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Resisting The Urge To Buy, Buy, Buy

By Frugaling 14 Comments

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Shopping at the mall resisting the urge to spend

I scanned the bookshelf and held a new copy of The Girl With The Dragon Tattoo in my hands. The binding was unbroken, and the pages were cut like perfect rectangles — the book hadn’t been read.

It’s a favorite of mine, and it was being sold for the bargain price of $3.99. Looking at the back cover, I could see that this regularly cost $9.99. Alarm bells pinged in my head and I thought, “This is a steal! Does anyone know about this? Oh, I can’t let this stay on the shelf; Stieg, you shall be mine.”

I promptly proceeded to carry the new book around the store. My insides smiled as I clutched this deal that others had stubbornly missed. It was my prize, and I had won the shopping game.

But nowadays, in my frugal state, I’m a bizarre shopper. Instead of purchasing that “steal,” “find,” and “treasure,” I held the book throughout the store, and when it came time to actually checkout, I stuck it on some random piece of furniture (no doubt, annoying the shop’s attendants — I’m sorry!).

This goes against everything we are told about the psychology of shopping, but it feels oddly exhilarating. See, marketers know that if they can just get you to touch, feel, and hold an object, your likelihood of purchasing said object skyrockets. If their cameras were trained on me they would’ve seen me flip out about the deal with my friend, predicting a subsequent checkout — book in hand. But in the end, they’d be dead wrong.

There’s an oozing potion that comes from having things. To covet and hold seems so… American. We buy bigger vehicles for bigger homes to fit more stuff. We are a nation of filler-uppers; yet, the favorite part about shopping is in our imaginations — that split second when our minds scream, “buy, buy, buy.”

When I pick up that book, I imagine flipping through the thriller’s tantalizing pages and having the book forever. I picture it sitting on my shelf, a testament to that one time I read it and a beacon of conversation among friends. “Oh, yes, let me tell you about crime, affairs, and sordid protagonists in Sweden,” my imaginary voice already quips to a non-existent audience. The reality is far simpler and boring. I’d read it, stick it on a table, and be done with it.

There’s an alternative choice. I could rent it from the library for free. The $4 — deal of the century — is still more expensive and takes up more room than a temporary library book. What could be a better deal than free?!

To hold the book is like picking up a favorite drug and almost getting high. And at the last moment saying, “No. I’d rather spend my money on something else. I’d rather travel to France with my rudimentary language ability. I’d rather save up for a more comfortable future — one not spent working endless hours on a treadmill that always runs towards death.”

These days, I can hold the magic potion that I struggled with so much — spending wantonly. I can smell the elixir that is the rush of a purchase.

And I can say, “I don’t need this.”

Filed Under: Minimalism, Save Money Tagged With: Books, buy, Consumer, Consumerism, Mall, Marketing, Shop, Shopping, Store

Goodbye, Car. Hello, Sharing Economy.

By Frugaling 14 Comments

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Goodbye, car. Hello, sharing economy.

I’m scared. Over the last two or three weeks, I’ve been biking everywhere — sort of as a test. I barely drove my car over the last three weeks, and most of the driving could’ve been avoided. It was clear: I needed to sell my car. Today, I say goodbye to “Blue Blazer.” Yes, my slick coupe is going into safe hands, but parting ways never feels easy.

See, even though I’m on this frugal journey, I feel frightened to say goodbye to my car. It’s a total extra and creature comfort in my city, but it’s hard letting go. A bunch of what if questions seep into my head. What if I need a car? What if I need to get somewhere fast? What if…?

Today, we part ways like old friends. Ol’ Blue brought me to Iowa safely when I moved. We saw a few girlfriends and took great road trips. There’s history between us. In a weird, consumeristic way, a car is comparable to a relationship. When you spend years with something, it’s hard not to feel attached (even if you cannot communicate with that inanimate object).

Well, in a couple hours, I hand over the keys. It’ll be bittersweet. Many good memories. I’ll miss the wild independence that comes with the possibility to jump in my car and drive off to… Wherever. The idea of a momentary craziness where I just drive off into the sunset must fade; at least, for a little while.

There’s a cliche that every goodbye is a new beginning. That’s helped me part ways with my car. See, selling my car opens me up to new opportunities. I’m officially joining the sharing economy.

Essentially, the sharing economy asserts that we no longer need to be burdened with individual ownership. Rather, people can come together and share what they have. Everyone won’t need a car, drill, ladder, or lawn mower. Everything from RelayRides, ZipCar, Airbnb, TaskRabbit, Craigslist, and CouchSurfing offer the ability to share with others. Everything is more affordable this way.

Without a car, I’ll be entering a new world where I’ll need to rely on the sharers — corporate or personal. But American society emphasizes a fierce independence and control — one without reliance on others. That always seems to be the end goal for wealth, too. Make enough money and you’ll never need to rely on another person — you can own whatever you need. Buy the house, fill the garage, park the two cars out front. That’s not going to be my life.

For all my concerns and worries, there’s an excitement for the unknown. I don’t know what it will feel like to be without a car — maybe a little naked at first. But I do know I’ll stay out of lengthy DMV lines, stop worrying about insurance, depreciation, and completely remove my gas expenditures.

As much as I worry about losing my freedom by not having a car, I’m now freed to save, travel, and stay out of debt.

I couldn’t be happier.

Filed Under: Save Money Tagged With: car, Consumerism, gas, saving, sharing, Sharing Economy, Zipcar

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

52 Lessons From Blogging A Year

By Frugaling 16 Comments

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52 Lessons Learned
Photo: flickr/gr33n3gg

Today is the first-year anniversary of Frugaling! I’m very fortunate to share my lessons from the first 52 weeks of blogging. I learned an incredible amount, and I’m hoping that some of the following points inspire future bloggers and frugalers. Enjoy!

  1. Setting up a blog is surprisingly easy
    1. I started Frugaling on May 4, 2013. It was a shot in the dark. Within hours of buying the domain name, I had a WordPress blog running. A few days later, everything started coming together — logo included.
  2. Networking online is even more important than in-person
    1. When you’re just starting out, it can be funny and saddening how few people visit. You’ve probably invested some time and money to try and start this new site. Even more, you’re spending precious time writing articles (at first) that are read by no one. This is where building a network is vital to your motivation and livelihood as a blog. Connect with similar sites, offer to link, comment on their articles, and tweet/share without expecting reciprocity. Your network will build over time if you follow these steps.
  3. Prepare for harsh criticisms of your work
    1. Every now and then, I get a story wrong, use an inappropriate word, or botch my grammar. When I see it, I try to correct it right away. Those things bother me, too! Unfortunately, the Internet isn’t always the kindest place. It can foster some horrific personalities in some. Some people notice these errors and take to public displays of hate or vitriol. Don’t be surprised if people post on Reddit about how awful you are! Hah.
  4. Get controversial every now and then
    1. Writing shouldn’t be bland. You’ll bore readers. Go ahead, stir up some trouble!
  5. Focus on quantity over quality — quality comes with quantity
    1. I am a firm believer that writing a lot is the most important action. I make grammatical mistakes, and I’m not afraid to admit it! When I write, it’s always flawed with room for improvement. But at least I write. I never want to suffer the paralysis that comes from worrying about whether my writing has errors. The words need to flow — mistakes included. I’m a firm believer that publishing at a feverish pace enhances my quality.
    2. Focus on your count, rather than quality. Otherwise, you’ll be looking at one perfect paragraph and an empty site.
  6. Success is not measured by your income, but it helps for motivation
    1. I’d be lying if I said that making five figures in my first year of Frugaling didn’t motivate me to write better. It does! My word of caution is not to get wrapped in income as a measure of achievement. You’ll have up and down months for ad revenue — that variation doesn’t connote more or less success.
  7. Share your journey with friends and family
    1. I’m lucky to have a supportive network of friends and family that keep me going. Whenever I hear from them, or they tell me they’ve read an article of mine, I feel incredible joy.
  8. SEO Stats Frugaling
    SEMRush Statistics

    Google can be your worst enemy or best friend

    1. Your placement in Google searches is vital to your daily traffic and revenue. I receive about 200 hits from Google every day. Without Google, I wouldn’t have nearly the revenue I have today.
  9. It’s okay to walk away
    1. Sometimes I can’t write any more. Sometimes my brain is tapped for ideas. Sometimes I feel down about my writing. For me, I value the ability to walk away for a bit, and then return refueled. Every time I walk away from writing for a while, I feel the surge return. Give yourself that permission!
  10. Social media leads to explosive growth
    1. The most popular article on this site is called, “Too Poor To Protest: How Income Inequality Silences Your Voice.” If you search that phrase (“Too Poor To Protest”) on Google, my article is the first link. The article was shared at least 1800+ times on Facebook, over 200 times on Twitter, and over 50 times on Google+.
    2. Little did I know that when I shared it on Reddit, it would become a trending topic on some of the largest categories on the site. I was featured on the front page of the r/Politics portion of the site, and then other people shared it across different parts of the web. Over the first three days, I received over 12,000 new visitors.
  11. Time important articles to financial events
    1. When tax season comes around each year, people flock to Google for advice, answers, and feedback to get a larger tax return. This year, I timed an important article with this event, and it paid off. I published an article on an important refund bonus that Amazon was offering when you purchase TurboTax with them. Using an affiliate link, it paid over $200 in ad revenue for that one article.
  12. Write, re-read, schedule, re-read
    1. New articles flash in my head. Usually, I push every other priority out of the way and write for a good 45-60 minutes. After one of these crazy writing flashes, I’ll normally have about 600-700 words. Now, I re-read the article to check for flow and errors. I like to publish new articles as soon as possible, and immediately schedule them for about 5-10 minutes after the write and proofread. Then, in one last attempt to catch errors and make it sound smoother, I re-read again. I normally catch one or two major mistakes in this last round.
  13. Share what you’re reading with your audience
    1. If you’ve developed a following, it’s time to give them the insight that you have. If you read financial books regularly, why not share that with your audience?
    2. I wrote an article on 3 books I recommend everyone read for a thorough understanding of current stock market dynamics and personal finance issues. On top of sharing these books, I made a little Amazon commission off each one sold.
  14. Persistence is key to growing audience and followers
    1. Over the course of a year, you’re probably going to doubt whether continuing to write is worth it. This is a key fork in the road for many writers. This doubt can creep in and destroy all your hard work. Here’s where it pays to keep on writing — keep trying. By publishing and writing regularly, your audience will grow rapidly and readers will know how often to expect your work. Persistence pays!
  15. Inspire and encourage others to take up blogging, writing
    1. When I first started Frugaling, barely anyone bothered to say “hi.” I was a no-name in a field of personal finance sites. Nobody had any reason to visit. Nowadays, I get strange/foreign reactions from followers. When I comment on a blog just starting out or follow them on Twitter, oftentimes I get these shocked responses (like they can’t believe I commented on their little ol’ site).
    2. It’s incredible to push someone else into starting their own website. Writing and sharing in this way can be incredibly empowering. Why don’t more people try it!?
  16. Pick an intrinsic passion
    1. Maybe this is obvious, but you shouldn’t ever blog about anything you’re not entirely passionate about intrinsically. Sharing your views and ideas with the world is wonderful, but if you’re not excited every day, you’ll become bored and lose the focus/desire to publish more.
  17. Seek mentors that have done it before
    1. When I first started blogging, I sent a number of emails to top personal finance writers. I wanted to hear about what worked for them and how they built terrific, large audiences. Their insight was priceless. It cultivated and honed my own abilities as a writer and entrepreneur.
    2. Recently, I began interviewing the best bloggers in the community. I absolutely love hearing about what motivated other people to begin writing about this important topic.
  18. Writing a book is easier when blogging regularly
    1. This summer, I’m hoping to turn a few key articles and themes into a top-notch Kindle book for you all. With nearly 200 articles to choose from and various important themes, I cannot wait to compile some into a book. By itself, writing an entire book would’ve been daunting, but now I have tons to choose from and thousands upon thousands of written words.
  19. acer google chromebookThe technology you use needn’t be advanced
    1. Nowadays, I recommend people check out Chromebooks. They’re Google’s take on laptops. If you’re just going to be blogging, you only need a keyboard, web host, and WordPress. Yes, you can benefit from more advanced setups, but the basics are exceptionally affordable. Entering into the blogging world should not be analogous to starting a normal company — keep costs in line with that idea.
  20. Inevitably, your web host will crash
    1. Hopefully the downtime won’t be during a highly-trafficked period. Unfortunately, that always seems like the exact moment when everything crashes. A couple of my most popular or money-making articles pushed my web host offline, and cost me hundreds of dollars (in lost revenue) in the process.
  21. Web hosting is more important than you think
    1. At first, it’s easy to get wrapped up in the basic idea that you start writing and it’s on the Internet. But behind all this tech magic is an intricate layer of data connections. Certain web hosts are notorious for poor performance. Choose a web host that’s known for rapid connections. The faster your site loads, the higher ranking you’ll receive from Google.
  22. Sometimes airing your dirty laundry is the best idea
    1. The amount of support received is mindboggling. Whenever I write a more personal article, readers comment their support and understanding. The community of personal finance writers is incredibly positive.
  23. Frequent readers prefer shorter articles
    1. My most popular articles with the regular audience tend to be thought-provoking questions about how to deal with financial problems. These articles are normally about 500-700 words. They tend to be well-shared among the personal finance community, friends, and family.
  24. Longer articles are better for Google
    1. These posts spread like wildfire and attract new readers to the site. Google tends to rank these articles higher on the search rankings, too.
  25. The tax man says I run a business
    1. This was the first year that I had to fill out a Schedule C for my taxes. This portion of the massive IRS bureaucracy deals solely with profit and loss from a business. Now, all that advertising revenue adds up to a hefty tax loss. Fortunately, I can write off any business expenses. For example, paying writers, hosting fees, and travel related to work can all be deducted.
  26. Experiment with new projects
    1. Throughout this first year, I tried a few frugal projects. One of my most popular was trying to go 7 days without spending any money. Another one was my experiment with an all-cash diet. Both offered a win-win for me and my audiences, as I could share my experiences and help others in the process.
  27. Haters gonna hate
    1. The Internet is full of haters that use hurtful, vitriolic language to convey awful opinions. Let them hate. If you’re receiving strange messages and hearing how others disagree with you, just think: you’re on the right track and building an audience.
  28. Speed up your website for better Google results
    1. There are some simple programs you should use to speed up your website. I’d recommend checking out W3 Total Cache, Smush.it, and looking into loading “script” sources asynchronously. This last change will help heavy data elements on your page load last — the important content will load in the mean time.
  29. Unsubsidized Student Loan Chart Debt Question
    My unsubsidized student loans were going crazy. In August 2013, they reached $25,000. Now, they’re completely paid off!

    Include your readers in successes

    1. In the personal finance domain, talking about money isn’t taboo. Your openness is rewarded. Whenever I hit a milestone — like paying off $25,000 in student loans — my readers shared in the success and encouraged me to keep going. I really wouldn’t be able to do it without them.
  30. Men visit way more often than women
    1. Not entirely sure what contributes to this statistic, but about 70% of the visitors to this site are men.
  31. Most are aged 25-34
    1. My audience is primarily younger, and just starting out on their independent financial journeys. Likely, many are fresh out of college, new to the working world, and looking for ways to save and make more money.
  32. Start a blog as a side hobby, then consider full-time
    1. The perfect opportunity to blog is when you already have a full-time job. Blogging can be done in between busy periods, weekends, and anywhere you find an extra 15-60 mins. It’s the perfect side hustle!
  33. Ask friends and family to chime in, visit the site, and/or provide feedback
    1. Close ones can lead to important areas of improvement in the design and content of your site. I’m fortunate that there are a number of great writers and readers among my family and friends. They constantly provide important feedback that helps me improve.
  34. The focus isn’t money — it’s being able to live the life you desire
    1. While running and writing for Frugaling has paid off — big time — the focus wasn’t ever solely on money. Rather, I started Frugaling to hone my writing ability, share my stories, and work on reducing my debt. The advertising money followed, and it’s been a wonderful bonus to the main purposes.
  35. Basic text editors help me write ideas and prep new stories
    1. I get new ideas everywhere I go. Whenever something pops into my head, I write it down and often begin writing. I have found that taking advantage of new energy gets the articles finished faster.
    2. Google Drive (with Docs), Apple’s Reminders app, and the built-in TextEdit program all help me stay on track.
  36. A purpose-driven blog, but I drive that purpose
    1. This article — the one I’m writing right now — doesn’t necessarily fall into the tight bounds of personal finance. And if you’re frustrated by this tangential article, feel free to unsubscribe. While I consider this a purpose-driven blog, it’s a purpose I drive — not the other way around. Over this year, I had multiple people criticize my publications on blogging, ads, etc. Many suggested they were frustrated that I didn’t stick to finance-related articles. For the most part I do, but every now and then I love using this platform to speak about something else.
  37. I made a lot of money
    1. Despite not being the main focus, money poured into my wallet and I used it to pay off massive amounts of debt.
  38. It provided an outlet for accountability
    1. Writing a blog about frugality kept me honest for my readers. I didn’t want to disappoint them.
  39. Affiliate income is king
    1. Most of the money earned came from affiliate advertising for various banking products. The amount of money that can be made from these financial products and advertisements is shocking; like, five figures of shock.
  40. I’m willing to work even harder to stay out of debt now
    1. I refuse to make the same mistakes I made to get into massive amounts of debt. Starting this site helped me see the value in working to change my financial circumstances.
  41. There are many more ways to save
    1. There isn’t one comprehensive list that could cover all the ways you can save money every day. When writing articles on this subject, I’ve enjoyed putting on my thinking cap. In a way, it takes a creativity to save even more than others.
  42. I was ignorant to the power of excessive student loans
    1. Somewhere between denial and stupidity, I took out massive amounts of student loans over the first two years of graduate school. On track for $100k by the end, I was awakened to the reality of how long they would take to pay off. No one at my universities ever tried to explain the consequences of all these student loans. After a year of active research and reading, I’m beginning to understand how others get into this mess — universities are culpable.
  43. Our consumer society has horrible consequences
    1. Sometimes I’m able to reduce my spending solely because of the burden my consumerism may place on the environment. I want to reduce my emissions and harm to the Earth. It helps keep me from impulse buying for new clothes and electronics, when I think about the bigger picture.
  44. You can actually make yourself happy with money
    1. This year I read a couple key research articles that shared the results of what actually makes people happy when they have money. Most often, happiness comes from helping others and giving to important causes — putting your money to work to help others.
  45. The personal finance community content sometimes gets repetitive
    1. This is not a universal truth, but there are some basic finance stories that seem to spread to every site. Oftentimes, these articles focus on minor savings on coffee. Why coffee?
    2. I live for the articles that get really personal or uniquely approach financial problems.
  46. Guest bloggers and paid staff are a wonderful addition
    1. I had two regular guest bloggers over the course of this year. While I couldn’t pay them much (as all my money was going to pay off debt), I did give them a little. I got to practice my own copy editing skills, and they filled gaps when I couldn’t come up with new content (for a number of reasons).
  47. I’m really dependent on and thankful for Google products
    1. I mentioned Google Drive for writing articles, but I use Google for nearly everything. From researching new articles to checking my site stats to seeing my AdSense revenue, Google is at the heart of my success.
  48. The Internet allows for any niche
    1. My audience — you! — is a unique crew. Nowadays, there’s a group of people for any kind of writing. This is an empowering time to start publishing.
  49. Be generous with your links to other sites
    1. Whenever I write an article or publish an interview, I try to link to every site therein. I believe that generosity is genuinely rewarded on the Internet and often encourages the recipient to look at your site in return. This can open great networking opportunities!
  50. Writing for free is risky
    1. I’ve written for free and had both positive and negative experiences. Once, I wrote a 2000 word article and the company decided they didn’t want to publish the article anymore. That sucked.
    2. I would only recommend writing for free if there’s an exchange of traffic and future readers in the process.
  51. Frugaling received over 225,000 pageviews for the year
    1. This is more than just a statistic. It brings a tear to my eye. I guess I learned that people do enjoy reading my articles and seem to appreciate what I have to offer. That’s more exciting than anything else.
  52. The readers are vital to my motivation
    1. Without you, I wouldn’t have the motivation to work this hard; in turn, I wouldn’t have paid off massive amount of debt. Thank you for giving me the courage, energy, and hope to strive for a better life.

Filed Under: Save Money Tagged With: Blog, Blogging, Consumerism, Google, Income, money, Side Hustle, Work, writers, Writing

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