Stepping Over Dollars to Pick Up Pennies

Current personal finance personalities are emphasizing the importance of all-out-savings. Cutting out the lattes and avocado toast. Have you ever noticed how easy it is to obsess over the smallest savings while ignoring the bigger financial picture?

There is a time and place for everything. Extreme frugality was my life until the past year or two. It wasn’t a bad thing. There is an increased awareness towards spending. These observations created habits leading to my current financial situation. For the CRNAs and other high-income earners reading this, I caution you.

The phrase, “stepping over dollars to pick up pennies” perfectly captures this all-too-common trap of focusing on penny-pinching moves that feel productive, but produce a blind spot to where efforts are most impactful. High incomes are generally followed by a degree of complexity. Today’s fast-paced financial world makes it tempting to chase every minor cost reduction, but is that really the best path?

Why We Chase Pennies

It’s only natural to want to stretch our dollars, but sometimes we get so caught up in the little numbers that we forget about the big ones. The satisfaction of saving an extra $1 here or there. Cutting out daily lattes or switching to generic brands gives us a sense of control. Yet all this effort can add up to nothing if we’re ignoring the actual heavy hitters in our budget.

This mindset is often driven by our desire for immediate results. Small savings are visible and achievable. Big financial decisions, despite being achievable, carry weight. We end up spending our energy on the things easiest to track, not those that actually make the biggest impact.

Everyday Examples

Let’s look at a few familiar scenarios:

• Driving out of your way for cheaper gas, burning both time and extra fuel. Saving $0.20 per gallon on 20 gallons is $4.

• Mrs. TFC and I used to look at the weekly adds and travel to 4 different grocery stores – Wal-Mart, Aldi, Hy-Vee, and Fareway. We spent about $55 per week on groceries. We saved $20 per week for our efforts.

• I grew up in a coupon clipping household. Some coupons were BOGO while others were $1 off. Savings were $10 per grocery run.

These habits make us feel thrifty, but they distract us from the financial moves that actually matter.

In Anesthesia

It’s not just the individuals prone to fixation on the pennies. I’m just a peasant in the world of healthcare, but I have noted some comical attempts by healthcare systems to cut costs. I have noted sign-on bonuses for new grads being 3 times that for a CRNA with experience. New grads that would need mentoring in the clinical space. Good one!

Or sign-on bonuses for new hires, but no retention bonuses for those committed to the organization. Even the system is encouraging you to find a new position every 2-3 years. Because CRNA positions are difficult to fill (requiring about 12 months in all but the most desirable locations), this is a great opportunity for a locum to arrive and cost the hospital nearly double. Don’t hate the player, hate the game.

Despite healthcare systems preaching patient care is the #1 priority, their actions say otherwise. I work at multiple hospitals restricting drugs or equiptment that are more expensive despite research stating their superiority. Some of these changes directly influence patient care in the name of dollars. I’m generally okay with these alternatives, but don’t preach patient care is #1 – It’s about the dollar.

The Hidden Price of Penny-Wise Choices

Every decision to save counts towards progress, but not all pennies are created equal. The time you spend “saving” may actually cost you more in the long run. And constant frugality can lead to burnout or lower quality of life.

I speak about opportunity cost regularly because it’s a real thing. By putting all your energy into minor adjustments, you lose out on decisions that could truly transform your finances.

How to Prioritize Dollars Over Pennies

When I was earning $22.45 as a nurse saving for anesthesia school, I didn’t have a lot of extra room in the budget. Become a six-figure earner and things change.

The average W-2 CRNA earns $250,000 annually. Based on average PTO it’s probably something like $140 per hour worked plus benefits. Ok, great starting point.

Let’s take the weekly $4 fuel savings by driving an extra 10 minutes from savings $0.20 per gallon.

$4 Savings * 52 Weeks Annually = $208 Annual Savings

10 Minutes Per Trip * 52 Trips Annually = 8.66 Hours Annually

$208 Annual Savings / 8.66 Annual Hours = $24 Saved Per Hour

If you earn less than $24 per hour, might be worth it. Most readers of this blog earn more than that. Take the savings if the gas station is near your planned route. Unless you really have nothing to do, don’t trade 8.66 hours for $208 when you generate far more for your time while working.

What about purchases that don’t factor time into the equation? Let’s assume you grab a coffee on the way to work. Spend 5 minutes at home, 5 minutes at a gas station, or 5 minutes at a coffee shop – No time difference.

Assuming 365 coffees per year at the following price points:

• Home Coffee - $0.30

• Gas Station Coffee - $2

• Fancy Coffee - $7

At the end of the year, you would have spent the following:

• Home Coffee - $110

• Gas Station Coffee - $730

• Fancy Coffee - $2,555

Using ratios, the most expensive option is just 1% of your gross income. A small price to pay for what many deem to be the little luxury that keeps them going. Sure, enough small purchases add up, but don’t fixate on these areas.

Focus on Income

Boosting your income is a great way to offset the penny-centric mindset. Just 1 or 2 extra shifts would cover your daily espresso fix for the entire year. An extra hour at work would cover the need to drive an extra 10 minutes for cheaper gas.

As a CRNA, my income is incredibly strong. It’s an easy way to negate the need to trade time and effort for small savings – A true blessing and luxury.

Negotiate constantly. I negotiated a relocation stipend with my first contract. $10,000 simply because I asked for assistance relocating.

Negotiation is a great way to see major results with minimal time commitment. As a locum, I’m constantly scanning the market. Firstly, because locum work is incredibly unstable. Secondly, because there aren’t many avenues susceptible to this kind of leverage.

Depending on the market, negotiations may work greatly in your favor. I have negotiated a few contracts recently that allowed me to earn more than I thought possible, albeit for a very short time. I earned in a week what many CRNAs earn in 3 months. My time negotiating these contracts was extremely well spent. Would do again.

Focus on Expenses

If you are leasing a new Denali with $5,000 down and a $1,500 lease payment, but driving out of the way for gas, we have an issue. The math doesn’t math. You are paying $50,000 to $60,000 to rent a vehicle for 3 years, yet look to save $4 per week on gas…Come on…

Make time for high-impact decisions. Consider an alternate vehicle situation. If you find yourself strapped for dollars, $10,000 will land you a nice used, reliable vehicle. A reasonable way to venture from point A to B. A good use of time would be spending a weekend finding such a vehicle and negotiating descent terms.

It’s not just vehicles. It could be too much house, too much debt, or too much shopping. An overarching theme found on The Financial Cocktail is living to your net worth, not your income. When 1 in 3 folks earning over $250,000 annually can’t cover a $1,000 surprise expense, we have a problem.

 Disproportional spending is a common trap set for high income earners. Especially those like CRNAs and physicians where the income is a windfall.

We quantified your hourly rate finding a new gas station -- $24 per hour. Ask yourself, “Is this effort actually moving the needle?” before chasing a minor saving. Is it worth vehicle shopping to save $10,000 on a sticker price? 8.6 hours well spent.

Is it worth shopping the market to find a nice $375,000 house that fits equally well as the $450,000 one down the block?

Is it worth looking at different universities based on their majors and tuition prices?

TFC Examples

Until the past year, I read a menu right to left. Price was more influential than value. I regularly shopped the sales. Most of my clothes were purchased second hand, usually thrift shops. Travel was dictated by airline tickets and hotel prices.

Times have changed. As a CRNA, a day at work is quite impactful to my income. It’s now optimal to pay for a more expensive flight that synergizes with my locum schedule.

When comparing $275 and $400 flights, I would have done whatever necessary to make the $275 flights work. Usually flying on a Thursday night or Friday morning which means missing work on Friday. My anesthesia earnings on Friday now negate any benefit of this former plan. I’ll pay more for a flight that leaves after work on Friday or first thing Saturday.

My vacation may be a bit shorter, but working Friday will usually cover the entire cost of the weekend.

Mrs. TFC recently forgot to bring a pair of cowboy boots for a concert. The drive to retrieve the boots would be over 400 miles. At the IRS rate of $0.70 per mile, I asked if the boots were worth $300 and the eight hours of drive time. Alternative options were to opt for other footwear or buy another pair of boots.

Since we were traveling for work, available shoe choices were few. The decision was to buy another pair of boots. The opportunity cost of driving out of the way was too high. This was not ultimately a financially beneficial decision, but it was the best of the options we had. Crazy to think how the balance of time and money in my life has changed.

Consider Value

My conservative tightwad nature has not departed altogether. I just don’t go out of my way quite as frequently. I could drive a new Denali, but I don’t. My 2010 GMC works just fine.

I need an oil change this week. Could I do it myself, yep. Not worth the pennies. Hire it done.

Taxes, same deal. I have done my taxes for many years. Now I have experts that help me out and save me a great deal of time. If you are an independent contractor, just pay a reliable CPA firm $3,000 and be done with it. Feels a bit grandiose to write these things.

I could workout in Lululemon or Gym Shark athleisure wear, but my Hanes value-pack shirts do just fine. Well, some have holes already, but mostly fine. And for $3 each, what do you expect?

I’m a steak guy that appreciates a nice ribeye. I can reasonably afford a $75 ribeye at any restaurant, but the value isn’t there. I’d rather opt for a nice $35 sirloin. They almost always fail to produce a “rare” steak, so it’s a lost cause anyway.

Ribeyes are better when reverse seared by me at home anyway. Oven at 250 degrees. Bake until an internal temperature of 115-120 degrees. Sear about 45 seconds each side. Rest for 5 minutes. Boom - rare! That’s value! Not cooking advice and probably not FDA recommended.

Conclusion

The allure of chasing pennies is strong. But real financial success comes from focusing on the dollars—the decisions that shape your future, not just your shopping list. Take a step back and examine where your energy goes. Are you picking up pennies while stepping over dollars? If so, it’s time to reprioritize and make choices that truly matter for your financial wellbeing. Thanks for reading!