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Everything Must Go

By Frugaling 16 Comments

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Minimalism Horizon Save Money

Over the last two weeks, I’ve sold much of what filled my house. I’m past the point of being frugal, and well into the world of minimalism and austerity. I mean, it’s empty in here, readers.

All of my physical books are for sale. I have a TV stand, but I sold my TV and Apple device. It’s the beginning of summer, but I already sold my air conditioner. Oh, I just sold my car, too.

With each sale, I feel this push and pull inside me; the wonderful feeling of letting go, which brings both loss and freedom. I’m free to spend the money inappropriately, but I won’t. I’m free to buy more stuff before I move, but I won’t. I’m free to feel loss, and I might.

Like a reflection of the bare rooms in my apartment, emptiness might affect me. It feels… lonely to be bare — like what I own hugs and tucks me in at night (I wish!). Everyone from my parents to random visitors have remarked at the empty nature of my home in the past. I’m curious what they’d think now.

Part of me wonders why I crave to fill every nook and cranny with goods. Why is it more natural for me to fill a house than empty it? Why do I feel embarrassed to welcome people into my home without stuff occupying the space?

I’m living with an everything-must-go mentality right now. A fire sale of sorts. And every purchase that goes against my new, frugal self seems to be in violation of my debt reduction plan. I don’t want that to happen.

I can’t predict how I’ll feel over the coming months; for now, I’m taking action to change my life. All that remains is me — that’s the one consistency. What fills my room is me — for better and for worse.

Filed Under: Minimalism Tagged With: Frugal, letting go, minimal, Minimalism, self, selling

How To Fundraise $25000 In 12 Months

By Frugaling 4 Comments

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Sam Lustgarten Always Remember Speech

In search of hope amidst great pain

To save money on housing and food, I decided to become a resident assistant as an undergraduate student. That decision put me on a collision course with residents dealing with serious mental health concerns. The transition to college was always different — some people eased right into it and others struggled.

I loved my residents, and thought we had an incredible academic year. It was April when everything changed. A resident died by suicide. As one of the first responders to the scene, the visuals caused an aching, grinding weight over my chest. Over the course of the next six months, two more people in my life would die by suicide.

It shattered me. There were many days in which getting up was a trial. I’d leave classes early to go into a bathroom and cry. I remember feeling lonely and isolated in my pain. It took that heartache and tragedy to find hope for something better.

Always Remember Fundraise Plan
Part of my proposal to administrators.

Finding, honing an inspiration

I was desperate for action. Then, a flash of energy hit me in one sleepless night nearly a year after the first suicide. I wanted to start a scholarship to fund undergraduate students who wanted to pursue suicide prevention and/or work with those suffering from severe mental health concerns.

Over the course of the next month, I created a proposal for the university and told them how I would fund an endowment (a self-supporting — through interest — scholarship). I explained that I had been talking to friends and family. Altogether, we could scrounge up about $2,000 to start.

They told me I could try, but I’d need to fundraise $25,000 within 5 years.

I said, “Deal.”

Make the first donation

When I started the scholarship I had about $500 in my bank account. I had few assets. Still, I sold everything I could and donated a couple hundred dollars to start the scholarship. It was less than 1% of what I’d need to raise, and it hurt to give that much (especially since I’d need to take out student loans soon after that). No financial advisor would say it was wise.

I had to give everything I could. My head and heart were sucked into this powerful idea — hope through tragedy. I don’t regret giving as much as I did then or over the years. It fueled my passion to seek donors and encourage others to join me.

Realize your connection to community

With almost every cause, there’s a community of support behind it. I realized I wasn’t alone in my distress and desire to make an impact. In fact, the community around my alma mater was incredibly supportive. They were eager to make a difference, as well. They had been affected by this issue.

I heard stories about lost loved ones — brothers, sisters, fathers, mothers, children. It hurt to hear the stories, but I only grew more connected to those around me. Eventually, students at a local high school started fundraising for the scholarship. It brings tears to just think about how meaningful that felt. A cynical part of me died when others began to donate. I didn’t know if anyone would support the cause.

Inspire yourself and others

Suicide Prevention Fundraiser
Group of supporters spent a day in the plaza providing information about the scholarship and suicide prevention.

The $2,000 wasn’t enough, and I felt a pressure to make this happen. I told everyone about the scholarship. Donations began to trickle into the scholarship account.

I shared on Facebook and Twitter — all over social media. Each time led to others sharing. The positive feedback was unmatched in my life. It felt amazing to be channeling such a dark period in my life.

Others were inspiring, pushing me to continue. Likewise, I seemed to inspire others. This shared, symbiotic relationship appeared to benefit everyone. My energy, which had long been depressed and negative, shifted.

That first summer, a massive, $5,000 donation was made. The idea of a scholarship to prevent suicide and provide awareness to this issue struck a chord with many who were affected in the community.

Throw away modesty, seek media attention

This is the trickiest part for some people. Seeking attention is something that society generally says is inappropriate. Unfortunately, far too many people think media will just come to you when they’re ready. I threw that lesson away as fast as I could.

Seek out media outlets! Talk to local papers, zines, and websites about your story and propose times for interviews. This has a tremendous snowball effect to getting donations and finding supporters. Media can be your best friend. You never know, you might just get the biggest paper in your state covering the scholarship and linking to it.

Endowed status!

After about 12 months — the fastest a scholarship has ever been fully endowed in the college — over $25,000 was raised. Whatever you’re looking to fundraise for, know that you can. Follow your passion, link others, connect with a community, give until it hurts, and seek some old fashioned media attention. You can do this.

If you would like to donate to the Always Remember Never Surrender suicide prevention scholarship I founded, head on over to: https://advancing.colostate.edu/arns

Filed Under: Make Money Tagged With: college, endowment, graduate school, scholarship, school, Student Loans, university

4 Ways Coupons Manipulate Spending Habits — Watch Out!

By Frugaling 13 Comments

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Every Wednesday and Sunday — if you subscribe to a paper — you generally receive a healthy dose of coupons. Everything from soups to toilet paper to deli meats are frequently included in the pile. With open arms, many clippers sift through the mass to find a couple deals.

Some people collect them, place them in binders, and combine coupons with store deals. Websites and shows like The Krazy Coupon Lady and TLC’s Extreme Couponing examine, research, and find incredible coupon-based deals. Everyone seems to love coupons!

You should be concerned.

Coupons are developed by vast marketing and advertising teams for corporations. The advertising industry as a whole is estimated to be in the hundreds of billions, and a significant portion is outlined for couponing. But subtly, clipping those weekly coupons affects the psychological decision making in the supermarket. Here are 4 ways that coupons manipulate your spending habits.

Watch Out! Coupons Manipulate Spending Money Cash1. Clip, cause cognitive dissonance

Every time you clip a coupon, your mind buys a product. Even though you haven’t gone out and purchased the item, to clip a coupon, it’s a commitment of time and action. This has a direct effect on your wallet.

A powerful psychological effect that can occur when you clip a coupon: cognitive dissonance. If, for instance, you decide to clip a coupon and then later question whether you really need the product, this may lead to dissonance. Essentially, this is a distress associated with spending the effort to clip a coupon that you now might not use. For many people, they’ll use a coupon just because they clipped it — regardless if it’s the cheapest option once they get to the store.

2. Exposure predicts spending

Exposure is the key to purchasing a product. What a simple conclusion, right? Well, stores know that the more face time you have with a product, the more likely you are to buy it. If the exposure begins prior to entering the store, you’re effectively being primed for the future purchase.

With coupons, your eyeball sees the product at home. If you clip it out, you are further intensifying the duration of the exposure. More time in front of you equals more money for the grocer and advertiser. How easy!

3. Is that really any cheaper?

One of the most important reasons that people clip coupons is to save money. Ironically, this may not actually lower your shopping bill. Coupons are not usually offered for generic, store-brand merchandise or fresh produce. Instead, they’re frequently marketing name brand items that already have a built-in premium. This added cost often voids any discount associated with using a coupon.

It’s very important to pay careful attention to the coupon you’ve clipped out. At a store, you need to look for generic items, and then compare them to the name brand item for the coupon. All of this takes a level of vigilance and time that many don’t have or care to have at the grocery store. For both time and money, just buying generic items is normally the best bet.

4. Coupons are getting smarter

Smartphones, apps, and online coupon sites are increasingly digging into your spending habits. Your rewards credit card, frequent shopper card, and web browsing history may be leeching your data to third-party companies. These organizations then will compile and predict what you want. They’re so accurate that Target can tell when you’re pregnant, about to have a child, and/or the ages of your children (read Brandwashed for more on this tactic).

By using these predictive tactics, companies can practically read your mind. If they know all your purchases and habits, coupons can be created that make you look at new, similar products. These choices may cost more over time, but offer a great deal at first. If you like the newer product more, the system has worked and you’re hooked. Now, the money is theirs to reap.

It’s not that coupons are always bad or more expensive than generic brands, but they can sometimes change your spending habits for the worse. Moreover, think about all the time that’s necessary to clip those coupons and find the special savings — this adds up. If you spend your time making more money and buying generic, this could actually be smarter in the long run!

Filed Under: Save Money Tagged With: Budget, Card, Consumer, Consumerism, coupons, Food, Freebies, Frugal, generic, Save Money, spending, supermarket

Riskiest Place For Money: Mattress, Bank, Or Stock Market?

By Frugaling 10 Comments

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Cash counting machine 20s

Over the last year, I developed a budget, started making more money than ever, and used credit cards to hack travel costs. I’m more motivated than ever to save money. Using this tactful budgeting and planning, I now have a surplus of savings! After years of bleeding red to student loan debt, it feels deeply satisfying to see the positive, green numbers.

Now that a little nugget of savings has developed, I’m realizing a different anxiety. There are various market actions that can negate your savings plans, and it’s important to protect against them. It seems like every place I look, there are risks for your nascent savings. Today, I wanted to spend some time explaining a few of the risks that await your new wealth.

Under the mattress?

Pros. The classic paranoid and/or privacy-minded decision is to just stick your extra savings under your bed. My late-grandmother seemed to be deeply concerned about her possible access to funds — likely influenced by the Great Depression — and she would constantly have funds hidden away around the house. I thought this was rather bizarre, but appreciated her desire for some amount of cash in case of emergencies. Most importantly, you are not exposed to stock market risks or banking fees.

Cons. Sticking your little nest egg in a little home safe or inside your mattress comes with some risks, too. Not only is your money literally exposed to the elements (i.e., fire, flood, or other natural disasters), but saving your money at home may be put your household at risk for burglars. Lastly, this decision makes you completely vulnerable to inflation (which is a serious long-term concern), you don’t appreciate from interest, or gain stock market exposure that averages about 7-10% per year.

In the bank account?

Pros. Take your paychecks, bonuses, and side income and leave it in your bank account. This could not be easier, and you don’t need to spend any more time deliberating and considering financial decisions. Although, if your money is deposited into checking account, I’d recommend transferring funds to a high-yield, online savings account. You don’t bear any of the stock market risks and there isn’t any risk of loss. All checking and savings accounts are insured through a government organization called the FDIC (Federal Deposit Insurance Corporation). The deposit insurance covers each account up to $250,000.

Cons. Even if you’re using a high-yield checking and savings account, you’re likely receiving less than about 1% interest. Inflation is a nasty, hidden force that can eviscerate your savings. For the month of April 2014, inflation in America was about 2.0%. Effectively, just holding it in a bank account will cost you 2% or more if inflation becomes worse.

In the stock market?

Benjamin Franklin Quote Personal FinancePros. Benjamin Franklin really said it best, “A penny saved is a penny earned.” Now that I have some savings, I’d like to make the most of it. I want to send my dollars out to work for me. I opened a couple financial accounts, one of which is an E*TRADE brokerage account. With low transaction fees and commission-free ETFs, this was an easy decision. I’ll be making about 7-10% per year, and attempt to invest in high dividend stocks. This method defeats inflation and puts it to work, as I build a little savings.

Cons. Of all the methods mentioned, this is definitely the riskiest. Investing is not free from thievery and scum; hell, I’d prefer a burglar sometimes, as they do less damage. The Dow Jones fell over 50% during the most recent bubble and crash. (Interested in getting an in-depth understanding of the crash? I highly recommend reading The Big Short by Michael Lewis.) Most investors were decimated by the stock market’s movement, which was caused by bubbling housing prices, credit default swaps, and a variety of predatory practices by big banks. By joining this arena, I’m exposed to criminals on the grandest scale.

There’s no perfect, safe place to store and build a savings. Every option contains risks, and it’s important to consider each and every one of them to make the smartest decision for yourself. For me, I’m taking risks and putting my money in the market. I’m young and looking to put my money to work as fast as possible. 

Filed Under: Save Money Tagged With: Accounts, Checking, Income, invest, investing, money, Save, savings, Stock Market

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