False economy is the subject I want to write about today, because it has cost me more than any spreadsheet error. I recorded this on Day 2110 of my daily run streak, and the lesson sits at the point where good numbers meet real life.

What false economy means to me

False economy is when you choose something for a better financial return, but the real cost of running that strategy is higher than the figures show. The hidden costs cancel the gain, and sometimes they cost more than the gain.

I like to think I am fairly proficient with numbers. I know the basics of financial analysis and financial modelling. I have also made some serious financial errors over the years, so I would never call myself an expert. When I look at a decision, I normally check two things. The first is forecast net profit, after all costs and before tax. The second is return on investment: how hard my money is working and how long it takes to pay back the initial capital.

Nine times out of ten, those two figures point to the right decision. That is why I trust them. The tenth time is where false economy sits.

The example from my property portfolio

In the early days of my business, I focused heavily on the social tenant sector. Once you understand housing benefit and the benefit system, there are strategies in that sector that produce strong returns. Many investors rule the sector out without looking. On a spreadsheet, the return looked far better than other tenant types.

What the spreadsheet did not show was the management side. A difficult tenancy brings more management time, more voids and more maintenance. You can put budgets for those into a model, but you also have to price the risk of the tenant demographic, and that is much harder to write into a cell.

Early on, between 80% and 90% of my portfolio was in that sector. I am now moving towards around 20%. I am not leaving the sector entirely. I am reducing my exposure because experience showed me the real cost of the higher headline rent.

What replaced it is the professional HMO: professional workers in shared accommodation. Turnover is slightly higher than with a single let. But with a decent managing agent who does the right checks and vetting, the income is more consistent and the management load is lighter. On paper, social tenants give a higher rent. After voids, maintenance and management time, the professional HMO outperforms it nine times out of ten in my experience. That is my experience in my portfolio, not a rule for every investor.

Why experience matters here

False economy is hard to spot the first time. You often learn it by making the mistake. After that, the job is to listen to what the mistake taught you.

If someone with experience in your field says "I would not do that, it is a false economy", take it seriously. They are not saying your projection is wrong. They are telling you the forecast carries a lot of risk, and the strategy behind it could go badly wrong. A spreadsheet shows the outcome you hope for. Experience shows you the range of outcomes.

Consistency over volatility

The second lesson is about volatility. A lower-risk strategy with a slightly lower return often delivers more consistent results. For most people, consistency beats volatility. I know some stock traders would argue the opposite. They are experts who know how to trade volatility, and I am not one of them.

For a long-term hold portfolio, steady income lets me plan, pay costs on time and make calm decisions. A higher return that arrives unevenly makes every decision harder.

What this has to do with running every day

I run every day, and the streak is built on the same idea. A daily run of a steady distance is not exciting on paper. A bigger run once a week might look better on a chart. But the streak does not depend on one big effort. It depends on turning up on the ordinary days, in all weather, including days I would rather not.

Day 2110 brings the total to 16,227.98 km. That leaves 23,847.02 km to complete 40,075 km, a lap of the world. Barefoot-style running over that distance rewards patience. Pushing too hard for a faster gain is its own false economy, because an injury costs more days than the extra effort gains.

The mission behind the miles

The reason I do this is to raise £1M for children's causes. The vlog is the vehicle. The more people who see it, the more support the fundraiser can attract. That depends on me showing up every day for years, not on any single big day. The same rule applies to the portfolio: steady and sustainable beats fast and fragile.

What I would ask you to do

If you run a business, manage financial reports or invest, try this on your next decision:

- Look at the profit and return on investment figures first. - Then list the hidden costs: time, management, risk, voids, maintenance, stress. - Ask someone with experience in that field what they would watch for. - Choose the option you can run consistently, not the one with the best headline number.

I do not claim to get this right every time. I got it wrong early on and learned from it. The lesson for me is that the best number on the page is not always the best decision.

If you want to follow the run or support the mission, watch the daily episodes and share them with someone who may find them useful. Every view helps get the fundraiser in front of more people. Tell me in the comments where you have seen false economy in your own work. I read them all.

Watch the full episode: https://youtu.be/CnyxLKR50MQ