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The 7-Day Buy Nothing Challenge: Day 1

By Frugaling 11 Comments

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Today is the first day of my Buy Nothing Challenge.

Read the Entire Series: Day 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7

I woke up craving an everything bagel with cream cheese. For a fleeting moment I thought about walking over, on this lazy Sunday, to the local Bruegger’s. Then I smirked knowingly, “Ah yes, it begins.” Today is the first day of my Buy Nothing Challenge.

Critical Response

When I checked my site statistics, I saw that my adventure had been submitted to Reddit. The traffic was streaming in, as were the comments. The vast majority of which, were written on Reddit.

Here’s what some of the critics had to say about the challenge (grammar and spelling are theirs):

Buying nothing for a week as a money saving strategy is about as effective as all those chain-email protests encouraging people not to buy gas for a week to put the big oil companies out of business.

You need food to live, you need gas (or transit) to get to work. Whether you buy it last week or next week is neither here nor there when it comes to being frugal.

Maybe leaving your wallet at home will keep you from making a few impulse purchases, and if that’s what you gotta do to give yourself some self discipline…go for it.

Buying twice as much stuff last week so you don’t have to buy it this week is a 0 sum game.

A “no buy week” should exclude things you need to live, that portion of the rent that is due, etc.

The only exception might be being more food than usual to prove to yourself that you can eat from home more than you think you can.

After reading some of these harsh comments, I questioned my own decision to pursue this: Was it too small a time? Was it fruitless? Was I just delaying inevitable purchases until next week?

Purpose of the Challenge

The focus of the more vitriolic, opposed persons seemed to surround the buying of food. The argument was that I needed food either way; not buying it for a week would amount to little more than delaying the inevitable. Rather than purely counter this argument, I’ll say this: It’s possible that’s correct. But there is another point to this challenge.

I decided to take a week away – a holiday – from spending to write about my realizations, experiences, and possible struggles. It’s bigger than just purchasing groceries. My challenge and yours, is about everyday opportunities to buy. Whether it’s a car wash, gas, laundry, food, floss, or whatever you pay for on a regular basis, I wanted to see if I could even get to zero.

Secondarily, what some of these commenters failed to grasp was that the more exposure we have to touch, hold, or look at products, the more we buy. Remove the stimulus – remove the urge. By not going to a supermarket (or any store for that matter), I was reducing the chances for advertising and marketing opportunities. I wouldn’t feel the urge to buy a tangential – unnecessary – product.

My Emotions

Over the course of the day, I had these fleeting moments to buy or do something that cost money. The response has been quite interesting. I feel guilty and ashamed at the possibility that I might not make it.

Day 1: $0 Spent.

Stay tuned for tomorrow’s report and follow along!

Read the Entire Series: Day 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7

Filed Under: Make Money Tagged With: buy nothing

The 7-Day Buy Nothing Challenge: Day 0

By Frugaling 11 Comments

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Part reflection and part education, I will write a journal-style entry to you every day. THE 7-DAY BUY NOTHING CHALLENGE: DAY 0

Read the Entire Series: Day 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7

Tonight marks an interesting turn in my dream to reduce my debts and save more. This just may be another ordinary, summer Saturday night to you, but to me, it’s the beginning of a little adventure. For the next 7 days I won’t purchase anything. I’m calling it, “The 7-Day Buy Nothing Challenge.”

The experiment came to me as I was driving – yet again – to the supermarket. It was the second trip of the day. I had planned poorly and hadn’t followed my own shopping advice. Unfortunately, I got home and realized I forget bread. A few hours later I was back at the store and primed to spend.

Then, I pondered if I could actually make it a week without spending money on anything. It couldn’t be simpler, right? Just stop buying stuff! And yet, look at your receipts, how many days have you gone without a purchase?

We are primed for consumption, and sometimes we don’t know how to turn it off. It’s often easier said then done, and I struggle with it sometimes.

For the next 7 days, I aim stop shopping and see my Mint.com account show zero, nada, nothing, zilch, squat, zip. Part reflection and part education, I will write a journal-style entry to you every day.

The Buy Nothing Challenge rules are simple:

  1. No household goods (discretionary or non-discretionary), food, or gas purchased.
  2. Nothing necessary, desired, or wanted purchased/ordered.
  3. To aid in this process, leave credit, debit, and cash at home. 
  4. If an emergency occurs, ignore the first three rules.

When I started telling people about this experiment, some scoffed, others laughed, and a few were excited. To me, it’s a win-win. I get to write to you and I learn what it’s like in the process. I wonder if I’ll be able to go a week. Likewise, I’m nervous if I properly prepared for the adventure. I’d love to know what you think in the comments below!

Here goes nothing! Wish me luck. Be sure to follow along!

Read the Entire Series: Day 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7

Filed Under: Make Money Tagged With: Frugal

Top Frugal Articles Of The Week (7/13/13)

By Frugaling 5 Comments

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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. Every week, I want to share with you the top frugal articles. This is a collection and brief summary of what I found this week:

  1. If I Woke Up Broke by Mr. Money Mustache
    Mr. Money Mustache retired at the ripe old age of 30. The amazing reality is that Mr. MMM reached his financial goals on two modest salaries. Now, he writes full-time and has the freedom to pursue whatever path he chooses. His story was recently featured at The Washington Post. In this recent article, he tackles a strange new conundrum: he has more money than he ever expected and now he’s become less frugal. Money has lost it’s value, as he’s no longer penny-pinching. Thankfully, he’s taking a fine-toothed comb to his current budgets, and finding ways to be a critical spender.
  2. Five Frugal Tips That Go Too Far by Narrow Bridge Finance
    Eric is a financial analyst from Denver, Colorado and runs Narrow Bridge Finance. Sometimes frugality is taken too far. Frankly, I must admit that I’ve attempted to save in these five frugal ways. Eric dispels each of these frugal extremes and explains why you’re not saving much.
  3. Commuting Costs: Be Careful, They Can Be Surprisingly High! by Squirrelers
    That daily drive to work, school, or the local cafe adds up. Between maintenance, gas, depreciation, and a variety of other costs, taking a car to commute is a surprisingly expensive luxury. Squirrelers is run by a father of two who works in marketing, and he’s taken a keen interest in staying frugal and writing about it, too.
  4. 5 Money Wasters you Can Cut Out of Your Life by One Cent at a Time
    The owner of One Cent at a Time has the distinct honor and pleasure of never being in debt. Never! S.B. tackles 5 money leaks to staying frugal. Convenience stores, cell phones, soft drinks, bank fees, and credit card charges are all on the list of money mistakes that people frequently make. Find how to cut these out and save big!
  5. Personal Financely by Mark and Jen
    Mark and Jen have created one of the most comprehensive lists of personal finance blogs in the world. Best of all? It updates every hour with every major sites’ new content. While not an article, this is one of the best places to find new ideas and help on your frugal journey.

Filed Under: Make Money

Bitcoin: A Frugal Cryptocurrency?

By Frugaling 3 Comments

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Bitcoin is a decentralized cryptocurrency founded by a mathematician, Satoshi Nakamoto. Essentially, it is a peer-to-peer currency network.

Bitcoin is a decentralized cryptocurrency founded by a mathematician, Satoshi Nakamoto. Essentially, it is a peer-to-peer currency network. If that doesn’t make sense, it’s the same as the US Dollar – without the centralized government maintaining and monitoring it.

Purchasing A Bitcoin

Last week I purchased one Bitcoin (BTC). I used a service provider called Coinbase. The U.S.-based company offers USD to BTC conversions by linking with your bank account. By giving them more information than you’d like to provide, they offer buying and selling capabilities to your real, concrete wallet. Even more, they just announced instant buying and selling.

After transaction fees, it cost me $84.98. Unfortunately, I had to wait about a week to receive the funds (prior to the instant development). This meant watching white-knuckled as the currency fluctuated between $90 and $65 over the week (on Bitcointicker.co). Just days before the transaction was complete, the conversion rate stood at $65 for one Bitcoin. I was looking at losing $20 in my little experiment – before I actually owned one.

Unregulated, Decentralized, Volatile

After reading Forbes writer Kashmir Hill try to live on Bitcoin for a week, I was inspired to learn more about this mysterious currency. Only a few months ago it was up to astronomical levels around $230. Now, it was hovering around $85. Why was there so much excitement and glee around a product that had no formal reserve or legal backing?

Here’s to hoping I survive on the virtual tokens that promise to make online transactions more anonymous and decentralized. No handing over your name and credit card number every time you make a purchase. It’s the online equivalent of paying cash. -Kashmir Hill, Forbes

All of a sudden, in April 2013, Bitcoin received one of the greatest media pushes ever. Everyone was talking about its potential and whether keeping money in the currency was a reasonable investment. The spike caused a wave of surprising outlets to start covering the currency. CNBC, The Atlantic, NBC, Fox, and many others were writing and featuring prominent people in the market. After the illustrious climb, BTC fell back down below $100, and much of the jubilee has quieted.

Due to its unregulated and decentralized status, Bitcoin offers governments around the world a significant challenge. What can they do to monitor a powerful cash-flow underneath the market? Meanwhile, the currency is becoming an increasingly popular method of payment at restaurants and with web services.

A Frugal Cryptocurrency

The grand appeal of Bitcoin comes from the liberated nature of buying and selling something that has no tax or transaction fee. Most payment processors (e.g., American Express, MasterCard, and Visa) charge lofty fees to merchants. This cost of convenience often gets passed onto the customer.

What Bitcoin has the potential to offer is the flexibility and ease of credit cards, with the fee-free nature of cash. The cryptocurrency could offer a win-win for customers and businesses. It could be a new, frugal way to spend and receive money if the infrastructure develops and people can gain interest and invest like traditional currencies.

The only reason more companies aren’t accepting the currency is the possibility of American intervention. The U.S. Government has the capability to block all transactions in and out for companies that deal in Bitcoin. That’s one nasty possibility.

What About My Coin And Yours?

On Wednesday, July 10th, I received the precious coin. Surprisingly, Bitcoin recovered and reached about $100 to the US Dollar. I decided to sell a fraction of the coin back, and have netted a funny little profit from the experiment. Honestly, the risk is scary, but seemingly reducing. With time, it may be comparable to what email has done to regular mail – dwarfed it. If proven safe with time, Bitcoin has the potential to reduce fees and create a more decentralized economy for all – a sort of international currency.

Will you ever use Bitcoins? What’s preventing you from buying into the currency?

Filed Under: Make Money

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