Frugaling

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It’s Time! Frugaling Goes Ad Free!

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Welcome to the new, ad-free Frugaling!

I woke up early this morning from a dream. In it, my brother and I were playing basketball. For some reason, he was dressed head to toe in a cheap Power Rangers outfit. As he helplessly tried to shoot the ball in the basket, his superhero mask would flop and fall in his face. It completely distracted him. At one point he tripped over himself when trying to make a shot. Frustrated, he continued to do the same thing without taking off the mask.

Then, my eyes opened. It was 5 AM and I couldn’t get back to bed. Something was restless inside me. With this newfound time, I decided to check the comments on Frugaling.

I saw a new one and eagerly read through it. The commenter said she had just read my book. She called it “interesting” and “inspirational.” I was flattered and humbled that she took the time to read my book, visit the site, and write a comment. But as I continued reading, I realized she was also writing a critique.

She was disappointed to see advertising on this site.

At first, like so many times in my life, I got defensive. Here’s what it sounded like in my head: “Who are you to tell me what I can and can’t put on my site? What would you do if you had five figures in debt and never wanted to live that way again? Google ads don’t even pay that well! It’s not liking I’m rolling in money because those little things.”

After my head exploded, I calmed down and read the comment again. She had a point. On one hand I was advocating for anti-consumption, critical personal finance, minimalism, and frugality. On the other, I was hawking advertisements (and have been since the beginning).

Was I being a hypocrite?
Was I not being true to my own values?
Was I living a lie?
Was I contributing to other people’s consumption by hosting ads?

The answers weren’t pretty: yes, yes, yes, and yes.

Sometimes commenters are dead wrong, confused, and/or seemingly typing while tripping on LSD. Those are easy to ignore. But challenging messages are usually my favorite. They force me to think and react – to qualify and justify my reasoning in life.

While not always right, I aim to do better. I look for these moments and embrace them.

This commenter had struck a chord with me. She highlighted something I’ve long wanted but waited to do: remove the advertisements. I’ve hesitated because income on Google ads has been enough to pay web hosting and domain name fees – basics for any website. Additionally, they’ve helped me pay for ancillary costs associated with running a business (i.e., extra tax help, software, etc.).

Those fees and costs remain. Until another company releases a completely free (of hidden costs and ads) domain names and hosting, it’s going to cost hundreds of dollars each year to run. But the advertisements cannot remain.

Today, I’m taking a risk and officially announcing that Frugaling is now free from ads! That means no pesky advertising trackers or Google boxes anywhere. Nothing will be adapting and changing to your buying/surfing habits. That’s the way it should be – void of third-party distractions that encourage people to spend more.

The Internet is chock full of advertisements predicting your next move, purchase, and trip. Rather than add to the noise, I want Frugaling to be an oasis. And my writings and website should host congruent values.

There are more ways to make an income than ads, and I’m hoping you agree. I no longer want to contribute to that system. I’m hoping you’ll help me in this ad-free endeavor. There are various ways to support me: share and spread your favorite articles, buy the new book, or make a donation.

It’s time to take off the distractions.

How do you feel when websites have ads?
What do you think of authors who accept money to write stories?
How should writers make money?

Don’t Buy This Ad

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Photo Christopher Michel/Flickr

Flip an axis, make millions

Vietnam, hippies, and the civil rights movement all fomented into a powerful decade: the 60s. Flowery colors exalted a message of happiness and love over war. The Baby Boomer generation entered the workforce in droves.

Profits were to be made, and companies were eager to snatch even small portions of this new market. The continued growth of suburbs spawned a movement towards independence via cars. At this time of great economic and scientific potential, one auto company, VW (Volkswagen), created one of the most iconic advertisements ever made.

Printed in black, bold lettering was the word, “Lemon.” And above the text was a classic VW Beetle. Lemons were unreliable cars, and the VW ad suggested that the company carefully screened out those cars. Only perfection would be accepted; or, as they stated, “We pluck the lemons; you get the plums.”

Turning a word on its axis and daring readers to read on was risky. The advertisement had the potential to make consumers think, “VW Beetle is a lemon.” If they stayed for the explanation, the ad became clear; subtly, they were suggesting that other companies don’t care about reliability as much. By using “lemon,” they capitalized and succeeded in selling significantly more cars. It worked.

How “don’t buy” becomes “buy more”

In 2012, another company took a big risk: Patagonia. The corporate and marketing teams noted that there was a growing movement towards sustainability. Encompassed in this trend were simple living aficionados, minimalists, and value-oriented consumers. These careful consumers wanted great quality in responsible packages.

This Patagonia’s niche for quite some time. They advertised fair-trade, organic, and environmentally friendly products. Sales were growing, but then they decided to bet the farm on one massive ad in The New York Times. With bombastic, bold text, they wrote, “Don’t buy this jacket.” Behind the text was a Patagonia jacket.

Underneath the ad, the company focused on five key words: reduce, repair, reuse, recycle, and reimagine. Every word was paired with a communal pronoun of “We.” It took everyone to reduce the carbon footprint, make the garments last, and find good homes for them after use. Patagonia seemed to be advertising that consumers take good care of the goods, and consider repairing them before throwing them away. All solid virtues.

These value-laden terms were inspirational to those who had suffered through The Great Recession. Because the company struck a chord with the current market demands, the company profited royally. After that advertising campaign, the company saw double-digit growth.

Ironically, that’s unsustainable. Double-digit growth, compounded repeatedly, would make the company larger than Apple in a few years. And never mind the horrible environmental costs that would be necessary to produce these garments.

Your values can become a manipulation tool

Nefarious. That’s the word that comes to mind when companies manipulate us through our values. The trick is subtle, and if you blink you’ll miss it.

For the aspirational types, there’s Gucci, Coach, and Louis Vuitton. For the trend setters, there’s H&M and Express. For the recreational, there’s The North Face, Columbia, and even Patagonia. Each brand is shaped by its consumers, but also shapes their consumers – the effect is bidirectional. In other words, we affect brands and they affect us.

If our values center on sustainability, kindness to the Earth, and repairing over ridding, a chicanery of sorts can be used against us. Without the brand awareness and heavy advertising, we could go to Goodwill or any other secondhand store for options. The clothing would be in fine shape or could even be repaired to return to like-new status. But we don’t, and there’s a reason why.

Corporations are powerful. Even the kindest ones can sway us from choosing another, more affordable option because they espouse “our” values. We like when we see our values portrayed in mission statements. We like that connection and feeling of being a part of something larger than ourselves. The brands fill that void. They provide a home for values.

So, should I buy that shirt?

Patagonia plainly states “Don’t buy this shirt.” Unfortunately, to those that connect with anti-consumption, anti-materialism, and minimalism, it’s hard not to foam at the mouth with lust for this company’s ad.

I love it! That’s the ad for me. It speaks to my heart. Despite the clear declaration to avoid purchasing their clothing, I can’t help but be intrigued and want to support them.

Subtly, the company is able to supplant a more frugal choice when the time comes to buy something. Goodwill doesn’t have the marketing budget of Patagonia, so the first reaction isn’t to shop there. But it’s more sustainable, frugal, and creates jobs for some of the most disenfranchised in the community. That’s a win-win-win, and it doesn’t cost us $80, $90, or $100.

To be clear, there’s nothing wrong with supporting companies that share your values. But know that this is a marketing trick, and when you choose VW or Patagonia after seeing that advertisement, it’s worked. They got you.

Think You Can Trust Credit Card Reviews? Think Again.

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Advertising in New York City. Flickr photo by Pascal Subtil

These ads are everywhere!

The multinational, multibillion-dollar bank, JP Morgan & Chase, spent about $1.9 billion on advertising in 2013. That was down from a peak of $2.35 billion in 2011, but still one of the largest amounts by any bank. With that kind of money, you should be curious what they get in return.

Advertisements for companies like Chase, Citigroup, Barclays, and others are plastered over billboards, magazines, newspapers, and websites. You’ve likely passed by one of their ads today if you live in a modest size city. Heck, there could be one next to this article, due to the Google ads running on Frugaling!

That money is spent to attract new “customers” of credit. Their hope is to entice people with signup bonus offers, and keep them for life. After they click an ad, sign up online, and begin to swipe, the banks begin to profit. From credit card transaction fees to late payment fees to cash advance fees to interest rate fees, companies enjoy lucrative profits. For every new customer, banks trust they’ll make hundreds of dollars over the next few years – if not more.

Personal finance writers are easily influenced

Those advertising pressures and interests can trickle down. Websites that aim to address personal finance concerns and offer advice might succumb to the fire hose of potential profit available to them. With my hat in hand, I must admit I was one of them.

I made thousands of dollars in about 1.5 years by marketing credit cards. By placing links to select offers, I was able to make $50, $75, and even $150 per person who signed up. The affiliate money helped me radically change my life and pay off my debt. But as it helped me pay off my debt, I began to see how I had been duped.

In financially unsound and uncertain situations, people do things they’d rather not do. Frankly, society sometimes encourages us to put our heads down and work through the pain and ethical dilemmas – ignore your internal compass for the good of the company, profit, and revenue. I had become one of those people.

When reviews are really advertisements

Reviews aim to feature both the pros and cons of certain products. Readers want honest feedback and advice from authors, but they weren’t getting it. Visitors to my site were coming droves to see my “reviews.” But that’s not what they were really getting.

Unfortunately, moneyed interests in banking have a tremendous sway on the rating of products. Look through many websites that market credit and banking products, and you’ll begin to notice an overwhelming pattern of 4- and 5-star reviews – across the board. With this positivity, you’d expect credit cards to wash your dishes, clean your laundry, and chauffeur you to work.

How could any company’s product be rated this highly? There’s a reason for optimism and it all comes down to money. Those advertising dollars – billions from banks – trickle down to the simplest of bloggers, directly influence the content, favorability, and overall reviews.

Visitors who are interested in honest, open advice might be shocked to know that when they click that link to sign up, they are crediting that blogger hundreds of dollars in the process. Even more, that the entire review was fabricated to drive more clicks to the bank’s site. When I wrote these articles, I suppressed the negatives to encourage clicks. I was advertising products, and framing them as reviews.

Credit cards aren’t the devil, but they’re not for everyone

We live in a world where big banks spend billions to get at us. Their money travels onto TV, print, and diverse digital media. Eventually, it even lands into the pockets of personal finance websites. That’s when the magical influence occurs, and people end up following the manipulated “advice” of trusted sources.

With revenue pouring over the Internet from companies, my real advice is simple: be skeptical. My hope is that no one gets tricked into thinking that a writer completely – and out of his or her own volition and without profit motive – decides to write a credit card review.

Here are 9 important questions you should ask yourself before following any credit card review:

  1. Do the reviews link directly to the bank’s sign up forms?
  2. Are there affiliate tags embedded in the links?
  3. What makes the writer optimistic about the company and card?
  4. Do they personally use all of these cards that they recommend?
  5. What income bracket is the reviewer in?
  6. What’s their credit score?
  7. What was their experience with customer service representatives?
  8. How long has the reviewer been providing advice?
  9. What makes them an expert in credit cards?
  10. How might incentives influence the quality of this review?

Credit cards aren’t the devil, and they don’t tend to be the sole contributor to debt. Usually, it’s a lifestyle of spending more than you can afford, with little income to pay the bills. That doesn’t mean excessive purchases at Burberry and Hermes; rather, that any amount over what you take in will lead to debt (groceries included). Credit cards just facilitate that process – faster – as the fees quickly compound.

When personal finance writers begin to weigh in, it’s vital that their advice be accurate, fair, and balanced. Unfortunately, it’s frequently manipulated by advertising revenue potential. I learned how the money could influence what I ultimately write, and I no longer want to lobby for an industry that sometimes preys off of people that genuinely need help. If you see a review article from me, it’s my hope to be as analytical as possible.

The Hilarity Of Rarity

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Diamonds. Photo by Kim Alaniz/Flickr

“Insanity in individuals is something rare – but in groups, parties, nations and epochs, it is the rule.”
–Friedrich Nietzsche

Expensive things are expensive, not rare

Blast your headphones. Blare the bass. Feel the vibrations reverberate through your skull. There’s no limit with Beats by Dre. You’ll pull them off before you reach their volume limit. Plus, they come with a classy little “b” on the side. You can walk, sit, run, fly, drive, and stand while advertising your brand awareness. Flaunt your auditory know-how right on your head. Just don’t look at the price tag for these headphones. They’ll cost you about $200-300 for a pair, but only cost $14 to manufacture.

Feel that torque pulverizing your spinal cord like a belly flop gone amuck? Yeah, that’s the benefit of an expensive car. See the smoking tires as you peel away from that red light? Yeah, you’re burning precious fossil fuels and aiding the world on its campaign to melt the poles. How fast is your 0-60? Yeah, you’ll be the fastest around in the Ferrari LaFerrari. You get all this for the low price of $1.3 million. Get yours today — they’re rare!

Diamonds are a girl’s best friend; at least, that’s what the movies/commercials say! Save room on that ring finger for the biggest rock affordable. Whether questionably procured or straight-up from conflict zones, diamonds can be yours. Despite being hugely manipulated and controlled by oligopolies, you can find these at your local stone store. Supply is limited (by design)!

What makes something rare?

The definition of “rare” includes words like uncommon, unusual, and unusually great. Unfortunately, the word has been perverted into a capitalistic, pro-consumer line. The word’s true value has been emptied, cashed in, and abused by corporate giants. They’ve stolen the word – appropriating it for their own profits.

From art that puts a clever 1 of 100 (1/100) number on the bottom to limited-edition, gold-plated Apple Watches to limited-production Ferraris, we live in a world that finds rarity in everything. What an oxymoron – rarity in everything!

Perceptions are essential. Items of greater perceived rarity are lusted after and purchased for tremendous margins. We crave that which another cannot have.

The diamond industry artificially manipulates supply to affect perceived rarity. They buy up everything can they find, squash competition, and throttle a market. It’s entirely artificial.

We must re-evaluate rarity

We are struggling under a curling wave. The light is blotted out. Oxygen is low. And when we look up, we can’t tell if it’s the seabed or sky. Our senses have been manipulated for too long.

This is the hilarity of rarity: we experience vertigo to this perversion of rarity. Capitalism teaches a fundamental lesson: more expensive goods are “rare.” But we need to stop letting companies set the bar, agenda, and price of rarity. We need to empower ourselves, and destroy these twisted messages.

1. Rarity won’t be found in a material good

Take the aforementioned examples. Companies know how to frame a photo, pose a model, and sell you whatever they want. Material goods are not rare; in fact, they’re everywhere. The “rare” Ferraris are only a carefully constructed marketing ploy to make us buy more.

Let’s get fed up with this trickery. These companies are manipulating us. How long will we let them purposely confuse our natural understanding of rarity for their own gains? I say we end today.

2. Rarity won’t cost you a thing

It’s rare to see someone pull over in their car and stop for a lost dog. It’s rare to see someone sit next to a homeless person and hear his or her story. It’s rare for people to reflect on their privilege and be humbled. It’s rare to feel truly content with a career.

Unlike something with a price tag, these rarities are worth your time. By choosing to pursue life’s rarities rather than Apple Inc’s, you’ll suddenly realize what you were missing. It’s time we say goodbye to petty price tags and open our hearts to the people around us. Let’s make some rare moments, together.

3. Rarity won’t be advertised

Walk out your door, and you’re sure to encounter the walls and screens painted with advertisements. It’s sanitized and approved. It’s primped and primed. It’s made to make us buy.

Nothing advertised is needed. Think about it briefly, and you’ll realize you never see marketing campaigns for air and tap water (aside from clean air and water). Companies know that there aren’t profits in these basic resources – true needs. They’ve moved on to the unnecessary.

In the movement to re-evaluate rarity, we must carry this message with us every day: rarity won’t be advertised. Rarity is out in the world, away from this screen. Go make it happen.

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