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Archives for June 2013

Can Minimalism Create Consumption? (Updated)

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Minimalism shouldn't create consumption. It's a tragic irony if it does. In my opinion, minimalism must balance the desire for less focus on stuff, with the need for some basics. If you have a favorite that you continually learn from, keep it.

Updated: Joshua Fields Millburn of The Minimalists commented on this article. Please read through and look at his response. Thanks Joshua!

Buying Too Much Crap

I self-identify as, “A failing minimalist.” Look on my walls, search through my drawers, and peer onto my countertops, there’s plenty here. I’m failing to follow my own philosophical desire for minimalism in an increasingly consumptive world. I’m not perfect, and sometimes I fail at minimizing the importance of stuff. Amidst my purchases and missteps, I look to role models that help shape my sinuous path to simple living. They offer support, inspiration, and guidance when I need it most.

My Role Models

Some of the strongest writers and websites on minimalism are Zen Habits, Becoming Minimalist, and The Minimalists. The latter site is my favorite for regular inspiration and deep thoughts regarding a life filled with more meaning and less clutter. Ryan and Joshua catalogue their journey leaving the rate race, selling away extra stuff, and clearing the clutter that also fills the mind. Ryan and Joshua smartly exited the working world and created a business out of minimalism. Now, they travel around North America, explaining what it is and how you can become a minimalist, too. But that doesn’t necessarily pay the bills.

One of their main income streams includes published books. After writing short posts and collections of thoughts to the site, they condense the details into a perfectly thematic string of stories and inspiration. These for purchase offerings have broadened their audience, too.

How Minimalism Can Create Consumption

A newer offering entitled, “Simplicity: Essays,” is another anthology of stories. The beautifully written words and simple hopes delight the budding minimalist in me:

These essays were written to encourage readers to think critically about the excess in their lives and, ultimately, to take action towards living more intentionally. This collection is short enough to be read in a few sittings, or it can be digested slowly, reading one essay a day for six weeks, applying its principals each day to your own life.

Unfortunately, the two are at fault for recommending something that may only enhance and encourage consumption. At one point, they recommend selling or ridding your tower of DVDs. I completely agree, as they’re only taking up space. The duo mentions that once you see a movie, going back to it is an effort to live in the past. As their minimalist journey has encouraged a focus on the present, they see these forms of entertainment in a finite way. This is where I differ. Going back to something you’ve already watched or read is exceptionally frugal, and even though it may occupy space, it doesn’t need to be counter to minimalistic mores. In fact, I often return to classics for new inspiration, experiences, and reflections. The movie Fight Club is a perfect example. I’ve seen it about 6 times. I rewatch it, not for the past or nostalgic relief, but as a reminder to the errs of consumerism, materialism, and nihilism amidst a culture of consumption. I always gain something new, and it’s definitely present focused. Minimalism shouldn’t create consumption. It’s a tragic irony if it does. In my opinion, minimalism must balance the desire for less focus on stuff, with the need for some basics. If you have a favorite that you continually learn from, keep it.

Top Frugal Articles Of The Week (6/29/13)

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I’m reading about personal finance and frugality all the time on this journey to a debt-free life. Finding new content and approaches to frugal questions and budgeting issues is one of my favorite things to do. Periodically, I want to share with you the top frugal articles. This is a collection and brief summary of what I found this week:

  1. Teriyaki Noodle Bowls by Budget Bytes
    Beth is the creator and inspiration behind Budget Bytes. Every couple days she publishes a new frugal food recipe with an exact cost associated. As I begin my own efforts to cut down on eating out, her website has been a terrific hub for great ideas. This weeks fabulous recipe is for Teriyaki Noodle Bowls. This dish is easy on the budget and tastes great! Head on over to her site to see how to make it for about $1.60 per person.
  2. Did I Flush $80,000 Down The Drain By Renting? by Living Rich Cheaply

    Recently, I was interviewed by USA Today. The interviewer asked me what I thought about buying a house down the road. I let her know that I couldn’t imagine getting into mortgage debt after tens of thousands in student loans. I just didn’t want to owe anyone anything down the road. I was sick of the debt and struggle that resulted. Well, Living Rich Cheaply beautifully stated and focused in on this debate of renting versus buying. In the detailed, financial overview of their decisions, the author realized that renting actually worked out best for them. An important read, because many people assume you’re flushing money away by renting.

  3. Cut Crap You Don’t Use and Sell Your Stuff by Moolanomy
    The title of this article says what you need to do, but the resources inside tell you how to get there. As a failing minimalist, I’m a firm believer that budgeting, personal finance, and frugality are all intertwined with minimalistic attitudes. It’s just stuff. Kevin Mulligan of Moolanomy Occam’s Razors the topic and gives the advice you need to hear. Don’t need it? Sell it.
  4. The Philosophy of Frugality by The Simple Dollar
    Trent, of The Simple Dollar, is a frugal master. He’s been writing about frugality, saving money, and creating income for years. In this latest article he gets to the very core of frugality. What is it? How do we define it? What ideals does this term encapsulate? The largest takeaway is that this is a lifelong journey, and it takes constant practice to excel. In the end, this is for a greater freedom in life.
  5. I’m Debt Free*! by Frugal Portland
    Since creating and writing this website, I’ve used the word “debt” hundreds of times – thousands more in casual conversation. Debt can be distracting and destructive to psychological health. It’s important to realize what this journey is really for. Becoming debt-free is a dream of mine. Reading about my journey and others’ can help. Kathleen, of Frugal Portland, recently wrote about paying off her credit debt in a jubilant new post. Amazing and motivational work she’s done. Be sure to congratulate her!

Why Dave Ramsey’s Advice Won’t Work With Millennials

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Why Dave Ramsey's Advice Won't Work With Millennials. Opinions are cheap; mine included. But, as a Millennial, credit card user, and cashless-cabin-aficionado, I believe we need to begin searching for viable solutions.

The Times Are Changing

Dave Ramsey CashThe world is phasing out paper currencies for digital, plastic forms. Credit, debit, and secured cards are increasingly occupying wallets. Despite recent declines in the 18 to 21-year-old demographic (due to the CARD Act), 78 percent of Americans have credit cards (Link). We have voted against the greenback, and replaced it with digitized numbers that represent the possibility to spend. But, this is placing us at risk for increased debt and instability.

Various financial counselors recommend cutting up your beloved cards to control spending. These advocates argue for a cash-based budgeting system. Usually, a series of envelopes represents the different domains of life (rent, car payment, groceries, etc.).

Dave Ramsey is the largest proponent of “cash flow” systems to managing your debt and money:

Grandma’s way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today’s card-swiping culture. (Link)

Scientific research supports this system:

Credit helps to anesthetize the pain of paying, and it caused tightwads to nearly catch up to the spending levels of spendthrifts. (Link)

Their study found that subjects paid more when they were instructed to use a credit card rather than cash. In fact, they found that they were willing to spend up to 100% more with plastic. (Link)

Carefree & Cashless

The reality is that cash is slowly being phased out. Even if cash currencies still exist, the availability and acceptability may shrink. Businesses and consumers generally prefer the streamlined approach to cashless transactions.

Starbucks is a perfect example. Whether you have a credit or gift card, Starbucks’ iPhone app allows you to store your card information for purchases. All you have to do is swipe your phone and that steaming beverage is yours.

The ease of the cashless world is both tantalizing and horrifying. We can minimally travel, without bulky cash filling our pockets. A thin card gives us all the purchasing power we need. But we also risk spending more, going into debt, and suffering usury interest rates as punishment (try 25% or more penalty rates).

Unfortunately, the current financial gurus may be behind the technological times. The younger generations demand fungible, diverse transaction assistance (e.g., Bitcoin to PayPal to the iPhone’s Passbook). As noted, cash is dying. The old advice is dying. The conflation could be destructive to us all.

What’s The Solution?

Opinions are cheap; mine included. But, as a Millennial, credit card user, and cashless-cabin-aficionado, I believe we need to begin searching for viable solutions. As the masses segue to destructive spending patterns and digitized spending that distances us from the dollars depleting, we will suffer.

Forced spending control and scheduled punishments for poor purchases may be the last viable solution. Whatever happens, I hope we act before this bubble bursts.

Need For Spend: The Secret To Stop Shopping

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Need For Spend: The Secret To Stop Shopping. Research suggests that the longer you spend in a store, the more you spend.

Born, Bred to Buy

My grandmothers read continuously. One purchased books and the other went to public libraries. I have fond memories walking to the public library with that grandmother. Entering the large buildings of books, magazines, and computers made it fun. I would scour the shelves for new reads and sometimes checkout books I could never finish. I brought my nose to the pages and smelled the well-read scent. I loved that it only required a library card.

As I grew older, that lust for the library vanished. The plastic wrapped books felt lesser than. I wanted my own books. I wanted to feel crisp bindings and stock a shelf full of my own books. To hold, cherish, and covet my collection was important. The bound pages were a representation of me – an identity. My bookshelf consistently grew year after year, causing the slat to become concave under the pressure. 

The books followed my every move. I packed a couple big boxes each time, until I purchased a Kindle. The lightweight, 30-day-battery device was this terrific space saver. When I moved to the Midwest last year, I had 5 books and hundreds on my Kindle. Suddenly, I was free from the physical clutter, but still buying new Kindle-version books for about $9.99 a piece.

This was just one of my many spending problems. Put me in a mall – before I was frugal – and I had to spend my money on something. I felt an undeniable energy from start to charge.

The Shopper’s High

Malls glisten with an unnaturally bright sheen and stage-like lights that beat down on its entrants. Shopping centers catalyze a rush of heightened smiles and joy – its a kind of high. These bastions for consumerism test the very foundations of frugality.

Research suggests that the longer you spend in a store, the more you spend. Places like Barnes & Noble play comfortable background music, keep a temperate climate, and often have Starbucks coffee shops in tow. The aura suggests escaping from the world while you find the perfect book. You can finally find peace and happiness in purchase.

Marketers prey off of three psychological emotions: sex, fear, and happiness. Consumer research and psychological studies continually show that advertising that amalgamates these factors, wins.

Apple’s store openings are filled with a rousing cheer from an audience of employees. Attendees (shoppers) raise their newly-purchased electronics like Rafiki held Simba. Jubilance. This is where you’re supposed to have fun. And an ingenious staff bolsters the moral of many who outspend their budgets and follow into income/debt traps.

With friends like these, my purchases always felt justified, necessary, and right. Thankfully, I’m living and spending differently now. Every now and then I experience an undeniable urge to spend, and that’s when I try to mimic the shopper’s high for free.

The Secret to Stop Shopping: Your Local Library

I frequently purchased new clothing at name-brand retailers, electronics, and new books for my Kindle. These were black eyes to my budget. This continued until I found elation at the public library. It solved my urge to shop for clothing, electronics, and new books.

No longer do I need to own books and buoy the local Express retailer; although, I still have cravings to spend money on things I really don’t need. The trick to controlling spending is realizing the power of your public resources.

Here are the 5 secrets to stop shopping:

1. Customer Service

Shopping genuinely gives consumers a short-term high. When you’re in a crummy mood, it can fill that gap, temporarily. An outlet that can fill both the good and bad times is necessary to frivolous, discretionary spending.

The high is natural. It’s often influenced by strong, friendly customer service. A representative that is attentive, kind, and helps without reservations makes you feel special. That smile they offer you when you walk in the door is potent. The amalgamation of positivity is all designed for your comfort.

Libraries are a comparable outlet for the need for spend. Librarians are the attentive, customer service counterpart. They can guide and help with research. Their task is to help customers find, access, learn, and check-out. That dedication is important to feeling good about your experience.

2. New Release Rack

What could possibly replace Redbox and Amazon for movies and books? These companies have a focus on new releases and special offerings.

There’ also a diversity at your public library. If they don’t have it, they can usually order it from a partnered source. This can be a powerful tool when researching or just looking for a popular DVD. Each year, libraries cycle through new and old books. Tax contributions allow libraries to purchase new books with surprising regularity.

3. Digital Services

iTunes, Amazon, and various digital stores offer millions of books, music, and magazine subscriptions. They’re advertised heavily and are gotos in their respective domains. But, libraries have actually been in the business longer.

Looking for audiobooks, music, software, and eBooks? Your library may have everything on your list already; if they don’t, request it. Intricate networks and databases greatly expand the reach and can provide you with hidden gems of opportunities.

Over the years, libraries have changed immensely to meet evolving technological demands. Libraries contain books, magazines, DVDs, and powerful community resources. And nowadays, they also have eBook libraries for Kindles and Nooks. Free rental books can be wirelessly delivered to your favorite reading device.

Want to put your hands on the latest technology? Tablets and computers are popular accoutrement to any good library. Now you can browse, write, and learn in style. On top of everything else, you can also rely on the library for free Wi-Fi. Maybe you can even stop paying for Internet at home!

4. Extracurricular Activities

Even if your search takes you beyond the library’s walls and academic world, it can be a great, frugal-living resource.

Ready to check out some local attractions? Public libraries often provide access to day-passes to aquariums, parks, and museums. By checking out a pass, you can save $20-30 – sometimes more – every time you visit.

Legal troubles taking a bite out of your budget? Oftentimes, you can find legal and federal forms – free of charge – at your library. With the helpful assistance of desk staff and librarians, you might even understand your taxes this year!

5. Peace And Quiet

People pay good money to find sanctuaries around the globe. The irony is that they can be found at a local library. There’s no expectation to spend money, plenty of room to spread out, and the quiet will make you far more efficient (contrary to the popular desire for coffee shop din).

These are hubs and havens for saving. Use the resource, get rewarded, and join the new library movement.

What other places can you go to replace the need for spend?

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