Spend Smart - Live Well

Spending smart is half the battle when it comes to building wealth and independence. The following posts will provide handy tips for living well while spending way less.

Love your Life, Not Theirs: Rachel Cruze Thinks You Don’t Need a Credit Card (or Even a Credit History)

June 30, 2020 by CM 2 Comments

I picked up the audiobook Love Your Life, Not Theirs by Rachel Cruze because the title intrigued me. I love money books that go beyond the numerics of financial success and talk about the mindset and juicy psychological piece.

I fundamentally disagree with many of her points, but here’s where we see eye-to-eye

I love Rachel’s idea of social media “comparisonitous” (yes, I made that word up). I try really hard (and often fail) to avoid comparing my life to the way people portray their picture-perfect worlds on Facebook and Instagram.

This is a conscious practice because it’s really easy for me to get down on myself for not living a Pinterest-worthy life.

While this is a problem for many of us in all areas of life, Rachel addresses it from a financial standpoint. Her message is simple: “keeping up with fancy-but-broke people is the fastest way to financial ruin”. Preach it, sister! I couldn’t agree more.

I love how she frames #blessed as the official hashtag of “look at me” posts. This is so true! Let’s be real… your $759 per month car payment on a teacher’s salary isn’t #blessed, it’s #stupid.

Keeping up with fancy-but-broke people is the fastest way to financial ruin.

But here’s where Rachel and I diverge in our opinions….

Let’s start with credit cards. She simply doesn’t use them and recommends you don’t either.

This is where I start scratching my head. I use my Chase Sapphire card for pretty much anything I spend money on for a lot of great reasons:

It’s easy to track where my money goes
It’s insurance against sketchy sellers (which I was able to take advantage of this week)
I get free travel insurance if I have to cancel a trip due to sickness, weather or a host of other reasons.
I get free auto insurance when I rent cars (which can cost as much as the rental car)
I collect points up the whazoo to spend not just on flights, but also hotels and other things that I would have every intention of redeeming.

Now credit cards do require a certain level of financial maturity, but I also know that the credit mistakes I made as a kid, informed my good credit habits today.

Credit isn’t for everyone, that’s for sure, but if you can pay off your balance every month in full (as I do, and I’m she could too), then there’s a world of benefits you can reap from them. Discounting credit cards before you give yourself a chance to see if you can manage them responsibly is a wasted opportunity. A huge one.

Credit Card Points: You’re not using them, so why bother?

Rachel claims that the 14 million points that go unredeemed every year have everything to do with credit card users that just somehow ignore or forget about them.

While it’s true that around 30% of credit card users never cash in their rewards, there’s another 70% of us out there that are optimizing them as much as possible. Your best bet is to consolidate your points to one really good card (like Chase Sapphire) and use those babies up.

You’re better off making your credit score non-existent.

What the what? Rachel suggests that it’s a good thing to not have a credit score, period. Not a bad one, just not one at all. She suggests, there’s no downside to not having a credit score, and that you can even buy a house without one.

Really, Rachel? Where do you live that you can buy a house for cash? Maybe rural Nashville, but that’s about it.

Let me tell you as someone who came to this country with zero credit history, not only was it was a colossal pain in the ass to get anything from a cell phone to running water, I had to put extra deposits on EVERYTHING, so my out of pocket costs moving here was drastically increased because of my lack of credit history.

Now, keep in mind, I had a great job, money in the bank and a stupendous credit history in Canada, where I had lived to that point, but apparently, that has no bearing on your ability to pay your bills here in the US.

So would I make having zero credit score a goal?

Absofreakinglutely not. I do not recommend this strategy.

Personally, I don’t find Rachel’s perspective on money to be very relatable. But even though I don’t agree with her message, it’s something that people with credit card debt should practice like a religion.

She also broadens the range of thinking when it comes to personal finance. Fringe concepts (and yes, I think some of these ideas are out there), can help readers think critically about their own behaviors. As we know, it’s called “personal” finance for a reason 🙂

So rock on with your bad self, Rachel Cruze! Someone’s got to be out there on the edge. On that note, I’m off to see what I can do with all those airline miles I’ve racked up!

Putting the FIRE Out: Why It’s Naive to Retire Early.

December 14, 2018 by CM Leave a Comment

Can we talk about this for a sec? Because damn. That’s a #truthbomb that kicked me right in the gut when I read it on twitter the other day. Unlike Suzie Orman who claimed you can’t retire without $10 million unless you’re a public servant (explain that logic), this piece of wisdom made complete sense to me.

I Still Think the FIRE Movement is Great… In Theory

Now, while I’m still a huge an advocate for the FIRE movement, I lean more toward the first two letters of that acronym rather than the last two (financial independence vs retire early). This is partly because I’m probably too old for “early retirement”, but also because I agree that retiring in your 20’s or 30’s isn’t rational. In fact, in your 30’s and early 40’s your career is still just warming up, so to opt out of some of the most powerful earning years of your life, just so you can live off a small, guesstimated salary for the rest of your life doesn’t seem like freedom to me.

The Flaw In FIRE

The FIRE movement would argue that retiring early just means you’re retiring from your professional career so you’re free to pursue other opportunities (money generating or otherwise) with your time. But then that begs the question – why are we signing up for careers we can’t wait to be finished with in the first place?

Would it not make more sense to focus your time and energy on finding a career that’s fulfilling and sustainable rather than focusing all your effort on trying to escape the one you hate?

Why Early Retirement is Naive

I think a big part of that answer is that we’re so young when we start our professional lives, it’s hard to know what the ideal career pursuit is because we lack self-awareness and life experience. So we opt for what we “think” makes sense and also, what’s available to us. But that’s the very reason why retiring in your 20’s and ’30s probably isn’t a great idea, either. At that point, you’re still developing a sense of self and a library of personal experiences that will shape you in years to come. To assume in your thirties that you’ll be a-okay living in a trailer on 40K per year for the rest of your life is naive.

So Should You Still Pursue FIRE? Heck Ya!

I’m not suggesting that starting early to save for retirement isn’t smart. It’s probably the smartest thing a young person can do besides saying no to drugs and cigarettes. However, the FIRE movement can invoke a rabid behavior where saving money becomes the sole focus of living to the point of misery. Personally, I think that’s a ridiculous waste of precious life and yet, I hear it in many of the FIRE stories I come across.

I’m sure that’s not true of all FIRE enthusiasts, but I do think we can get a little over-zealous when fueled by a desperate need to escape a job we don’t like (been there, done that). In fact, in the first few months of my FIRE/minimalist journey, I accidentally tossed out all my immigration papers in a flurry of purges and bought a car I now regret purchasing, just because I thought it would get me to FIRE sooner. Rookie mistakes.

The Chill Route to FIRE

Now my approach to FIRE (or FIBTOTRE – Financial Independence But Too Old to Retire Early) is much more chill. My husband and I plan to work full time for another 4 years, then retire with more than enough money to maintain our current lifestyle. That said, I still plan to work on my passion projects (like this website and other health and money related initiatives) well after I’m done with my 9 to 5. In the meantime, I can be selective about the work I chose to do because we have the financial means to do so (which is the true power of wealth). Instead of missing out on life to get out of the workforce earlier, I chose to find work I enjoy and that I can do remote because it turns out I don’t hate working, I just hate commuting and wearing real pants. #yogapantsarelife

Gaining FIRE is a Lot Like Losing Weight

I find that getting on the FIRE bandwagon is a lot like becoming a fitness enthusiast after years of being a couch potato. You realize how amazing it feels to be fit and all the ways it changes your life for the better, so you over-index on it because too much of a good thing is great until it’s not.

Then one day, after far too much obsessive dieting to keep those 6-pack abs visible, you realize that it’s much more fun to live with balance and moderation, so you stop with the obsessive dieting and hardcore workouts and opt for something more sustainable and enjoyable. Saving money is no different. We almost have to go too far so that we can find the boundaries that are right for each of us individually.

It’s like a pendulum that swings from one extreme to another. Eventually, it slows down and finds a resting point in the middle.

So where are you on that swinging scale?

Control An Online Spending Habit With These 3 Simple Hacks.

September 15, 2018 by CM Leave a Comment

It’s labor day weekend as I write this. I’m sitting here on the couch (still in my jammies) poking around the American Eagle website. They have a holiday sale and I’m of course going to take advantage of it, not because I need new clothes (I don’t) but because it’s a sale, so I want the opportunity to save money.

Save money… buying things… I don’t need… for less.

Let that sink in for a sec.

I want to buy stuff not because I need stuff, but because said stuff is cheaper than it typically is.

I think deeper about said stuff…

I’ve got a pair of super soft jeggings, two pairs of pink joggers and a white long sleeve T in my cart. Now, I have plenty of jeans in my closet, an endless count of leggings (and joggers) and I don’t wear long sleeve T’s like, ever, but I don’t want to give this stuff up. I want to buy it.

But why?

Because I look at the jeans on the model with the mile-wide thigh gap and think – if I buy those jeans, I’ll look like that too. I admire the model lounging about in the pink joggers, laughing and looking perfectly chill and cozy. I want to feel that way, too.

See what I’m doing here? I’m catching myself in the act of mindless, emotional shopping for stuff I don’t need. But even though I’m having this moment of epic realization and awareness – I still want those damn joggers and jeans.

I share this because I want to be completely honest that even though I write about making smarter spending decisions and leaning into minimalism, I still have my moments of wanting more jeans just because I do.

But here’s the thing – even though I have a very strong emotional weakness for online shopping, I have a very critical decision-making process once I receive the item around what stays and what goes. I’ve become really good at saying no to things that don’t 100% fit or suit me. That’s why I only buy clothes from retailers that offer free shipping on returns as well as purchases.

Perhaps you’re like me and you’re really good at returning items you know you won’t wear. But even that is a waste of precious time and energy. What if you could stop the trigger of shopping altogether?

How to Control Online Spending: 5 powerful behaviors that will help you rein in your shopping habits right now.

Commit to leaving items in your cart for at least a 24 hour cool off period. Very often we are triggered to buy stuff at night, when we’re tired, emotional and feeling spent from the day we just had. It’s so easy to turn to Jcrew.com to soothe ourselves with a new cashmere sweater, but by morning, in the light of day, we might think differently. Sleep on your purchases going forward. That’s not too hard to do and it can go a long way to helping you be more intentional with purchases.
Declutter. Whenever you’re feeling the need to acquire or be spendy (I find that this emotion comes in waves), then try spending a day, or an hour or even 10 minutes decluttering your closet. Pull out at least 5 items that you never wear (more if you have more time) and put them in a pile on the floor. Now think about how much you paid for that pile of clothes vs how often you actually wore it. When we see the end result of our careless or reactive purchases it’s such a powerful way to bring you back into the reality of overspending.
Unsubscribe yourself from all the retail newsletters. I’ll say from experience, those 40% Off Everything emails are just too hard to resist. But if you don’t know about a sale, you’re less likely to shop without a need. IN 2014 I spent over $3000 at Jcrew because I was on their email list (and they’re very good at email marketing). I unsubscribed after the last December sale and I haven’t bought a thing from them since.
Restrict your shopping to once per quarter or twice per year. Schedule your shopping events around major holidays where there are always great sales and allot a budget that you can enjoy without guilt or question. This behavior will help you break the urge to check your favorite stores on the regular and reduce the temptation to buy.
For the love of God, stop following fashion influencers on Instagram. I know, I love them too, but they’re not helping anyone in the money department. That swipe up feature is lethal.

What do you think? Are these helpful? Are you practicing any of these behaviors already? I’d love to know!

PS – I ended up not buying the jeans and joggers from American Eagle. They’re still sitting in my cart, nagging me to hit the buy button. I did, however, grab a pair of pink joggers from Tarjet just last week (or should I say…. “weak”) :-/

A Six Figure Salary With Zero Savings? Do this

August 28, 2018 by CM Leave a Comment

You might think that people earning six figure salaries ($100K or more) would have all kinds of savings. Right? Wrong. Lifestyle creep is real my friends. In fact, it has a name (Parkinson’s Law). Read on to learn how you can turn your six figure salary into 7 figure savings (over time).

Whether you’re earning close to, or well over the six figure salary mark, I can almost guarantee a few things have happened since those earlier days when you were earning half that amount.

You’re probably…

outsourcing tasks to save time (hiring a house cleaner or maybe a nanny)
spending on convenient services like grocery delivery (which is brilliant)
shopping for sport

Now, when it comes to paying for services that save time, this can be super smart because it frees you up to:

make more money
be well rested so you can make more money
do something else that makes you happy.

If that’s the case, then outsourcing can be a solid investment in the quality of your life.

But what about the stuff that’s not adding to your quality of life?

Shopping for the sake of shopping (with friends or solo)
Eating at expensive restaurants
Buying expensive wines
Buying new furniture to fill up your new (bigger) house
Upgrading your car to something fancy and new

These things aren’t life enhancers, but they may feel that way because your peers who are also making six figure salaries are doing the exact same thing so they feel like normal choices.

That my friends, is lifestyle creep and it’s so easy to get caught up in (<-yep, I’ve been there). Without a clear sense of how our incomes are funding our goals and happiness, we tend to do what everyone else is doing because it’s part of our behavioral DNA.

Parkinson’s Law and your need for fancier things.

Parkinson’s law suggests that our that our expenses will rise to meet our income and in many cases exceed it. We see evidence of it everywhere we look. In fact, a recent survey showed that half the participants earning over $100,000 had less than $1000 saved and 18% of them had saved nothing. That’s startling!

A recent survey on savings rates for 6-figure earners discovered that 50% had less than $1000 saved. 18% of them had saved nothing. Wow. Click to Tweet

So what do you do to start saving? Clip coupons and make your own dish soap?

Not at all. Small, incremental money-saving tactics will barely move the needle once you’re a six-figure earner and spender. You’ll get much further by putting your focus on reducing higher-impact spending behaviors.

The first Step to Saving More: Dig Into Your Spending Habits

If you want to create a plan for saving more money, then you have to know where it’s going, first. To do this, I recommend tracking your spending. Yes, you’re a busy person, but this doesn’t take much time if you avoid using cash and instead use cards (ATM cards are fine) for all your expenses.

That way, you’re tracking by default because all those little expenses are going to show up on your bank or credit statements. You can also connect your accounts to Personal Capital which gives you an even clearer picture of where your $$ is going.

Color Code Your Spending

Then, at the end of the month, sit down with 3 colored highlighters, print out all your bank & credit card statements or your Personal Capital report and start going through each expenditure, line item by line item.

Highlight one color for “necessities” – groceries, toll fees, gas, etc
One color for wants that “add value to your life and actually make you happier”
One color for “everything else”

Note – When it comes to things like car or mortgage payments, think about how much of that cost is necessity vs wants. You may need a car, but you probably don’t need a fancy one or a new one. If your car expense exceeds what a reasonable car would cost then consider labeling it a “want” or put it in the “everything else” bucket if it doesn’t bring you true happiness.

Once you’re done, take a look at what color is dominating your statements. Is it all necessities? If so, go through that list again and ask yourself – is this really a necessity? Do the same for the items you labeled as “adds happiness”. Is that really true?

I love this exercise because there’s something visceral about going through each expense and giving yourself a moment to reflect on it. If you end up highlighting a ton of items that are “everything else”, then you know exactly where you can start cutting your spending.

Finding Funds In The “Not-So-Important” Expenses

If you start cutting out the expenses that don’t add value or happiness, I can assure you, it won’t be that painful at all. These are typically the things you buy that become unwanted clutter or expenses that you don’t even use (like 300 channel cable packages).

Also look for high-ticket items that don’t add to your happiness, like recurring expensive dinners, wine club memberships, or a pricey car that the fascination has worn off on. If you can get out of these things, do it. If you can’t, accept that you made a poor financial decision (welcome to the club) and commit to doing better in the future.

Reallocating Found Funds

Once you’ve found some extra funds (I challenge you to find $400 – $500) reallocate those dollars to your investments and savings vehicles. I recommend starting with funding your 401K or RRSP (if you’re Canadian) before anything else because it will reduce your taxable income and very often you can take advantage of an employer match (hello, free money!).

This of course, assumes you don’t have consumer debt. If you’re carrying a car payment or credit card balance, this needs to go first.

Your next goal should be to build up a 6-month reserve of income. This is not just a financial strategy, it’s an investment in your peace of mind. Having a reserve of cash means you can confidently navigate the shit sandwiches life will most definitely toss at you. We all get these. It’s not a matter of if, it’s a matter of when.

Once you’ve paid off all consumer debt, set up automatic investments to your 401K or RRSP and built up a 6-month cash reserve of monthly expenses, you’re ready for bigger-picture savings goals that will support your values and intentions.

The best long-term money strategy six figure earners?

Be very clear about your financial priorities. Maybe you want to retire early, stay home with your kiddos or just not be shackled to a high-paying/high-pressure job. Whatever your “why” is, just keep it front and center and let it be your gut check every time you think about making a purchase (big or small).

You’re also 10x more likely to save money if it’s automatically withdrawn from your paycheck. It’s that simple, yet so many people find themselves growing their spending along with their earnings because they haven’t considered doing anything else with it.

The Danger of Not Saving First

As a high-income earner, there’s a real danger to inflating your spending to meet your income. Jobs that pay well are often stressful and competitive. If you slip into a lifestyle that keeps you dependent on a high salary, you have no recourse if you lose that job or get burned out. Feeling trapped because you’re financially committed to the salary you’re earning is a miserable place to be. I know this from experience.

The feeling of being trapped in a 6-figure job you hate because you can't afford to leave is a common issue. Here's how to get out of it. Click to Tweet

My six figure salary spending Story

When I first moved to Silicon Valley I was making more than I ever thought I would. My money mentality shifted very quickly and suddenly I felt justified to buy fancier clothes, rent a pricey apartment and of course, buy myself a BMW.

But within two years I was completely burnt out from that job and I had to leave it. I ended up selling most of my belongings and moving to India for 3 months, and in that process, I had to face the reality of how much of my income I had squandered.

Fast forward 10 years and in my last full-time role I was making 3 times what I made when I first came to California, but my mindset has completely shifted in terms of how I spend. I know I can afford anything I want, but the thing I want more than anything is freedom.

With that idea in mind, it’s not hard to say no to spending as much as I earn. I don’t live frugally by most people’s standards, but between my husband and myself, we are able to save at least 30% of what we earn – often more. Sometimes I still have to talk myself out of things I want, but honestly, it hasn’t been that difficult because the taste of freedom overpowers my interest in stuff.

Does this resonate? I’m really curious to know if there are other 6-figure earners out there that struggle to save.

How to stop a compulsive shopping habit by decluttering

March 15, 2018 by CM Leave a Comment

Hands down, the best way to stop a compulsive shopping habit is to purge some of what you already have.

This can be a powerful way to wake yourself up to the clutter you’ve already accumulated, provide clarity on what it is you really need, and dampen that constant desire for more.

The process can feel daunting, so I’m outlining what I think is the easiest, least complicated way to get this done so that you can feel accomplished, organized and inspired to take on more action toward the life you really want.

Step 1 – Define your parameter and goal

Are you just cleaning out a closet, a whole room, or an entire floor of your house? Stick to a specific space and set a clear goal for what you want the area to look like when you’re done. An example of a clear goal is “I want everything in my closet to be visible at a glance and organized by function and color. I want to reduce my overall closet volume by half.” An example of a useless goal is “I just want to clean things up a bit”. That goal will deliver exactly what you aimed for – nothing.

Step 2 – Create three areas for your soon-to-be-piles

You’re going to designate 3 separate piles by creating a sign for each area. Get a sharpie and 3 boxes or just sheets of paper to lay on the floor. On each, write the following and then drop them on the floor. These are your guideposts:

Keep it
Sell it
Donate or toss it

Now, before I set you loose on your project, I want you to think about your life for a second. If your project is a kitchen, bathroom or garage, think about how you spend your time in that space. How much do you use what’s already in the space, what you love using, what is it you never use and what you’re likely to use in the future? This is not the time to consider your Martha Stewart dreams of becoming a pastry chef or starting an organic herb garden. If you haven’t done it yet, it’s likely because it’s not a priority and that’s important intel.

If you’re about to do a closet purge, think about your next year and what you have planned. Will you be spending the majority of time at work? At home? Also consider where you will NOT be spending a lot of time (ie galas, weddings, and bat-mitzvahs). Be clear about what your wardrobe needs are before you start or else you’ll hand onto everything and I really want you to be ruthless (and honest with yourself).

Step 3 – Pull everything out and sort them into the 3 piles.

Once again, be ruthless. Avoid thinking “I may need this someday” because someday is a very rare occasion and it most likely won’t happen. The more you purge, the lighter you will feel, so let it all go.

Get rid of clothes you don’t fit into anymore. Don’t hold onto things that don’t serve you as you are right now.
Get rid of gadgets you never use. Unused items cause undue stress to the body and mind. With every purge, your stress levels are going to drop.
Old photo albums stored in an attic or basement are of use to no one. Make a plan to scan the photos and put them in a place where they can be shared and loved by everyone in your life. Physical photos don’t hold your past. You do.

Step 4 – Move Everything To It’s Respective New Place

Put away your “keep pile” mindfully

Once you have everything situated in their respective piles pull out your phone and take a few pictures of everything you’ve just pulled out of your space. I’ll explain what to do with it later.

Now start with your “keep” pile. Put each item back in its place one-by-one. As you do, ask yourself, “am I really going to use this and do I really love it?” If it’s a hell yes, back it goes. If it’s a maybe not, reconsider selling or donating. Remember, less stuff = less stress.

Address your “sell pile” immediately

Next up, look at your donation/sell pile. You might think you’ll have great luck selling some of your items, but I’m going to prepare you for a stark reality. Very few people will want to pay you for your stuff. Most people won’t want it. Yep, even the good stuff. I literally couldn’t give away a Breville Juicer that I only used a few times. None of my friends wanted it.

But give it a try! I recommend the following sources for selling stuff:

eBay
Declutter
Facebook Marketplace
Craigslist
Poshmark (for clothes)
Thredup (for clothes)

The key thing is to not temporarily store things away until you have time to sell them because they will be forgotten. If you want to sell them, take pictures of them right away and store them somewhere that they can’t be forgotten about again (like, near the front door). Give yourself a week to sell everything. If it’s not gone within 7 days, donate or toss.

NOTE: This is a powerful exercise in understanding that idea that once you own something, it’s your problem. Very often it’s not until we want to not own something anymore that we realize how little value it actually has. This is the critical lesson to learn as it will begin to influence how you spend your money going forward.

Take your “donate pile” out to the car

Take your donation pile right to the car or call your local charitable organization that does pickups and schedule a time to have them come pick your items up. Again, make sure they get out of the house asap as you want to feel the benefits of this project as immediately as possible.

Be careful with your “toss pile”

Now for your “toss” pile – this is straightforward although be mindful of what you’re putting in the garbage. Things like paint cans, electronics, and batteries all need to go to special waste facilities. Google your local drop off places and remember – this may be a pain in the ass, but it’s SO WORTH IT.

Step 5 – Take a Moment to Appreciate Your Newly Cleared Space

Now that your space is cleared, take a moment to see how it feels. Yes, you’re most likely exhausted and in need of a glass of wine and a comfy chair, but also consider how your space feels now. Does it give you energy? Are you more excited about what remains in the space?

I hope so! This is just the beginning of your journey, so connecting to the feeling of openness and peace that comes from clearing space is really important. It’s also a good idea to reflect on the stuff that you just invested the last 3 or 4 hours on. Not only did you trade time for money to buy all that stuff, now you spent more time (and time is money) to manage it and you still have more work to do to sell and donate. That’s hours of your life for all those items.

I bet some of them were totally worth it and some were a total waste of time and money. Take a moment to consider what stands out in each category.

This isn’t an exercise in rubbing your nose in potential mistakes. I don’t want you to feel bad about your purchases and things. I want you to feel aware of them. That way you can make more aware choices in the future. Choices that are better aligned with your goals, aspirations and direction in life.

This is what we call the “hard work of getting real with ourselves and our lives”. What you did was a massive step forward. Now go celebrate your efforts with a little self-care, whatever that means to you, as long as it’s not shopping, of course ?

Emotion Vs Logic: How we really buy cars (and please weigh in on my car choices)

March 7, 2018 by CM 4 Comments

***

My car lease is up in exactly 18 days and I have no idea what I’m going to do.

First off, yes, I leased a brand new car, which is something I’d probably never do again. I also bought a highly inefficient, gas-guzzling SUV, which is a little out of character for me.

Go ahead and judge, I deserve it.

Ironically, given how much I’ve expanded my awareness about my financial choices over these last few years, I’m now so focused making the right choice that I’m paralyzed with fear about making the wrong one.

So in typical OCD form, I’ve analyzed the shit out of my car buying process and I’m sharing it with you so you can spare yourself the obsessive energy expenditure when you’re ready to buy your next car.

First off, do I actually need a car?

I live in the birthplace of Lyft and Uber. I work from home 75% of the time and have access to my husband’s car whenever I need it (provided he’s not using it), so why buy a second car at all? After much thought, I decided that this would be an awesome financial choice until it becomes a bad marital consequence. As a fiercely independent person living deep in the burbs, having to check if I can use my husband’s car every time I leave the house would get old very quickly. Having my own car is symbolic of having my own life. No amount of Uber rides will combat that.

[bctt tweet=”Emotion vs logic: How to think about your next car purchase (and please weigh in on my top 4 picks).” username=”fundinghappy”]

Should I buy new or used?

The Case for Buying a New Car (it’s weak)

Since last year, I’ve been squirreling away “car money” in anticipation of this day. I have enough saved to buy pretty much any car I want (non-luxury) in cash, but do I really want to put 30 – 40K into something that’s going to sit in my driveway 80% of the time? The answer to that is a hard no. The only way I’d consider leasing or buying new again is if made sense to do so through my LLC with pre-taxed dollars. But given that I work primarily from home, it’s not clear that this is the right choice for me.

The Case for Buying a Used Car

According to the experts, buying a 2 to a 3-year-old car with low mileage is the best value. My options are:

Honda Fit
Fiat 500e (electric)
Chevy Volt (hybrid)
Mini Cooper (not practical, but super cute)

Ideally, my choice will be:

Environmentally friendly
Cheap to own/drive
Cute/Stylish (yes, this is important)

I think all three of these priorities are met with my choices above except for the Mini Cooper which is neither environmentally friendly nor cheap, but again, it’s damn cute.

From a pure cost perspective, the Honda Fit wins hands down, but from a style perspective, it’s the least appealing. I know the Mustacians love it, but to me, it just screams “MEH”.

The Fiat 500e is also very affordable and a good environmental choice since it’s a fully electric car, but with an 87-mile range, it would be a huge source of road anxiety that I’m not sure I’m up for. But it’s also really darn cute.

The Volt is a good, solid, economical and environmental choice, but I don’t really connect with the car. It’s not “me”.

What? Am I actually going to buy a car based on my connection with it?

Ah, yeah, and research says that you do this, too. Brands exude a personality that we either connect with or repel against based on who we are. We also buy into the narrative of a brand. So, the option to buy a fully electric car speaks to my internal narrative about being environmentally conscious. But then, if I really wanted to express that idea, I wouldn’t own a car at all. I’d bike or walk everywhere.

On the other hand, if I opt for the Cooper Mini, I’m expressing the fun, stylish side, that could also be considered a minimalist car, right? Mini… minimalist… <-get it?

What’s Your Point, Caren?

My point is that I’m trying my best to make a significant purchase based on my newly acquired values around spending less, saving more and funding only those things that really make me happy. But no matter how badly I want to make a decision based on logic, apparently my emotions still need to buy into the choice as well. Otherwise, I know I’m going to live to regret whatever decision I make.

Why do I know this? I bought my wedding dress based on logic. It was nice, but I really wanted a strapless dress and the one I bought was a halter style. I bought it because it was under $500 and didn’t need a single alteration. To this day, I wish I had used more emotion in that decision and just bought the dress I really wanted. I’m trying really hard not to repeat history with my car purchase.

So what’s the verdict? What car am I going to buy?

Not sure yet. I’m going shopping on Saturday and plan to make a purchase in the next two weeks. I’ll let you know whether logic or emotion wins outin the end. I hope and suspect it will be a healthy dose of both, but I guess we’ll see!

What do you think about the choices I’ve made? If you’ve had any experience with any of the brands I’ve mentioned, please feel free to weigh in! I know nothing about cars.

3 simple rules to fix a mindless shopping habit.

February 24, 2018 by CM 2 Comments

The other day I was in the city to meet a friend for dinner. I was early, so I popped into Athleta to kill some time before our reservation. If you’ve been reading for a while, you know I’m mildly obsessed with yoga pants. They are my uniform, an absolute pleasure to wear, and one of the few things I never seem to have “enough” of.

So naturally, I came across a cute pair of gray leggings with white horizontal strips and my heart was aflutter. Lucky for me, they didn’t have my size, so I made a mental note and headed off to meet my friend.

The next day, I’m on Athleta’s website checking out these babies. Aren’t they beautiful?

They’re pricey, but that’s not what prevents me from buying them. As my finger was ready to hit that buy button, I asked myself – what are these for, Caren? Are they really going to make me happier than I already am?

The short answer would typically be “hell, yes”, because I know I’d wear them on walks, to do yoga, meeting friends or curling up with hubby + dogs on the couch to watch a movie. I’d wear them for all the best moments of my day.

But I already have 18 pairs of leggings to do that in. I had to draw the line.

As much as I love leggings, buying more of them won’t bring me appreciably more pleasure and the thought of filling my drawer with one. more. thing. after all the painstaking effort that went into purging over 50% of my wardrobe left me with the right answer:

Leave them be.

I don’t need them.

I have enough leggings (<- did I actually just write that?)

So here are my first two takeaways:

Rule #1 – Stay out of stores when you’re not shopping for something specific.

Never browse. You will always find stuff you love, but don’t need. Avoid temptation by avoiding knowing what’s out there.

Rule #2 – Before you buy anything online or in a store, pause and ask yourself:

Do I really need this?
Will it add to my long-term happiness (we know it will in the short-term)?
Do I have at least 5 other things to wear with it and 5 places I can wear it to?
After everything I’ve done to reduce clutter and spending, does this purchase still feel like a smart decision?

If you can say yes to all of the above, buy the thing. This isn’t about deprivation, it’s about conscious, smart spending and funding the areas of your life that bring you happiness. If it’s a no, put said thing down and move on. Pat yourself on the back while you’re at it because that was a badass choice you just made.

How to avoid mindless online shopping

Have you become addicted to Instastories yet? I have. I love watching clips of people’s day. It’s fun and I often get inspired by the food and fitness videos I see. However, the proliferation of “swipe up to buy” has become so obnoxiously overused, I’ve had to stop following a bunch of people I otherwise love watching!

I am going to point a finger at fashion bloggers for being the worst offenders of this bad behavior. I am all for bloggers making money from their work, and I have no issues with affiliate marketing, but why does every damn thing need to be linked? I don’t care where you bought your non-slip socks, diaper bag and the sweater that comes in 19 colors.

Please stop!

Anyway, perhaps you don’t fall for the constant temptations, but I do. And every time I find myself on a website with a cute pair of something that’s not only on sale but offers free shipping, I have to walk myself through those questions above and it gets harder and harder as the day goes on.

Plus, we know from research that if we’re tired, sad or in a post-wine state, we’re way more likely to make reactive, unnecessary purchases. I don’t know about you, but when I’m headed to Instagram, it’s typically when I’m in one or all of those three states.

Rule #3 – Until fashion and lifestyle bloggers can learn to behave themselves, step away from InstaStories indefinitely.

What about you? Are you with me on the swipe up madness? Do you need to be more conscious about your shopping?

Smart Spending Strategies for Makeup + Hair Care Products

February 17, 2018 by CM Leave a Comment

As an aspiring minimalist, my make up drawer is a total #fail, but truth be told, I don’t care. When it comes to fitness and beauty products, I’m a-okay on thoughtfully spending money on looking and feeling my best, because that has a positive impact on my life in a lot of ways.

I’ll get into fitness-related savings in another post, but today, I want to share some ideas on saving on your cosmetics. These are my general guidelines around buying beauty products. If you have other ideas to add to this, I’d love to hear about it!

[bctt tweet=”Tips for saving a bundle on hair and beauty products (my personal weakness). ” username=”fundinghappy”]

Drugstore brands provide better value than high-end brands.

Personally, I think makeup looks best when it’s appropriately matched to your skin tone and applied well, regardless of how expensive it is. As someone who has been a long-standing fan of Mac lipsticks (which are $23 a tube), I can appreciate higher quality at a higher price, but keep in mind this simple fact….

A $23 lipstick has to look and perform 100% better than an $11.50 lipstick to justify the 100% increase in price.

Now, while I like Mac lipstick, I don’t think it performs 120% better than my Revlon color stay that was only $7.99. That said, you might think a certain foundation, lip plumper or eyeshadow is 150% better than every other brand on the market and if that’s the case, stick with it! This is about understanding the value of what you’re investing in and appreciating how it benefits you. It’s not about getting the cheapest brand available.

Overall, you’re going to get a better bang for your buck in a drugstore and as cosmetics only continue to improve, I’m inclined to always start there before going to pricier brands.

Bonus Tip: Got a high-end brand you love but it’s super pricey? Check out this “dupe” list to see if you can get a less expensive alternative!

Cosmetic Subscription Boxes Aren’t Worth the Investment.

Personally, I have only tried the FitFabFun box and Ipsy, but I can unequivocally say that unless you have a very high level of control over the products you get shipped, it’s probably not worth the money. For even though you get a high volume of product in many cases, generally 50% or less of it will be items you will actually wear. I have a drawer full of cosmetic samples that I probably won’t wear because the color is meant for someone with a very different skin tone than me. In the case of FitFabFun, I continued to get things like weird scarves and beach blankets that I would never use and would end up in a donation pile. $49 is a great price for a box full of beauty and lifestyle products, but only if it’s stuff you can actually put to use. If it’s not, it’s just more clutter.

I recommend staying away from these subscriptions. They just add to the clutter in your bathroom and the products are very hit or miss. You would be better off taking the funds you would invest in the annual subscription and applying it to products that are perfect for you.

If you find something you love buy it in bulk.

One thing I don’t skimp on when it comes to beauty products is my shampoo. I have some hair extensions in my hair (more on that in a moment) and I have to be really careful about using sulfate-free products or they won’t last. Personally, I swear by Living Proof because it keeps your hair cleaner, longer so I can go 4 to 5 days without washing (with the help of a little dry shampoo as well). Living Proof isn’t cheap, but because I only wash my hair 2 to 3 times a week, it’s still a good value, particularly when I buy it in bulk from Amazon.

Buy Hair Extensions on eBay.

I wear a few extensions in my hair for fullness as my hair is super fine. If you’ve ever explored extensions, you know how crazy expensive they are!! $130 a bundle (which is just a few strands) is not unusual and I find that they only last 3 to 6 months before they start looking pretty gnarly. But then I discovered that you can buy them on eBay for less than half the price, AND free shipping! I was a little apprehensive about the quality, but I bought two bundles for $60 and they look and feel amazing. I’ll never pay full price for extensions again.

Bonus Tip: eBay is also a great place to find cosmetic brushes, eyeshadow palettes, and other makeup products that don’t expire.

Get your Retin-A online, from Mexico.

If you want to save on Retin-A, I have heard from a number of people, that you can buy it in Mexico at a fraction of the cost. I’m not going to link to anything here because I haven’t done it myself, so I don’t want to suggest anything I’m not personally familiar with, but I plan to and will report back when I do. Meanwhile, the folks I know who have done this are trustworthy, so I have no qualms about giving it a try. PS, you don’t need a prescription for it down there.

Got any strategies for saving on health and beauty products? Please share them below!