14

Does Online Shopping Change Our Spending Choices?

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in Joan's Posts, Rants

buy-it-now-images

Note: This is a post from Joan Otto, Man Vs. Debt community manager. Read more about Joan.

Buy it now. Pay now. NOW NOW NOW NOW NOW.

Sometimes, I feel like the internet is screaming at me like a particularly insistent 2-year-old.

And like most insistent 2-year-olds, sometimes, it feels like the easiest thing to do is to give in to the screaming beast… even if it doesn’t have the best result in the long run.

Yep, I’m talking about online shopping.

Our Instant-Gratification Society

Online shopping seems great. I can have anything in the world sent to my home – no matter how obscure! I don’t even have to pay for shipping, in a ton of cases! The prices are better than they are in retail stores!

These are all true… except there’s a problem.

Our instant-gratification society is taking the “buy it now” hype to an extreme.

We’ve made consuming so easy that we do it without even thinking. You know the stories… people who’ve plunked down hundreds to keep playing their favorite Facebook or mobile games – but have done it 99 cents at a time. People who order 7 pairs of shoes from an online retailer that offers free returns, intending to send back six and keep one but not always following through. People who buy horses and other livestock in online auctions across the country - living things purchased site-unseen.

And again, none of these things are evil, wicked, mean or nasty in and of themselves. But I worry about a culture in which it’s becoming commonplace to drop $700 in a click.

Cash Vs. Debit Vs. Credit

This is actually something we talk about in our You Vs. Debt classes, and it’s one of Baker’s key tips in his list of 24 Quick Actions You Can Do Today That Can Change Your Financial Life Forever:

Spend cash whenever possible.

There are any number of websites that will walk you through the ins and outs of budgeting, of envelope systems, and of the complex psychology of money. But I think we often overlook the simplest reasons this advice is so powerful.

1. Cash is harder to get.

Even a debit card is easy – it’s (generally) in your wallet or purse, on your person. Credit cards tend to be much the same way. To go to the ATM and get cash, even if it’s literally next door, is harder! And, in terms of money, harder to get is a good thing!

2. Cash is harder to part with.

We are a visually driven species. When I see a pile of money, I know that I have X dollars, whatever that may be. When I physically see that money dwindling, I know I have less of it. Big pile of money, little pile of money.

And handing over $700 of my hard-earned cash, in bills, to someone in a store?

YIKES. You can bet that’ll take some thought!

But I could easily drop $700 online for an iPhone… in a click. Almost as an accident. And while I think that I think about my purchases, online or otherwise, the fact is, it is so much easier for me to spend online than it is in person because I don’t have to think very much at all.

Retailers want it this way, of course! They love the idea that you’ll buy now and think later (if ever). Regrets? Well, you could return it. But they’re counting on the fact that most people don’t.

Spending cash takes planning. It takes thought. And thought is a great thing to have where your finances are concerned.

I’m curious what you think: Do you spend differently online than you would in a brick-and-mortar store?

Why do you think so – or why not?

We’d love to hear your comments!

{ 14 comments }

43

Slow, Steady and Straightforward: Joan’s Mid-May Financial Update

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in Joan's Posts, Our Financial Journey, Pay Off Your Debt

turtle-slow-steady

Note: This is a post from Joan Otto, Man Vs. Debt community manager. Read more about Joan.

Isn’t that guy cute? He’s a huge snapping turtle we found crossing the road on our fifth anniversary trip to Erie, PA, in 2010. While his slow-and-steady progress made everyone around go “Aww!” and reach for their cameras, our slow-and-steady debt payoff progress is making me say “Eww!” and making me want to reach for the Advil.

But we are making progress – slow, steady and straightforward – and I’m trying to remember that even slow going (in the right direction) gets you there eventually.

And maybe I’m not alone in needing that reminder…

Our Very Next Steps: Debts

In good news, we hit two of our Very Next Steps against our various debts this month. And we dropped our total debt balance – it’s now $56,779.11 – down $972.98 this month and $32,908.12 from the start.

As I’ve said in pretty much every one of these financial updates, even when we’re not making FAST progress, I’m proud to say we’re making progress.

In fact, as I mentioned, I’ve got two specific successes.

  • Hated Bank of America Mastercard: Our goal had been to get this under $17,000, and we succeeded this month, coming in at $16,895.45. Next, we’ll aim for under $16,000!
  • Union Plus Mastercard: We had been aiming to get this under $7,500, and now, at $7,480.97, we’ll next shoot for under $7,000. That will take a while – this is not a card we’re paying any extra on, as it’s one of our lowest interest rates and nothing about it particularly motivates us to “go tsunami” on it, but again, it’s slow and steady progress!

Don’t forget that we keep track of all of these debts in summary (complete with V.N.S.) on my “Joan’s Finances” page – so you can see how we’re doing at a glance. Here, I just hit the updates each month.

Our Very Next Steps: Assets

In addition to these next steps against our various debts, we’ve also got some short-term goals in the area of savings.

  • We need to get our emergency fund back up first to $1,000, then to $1,700 (one month’s mortgage payment).
  • We also need to get a checking-account buffer of about $1,000 to $1,500 as well.

These aren’t “sexy” goals at all, but they’re what keep life’s emergencies from derailing our progress, and what keep us from being able to say we won’t accrue new debt – no matter what!

While the debt V.N.S. goals happen over the course of our regular payments, these savings goals will require a little more conscious effort. We’re still trying to adjust to the change in income that I mentioned last month, so we’re actually working on the checking-account buffer first so that we’re sure the routine expenses are covered.

By the end of June, we plan to start moving extra money into savings. But that’ll give us time to see what truly is “extra” – and what is needed to make ends meet!

Adjusting our targets

We had hoped to be debt-free except for our mortgage as of March 2015 when we started tracking our progress here on Man Vs. Debt. Thanks to some changes in our income, we’ve had to adjust that target, and our newest goal would have us done with consumer debt in April 2016.

That has us paying $2,000 total per month on our debts (minimums plus extras), which at our current income levels is heartily ambitious and maybe not even quite doable – but we’re committed to trying! {As a point of reference, at our highest, we’d been paying $2,500 or more monthly!}

That said, that seems ages away, and as we’ve said before, we truly believe that by hustling, we can cut a significant time off of that. The hard part is deciding just how ambitious to be, so I decided to set a “range” of goals.

  • Marathon finisher award medal: Paid off “on time,” or by April 30, 2016
  • Bronze medal: Paid off by December 31, 2015 (4 months early, about $7,850 “extra” required, give or take)
  • Silver medal: Paid off by August 31, 2015 (8 months early, about $15,450 “extra” required)
  • Race-winning, Olympic-qualifying, crazy-awesome gold medal: Paid off by April 30, 2015 (a full year early, about $22,740 “extra” required)

The biggest bummer right now is that we’d hoped to pay off the hated BoA card this year, but instead, we’re looking at having it right around $10,000 at the end of 2013 and finishing it off in October of 2014. To be fair, we’re still happy – that’s great progress – but you know we’ll be looking to hit this one as hard as we can!

I hope I’m not the only one who needs the occasional reminder that slow and steady is OK. Sometimes I feel like I don’t have a very “dramatic” story – I’m not paying off $50,000 in a year or anything like that – but I have a plan, I’m working the plan, and I’m getting where I want to go.

And that’s got to be good enough!

How’s your progress? Slow and steady like a marathon, or more of a sprint? Some of both?

Comment and let us know!

{ 43 comments }

13

Treasures Vs. Crap: What’s the Oldest Item in Your Home?

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in Joan's Posts, Rants, Sell Your 'Stuff'

joan-oldest-possessions

Note: This is a post from Joan Otto, Man Vs. Debt community manager. Read more about Joan.

I’m a sentimental-items person. Still have my childhood teddy bear and blanket, love scrapbooks, and so on. But I’m also what I call a mid-range minimalist; I tend not to keep “stuff” unless I truly treasure and value it.

With that in mind, I asked on the Man Vs. Debt Facebook page a week or two ago, in the vein of selling crap that doesn’t enrich your life and keeping stuff that really is awesome:

What’s the oldest item in your home?

I expected a few responses, not more than 100! They were all great – except for the dozens of you who said “me” – smart alecks!

I want to share some of the answers today, and then leave you with some questions about what is and isn’t valuable in your own home.

In our house, we think the oldest item is the newspaper clipping of my mom’s grandfather’s untimely death, which is in a family scrapbook we’re working on.

We had some other close contenders, all of which would be right around the mid- to late 1800s, mostly in other photos and some jewelry (including the wedding ring I wear, which you can see above with my blanket, teddy bear and the aforementioned scrapbook!)

Funnily, I didn’t remember until some other readers posted about old books that we almost certainly have books for our bookstore that are older than any of our personal stuff, but I don’t think of those as “our” belongings!

Watches, furniture, jewelry and more…

OK, I had to laugh, because my friend Dana said her house is the oldest thing “in her house” – it was built in 1786! She also said she’s got some cool antiques, including a metal toy car from the 1870s.

You Vs. Debt alumna Stevie noted that in her home, “It’s the piano. Upright grand bought by (my husband’s) grandmother in early 1920′s and she taught all of her numerous grandkids on it.”

And fellow money blogger Agatha K. of Hey Agatha went the other direction entirely – her “oldest” item is a broken Donald Duck gold wristwatch from 1985!

Some of the other stories:

  • Jim: An old hope chest, no idea how old. The next time we downsize, whatever won’t fit inside will be sold, donated or tossed!
  • Elizabeth: A book of Roman law from the 1500s!
  • Laura: A jewelry box that my great, great, great, great, great, great grandfather made.
  • Tina: My husband. Kidding! A French pewter plate from the Napoleon 14th era.
  • Lara: My great grandmother’s gliding chair. Probably from the late 1800′s.
  • Jackie: A collapsible Persian table from my grandparents’ life in Tehran many many years ago. I take it everywhere I move. Though I’ve sold everything else, it’s the one thing I can’t part with.
  • Dusty: A beautiful dresser from 1890′s. It belonged to my great grandmother. It’s priceless to me.
  • Whitney: Antique spoons, antique dollar bill from my great granddad and an antique red box.
  • Emily: A photo of my great-grandparents. Taken in 1935.
  • Glenn: An old badly worn Pinocchio bank.
  • Jeanie: My husband’s wedding ring was my grandfather’s. Although…wait. I was gifted a crystal tea set from his parents at my wedding + their pictures and story. So..from 1920.
  • Kimmie: A weird, hand-carved wooden chair with the face of a greenman on the backrest and lion’s heads that belonged to my great-great grandparents.
  • Anne: A secretary desk, built in the 1880. It is a small one, with tiny spindle legs that I worry will get broken by the kids, so I keep it in my room! It is a nice edition! I <3 it!
  • Colby: My stepmom has a newspaper from the day after Lincoln was assassinated… it got passed down from her grandfather!
  • Laura: A chair that was my 60+ year old friend’s grandmothers. I love curling up and reading a good book in it.
  • Donna: A three tiered little wooden box, filled with buttons. It belonged to my grandmother who passed 9 years ago, aged 91. I remember playing with the buttons as a child & this is what I chose as my inheritance. My own children now play with these buttons!
  • Angelia: A cathedral window quilt my great great aunt and great grandmother made back in the early 60′s
  • Scott: The dresser my grandpa bought my mom when she was a little girl. They don’t make them like this these days.
  • Jeremy: Journals and sketchbooks from teenage – current.
  • Tabatha: My son’s hand print from kindergarten.
  • Peggy: I have a few baby blankets left over from my children who are all in their 30′s.

I could share dozens and dozens more, but these were some of my favorite stories.

Some readers shared stories of living an especially minimalist lifestyle, sometimes on the road. Reader Weaselmouth said, “Since we live in the Airstream, I think the oldest thing is my wedding band. All books are now in the Nook, clothing gets worn and replaced fairly often and everything else is new-ish.”

For me, those are some of the neatest stories, since I’ve always lived in the same town and only moved a few times ever!

For almost all of our commenters, though, the oldest-thing question really became exactly what I was trying to get at.

Things that have withstood the test of time tend to be things you feel are worth keeping.

Treasures vs. crap

I know some people who keep old items “because they’re family heirlooms” – except they don’t like them, or use them, or even really know much about them.

They just seem to think they’re supposed to save them, simply because they’re old. To me, those aren’t treasures. That stuff, as valuable or as historic or as “important” as it might be, is just crap if you’re not loving it, using it, remembering because of it.

I’d rather have fewer things that mean a lot. 

My “scrapbook blanket” that you see above is a good example – it started out as a Mickey Mouse sleeping bag my dad gave me for Christmas the year before he died. Since then, I’ve used T-shirts from memorable events to patch it – you can see one of Sarah’s first T-shirts, one of Dad’s Army handkerchiefs, and even a scrap from my husband’s childhood blanket in the photo! Now, instead of keeping a bunch of “stuff” – mostly clothes that can’t be worn anyway – I have one really memorable item.

That’s my challenge to you today. Whether it’s 50 years old or 500 years old, what’s the oldest item in your home? And do you truly treasure it – and your other possessions that have survived the test of time? Or are you hanging on to things just because they’re old, or maybe “valuable” in a money sense, but not because they truly add value to your life?

I’d love to hear your thoughts and stories in the comments!

{ 13 comments }

12

10 Best Financial Podcasts to Boost Your Momentum

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in Courtney's Posts, Pay Off Your Debt

Podcasting

Note: This is a post by Courtney Baker, chief seller and long-time running wo-man of MvD.

Ages ago, I set a personal goal to start tracking my spending again and start planning things I wanted to buy. I was struggling to stick to my guns and keep myself accountable.

Frustrated and desperate, I needed a new strategy. I suddenly remembered podcasts.

Podcasts really boosted my momentum to pay off my debt and control my spending. Listening to a 5-10 minute segment on sticking to a grocery budget just before grocery shopping really affected the amount of stuff in my shopping cart.

Getting informed about why I wanted to pay down certain debts first made me want to pay them down even faster.

We make dozens of money decisions throughout they day. Listening to five minutes here and there significantly changed my momentum in paying off my debt. I felt informed, aware, and in control, finally.

[Dig in to these to rev up your own momentum!]

{ 12 comments }

71

What Does Wealth Look Like To You? Millionaire Fastlane Book Review

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in Joan's Posts, People & Products

joan-with-millionaire-fastlane

Note: This is a post from Joan Otto, Man Vs. Debt community manager. Read more about Joan.

So here’s the thing about me: I’m not rich.

You’re shocked? (Er, if so, maybe you should check out the scary details of my finances.)

What this means is, when it comes to books about how to become rich, I’m probably the perfect reader demographic, but maybe not the perfect reviewer demographic.

After all, why would you want to hear what I have to say about someone else’s ideas on wealth? After all, I’m not particularly wealthy, right?

Well, we’ll come back to this in a bit, because it’s the question I’ve been kicking around in my head as I read The Millionaire Fastlane by MJ DeMarco, which is one of the many books on the collective Man Vs. Debt bookshelf that we’ve read, reviewed and then given away to a reader!

[Find out what's inside The Millionaire Fastlane...]

{ 71 comments }

30

What, No Presents? Memorable Kids’ Birthday Parties

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in Courtney's Posts, Family

_MG_0149

Note: This is a post by Courtney Baker, chief seller and long-time running wo-man of MvD.

Every year come April, we brainstorm new themes for Milli’s birthday party. But unlike most parties, our themes don’t involve princesses, Spiderman or Spongebob. Instead we have balloon parades, pinatas and zoo trips.

We also don’t have presents.

Several years ago, we started thinking of birthdays in a new way. We were participating in the 100-Thing Challenge, and a single birthday party could easily add an additional 10-15 little toy bits and pieces.

We implemented a “No Presents” rule that year, and we’ve never gone back.

Everything worked out very nicely until we realized that guests feel uncomfortable coming to the party without something. So, we started thinking of ways for our guests to participate in the party without bringing mounds of unwanted toys or spending unnecessary money.

[Check out some of our ideas!]

{ 30 comments }

16

Stop! You Don’t Have to Leave to Do What You Love

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in Do What You Love, Give Back, People & Products

nightstrike-jenna-620

jenna-100This is a guest post from Jenna Forstrom, the former community manager at Adaptu who’s now an account executive at a local PR firm.  She’s still staying on top of her personal finances, selling (er – donating) her crap since she bought her first home a year ago, and brewing beer. Find out more on Twitter.

I know this is a little un-Man-vs.-Debt-like, but I’ve been CALLED to stay put.

Not to move around, but to buy a house and set roots.

I actually did exactly what Baker said not to and bought a house at the ripe old age of 25. My home is in Portland, Oregon, the microbrew capital of the world, home of the best coffee roasters, nestled between Mt. Hood and the Pacific Ocean. It is the best place on earth. There is just one problem.

Portland is also home to the largest homeless population in the U.S. Meth, black-tar heroin and alcohol are easy to come by in my city. Abuse and brokenness are all over the streets. So as someone who is fiercely in love with the city, I’m forced to make a decision. I can choose to:

  • Ignore the problem.
  • Or be part of the solution.

To be completely honest, I didn’t make the choice. The choice picked me.

[Click to read the full article...]

{ 16 comments }

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