Frugaling

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4 Lessons From 3 Years Of Frugaling

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Photo: Dustin Lee/Unsplash

Three years ago I sat at my then-girlfriend’s kitchen counter, which looked out at the Pacific Ocean. The panoramic window looked on beautiful condos and homes nestled along the California coast. The weather was perfect, and there wasn’t a cloud in the sky.

Amidst this perfection, my heart sank with the weight of tens of thousands of dollars in debt. It was something that could stand in the way of relationships, compromise my job prospects, credit scores, savings, investments, retirements, and giving to others. I wanted to excise the morass of debt, but didn’t know how.

I started writing Frugaling as an aspirant — a mere amateur in the financial planning world. What could I know about saving money, making money, and changing my prospects? While I didn’t have all the answers, I had hope.

I could never have predicted what happened next.

By cataloguing my story, sharing my triumphs and travails, and being open the entire way, I benefited financially and emotionally. The former included about $40,000 in revenue. Something that would allow me to pay off almost all my debt. The latter permitted me to regain my breath — to relax once more. I was able to let go of most financial uncertainty stress.

Three years of Frugaling flew by faster than I could have ever expected. It’s hard to fathom where I was then and now. Much has changed. Here’s what I’ve learned:

The rules don’t apply evenly across populations

We don’t all start from $0, the same educational prospects, families, or social networks. We aren’t all born the same race. We aren’t each afforded a $1 million loan from our fathers.

Finance, while personal, goes beyond “personal finance.” After writing for years, it’s clear both in comments, criticisms, and critical thinking that society has great power in affording people the opportunity to succeed.

Whenever we talk about financial management, we need to consider multiple stories — not just our own.

People care deeply about food concerns

Some of the most popular articles have been about food. And I don’t think it’s an accident. When people look at their budgets, one of the highest lines is for food.

Food is often an area where people look to cut back on. Maybe you eat out too much. Maybe you eat too much. Maybe you spend too much on coffees.

More importantly, any little change in your food spending instantly affects your total spend for a month. Reduce the regular visit to your favorite restaurant, make a meal at home, and you can immediately see the benefit to your wallet.

Simple living, minimalism, and frugality are deeply intertwined

If we imagined a venn diagram, these three concepts would greatly overlap.

Those who enjoy canning, meal planning, and living simply are usually following the frugal life, too. Minimalism directly affects budgets, too. Reducing the urge to fill closets, cabinets, and stuff the remaining areas can help you save money every month.

I’m inspired from each of these concepts. I read — mostly checking out books at the library. I cook (or attempt to) at home. And I constantly look for ways to reduce extra stuff and refuse impulse buys.

Debt can suffocate its victims

Swimming in debt made me struggle for air, space, and time. How long would I have to live this way? How long would I be able to negotiate this rat race? I felt choked by the burden.

Many live like this — even middle-income earners. One way or another they find themselves in great debt and/or living paycheck to paycheck — always on the precipice of a missed house payment, medical bill, or job loss. Every day is a struggle.

Debt has a sneaky way of controlling lives and forcing people to work more, save less, and reduce time spent with loved ones. Debt can impact marriages, relationships, and family members. And oftentimes, it’s inescapable until the final dollar is paid off.

These lessons have taken years to understand and conceptualize — to convey them today. I’m honored and humbled you’ve taken the time to follow along, read, subscribe, tweet, and share.

Cheers to another three years!

Your frugal friend,

Sam

Think Outside The Subscription Box

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Think Outside The Subscription Box

“Show someone you care with a random box of stuff this holiday season.”
— CNNMoney

There’s Graze, Birchbox, Barkbox, Brobox, Dollar Shave Club, Trunk Club, Blue Apron, and now, there’s Minimalism & Co.’s new minimalist themed subscription box. Each box has their own flavors, qualities, and featured products. Some use corporate partnerships to market products through these boxes, while others are hand-selected items by the box creator. These subscriptions can include makeup, food, and much more.

The subscription model is usually set at one box per month, but this varies between companies. The prices range from $25 to $100s each month. If you’re using Blue Apron — a meal preparation service — you’ll likely sign up for more regular deliveries. Although, Minimalism & Co. sends their box once every quarter (3 months). Regardless, once you sign up, you’ll be getting regular deliveries of unexpected “gifts.” It’s like getting a surprise present each month!

However, there’s another way of looking at this subscription craze. To mindlessly subscribe and receive trinkets, makeup, and/or men’s grooming products seems to be the epitome of conspicuous consumption. It’s unclear who might need these products; I mean, truly need a product received through a subscription box.

Initial subscriptions are often discounted to make the first box free or inexpensive. Subscription services know that once they have someone on the trial, they’re more likely to continue using their product and/or try it again at a later date. And even if you were done with the service, you might not want to go through the terrible phone trees and/or automatic email exchanges to get your cancellation confirmed. All the while, you’re spending money, adding clutter, and struggling to cancel the onslaught.

Subscription boxes have made minimalism, orderliness, and frugality harder. Fortunately, there’s an alternative to this madness. Today, I want to introduce a solution to effortless consumption. In fact, I’ve come up with a clever name for the subscription, too: “ByeBox.”

Our worries will be solved. It starts with a nearly empty box. When you subscribe to ByeBox, you receive nothing but a cardboard box and a piece of paper. Isn’t that revolutionary and minimal!? And there’s no need to be careful when carrying the box into your house, as there’s nothing to break. Once you’ve opened up the box to see no goodies, makeup, razors, grooming products, or exotic foods from Chile, you can prepare for a far more intentional decision.

Written on the 8.5 by 11-inch paper is a simple request: “Pick something from your house that you once wanted/desired, but no longer find enjoyment or need. Place it in box and ship it back to ByeBox for another empty box!” It’s just that simple!

We are faced with countless opportunities to spend and collect every day. Surprisingly, many have embraced subscription boxes and taken to spending outsized proportions on tchotchkes that provide little value to our lives. My idea — ByeBox — might be a joke, but wouldn’t this make more sense to those working to live a minimal and frugal lifestyle? The harder decision always seems to be fighting against the mode of consumption — to find ways to minimize by going without and throwing out.

We’re Addicted To Square Footage

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Minimalism in space

I live in a 900-square-foot, two-bedroom, two-bathroom apartment. Each bedroom has a full bathroom, a closet, and area for a desk. The kitchen is relatively large with a dishwasher, stove and oven, large sink, washer and dryer, and full refrigerator. A living room hosts a couch, chair, table, and television. The ceilings are expansive and tall; not palatial, but more than necessary. Maybe it’s just my “phase of life,” but this space feels like more than enough. What more could I need?

At 27 years old, I make enough to live. My salary is just over $20,000 each year. I can’t really save much considering the costs of my education and ancillary costs, but I’m happy with what I have. There’s room for improvement, but as I look at my apartment and stuff, I can’t help but feel embarrassed by the relative opulence. Most of the world doesn’t have it this good. I have everything I need right now.

If I were married, the apartment would actually feel even larger, too. Currently, my roommate’s stuff occupies a solid half of the apartment. If it was just my partner and I, we would share the same space, and only need one bedroom. The other room could become an office, dayroom — whatever! Heck, it could be a walk-in closet for all I care!

Over 900 square feet, I would begin to feel the creep of growth — the push to fill space whenever emptiness is present. Whether it’s my philosophical values of frugality or minimalism or a desire to minimize my carbon impact, I’d hesitate to grow beyond these walls. They wouldn’t be necessary.

However, it’s important to consider whether my tendency toward extremism is getting the best of me. Could there be a time in life when 900 square feet might not be enough? Potentially. If I had a larger family or needed to make room for my parents or some other unique situation arose, I could see the need. But it would be temporary to expand to the need of others, not constant space for the rest of my life. I’d want to downsize again.

Last week, I was reading an article in The New York Times about couples who had moved decades ago into the suburbs surrounding New York City. Some had moved into large bungalows and McMansions to raise families, enjoy the slower life, and have more room to grow.

One family raised three children in a 2,400-square-foot home. For those struggling with math like me, that’d be 5 people — 3 more than my roommate and I. With about 500 square feet per resident, the house could probably be quite a comfortable location. When accounting for the size of the home, it doesn’t include off-site storage, yards, and/or storage sheds that can be added later.

Now, later in life and three adult children, this family is looking to downsize and move back to the city, culture, and bustle of Manhattan. Who can blame them, too? New York City is fun — there’s always something to do, eat, and see. But as that couple looked for locations, they came up empty. They said all they could find were “depressing,” “very small” places at 900 square feet.

My jaw dropped at the statement. I was shocked! Here I’ve been living in apartments of 900 or less square feet for about 4 years; yet, this couple was struggling to move into such a space. What was I missing?!

Here’s what I suspect:

  1. People develop and find a comfort in abundance. To downsize may be a reflection of lost class and status.
  2. There’s a fear of giving up and away. Some material goods might not keep us alive, but are still hard to part with.
  3. Despite a “couple’s” desire to downsize, there might be discrepancies. Making a move up, down, or laterally isn’t always mutually agreed upon in the relationship. Those contrasting aspects can prevent people from committing to a serious downsize.
  4. We reach an adaptational level, which sets a new normal. Anything less just doesn’t feel “right.”
  5. Surrounded by a culture of mass and materialism, it’s hard to buck that trend and go small.

The reality is smaller spaces are freeing for people young and old. Not having lots of material goods and space means you can vacation when you want, dig into more expensive cultures, and enjoy a break from endless chores. And more importantly, plenty of normal, average, everyday people live in small spaces with great efficiency (Just look at this couple who lives in a beautiful, 420-square-foot apartment).

For years, magazines, newspapers, and all other forms of media have stressed how wealthy people buy opulent homes. Tens of millions of dollars are spent to afford these palaces. From Bill Gates to Ellen DeGeneres, these homes capture our attention. Don’t we want to be successful just like them?

Rather than duplicate this display of status, we can choose another path. What if we looked for the smallest apartments or homes? What if we looked for less? What if we looked for tiny, modular apartments that move and shift to our needs? What if we gave up our cultural addiction to more stuff in favor the culture out there?

How Joshua Becker Plans To Revolutionize Orphan Care In 2 Years

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I was raised in a middle-class household by smart, educated, and caring parents. It was quintessential suburbia throughout much of my life. And I’ve been incredibly privileged for it.

My parents held me when I was sad. They fed me when I was hungry. They clothed me when I was cold. They read to me – building a strong appreciation for language. They encouraged me to go beyond my assumptions and expectations. Without them, I’m unsure where I’d be in life.

Unfortunately, many aren’t afforded these privileges. In fact, more than 26 million children live without parents. What are first smiles, steps, and words without those who matter? The feedback and social interaction that comes from parents and their children is essential to healthy psychological development.

There’s a gap for those who need help most. Many institutionalized orphans struggle to develop at the same rate as their peers. Various developmental factors can be delayed. Some struggle with feelings of abandonment for their entire lives.

Despite being a tragically difficult problem to solve, I spoke to one man who’s looking to change everything: Joshua Becker. Better known for his successful blog, Becoming Minimalist, Joshua is taking a tremendous risk by starting The Hope Effect. The non-profit foundation is dedicated to bettering orphan care, and his plan might just work.

Recently, I had the pleasure of chatting with Joshua about his new foundation. From learning about what the heck motivated him to how he plans to make this a success for generations to come, I wanted to share some of my conversation with him today.

What motivated you to start The Hope Effect?

I asked Joshua why he wanted to work with orphans. He explained that issues of adoption and orphan care have always been important to his family. Joshua’s wife was orphaned in South Dakota, and ultimately adopted by a Nebraskan couple. That process made an imprint on his wife, and thusly, impacted him.

They were moved to give back to this community. The Becker family investigated how to better adoption processes, as they are full of institutional and governmental flaws. The bureaucracy can significantly hinder people’s ability to successfully adopt. With countless of complications, they found out that their time, money, and potential foundation would be better spent on orphan care.

What are some of the current problems in orphan care?

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I couldn’t help but wonder what orphanages are like and where care can be improved. Joshua noted that one of the biggest problems is the ratio of caregivers to orphans. There just aren’t enough people to be there for their children. In many households across America, two parents take care of two children; effectively, this makes a 1:1 ratio of caregiver to child. But in orphanages, money is tight and care is often what’s minimally needed.

Over time, this ratio can lead to serious psychological concerns. Whereas many people are held, cared for, and talked to, orphans can suffer from neglect. Joshua acknowledged that problem solving and more advanced intellectually decision making are also held back frequently.

How will The Hope Effect address these systemic problems?

Joshua aims to establish a “highly reproducible model” for orphan care – a blueprint to build homes and create avenues for change. The foundation will pay for the building, maintenance, jobs, and everything else needed to support a home for children.

The Hope Effect will start in Honduras, building a home on the site of the existing La Providencia orphan care community. La Providencia has been implementing a family-based solution to orphan care for several years. They are equipped with staff and even medical and educational facilities, making the partnership very attractive. As Joshua said, “They have a lot to teach us about what works and what doesn’t.”

As an added bonus, La Providencia employs a child psychologist. This is important to Joshua and his team as they appreciate the need for psychological wellness. Because of the great burden placed on these children, The Hope Effect intends to hire a child psychologist at all future orphan care communities they develop.

Briefly, Joshua broke away to explain the standard he wanted to achieve. These homes wouldn’t be more of the same. His bar was set high. Joshua wants his foundation to make homes he could imagine sending his own children – if something unimaginably horrible occurred. He wants every child to have an opportunity to succeed.

How can people help?

It’s all well and good to want to help others, but there are also pragmatic issues that prevent ideas like this from succeeding. Money can be a big problem – without it and this idea evaporates. I wondered how he intended to make this work.

Joshua spoke earnestly about making sizable sums of money from new book advances and his website. He said that money wasn’t the greatest concern for his family – they weren’t looking to buy a bigger house or a new flatscreen TV. Their hope was to put this money to work helping others.

Shockingly, the Becker family is funding the foundation with six figures of their own money. This seed money is intended to kick start fundraising and home building. By May, they hope to have the house built and care offered. It’s an ambitious timeline, but one they’ve researched in depth.

Additionally, The Hope Effect would look for donations to sustain development and maintenance of homes. Their initial investments radically change their charity, too. Remarkably, 100% of donations made to The Hope Effect will be given directly to orphan care. No administrative costs. No marketing fees. Nothing but direct giving to those most in need.

How did you go from minimalism and simple life advocate to philanthropist?

Becoming Minimalist was founded out of a need to cut back on excess. Now, Joshua has been writing about simple living for years, and published books to prove it! As I talked with him, I thought about his transition – from minimalist to philanthropist. How’d he go from one to the other?

Joshua rhetorically asked, “What’s next? What comes after saving money and spending less?” His family has everything they need. With the new income from book deals and constant revenue from the site, he explained that they were eager to do something other than spend it on themselves.

For the Becker family, giving generously goes hand-in-hand with living simply. To save is to ultimately be able to serve and give back. Joshua expounded that they are “committed to not buying,” and that empowers them to think of how to help. For them, it seemed like a natural progression to fund this foundation.

Where can people go to help?

TheHopeEffect-Logo

Over the next couple years, Joshua is looking to fundraise hundreds of thousands of dollars and fund multiple projects. He wants to change the paradigm for orphans.

For starters, Joshua recommends checking out The Hope Effect’s website for more information about the charity. Donations will fuel this organization to be able to directly impact the lives of orphaned children.

I was so moved by our conversation that I set up my own fundraising page to support The Hope Effect. Instead of gifts this Christmas, I’ll be asking for your help fundraising $500 by December 31st.

Will you help me?

Donate here to support this incredible cause: https://my.hopeeffect.com/frugaling

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