Earlier this year, I decided to give up cable to simplify my life and save $120 a month. I don’t watch much TV, and when I do, it’s sports. But with so little time, I watch the condensed 10-minute highlights on YouTube for free.

Around the same time, I decided not to renew my Bay Club sports membership. The renewal would have run about $2,500, paid upfront for the next 13 months. I had just spent $1,700 fixing my car and didn’t feel like writing another big check so soon.

Great Life Benefits

In hindsight, I probably should have renewed. 2025 was a strong year in the stock market, so the money was there. And the value of a sports club membership goes well beyond the monthly fee.

The health and social benefits are real. The more friends and connections you have, the happier you tend to be. And I’d met dozens of new people at the Bay Club playing tennis and pickleball.

The self-confidence that comes from consistently working out, feeling better, and looking better compounds over time. And when you’re thinking about longevity, a sports club membership starts to look less like a luxury and more like preventive medicine.

That said, I was already a member of another sports club, a tennis club 15 minutes away, for about $300 a month. And since you can’t be in two places at once, I had been neglecting it. Paying for both just felt wasteful.

Why I Joined Two Sports Clubs in the First Place

The Bay Club offered something my tennis club didn’t: a pool and indoor courts. Both are essential during rainy winter months. My tennis club has no pool or jacuzzi, which meant no teaching my kids to swim.

Teaching your children to swim is one of those non-negotiable parenting responsibilities. Drowning is a top-three cause of death for children under five, so survival is the first reason. But beyond safety, I wanted them to at least know freestyle and breaststroke, a basic life skill.

Every Sunday, I’d drive 35 minutes south to the Bay Club at Redwood Shores. We’d spend from about 10 AM to 1 PM in the pool area, followed by 45 minutes of tennis, then some reading and lunch. These “Sunday Daddy Day Camps” ran five to six hours – great quality time with the kids, and a nice break for my wife to do her own thing.

Having children is a great way to spend down your wealth. If we didn’t have children, I wouldn’t have become a member

Feeling the Regret Of Not Renewing

After not renewing in January (my membership ran through end of April), I started feeling some regret. The stock market had just experienced another sharp, V-shaped selloff and recovery.

Yes, it had annoyed me when the Bay Club raised the children’s guest fee from $15 to $25 a year prior. But $51.50 per Sunday (including the credit card processing fee) to access a calm, spacious pool for teaching? That was a price I’d been willing to pay.

So I reached out to my pod membership leader to ask about rejoining. Unfortunately, she told me my spot had been filled. Bummer. I shouldn’t have let it go. Isn’t it funny how we want more of something we can’t have?

I was going to keep inquiring about re-joining when I got an email update from the Bay Club that stopped me cold.

The Guest Fees Are Going Way Up

The email arrived with the usual upbeat framing:

“As we head into peak season, our focus is simple: protect and enhance your experience, so you can enjoy every moment of summer with your community.”

Halfway down, it said that guest fees were going up, from $25 to $75 – $100 for all ages. Holy moly!

That means taking my two kids swimming on a Sunday would cost $204 (including the credit card processing fee), before factoring in 35 minutes of driving each way and about $16 in gas. We’re now talking $220 per swim session. For that price, I can find a closer and cheaper option.

It already takes motivation to drive so far and back on a Sunday. But to then arrive and have to pay $204 in guest fees seems outrageous. I was happy to save time and money on gas with the Iran war still going on.

Life Is One Long Economics Lesson

I had been deliberating rejoining for a couple months. However, seeing that fee increase made me feel great about walking away. There was no doubt in my mind, compared to if the guest fee had only gone up another $10 per person. And it gave me a perfect teaching moment with my kids.

The first lesson: nothing good lasts forever. All those Sunday mornings at the Bay Club for the past 2.5 years – swimming, playing, having lunch together – are now over. Appreciate what you have while you have it, because things change faster than you expect.

The second lesson: how businesses work. When a private equity firm buys a business, their mandate is to maximize returns. That means raising prices until demand falls enough to hurt profitability. Understanding this dynamic matters, whether you’re a consumer, an investor, or a business owner yourself. We want to own the assets where prices keep rising, such as your primary residence, not be stuck paying forever rising prices.

The third lesson: substitution and opportunity cost. When prices rise sharply, rational consumers find alternatives. I asked my kids directly: pay $880 a month to swim at the Bay Club, or do something else closer to home? They didn’t hesitate. Save the money, they said. That’s exactly the same logic I applied to food spending when prices surged during COVID. When something gets too expensive, reduce consumption and find substitutes. The benefit was weight maintenance and loss.

What’s Next

When one chapter closes, another opens. We’ll lean back into soccer and basketball – both essentially free, since we already have the equipment and public courts and fields are everywhere. Maybe we’ll invest more time in music: singing, guitar, piano.

There’s no shortage of things kids can do that don’t require expensive club memberships. And when we’re in Honolulu for a month this summer, there’s a free community pool two blocks from our house. The Everline Resort in Lake Tahoe has pools too.

As for me, I’m looking forward to refocusing on my tennis club, where I’ve been a member for 15 years. I’d been taking a break after a knee injury and spending more time with the kids, but it’s time to get back on the court.

Thinking About Joining a Sports Club? Here’s How to Decide

If you’re weighing a sports club membership, especially after a strong investment year or a milestone like having kids, here’s a practical framework for thinking it through.

The case for joining (and spending more than you think you should):

As you get older, the return on health and social investment compounds. The cost of not staying active (in medical bills, lost energy, and reduced quality of life) tends to far exceed the membership fee. If you’ve had a good year in the market, a sports club is one of the better luxury expenses to enjoy your gains. Health and social connection are long-term assets.

What you should actually pay:

A reasonable rule of thumb: your sports club membership shouldn’t exceed 1–2% of your gross monthly income. For most people, that means somewhere between $100 and $500 per month is defensible. Beyond that, you’re likely paying for brand and status as much as for access.

Watch out for add-on costs. Guest fees, court booking fees, and processing charges can quietly double your effective monthly cost. Build those into your estimate before signing.

Red flags to watch for:

Aggressive fee increases (especially guest fees) are a signal that ownership is optimizing for revenue over member experience. The Bay Club’s move from $25 to $100 guest fees in a single step is a textbook example. If a club is doing this, it may be time to shop alternatives.

The substitution test:

Before renewing, ask yourself honestly: what would I do with this money if I didn’t spend it here? Public pools, community tennis courts, recreation centers, and school gyms are dramatically underused and often excellent. The best club in the world isn’t worth it if there’s a great public alternative five minutes away.

The bottom line: if you can afford it, a good sports club is almost always worth it, especially when you have kids at home and years of active life ahead of you. Just make sure you’re getting what you pay for, and stay alert to when the value equation quietly shifts against you.

Readers, are you noticing a rapid increase in membership and guest fees for your sports club and other activities? Could it be a highly positive sign of a strong economy and increasingly affluent consumers?

Track Your Finances To Keep Lifestyle Inflation In Check

When membership dues, guest fees, and everyday activity costs keep rising, it pays to know exactly where your money is going. Empower offers free financial tools to track your net worth, monitor cash flow, and analyze your investments all in one place. I’ve used their dashboard since leaving my day job in 2012, and it remains part of my regular routine.

If you have over $100,000 in investable assets, including savings, brokerage accounts, 401(k)s, IRAs, and other accounts, you can also get a free financial check-up with an Empower professional. It’s a no-obligation review designed to uncover hidden fees, allocation gaps, tax inefficiencies, and missed opportunities.

The more clarity you have over your finances, the easier it is to cut wasteful spending, invest with confidence, and build more freedom.

Here’s a post sharing how my free Empower financial review went, along with a current giveaway of my signed bestseller, Millionaire Milestones, once you complete yours. They are all first edition copies.