I recently heard a great question, what mental model/framework do people usually use while choosing between convenience and frugality? It is a simple question yet it makes you ask many other questions about yourself. For instance, what is more important to you and in what order? Which things can you or cannot compromise?

So after I heard that question, I wanted to do some self-reflection and revisit my weaknesses, strengths, priorities and values. It actually didn’t take much time for me to sort my resources on what I call the number scale of life and then come up with some life equations.

Disclaimer: I have two very active kids so most of my rules are centered around them and how it impacts their day. In other words, it may not necessarily apply to you so please take my rules with a grain of salt. With that being said, here are my current set life equations (not saying that they are correct but just sharing what I currently follow):

Time > Money

E.G: If there is a job which will take me an entire day but if a contractor can finish it in an hour then I would rather hire the contractor (provided his hourly rate is not astronomical compared to my hourly rate). And then utilize my extra time on things which I enjoy and which will make my kids less cranky.

Happiness > Money

E.G: After having kids, I don’t mind paying extra to make my travel experience good, safe and less tiring for my kids. But if I didn’t have kids then I would probably go absolutely frugal on things like travel since I can always utilize my time listening to audiobooks or reading books while traveling.

Peace > Money

E.G: I try to avoid FOMO while buying assets. I would prefer to sleep peacefully at night rather than worrying how much more I would lose the next day. So I only invest in what I understand, when there is a dip and when I am not paying a premium price.

Health > Peace > Time > Money

If you are not healthy then nothing else matters. All your time and money would be of no use if you are not healthy. So eat healthy, stay fit and sleep well. Also if you are not at peace then you would just not be able to give your best and utilize what you have. So avoid things, jobs and relationships which steal away your health and peace of mind at the cost of time and money.

Happiness = Health + Help + Hustle

Without health, you cannot achieve anything else so you absolutely need that. After health, you need to hustle to be able to utilize your time and available resources. You also need to help others to learn compassion and have a little bit of luck. This luck will help your hard work succeed. So once you have health, efforts, luck, compassion and success, nothing can stop you from being happy.

But what about money?

Well money is just a byproduct of your hustle to happiness.