Articles by Frugaling

Wired Magazine is 40 Percent Ads

Read more about the consequences of advertising: Remove Ads for More Money, Health. Also, are you curious how much advertising is in Fortune Magazine?

A deluge of subscriptions has hit my mailbox recently. Everything from Rolling Stone, Wired, ESPN, and the Wall Street Journal are being delivered daily and monthly. The best part? It’s all free. The worst part? These stalwarts of the news world have become magnets for advertising.

Today, I opened my mail and found a brand new copy of Wired Magazine. The July issue features a cover story on U.S. General Keith Alexander. The article is written by the brilliant James Bamford. He frequently covers stories on the NSA, and this article delivers. But like my experience with Fortune Magazine, it’s clear why they’re giving it away.

Advertising is the only thing keeping most news and media outlets alive. Subscription rates – at least to hardcopy products – have plummeted. Much like free newspapers rely on local advertisers to pay for the difference, Wired Magazine and periodicals like this are inserting more advertising space than ever. By giving away subscriptions, they can inflate their readership and draw in more exclusive advertising.

Without covers (back/front), Wired Magazine is 132 pages long.

52 pages are dedicated ads (not including partials).

The magazine is 40 percent advertising.

Being exposed to this amount of advertising can be dire to a frugal budget. Find out how you can take action.

Can Minimalism Create Consumption? (Updated)

By Frugaling 4 Comments

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.

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

By Frugaling 22 Comments

The Times Are Changing

The 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.