Inside Out Money 153. Return on Hassle - Escaping the Complexity Trap
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Mar 9, 2026 A conversation about valuing time and mental bandwidth over chasing tiny financial gains. They introduce a return on hassle framework to weigh stress, effort, and money. Topics include simplifying investments, treating active trading as a hobby, the hidden costs of complex financial products, real estate’s hands-on demands, and practical questions to audit decisions for less friction.
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Return On Hassle As Missing Variable
- Return on Hassle (ROH) measures money earned divided by capital plus time, brain effort, stress, and other costs.
- Cody Garrett and Mitchell Baldridge popularized ROH as the missing variable beyond ROI to value time and emotional cost.
Limit Market Beating To Hobby Money
- Treat active attempts to beat the market as a hobby and limit them to a small portfolio slice or fixed dollar amount.
- Keep the majority in market returns (index funds) to avoid mental fatigue and FOMO.
Simplicity Reduces Brain Space And Improves Outcomes
- Simple index-fund strategies reduce mental load because they don't require ongoing decisions or monitoring.
- Andrew notes the best-performing accounts are often ones owners forget about or never log into.