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Congregation Without Consumption

By Frugaling 31 Comments

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Mall of America

I often felt lonely growing up. Sometimes it was by choice, sometimes by consequence. Whatever the case, that aching feeling would hit me – I’d want to move, do, fix, and solve the discomfort. Isolation and loneliness prompted me to go out – to frequent places with people.

Unfortunately, people tend to congregate at locations of consumption. You can see it in families taking weekend trips to the mall to walk, eat, and shop. The window shopping and actual shopping make people feel purposeful.

When I’d be down and out, I’d find comfort in the smiling faces of store clerks and fellow shoppers. People were happy to be buying and selling products. The light shined brighter. Smells of candied nuts and pretzels wafted around. And hip music reverberated through the stores. I felt happy for a moment.

From the outside, it seemed like everyone won. Unfortunately, that’s not the case. Conspicuous shopping and browsing can lead to debt, overdue bills, and lessening credit scores (not to mention great environmental harm). There’s a psychological cost to this repetitive reinforcement, as well. The visit makes us happy, and we want to return to duplicate and relive these positive feelings. The purpose is in the purchase. Without the purchase, who are we? Without the mall, where does positivity stem from?

When I first started saving money and becoming more frugal, I didn’t notice my removal from society’s consumptive catches. There was this new purpose to live within my means. That seemed to be enough. I was able to share my journey on Frugaling, too. But over time, I started to feel this lump in my throat. The social outings to spend money at restaurants, go to movies, and frequent trips were severely reduced.

That feeling of loneliness crept back in. With each effort to save, came losses in social situations. As much as I tried to build in free time with friends that was actually free, I realized that it was challenging.

We all want to consume and spend and travel and adventure. There’s excitement and energy in all these activities, but too frequently, there are direct costs associated.

We each need to establish a balance in our lives where we are spending within our means, while achieving our needed social connection with others. To sacrifice the latter may mean suffering greatly and failing to maintain long-term frugality. Suddenly, the endeavor is unintentionally punishing.

To combat and bolster our social support, connection, and integration, we must embrace congregation without consumption. These are the moments circled around a board game, watching a movie at home, cooking at home, biking, running, swimming, etc.

If frugality is a philosophy and way of life, we must define our methods for staying sane and healthy. It should never stand in the way of healthy psychological functioning and connection with others. To say “no” to social gatherings that need money is a tremendous way to save, but costs something more than dollars and cents. There’s a social factor that cuts deep – for both parties involved.

Staying connected and frugal requires proactive planning. The initiative is on you – for better and for worse – to suggest events without a price tag. We are all in this together, but someone needs to start the trend. Longer term, our society must find new homes for purpose and energy with others – something beyond the brightly lit walls of malls.

Now, the important question becomes, Where will you spend your weekend?

Filed Under: Minimalism, Save Money Tagged With: America, Consumption, Frugal, frugality, Mall, Psychology, saving, Social, spending, Support

How Do Relationships Influence Frugality?

By Frugaling 9 Comments

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Relationship Week - Photo Dennis Hill Flickr

I want to spend this week talking about relationships. Why? Well, because money and relationships often go hand in hand, whether we like it or not. Income, wealth, and spending issues are one of the most common concerns for partners.

When I founded Frugaling, I was in a relationship and felt this pressure — internal and external — to change my habits and reduce my spending. What happened next still feels like a dream. In thinking about that process of becoming more financially solvent, I decided to write a little article for one of my favorite personal finance websites, Frugalwoods.com.

Today, you’ll find my thoughts on being single, staying frugal, and thinking about whether a relationship is right for me… financially. Then, on Wednesday, the author of that site will be publishing her own article here on Frugaling! She’ll share her thoughts on love, relationships, and the ability to be even more frugal when married.

The two of us come from different backgrounds, genders, demographics, and are in opposite sides of the relationship coin. Despite these differences, we both came to frugal living. I can’t wait to hear from you all about your journey and how relationships help/hinder your ability to save!

Filed Under: Save Money Tagged With: dating, Frugal, frugality, Frugalwoods, Income, living, money, relationships, saving, spending, Wealth

3 Lessons From The Great Recession

By Frugaling 9 Comments

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Banksy Follow Your Dreams Cancelled
By Banksy

“We learn from history that we do not learn from history.”
— Georg Wilhelm Friedrich Hegel

Making and losing money during the Great Recession

In 2007-08, the stock market dove. We entered a massive “Great Recession.” I had a measly amount in an investment account and sold every stock. I couldn’t afford to lose any more. The panic was great and I followed it.

I held mostly cash, but bought a dangerous ETF that shorts stocks at 2X investment. For every dollar down in the market, I’d make two. Although, for every dollar up in the market, I’d lose two. By buying the ETF, my future would be tied to the demise of the global markets. It felt sick, but I was making money seemingly every day in the tough bear market. As others clambered to secure positions, I was profiting. The demise of other’s portfolios meant I was in the minority, making money.

At the time, I kept telling my mom to sell out of a large, inherited position in AIG. The major insurance company was spiraling out of control, and the public would soon realize how much debt the company hid. I wasn’t prescient, but dead set on her selling much of the position. The wealth was directly tied to the most risky industry.

Her financial advisor asked her to sit still. His sentiment was simple: don’t worry, don’t panic, and everything will be alright. I remember urging her over the phone, “Mom, you’ve got to sell at least a bit. The portfolio isn’t diversified and could be destroyed by this market.” She followed the trusted advisor’s approach and held on to the position. She stayed with the stock until it was a small fraction of the inheritance, and AIG was unrecognizable to its predecessor — what it used to be.

A reminder of the Great Depression

My grandparents had their own economic tumult: the Great Depression. They were a product of a time when food was scarce, fortunes changed, and many suffered. Both my grandmothers — at separate times — would talk about this time of disparity. They seemed weathered and changed by this period.

The Depression had a lasting impact. In their adult lives, they saved nearly everything, invested, and were constantly frugal. Eating out was a privilege — a true rarity even when they had wealth. They got creative with meals, celebrations, and travel. They learned to travel with and for less.

Not everyone suffered, though. A select few — the richest elite — continued to enjoy the spoils of wealth. Robber barons, corporate titans in the 30s and 40s, held disparate levels of wealth. They suffered, but not like most of society.

It wasn’t until President Roosevelt, his new deal, and World War II that the economic despair lifted. A vision for the future came into the picture. My grandparents served bravely, and were able to cultivate a middle class life afterwards. They were never “rich,” but always well. Their goals weren’t for mass consumption, but for peace and calm.

Lessons from a time of scarcity

Just like my grandparents before me, this generation’s financial calamity changed me. The Great Recession permanently shifted my life and that of my parents. The following are a few lessons learned along the way:

1. Who you know counts, but gratitude is greater

I left high school at the height of the Recession, and graduated college in 2011, as things began to look brighter. Still, I applied to countless jobs and found nothing. I submitted applications to Starbucks, Target, Wells Fargo, and a host of smaller companies. No one answered. The jobs were scarce, and money was tight. Everyone — including companies — became more conservative with their money.

A dean changed my life and gave me a chance. She gave me a paid opportunity to study and prep for graduate school in counseling psychology. I considered the offer, realized I had nowhere else to go, and embraced the opportunity. I’m forever indebted to her offer and help.

Without that helping hand, I’m not sure where I’d be, how much I’d be making, or if I would be the man I am today. An age-old lesson for business people is to network unmercilessly, but for me, I learned about gratitude. It’s vital that we remember who helped us succeed.

2. Modest living matters, skip the material mementos

I saw countless Americans lose everything material in the Great Recession. Crying families on TV and in documentaries exclaimed how they had lost everything. They were leaving houses — foreclosed on by banks that “afforded” them way more house than is necessary.

Those with modest means and mindsets braced through the economic tumult, but usually were able to maintain their lives. Those whose lifestyles were paycheck to paycheck or near their means suffered greatly.

Living through this time cemented a new ideal towards minimalism and reduction of material worth. Now when I travel, I try to avoid “collecting” and taking physical mementos. When I get something new (to me or the world), I research everything about it and try to buy based on value.

Last year I was interviewed by USAToday on the topic of buying homes. I might be a kook, but I don’t believe I want to buy a house unless I have all the cash necessary to do so. This Great Recession taught me to distrust debt and mortgages.

3. Save like it’s the last day on the job

In struggling to find work and seeing others do the same, I’m uncertain about my ability to hold one consistent job in life. Employers don’t necessarily have the incentive that they once had for employee sustainability. Everybody seems to be replaceable in this new, globalized economy.

While the unemployment rate has recovered from the depths of the Great Recession, salaries have stagnated or decreased. People are employed now, but they aren’t making what they once made.

Whatever reaches my pocket today, I’ll fiercely protect. But protection cannot mean selfishness.

Despite the economic uncertainty that will forever be a hallmark of my adolescence, I refuse to believe that we cannot continue to help each other. Whether that means serving and giving your time, or scrounging for a few dollars to give to charity, it’s still important to give selflessly.

Filed Under: Minimalism, Save Money Tagged With: Banks, Banksy, Financial, Great Depression, Great Recession, jobs, Lessons, Making, money, saving, Stock Market

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

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