I’ve said on many occasions that I’m not a fan of Manufactured Spend (MS). It is a means to an end. Certainly, there is some fun in cracking a system or finding a new pathway, but that is not an exclusively MS related activity. I see MS as a job, sure it can pay relatively well, but it is still a job. You are beholden to give up valuable time in order to ‘earn more money/points/miles’.
I think its time to acknowledge the problem, and find solutions.
First – can we all agree that manufactured spending is a job? I define this simply as “You exchange your time for reward”. Sound fair?
Next, can we all agree that working sucks? In a real job we are looking for an exit strategy. Sure, you can love your job, but even in the best job in the world, you are likely saving for retirement, right? There’s a path, a journey. You can enjoy the moment, but the moment is a stage on the path to retirement, or early retirement if you so wish.
Transliterating the work cycle to the MS cycle
Many people can grasp the notion of the work cycle. You save enough money to be able to cover your expenses without the need to work anymore. Not an easy task, but generally speaking most people can figure out that they need some money in a 401(k) or an IRA or a really good pension. There are a ton of formulas (that may or may not work) about the number you need, but ultimately you see the concept:
Work is a necessity >Save enough>Work is elective.
In MS there doesn’t seem to be this evolution for many people. Instead it is a case of ‘earn as much as you can, burn through it, earn more’. Its a hamster wheel. You are never really breaking free from the need to ‘earn’ in this way.
However, I do see an evolution:
- Pay for travel with cash
- Earn signup bonuses
- Earn points through MS
- Earn cash back through MS + Points from signup bonuses
- Earn signup bonuses
- Buy points for cash with cash back
- Pay for travel with cash
I’m personally at stage 4.5 on this chart (I may still opportunistically pick up a few things for cash back). I’d say that is the tipping point, you start regressing here, and stage 5 is the same as stage 2 on the way up. The big question is.. what changes at stage 5?
In one phase of evolution (stage 2) you would go from signup bonuses to spending (a lot of) time and a little money to ‘buy’ MSing points. In a later stage (stage 6) you’d spend little time, and a (lot of money). The ‘lot of’s here are used in comparison with one another of course.
Can you take a leap of faith?
If you are running around between grocery stores and your local Wallys like a demented hamster chuckling about earning $200 per hour, you’ll never be able to break free. At some point something has to give from your schedule, and you have to stop MSing to evolve. The key of course is to replace it with something more valuable, just quitting and returning to old habits of playing WoW and buying scratch offs isn’t going to get you there, so what can?
I think the answer is to look at the interplay between income and expenses: Can you reduce your debts and expenses via MS to the point where you don’t need to any more, then let it go? Can you then take that time and invest it into personal development, such as a higher degree, professional certification or perhaps a start up business?
At some point, what ever path you elect, you need to get off the wheel in order to evolve.
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What if the hamster has build MS buying and liquidating into their daily life. For instance, on their commute to work, whether it be by car or walking. Yes, we are giving up time for a reward, but I also give up time while I sleep, while I workout at the gym, etc. Is sleep work? Is training at the gym work? Training BJJ or MMA? In all situations I'm giving up time for a reward.
