When did you last get stuck in traffic?

Studies have shown that driving makes for the most stressful type of commute. The reason? Uncertainty, in the form of unexpected delays.

Researchers at McGill University, in Montreal, authored one such study. Their work showed that drivers must rely on an “additional time budget.” A car commuter, on average, must allot “an extra 21 minutes in travel time to deal with traffic congestion.”

This mental burden doesn’t impact people who walk, bike, or use public transit in the same way. Rather, it hints at how much “less control over their commute” drivers have. And that additional time budget only grows as their trip length increases. As does the driver’s potential stress.

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In 1945, Robert Moses wrote a letter to the editor of the New York Herald Tribune. Moses was (among other influential roles) the head of the New York City Planning Commission. In response to growing frustrations about traffic congestion, he argued:

“We have built and are building wide parkways and expressways, bridges and tunnels, without crossings and lights, with service roads for local use and parking, belt and crosstown systems which take thru-traffic off ordinary streets and enormously cut down congestion. …Then we have great new parking spaces in parks, at beaches and along parkways. …We have eliminated railroad-grade crossings, which blocked traffic for miles… and substituted boulevards for tracks. Trolley tracks are being ripped up all over town to promote the flow of traffic.”

To Moses, the solution to traffic congestion was more. More lanes, more highways, more policies that favor cars.

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A streetcar association, Robert Caro wrote in The Power Broker, began warning city leaders like Moses about this policy decision as early as 1932. They said, “As fast as improvements are made in existing arteries of travel … they are saturated by an increasing volume of traffic.” Then in 1955, sociologist Lewis Mumford added to the critiques. He “compared a highway planner widening a congested highway to ‘the tailor’s remedy for obesity — letting out the seams of trousers and loosening the belt.’”

And most famously, in 1962, economist Anthony Downs introduced the term “induced demand.” Here’s how Caro explained the concept:

“The more highways were built to alleviate congestion, the more automobiles would pour onto them and congest them and thus force the building of more highways – which would generate more traffic and become congested in their turn in an inexorably widening spiral.”

Even as evidence about his flawed ideas mounted, Moses’s ego refused to allow him to change. He dismissed lower-cost, more gradual improvements. He ignored more balanced approaches. And he rejected placing any limits on the cars that he prioritized.

In doing so, he lost sight of the most basic, timeless truths about how people make decisions and how the world works.

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Making financial decisions can feel like driving on a highway.

We often can’t shake our uncertainty about what the road ahead will look like. And we regularly face unexpected delays in our progress. In the case of money, you may get stuck with a large, unavoidable expense one month. Or your promotion at work – and the raise you seek along with it – may not arrive as quickly as you deserve. And your investments in the stock market may crash at the most inconvenient, harrowing times.

These bumps in the road understandably stress us out. So we expend mental energy worrying. Worrying about what we should be doing differently. Worrying about what our friends and neighbors may think. Worrying about what the future holds. 

This is the “additional time budget” that we face in our financial lives.

And like many traffic engineers, we convince ourselves that the key to financial calm will be found in more. If only we could upgrade to that bigger, more luxurious car. If only we could pay for our kids to attend that more prestigious school. If only we could hit the magic $1 million number in our 401(k) account.

But money induces demand, too – demand for even more money. “As fast as improvements are made” with our finances, our benchmarks shift. Our interests and wants expand to that next level of material goods, experiences, and superficial accomplishments.

And, as Caro wrote in The Power Broker, this becomes our own “widening spiral.” In our endless pursuit of more, we make our financial lives more complicated, messy, and confusing. We often lose sight of the most basic, timeless truths about how we should make decisions and how our financial lives work.

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“Slow is smooth. Smooth is fast.”

This philosophy, often attributed to the U.S. Navy SEALs, may help us with the uncertainty we face in traffic and with our money.

In Copenhagen, city leaders designed a system to reduce bus, bike, and car travel times. Based on a certain, cautious speed – New York City, for example, used 15 miles per hour in a similar pilot program – vehicles can pass through one green light after another without stopping.

And Wired reported that, “Green lights could be extended by eight to 30 seconds to keep buses moving, and those that are overcrowded or running late could get priority. …The traffic signals also will help clear congested areas after events like soccer matches and concerts.”

In explaining this system, the city’s technical and environmental mayor, noted that “These systems will ensure that traffic flows better so that as many people as possible can save time in the greenest possible way. It means that Copenhageners won’t waste time on their way to and from work.”

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The next time you wish that your financial life felt a little smoother, remember this slow alternative. You may be better off making choices with your money that offer you the most flexibility and control. 

Ultimately, you’ll never get a guaranteed or entirely stress-free outcome. But you may be able to stop worrying as much about getting stuck.

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About the author: Kevin Mahoney, CFP®

Hi, I’m Kevin. I’m a financial advisor in Washington, DC. I’m also the founder of Illumint, an independent financial planning company in the District that specializes in financial planning for Millennials like you. I empower our generation with the confidence to invest an inheritance, financial gift, or extra savings. If you’re new to Financially Well, welcome – you now have access to the leading finance podcast for Millennials. I encourage you to read, watch, or listen to the ideas I’ve shared about making your money work for you. And then when you’re ready, please send me your thoughts & questions!