I Have My Coach Bag, I Am Officially Done

Call me crazy, but my one guilty pleasure in life is my obsession with my infamous Coach bags.  It has been a lost tradition of mine, due to my own personal recession, to treat myself to a brand new Coach Bag annually.  Although, I have always been money concious about this splurge  of mine by selling the old one to put money towards the new shiny replacement, as well as shopping the Outlets only for a discounted purse, I am well aware that $300 plus purses are ridiculous.  But guess what?  I DON’T CARE!!  I WANTED IT AND I GOT IT!!

Don’t get me wrong, I had much anxiety along with excitement behind this purchase.  I know my partner in crime is going to speak her mine big time about this one.  I also know that I cry broke every other day and this purse is definitely going to hit me hard.  I have visited the Outlets on numerous occassions this year and passed up the temptation to spend.  This time around, I had it all planned out the moment I knew I was headed to Gaffney, GA.  I was so excited that I practically dragged my 3 year old from the car through the outlets, to (music in my head)  the  COACH store. $200.00 later and a savings of $377.00, I left the store with my bag.  YES!!!  I know I preach overspending and never ending overconsumption in this blog, but this is IT for me and I am going to be so happy going to work tomorrow with my brand new bag and my year of “No New Things” has officially begun.

This is my magical bag that is going to get me through a year of frugal living and no new things.  Some of us need a coach, some therapy and there are those of us that turn to numerous of ther people and things for support.  I turn to my bag  that is large enough to store all of the money that I will be saving in 2010.  So the journey begins.

I Could Be A Millionaire

Why not buy anything new in 2010??  The statistics speak for themselves.  It’s called hyperconsumption.  Not only are Americans loosing their jobs, homes, cars and retirement savings, but we have lost our minds!!  Check out these statistics.

• 12 percent of the world’s population lives in North America and Western Europe and accounts for 60 percent of private consumption spending, but a third of humanity that lives in South Asia and sub-Saharan Africa accounts for only 3.2 percent. WorldWatch Institute
• Half the world lives on less than two dollars a day – source: GlobalWatch. 
• In 1950, the global population was 2.6 billion people. We had 53 million cars- which works out to be one car for every 50 persons. Today, there are over 6 billion people and 500 million cars-more than one car for every dozen inhabitants. Sierra Club (lots of fascinating facts on that page)
• If the Chinese consume resources in 2031 at a level that Americans do now, grain consumption per person there would climb from around 600 pounds today to around 2000 pounds needed to sustain a typical western diet. This would equate to 1,352 million tons of grain, equal to two thirds of all the grain harvested in the world in 2004. OneWorld
• In 1950, Americans consumed 144 pounds of meat and poultry per person on average. In 2007, that shot up to 222 pounds. Factory Farming Campaign.
• Global oil production is currently about 81 million barrels a day and is predicted to fall to 39 million barrels a day by 2030 due to diminishing resources (see Peak oil). Source: Energy Watch Group via Guardian
• In 2003, gasoline consumption per capita in North America was 1,593.1 litres per person, whereas in developing countries it was 59.2 litres per person. World Resources Institute.
• Atmospheric carbon dioxide levels in November of 1958 were at 313.34 parts per million. In March 2009, levels were at 387.41 parts per million, an increase of over 20%. Carbonify.com
• Industrialized nations, representing only 20% of the world’s population, consume 87 percent of the world’s printing and writing papers and global production in the pulp, paper and publishing sector is expected to increase by 77% from 1995 to 2020. The pulp and paper industry is the single largest consumer of water used in industrial activities in OECD countries and is the third greatest industrial greenhouse gas emitter, after the chemical and steel industries. Co-op America
• The average American buys 53 times as many products as someone in China and one American’s consumption of resources is equal valent to that of 35 Indians. Over a lifetime, the typical American will create 13 times as much environmental damage as the average Brazilian. Sierra Club via CNN
• South Australia is the driest state in the driest continent in the world, yet it’s water consumption is 445 litres per day per person (2001/2002) according to Environment SA. Australia’s average per person water consumption was 493 litres per day.  In the USA, average water consumption per person in 2008 was 575 litres daily. China’s daily per capita consumption in 2006 was 86 litres according to Data 360
• The world’s annual consumption of plastic materials has increased from around 5 million tonnes in the 1950s to nearly 100 million tonnes today. WasteOnline
• The USA’s electricity consumption per capita is 12,343.098 kWh per year and 71.4 % of that electricity is generated via fossil fuel. Australia’s consumption is 10,252.432 kWh per capita, with 90.8 % fossil fuel dependent. German consumption is 6,366.428 kWh per capita with only 61.8 % of that fossil fuel generation dependent. NationMaster
• Between 2000 and 2005 around 10 million acres of forests were lost per year in South America, which incorporates the might Amazon forest. The land is cleared primarily for cattle ranches and soybean plantations. Only 20 – 25% of  Brazilian soybeans are used domestically; most is exported overseas for use in food, textiles and increasingly – cattle feed. Choices Magazine and Monga Bay
• The food we eat now typically travels between 1,500 and 3,000 miles from farm to our dinner plate (also known as food miles). The distance had increased by up to 25 percent between 1980 and 2001. Leopold Center for Sustainable Agriculture at Iowa State University
• To grow a pound of wheat requires around 130 gallons of virtual water. For meat, depending on the type – multiply that by five to ten times. Water Footprint
• Global coal consumption in 1980 was 4,129.498 million short tons. In 2006, it was 6,743.786 million short tons. Coal consumption is projected to grow at about 2.5% per year over the next 20 years. US Department of Energy

Simply put, we could learn alot from other countries.  Sounds to me like we are the richest, poorest country and we are quickly diminishing our resources.  I could truly be a millionaire if I adopted greener and more resourceful habits. How about you?

Preparing for My Challenge

I am definitely the spender in this relationship.  I just love new shiny things, whether I need them or not.  If there is money in the bank, its meant to be spent so not only has this become a wasteful habit as I am constantly replacing the old with the new, but it has contributed to the big D….DEBT.  So as I prepare for my year of reducing, reusing and saving money, I have found the following tips to live by for the next 30 days leading up to 2010:

1. Examine your spending habits. Are your buying decisions motivated by your own values or by advertisements? Don’t be influenced by consumerism and an obsession with spending.
2. Stay home. If you don’t need to shop, don’t go shopping simply because you are bored. Don’t use shopping as a recreation or amusement.
3. Leave the money at home. The easiest way to not buy anything is simply not to take any cash, checks, debit cards, or credit cards with you when you go out. At most, take a small amount of cash with you for emergencies.
4. Avoid plastic. Try putting your credit card in a container with some water and freezing it. That way you have it for holidays and emergencies but not just to go buy stuff. Or, better yet, give it to a relative you can trust.
5. Buy used. If you really need something and haven’t been able to beg, borrow, or dumpster-dive it, go to a thrift shop and get one for pennies on the dollar. Online auctions and yard sales are also good, although there is still the temptation to buy “stuff” you don’t really need.
6. Pay cash. Studies show the average person spends less when paying with cash and much more when paying with credit, possibly because when you use a credit card it feels as though you are not parting with “real” money.
7. Make a budget and stick to it. Don’t treat your budget like a New Year’s resolution. While creating and sticking to a budget requires self-control, it’s a really good way to get your finances under control and avoid accumulating a pile of crippling debts and a bunch of worthless crap in the process of destroying your self-respect.
8. Make a list and stick to it. Make purchasing decisions at home, where your needs are apparent, instead of in stores where shelves full of other products will distract and entice you. A list can also help you postpone and consider purchases and consolidate trips out.
9. Ask yourself some questions. Will I use this every day? Will I use it enough for it to be worth buying? How many hours did I have to work to pay for this? Employ the 3-month forecast. Ask yourself if you’ll still be using the product regularly in 3 months. If you have lived this long without it, do you really need it? If you move frequently, contemplate whether this purchase is really worth hauling around each time you move. If you don’t, ask yourself if it’s worth sacrificing some of your precious living space to own it.
10. Repair, don’t replace. If you shopped carefully and got good service out of something, don’t assume you have to replace it when it breaks. A good repair shop might be able to restore it to “near-new” condition for less than the cost of a replacement, and you won’t be adding to the landfill problem.
11. Try to get things you need or want for free. In a surprising number of cases you can get whatever you need without spending a dime.
    • Check local “free sales”. Visit websites such as freecycle, Freesharing or Sharing is Giving. These sites are so useful precisely because so many people buy things they don’t need or replace perfectly good things with similar but newer things. You can decide to be smarter than that.
    • Borrow. If you need a product for just a short time, why not borrow someone else’s? There’s no shame in borrowing as long as you are willing to reciprocate when someone needs to borrow something of yours.
    • Try bartering. Your past extravagances have probably left you with a lot of things you no longer need, but which other people may want. Experience some of the gains from trade that economists are always talking about.
12. Oh, my! This would look nice in the bathroom.

    Avoid shopping malls, if possible. If you need to purchase something, go to a store that sells that thing. Don’t automatically head for the mall, where you’ll likely get lured into buying things you don’t need. Also, mall stores tend to be high-priced since the rent is high for those spaces. If you go to the mall just to hang out with your friends, consider finding new hobbies, or new friends. If you have to walk through a shopping mall to get to a restaurant or a movie theater, keep yourself engrossed in conversation (either with yourself or your companions) so that you don’t focus on your surroundings. Concentrate on where you are going, but pay no attention to the stores along the way.

13. Use the buddy system. If you go out with friends, you may find that you enjoy yourselves so much that you don’t even feel like buying anything. You could all make a pact to prevent purchases. It’s kind of like a 12-step program to escape the consumer culture.
14. Avoid unnecessary upgrades. Yes, that new toaster has a little chime and can toast eight slices at once, but seriously, how often do you need eight slices of toast at once? Our consumer culture pressures people to replace perfectly good products with newer products for silly reasons, like fashion. Remember, an avocado-colored oven works just as well as one that’s mango-colored.
15. Buy for durability. If you decide to purchase something, choose something that won’t wear out, or won’t wear out quickly. Also avoid purchasing items that will go out of fashion. Think through how you will use the item and how your choice will meet your needs for as long as possible. Thinking in the long term, a more durable item costing 30% more up front will still save you money if you can use it twice as long.
16. Buy for easy compatibility. If you really like an item, think carefully about how well it will work with what you have already. Maybe a clothing item is fresh and flattering, but if it doesn’t coordinate well with at least two or three pieces you own, you’ll either get limited use out of it, or worse, you may ‘need’ to buy more to use it at all.
17. Use the “Rule of 7.” If something you want is over 7 dollars, wait 7 days and ask 7 trusted people whether this is a good purchase. Then buy it if you still think it is a good idea. This rule will curtail impulse buying. As you get more financially secure and have a larger disposable income, you can gradually increase the threshold upward from 7 dollars.
18. Make gifts for people. Use your own skills (or learn a new skill) to make gifts that people will remember long after they’ve forgotten store-bought presents. Don’t forget that gifts needn’t be wrapped. You can make a gift of time or skills, too. Remember the lesson of The Gift of the Magi: it really is the thought that counts. Money can’t buy you happiness or self-respect or any friends worth having.
19. Tax yourself. Every time you make a purchase over $10 (or $50 or whatever limit you choose), take 10% of the price and put it into your savings or your investments. This way, you discourage yourself from buying something just because the item is “marked down” or “a bargain” and boost your financial security every time you make a significant purchase. If you use a debit card or a credit card, try using one that has a savings program, American Express offers a card with a savings account and Bank of America offers their “Keep The Change” program to automatically transfer money into your savings account.
20. Grow your own food. If you have even a small garden, it’s easy to grow your own food.
21. Ask Yourself the 3 Questions – WANT, NEED and AFFORD Can I afford it? Do I Need it? and Do I Want it? If your answer is YES to all the 3 questions then you can buy it.