Ashe's blog
So I have been re-watching the show Jericho - a series about what happens in the USA after bombs take out a bunch of major cities and it got me thinking. In the show they have to be very resourceful about how and why they used things because it's very difficult to get many things now that the infrastructure of the country has been all but destroyed.
Building upon my last post about renting vs purchasing a home, I decided to challenge myself to something I have thought about for a long time, but have never really taken on 100%.
I am going to buy everything used.
It's not too dramatic of a change from what I am doing now. If I can buy things at places like Goodwill, I do and I will. If I can't find them there, then I tend to look at places that are on the cheaper side. The benefits of such far outweigh any convenience I get from stopping at Target on the way home to pick up such and such.
Buying used means that I'm recycling - it is one less of that item that will need to be produced and one less of that item in a landfill somewhere. People cast off perfectly good items every day because they don't need them anymore or because they got new ones. As a kid we moved *a lot*, so our parents taught us to regularly go through our items for things we weren't using anymore or that were broken beyond repair to give away, donate, or throw away (less to pack in a box and move across the country for us). It's a philosophy that has stuck with me all of these years and one that has grown in me to the point where I can consider myself a minimalist.
Obviously there are some things you just can't get used. Most notably consumables like gas, toiletries, medicine, food. You can get nearly everything second-hand though: cars, houses, clothes, appliances, furniture, books, music, movies, toys, sports equipment. For me, the two things that will be the hardest to get used are just-released electronics (which, if I wait a couple months I can find on the manufacturer's site as refurbished for cheaper) and yarn for knitting (I can find knitted items at thrift stores to unravel and upcycle the yarn). Lucky for me, I'll be good for quite a while on both. As far as giving gifts goes, I intend to hand-make what I can (I have made quite a few knitted or baked gifts :}).
The idea to make a pact to buy everything used partially sprung out of my recently found uber-frugality. I've been on a much more limited income the past year or so than I have in previous years, especially considering my bills are only going up (and whose aren't? :/ ). I'm hoping to go into business for myself full time by spring (instead of "day job" plus contract work), which means I will be on an even tighter budget. Buying used - and only the things that I need - will help greatly reduce my spending.
Most everyone knows buying used is more economical - you can get things that are in very good condition for half (or even less!) of their original cost. So why ever buy new? Buying new might mean that the product comes with a warranty, it has no history (you don't have to worry about finding out later it is broken), you can return it if it doesn't work as advertised, it might be in better shape than a used item, and you can almost always find what you need new in a store.
There's a sense of urgency when finding something used: almost the same feeling that you get when you find something on deep discount at a store. You find that you're telling yourself "it won't always be there!", "this is such a good deal, I can't afford to pass it up!", "someone else is going to get it before I really need it!". That's a dangerous way of thinking, too. No, it might not always be there, but do you really need it? If you can't find a use for it *right now*, why do you want it cluttering up your home?
Don't forget that there are ways to find used things that you need without buying them, too. I live in an area that is both heavy on college students and has a high percentage of affluent families - both good neighborhoods to find items on the curb marked as free. Don't buy books - take them out from your local library (it's less cluttering your house if you don't have to own the item, remember!). You probably aren't going to watch that movie or tv series over and over again - can you find it online for free at places like Hulu? I get away with not having cable by watching everything online for free (and legally) from the website of the network that produces the show. Instead of buying things like plants, ask your friends for clippings of their's so you can start you own. Need a staple gun for one small project? Maybe your neighbor can loan you one for the weekend; offer your tools up for loan in the future to save them money, too.
I intend to track all of my spending on a spreadsheet so I can see exactly how much I am saving by either buying used, borrowing, or finding items for free. I'm interested to see both how much it impacts my life (better and worse) and my budget. I'm sure I'll need to be creative in some cases.
Where to buy things used (or get things for free, in some cases):
- Craigslist
- Freecycle
- Free Sharing
- Sharing is Giving
- Book Mooch
- Ebay
- Half
- Half Price Books
- Dell Outlets
- Apple Refurb Store
Thrift Stores
Recently I have started to really love my apartment. I went through and got rid of a ton of stuff I didn't need - giving a lot to Goodwill, selling some books over at our local second-hand bookstore, and giving some things away to other people who could make better use of the items than I could. I reorganized things so there is a much better flow and less clutter. I have plans to (hopefully this summer) paint, put up some artwork (helloooo Etsy :D), and refinish some of the furniture and cabinetry that I have now.
All of this got me thinking - I really wouldn't mind living in this apartment for a long time. I love where it's located, that I have a garage (which is hard to find in my area of Milwaukee), that the rent is super cheap (seriously, you can't find a studio apartment in Milwaukee for what I am paying for my 2 bedroom), and that it's comfortable. It could use some updating, but all-in-all it's perfect for me. Not to mention the fact that I have four cats and my building manager is not only *okay* with that (and I don't get charged extra rent or security deposit for it), she has 4 of her own and brings mine treats and toys all the time.
I had intended to live in this apartment, anyway, until I bought a house just because the rent was so cheap. Now I'm challenging the idea of buying a house at all. I had this discussion with coworkers and Matt, but I couldn't really come to a solid conclusion until I did some actual research.
The pros of renting
- lower monthly payment then mortgage
- not responsible for property taxes
- not responsible for maintenance
- renter's insurance is much cheaper than home owner's insurance
- may not have to pay all utilities (I don't have to pay water or garbage)
- don't have to worry about lawn care, snow removal, etc
- easier to move if you need/want to
The pros of buying
- tax benefits (although in Wisconsin we do get a renter's tax credit)
- equity is built up
- control (for the most part) over monthly payments
- no possibility of eviction
- easier to make changes like painting, landscaping, remodeling, etc
According to the New York Times , with my current rent rate and the cost of an average home being $150,000, Buying is never better than renting over 30 years unless my home appreciates at 7% every year, then I would come out ahead after 7 years.
The Home Loan Center has a mortgage calculator that told me that:
Buying a Home Will Cost You: $3369 more
Our Recommendation: Strongly advise renting
Now that isn't that great of a savings, but when you factor in the other costs of having a home (insurance, taxes, maintenance), it increases quite a bit.
What should you do with the money you save renting? This article suggests investing in stocks would be a better option, economically, because homes tend to only return an average of 3% - equivalent to inflation. Stocks, on the other hand, return an average of 7%.
I also found this interesting (from the same article):
"Renting is for poor people."
True. But it's for rich people, too. The average renter makes about $34,000 a year, but while the percentage of renters declines after incomes exceed $20,000 and rents exceed $600 a month, it jumps again once incomes top $150,000 and rents top $1,200 a month. In other words, poor people rent modest apartments for lack of choice. Middle-income people buy houses. High-income people, presumably with a dose of financial savvy, often rent nice apartments instead of buying.
So maybe I can't have the big backyard garden that I've always wanted, but the money I'll save renting I can easily get some space from a community/victory garden.
My coworker and I got into a debate yesterday about the value of new things versus used and I thought it was an interesting commentary on consumerism in today's world.
I wanted to go shopping for winter clothes on my lunch, so I looked online to see where the nearest thrift store was. To my not-so-great surprise, there weren't any in the county. The county where I work is one of affluence - the majority of the people here are white, upper-middle class, republicans. Sure, they aren't exactly the demographic to put thrift stores in their strip malls, but that got me thinking - why is there a thrift store demographic? During the summer, the garage sales up here are always great - rich people getting rid of expensive things they barely used. You really can't lose.
I brought up that fact to my coworker and that when you grow up with less money, you tend to value it more. I work hard for the money I make, so I want it to go as far as possible. When I shop, I tend to do so only when things are on clearance and even still I get buyer's remorse. I buy second-hand because you can easily find things at half the original price or less.
She said that she doesn't buy things used because she wants to know where they have been and how they've been used.
She said that she changed her mind on certain things, though, when she got pregnant and she started shopping garage sales for baby clothes. I asked her if she ever shopped at a thrift store (Goodwill, Salvation Army, Value Village, etc) and she said she would never. Curious, I asked her why. She said she was made to shop at thrift stores for clothes as a kid and she always felt dirty. I asked if it was because she was embarrassed that someone she knew would see her there and she said yes. In my mind, thrift stores are basically year-round garage sales, so why is there such a huge difference in how you would feel about one as opposed to the other?
I think that it's an interesting point of pride to some people to spend so much money on some things - even if it isn't the fiscally responsible thing to do. People envy you when you drive by in your brand new $30,000 car. I got mine used for $9,000 - why would you pay so much for something that the second you take ownership of, it loses so much of it's value?
The only thing I really ever *always* buy new are electronics. I want to read the reviews and know that it is going to work for a long time to come if I am investing so much money.
Being financially responsible doesn't mean you're poor - it means you're smart. Buying used is my way of doing something for the environment AND my wallet.
Have you registered for BarCampMilwaukee4 yet? What're you waiting for? It's a FREE weekend full of technology, geekery, and good times. Meet new people, learn new things, share your expertise...and it's all free! 
Already registered and set to go? Did you make sure you have all of your camping supplies?
Have you thought about what you'll be presenting? A session on Ruby on Rails? Maybe some open source discussion? Doing cool things with old hardware? Building a robot? Check out some of the sessions other people have proposed and propose your own! Don't worry, you don't need to prepare something epic - a lot of people write theirs AT BarCampMilwaukee and even decide at the last minute to do something. Don't be afraid to give a beginner's course in something. Don't worry about it being 100% technology related. We're all here to learn things we didn't know before or think about things in a way we haven't.
It never fails that we have at least one photowalk. A bunch of people all head out from the venue and find neat stuff to take pictures of. In the past we have gotten abandoned buildings and even a tour of the original Pabst Mansion.
Like what BarCampMilwaukee does to bring the community together? Do you like that we can keep it free? Give back by donating. Even $5 helps us make this an amazing weekend. Looking to give something more? We are always accepting sponsors for the event. $150 or more will get your name up on the website as well as at the venue. Get your name in front of hundreds of geeks and technophiles!
Oh, did I mention that we'll feed you? Yeah. That's pretty awesome.
I expect to see all of you there. How could you possibly miss out on a free weekend to geek out?!
Thanks to tapps, obrazu, and johndecember for the use of their Creative Commons photography.
We are now in the homestretch for BarCampMilwaukee4. One month to go! After a small(ish) hiccup (poor Bucketworks lost their space to another flood) we are back in the saddle! The event will take place at the Chase Commerce Center on October 3rd and 4th.
Photo by John December
Want to help us make it happen? You can volunteer to help setup/take down/clean up, show the first year *campers the ropes, or sponsor (If you're interested in sponsoring, you can contact me or Pete)!
This BarCampMilwaukee promises to be everything you know and love from previous *camps, PLUS MORE (don't say "like what?". It's a surprise. If you don't come, you don't find out. Got it? Good.). Come prepared to learn something you never knew, teach about something you find interesting, and meet the most amazing group of tech geeks the midwest has to offer.
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