarre to me what is asked about and what isn’t. There are no questions about backcountry skiing. There are no questions about canyoneering. There are no questions about big wave surfing, transatlantic sailing, snowmobiling, Middle Eastern travel, road cycling, cliff diving, sea kayaking, or any other particularly high risk activities. But we’re going to put SCUBA diving on the list. As a climber, I find it frustrating, almost discriminatory.
What do you think? What have you learned from vacations that is worth sharing with your fellow white coat investors? Comment below!
Great post! Your articles are almost always very helpful and pretty varied.
That old study saying that our happiness plateaus around 70,000 a year isn’t completely honest since the happiness/money curve still increases a bit up to 200,000. However, I believe that it references material happiness whereas experiences apparently *do* make us happier.
A salient part of your article is how your opportunity cost of not working is very high so better to just pick the best hotel, best tour guide, etc instead of trying to pinch dollars.
Here’s one suggestion for an article: what do you do when you really aren’t happier with nice things?
I’m a resident that lives on about 13,000 a year in an average-cost state and aside from my VERY inexpensive hobbies which just require time, not many physical things make me happy. I actually usually derive the most pleasure from *giving* money away and buying people gifts/dinner.
I don’t feel that it makes sense to “find” ways to buy things if they don’t make you happier. Perhaps I’ll try traveling more, even though I’ve lived in and visited many countries in my short life.
Your next post could be about experiences vs material goods if you haven’t already written about this.
Yes, I’ve looked up that data. The rate of increase definitely slows at $70K ($109K in the Bay Area) but it still goes up. Too bad, it’s a great sound bite.
This sounds like it was a great birthday gift for your wife. I can’t wait to start “buying” more experiences. I just need to build up my Emergency Fund (already paid off all my debt) and then put aside some money for familial obligations (I’m a sucker for those guys), then it’s off on my first solo self-funded trip as an adult. I can hardly wait! Thanks so much for the inspiration (and education) you provide on this blog. You’re really outchea changing lives!
You now have me reading about Belize. One more location to the bucket list I guess. You hit a very good point with this post. It’s so easy to get caught up on getting the best deal and cost yourself more in time then the deal is worth. That really applies to anything you purchase. Wishing you a Happy new year.
I’m totally with you on putting money towards experiences. Memories last a lifetime.
I used to carefully weigh my time vs costs. But since I became Fi and quit my job, I have a lot more time to find travel deals. I got free flights for our recent surf trip to Costa Rica using travel miles. And our next all inclusive trip to Jamaica was entirely booked with rewards points. I didn’t bother with travel hacking while working, but now travel for free since I have time to plan.
We love Costa Rica, and might do some more extended stays. But while it would be cheap to live there, we take a lot for granted here at home. By comparison our infrastructure is incredible. But then again, I can’t help but be jealous of the expats who wake up and walk down a dirt road to check the surf every morning 🙂
Great thoughts WCI… Thanks for post. 🙂
We too have talked about moving to an island (probably Eastern Caribbean) and have come to the conclusion that we like where we live as well (who doesn’t LOVE Colorado?).
That said, we think we may start spending a month each winter on an island just to get away from the cold. Our kids are close to being out of the house (likely within a year) and at that point we will have much more freedom.
Would appreciate any details on where you stayed (hotel? home? all-inclusive?), how you got there, what you liked and didn’t etc. if you are so inclined to share.
We liked it all, but the best was the ATM cave and the worst was cave-tubing with the cruise ship crowds! Here are the hotels we stayed in:
The Phoenix Resort: https://www.youtube.com/watch?v=wRVKlfreWRY Awesome!
San Ignacio Resort Hotel: https://www.sanignaciobelize.com/ Not awesome, but the best thing in town. Nicer places out in the jungle if you’re into that sort of thing.
Thanks! Appreciate the info.
We stayed at Table Rock Jungle Lodge and did day trips from there (like the ATM cave). The vibe at Table Rock was pretty awesome – small, friendly, private, and the food was amazing. Can’t say enough good things about it. If you enjoy off-the-beaten-path stuff, consider it. The road to the lodge was in terrible shape, but not a problem with a 4 x 4.
If you go to Ambergris Caye, consider Tranquility Bay Resort. You have to fly onto the Caye, then take a boat ride way out to the resort, as it is inaccessible by road. The reason we chose it is because the reef is accessible from the shore by swimming or by kayak, making snorkeling an easy affair that doesn’t require a boat trip (the reef is too far from most of the other resorts on the island to access without a boat). Tranquility Bay consists of several free-standing, rustic cabins, with a decent restaurant. There is a better restaurant at another resort, which was only a 15-minute walk away.
Great post, and what a wonderful surprise! My wife does Not like surprises, but if the surprise included a couples trip to Belize, she’d probably be a little more forgiving.
Lots of wisdom in these lessons. I might book one of the better places / tours rather than the best, but it depends on the difference in price, I suppose. If the 5-star experience cost twice as much as the 3-4 star, but is only 10% better, the value conscious part of me will opt for the 3-4 star experience. Again, diminishing returns when you get into the upper tiers of most anything.
“If you keep having some dream about living on a sailboat in the Caribbean, traveling the world, practicing in New Zealand, or retiring early, I’d encourage you to go explore it temporarily.” I feel like you’re speaking to me in this line, or at least a composite doctor that I played a role in creating. You’re absolutely right. Our current plan is to take a break from medicine in the form of a sabbatical, live that life we think we want, and see if it suits us.
Cheers!
-PoF
New Zealand is the most beautiful country that I’ve ever seen (stunning), but if practice opportunities are equal, I’ll bet that you will enjoy Australia more. The people there are so very friendly and engaging.
I’m not particularly outgoing and have never enjoyed casual chitchat with strangers–except in Australia. When I visited, everyone seemed to have an easy smile and a manner that suggested that we were old friends who had simply been apart for a while.
Quick anecdote: I wanted to surf in Surfer’s Paradise, but unlike Hawaii there were no boards for rent on the beach. I asked a likely-looking local kid where I might rent one, and he gave me directions to a place several blocks from the beach. I found my way to a modest house and knocked. A middle-aged guy answered the door in shorts and I inquired about renting a board. He said essentially, “no worries,” the boards were leaned against the side of the house and I could borrow one.
That’s it. No rental. No deposit. Just a handshake and a smile. I grabbed a nice board, surfed for a few hours, and then returned it to the side of the house. In my experience, this sort of thing is not remarkable in Australia.
Also, I enjoy your blog, PoF.
My wife must be similar to yours, PoF. If I planned a week-long trip without carefully weighing the value of every hotel/rental car/excursion, she’d spend the whole week thinking, “I could have gotten a better deal on this. And this. And this.” I have more of a WCI-attitude towards trip planning; hence, she does most of the planning.
M,
Sounds like your wife’s a keeper! Not common out there! 🙂
With point #4. If you had house paid off and 100 million liquid (powerball winner for example), would you still practice Emergency Medicine? It’s really that “fun” or is it a spectrum where you know that although this other life is available, EM isn’t too bad and has positives/challenges and life has unknowns and you want to accumulate more money rather than have that time availiable for other stuff. I know you have “optimized” your lifestyle, but it you removed all financial barriers – would you optimize it any more so?
I think that although my job isn’t too bad and I make quite a bit – so I keep chugging – but if I had 15+ million – I’d do other things with my time. I would still “work” – just doing other stuff.
What would you rather do? Why not go spend some time doing it and see if you like it more than medicine? If so, why not gradually figure out a way to transition into that?
When I drew up my “ideal” life, it involved 8-10 shifts a month. I’m currently working 12. I’m a little afraid to drop any further because it is important to me to be good at what I do, and I fear if I do it any less than I am, that I won’t be as good at it. The 8-10 shifts a month was enough to allow me to go on more trips, but the “trip limiter” is not currently work, it’s the kids and my responsibilities and desires there. There are only so many week long adventure trips my wife is okay with me going on a year, and I also enjoy being there for my kids. The ideal balance is tough to strike, but I’m trying!
I guess I’d be a little scared to practice medicine after a $100M Powerball win, but I think I’d still enjoy it. I ask this question all the time of a former partner who sold his medical device company for millions. He worked for about a year afterward, then retired to spend time with his teenagers and play. Says he has no regrets about punching out. But he’s also 10-12 years older than me and had been working 6 day shifts a month for a decade before that.
I’ll have to put Belize on my travel list. I like infrastructure, although nothing beats the plumbing system in the U.S.!
I do agree that the cost of not working is so high that my mentality of pinching pennies has evolved over time too. That being said, seeing other parts of the world does help us realign our goals.
Happy New Year!
The cost of not working is always the hardest part. I miss surgery days, consults that result in lost future surgery days and their word of mouth recs, etc…so it can at times be hard to take extended time off if you let yourself think about it. In the end you have to remind yourself you wont notice that in the long term but will remember that great time off.
Been wanting to go to Belize for a long time for all the reasons mentioned. Very true about feeling lucky after visiting places, after I did a mission trip in Guatemala I am just very happy and amazed that there is such abundant and cheap water all around us, its crazy. A whole new perspective.
Excellent read, it’s good to know that people who write these blogs are human too! I’m also going away soon too, hopefully loosen up the purse strings and truly enjoy myself while I am overseas. It’s good to read that you can learn something new from a holiday when technically you aren’t working per say. Cheers
SO much wisdom here. I’ve learned #2 over time. Just got back from vacation with little kids and I’d add that convenience is worth spending on. Given the cost of not working, spending another 1-2k to turn a trip into a vacation is a no brainer bc you’ll come back relaxed, refreshed and ready to get back to work. We took direct flights at times the kids were likely to sleep (win), stayed somewhere nice and kid friendly and didn’t skimp on things that life easier/better on vacation.
WCI,
This blog has changed shape dramatically as you build wealth. Early articles talk about living below your means and today’s article talks about spending money to buy happiness. It is a nice transition showing how living like a resident for the first few years of your career can spring board you to purchase amazing experiences such as this trip to Belize, your freedom from doing night shifts, or decreasing how much you work altogether. I think a nice article can talk about this transition in your life, and how your spending has shifted over the years.
-EnjoyIt
I think the first article on that subject was the two post series on Loosening the Purse Strings, published about 2 years ago:
https://www.whitecoatinvestor.com/loosening-the-purse-strings/
I think my point is that the goal isn’t to live like a resident forever, but to do it for 2-5 years and then look at the financially awesome life you can have afterward. I want younger readers to see there is a point to the early sacrifices.
Definitely a far cry from MMM. I am amazed that he still lives on $24k a year (plus blogging expenses such as a few trips and projects he puts together) Either way it is a far cry from what his wealth and income can comfortably support.
Although MMM blog is very persuasive and has helped me value what makes me happier vs spending on frivolous junk. I fully agree that my time is worth something and I am willing to spend a bit to save time to do things that I enjoy. For example hiring someone to do the lawn, or change my oil. Another item I think of high value is a babysitter allowing husband and wife to have some fun on their own. Extremely valuable.
Then again, you had a nice article a few days ago that the goal isn’t necessarily to retire right away, but to have the financial security to enjoy life as much as possible. I’m with you completely. I slowly keep decreasing my shifts and expect to be down to 6-8 shifts a month eventually. This will allow me to still enjoy work and keep up my skills while having plenty of free time for all the other things in life. We are kinda lucky having a job that is shift work. As discussed by a surgeon above, not everyone has the ability to cut back. It is either all or nothing.
You must be joking about point number #3
“Belize is easily the nicest, most socioeconomically advanced country in Central America.” Talk about being misinformed.
I’ve gotta agree with Alex. Belize is nice but Costa Rica is wealthier and safer with more options for tourists. Belize though is more of an off the beaten path choice.
Looks like you’re right. Mea Culpa. Guess my next trip better be Costa Rica. Guess I had places like Nicaragua and Guatemala in mind.
http://www.indexmundi.com/factbook/compare/costa-rica.belize
GDP per capita is $13K in Costa Rica vs only $9K in Belize. About $5K in Nicaragua and Guatemala.
Costa Rica is great! We spent a wonderful week touring the country a few years ago. Interbus took us from place to place. Volcanoes, monkeys, beaches, etc…
Maybe your next trip should be Panama? Using the same site, GDP per capita is $17K. Perhaps not quite as easy to travel in as CR but nice nonetheless.
I also find it interesting how similar many Central American countries are to each other. Just like the US and Canada are similar, and France and Belgium are similar, the similarities between Central American countries are pretty profound.
Nice post. Was the trip entirely vacation or are we going to get to hear more about dabbling in commercial real estate next year?
I’m dabbling in real estate for sure, but not Belizean real estate.
Just curious if it was related to Eric Tait’s real estate post in 2015 that described a real estate deal in Belize you seemed interested in. If so did you get to take the trip as a business deduction? It’s great when vacations can also be tax deductions.
https://www.whitecoatinvestor.com/a-personal-journey-in-real-estate-investing/
Didn’t think about that, but might have been a good idea. However, if you value your integrity, the PRIMARY purpose of the trip has to be business to write it off. Swinging by Eric’s hotel for a few minutes wouldn’t qualify.
As you know, a lot of grey space exists in tax deductions. When we were younger my husband’s Academy had annual meetings 3 out of 4 years at Disney World. We called his flight, the hotel room for the days of the meeting, and his food for the days of the meeting business expenses. Everything else was not. Our accountant was fine with how we split it up for taxes. And, yes, he did go to some of the meetings.
I think that’s a great way to do it.
“25% of 5k is 1250 and it doesn’t take long to earn that”. Although fine in this situation and in moderation in general, this type of thinking should not be relied on by physicians too often as it leads to lifestyle creep and hedonic treadmill scenarios. Many of my colleagues buy a tesla saying “it’s only two-three months salary” or some other argument of the type. Generally physicians should decide if the activity or purchase can be afforded on your FI salary, not your working salary. So if your salary is 300k and your FI salary that you are reaching for is 120k (i.e. The passive income at which you consider yourself financially independent), you should consider if the purchase can be made comfortable at the 120k salary. Otherwise if you start thinking along the lines of your 300k salary then you are onto the lifestyle creep treadmill and relegating yourself to a very long work career.
Excellent point. While I don’t think all spending has to be limited to your projected FI salary, it’s a good idea not to get too far away from it, especially for fixed expenses.
Just a friendly suggestion. Don’t underestimate the risk of scuba diving, based on doing a resort course. If you intend to continue to scuba dive, you really should get fully certified. Agree that the Phoenix is the place to stay on Ambergris Caye.
Oh, I’m sure there is plenty of risk there. What I’m arguing is there are tons of risky activities out there that insurance companies don’t seem to care about.
I was Belize this year as well. And just like you felt that ATM caves were the best thing. My experience: https://ashishb.net/all/belize-in-4-days/
Glad you had a great trip. As part of our “live like a resident” goal for 5 years post-residency, we are holding off on any big trips to expensive locales, but that just means we’ll appreciate them that much more at the end of 5 years!
I have a great near death experience from our time in San Pedro, Ambergris Caye. It involves an Ocean Kayak, surfing the break which occurs 1/2 mild from shore…getting cut up on the reef and floating in those same shark infested waters from your picture while bleeding for about 30 minutes while my Ocean Kayak got swept away in a different rip tide. Definitely agree that experiences are something we will never forget!
would love to hear more details
Totally agree with all you said, particularly the part about experiences being more valuable than stuff. For many years my goal has been, and still is, to take two “trips of a lifetime” every year. If you enjoyed Ambergis Caye, try the more laid back Caye Caulker or Placencia next time. Or Blancaneaux, Francis Ford Coppola’s exquisite lodge in the Belizean highlands.
Insurance company questionnaires aren’t stupid or discriminatory, the are reactive by design, not proactive.
When I started selling disability insurance 27 years ago, applications were two pages including the disclosures and signature sections. The income question was one line, “How much do you earn ___________?”
As the saying goes, “You don’t know what you don’t know.” Until you do, then it can be too late.
Insurers typically add/amend questions to their applications as their negative unanticipated claims experience mounts. Unfortunately, for everyone, too many wanna-be thrill seekers are attracted to highly marketed, seemingly safe activities (like learning to Scuba dive in an hour on vacation, or Zip-lining in the jungle) that can be very dangerous, potentially disabling, even deadly.
As with most things, experience matters, and it’s usually the newbies that pay the price of ignorance and arrogance.
Great post. The older I get, the louder your message rings true. Experiences get better with every recollection. Whereas I’ve forgotten about a lot of material stuff that supposedly mattered at point in the past.
Right, but the frustrating thing with the questions the insurance companies ask is you get no benefit for experience or for being less risky. If you climb, you’re hosed. If you backcountry ski, nobody cares. Doesn’t matter if your climbing is all top-roping while wearing a helmet and you just started backcountry skiing and don’t even carry a beacon.
Indeed. I find it similarly frustrating with health insurance. You get no benefit (premium reduction) by keeping yourself healthy through exercise, nutrition, and maintaining a healthy weight.
I think you hit the nail on the head with the concept of CHOICE being a determinant in how happy you might be. I’ve found that people who CHOOSE to practice medicine seem to enjoy it more. For example, I know a few physicians who make enough money outside of medicine (ex. WCI) who don’t need to practice to support their families. Yet, they continue to work because they get fulfillment out of it. The very same person, if they instead felt trapped or forced to work that very same job in order to put food on the table, would have a different attitude and outlook on things.
Any thoughts on investing in real estate in Central America?
I don’t have the expertise to do something like that, but with the right partner and a reasonable amount of diversification, perhaps.
My husband and I are planning some extended traveling and living in Belize. Looking forward to it!
It’s a beautiful place. Have a great time.