Money Moves: Welcome to the Low Buy year
Hi friends,
I hope everyone had a pleasant and relaxing holiday season! I spent a lot of time reading, writing, and organizing my thoughts. I love this time of year, and, though the internet has turned against them, I love resolutions. Really I love any excuse to reflect and picture a better tomorrow.
Inspired by a few writers I admire, I looked back on my goals/resolutions for 2022 to see what didn't work out, and I can't say I accomplished most of what I wrote down ("approach $100k net worth" actually made me laugh out loud. Okay past Alicia). But I also can't say I'm particularly disappointed or feel like a failure in any way. I'm just going to move a few of the resolutions over to this year. Because while you might not accomplish all of your goals in a specific 12-month span, why put a time limit on it? If a resolution still speaks to you a year later, then just keep trying for it. There's no time limit on ambition.
I like to think of my resolutions as guide posts, anyway. As long as I'm not going in the complete opposite direction (unless I actively decide that's what I want), then I feel pretty good about it. Things are rarely as black and white as we make them out to be...although it is pretty funny that I didn't manage to "bake a pie from scratch" in all of 2022. Maybe this year?
In this week's issue:
1. One cool thing
2. Welcome to the Low Buy year
3. Links
One cool thing
In keeping with this week's theme, the one cool thing I want to highlight is this Resolution Planner from NPR. It can help you plan steps to reach your resolution—or give you an idea for one that might not have occurred to you (I love the "waste less food" goal, I also want to start strength training this year!). Some examples: How to stay limber, how to stop procrastinating, how to start a habit, how to win back time as a parent. It even has a fun, interactive chart that can help you get started.
Welcome to the Low Buy year
Right now, my TikTok For You Page is filled with people, mainly women, laying out their rules for a No or Low Buy year. You're probably familiar with these challenges. Basically, participants decide they've had enough—with debt, with consumerism, with not having an emergency fund—and vow to cut back dramatically on their spending. They impose a set of rules, and try to stick to it throughout the year (or month, or quarter, whatever time frame they decide will suffice).
I've been intrigued by these types of challenges for years, though I can never quite convince myself to do one (I successfully completed a low spend month once, and it actually did feel pretty great). This year, though, I think just might be the time. I don't have debt, but I'm generally dissatisfied with my savings, and I'd love to own a home one day. I'm also so sick of being served ads at every turn, of every single thing in this life being commodified. I'm extremely over spending money at the moment.
So I'm following a lot of the people pursuing a low buy year in 2023. Everyone has different rules and end goals, which I love. There's a million ways to do this, and we all have different pain points. The main categories I want to cut my spending in are clothes, food, and books. And while I want to continue to be mindful throughout the year, as long as I have a couple months of where my spending is significantly lower than usual, I'll be happy. January is a reset month—hopefully in a few weeks, I'll be well on my way to accomplishing my goal.
I'm not being overly strict with myself. I know SMART goals are all the rage and you're supposed to make sure yours are measurable and specific, but that just doesn't work for me—if I set a specific number (say, save $x this month) and don't hit, I'm more likely to give up on the whole project. So generally, I'm aiming to keep my spending low, and compare major categories each month to what I spent in the same categories in 2022. If this year's total is less, I'm considering that a win. It's more a vibe than anything else. For me, personally, this is easier to stick to, but your mileage may vary if you're also interested in a low buy/no buy. Some people are the complete opposite, and need a certain figure to aim for, a specific box to check off each week or month, and that's fine. Do what works.
There are a few other rules I'm setting for myself, though I won't get into everything here. I'm avoiding all buy now, pay later products (and I urge everyone else to do the same unless you're financing a piece of furniture or something else expensive that you know you will pay off on time, over time). I am also avoiding Amazon, something I did fairly successfully in 2020/2021, but fell off of in 2022. I'm making a list of things I have the urge to buy, and tracking my spending more closely day to day. I also have other savings and investing goals, and I can only meet them if I cut back my spending in other areas—so I'm hoping all of these goals will work in concert with each other.
I spoke with a woman, Shawna, who has made YouTube videos about low and no buys for a few years. She had a lot of interesting insight and perspective on the challenge, but what stuck with me most about our conversation was that a low spend naturally segued into general contentment for her. Now, that's her aim. She cut her spending, and along with the monetary savings, she also became more grateful for what she already has, as well as for her friends, family, and life, generally.
"There’s so much in your life that is beautiful and is worth celebrating. I’ve been thinking more about the world I live in, being grateful for the people around me, and it can have such a powerful effect on our happiness. We’re not taking any steps to think about being content or happy if we’re always in this ‘next thing’ mentality," she told me.
I've always admired people who can stick to a gratitude practice, but I've never tried one myself. Shawna convinced me to give it a shot. I'm also trying to reframe my thinking—rather than looking at this challenge as a way of depriving myself, it's an opportunity to save for something better in the future, something that will add value to my life in multiple ways.
Something else Shawna mentioned that is worth highlighting is that it's better to have 30% than 0%. What she meant was, if you mess up one day, don't give up on the whole thing—if this is important to you, it's better to cut back on your spending 10 days out of the month than none.
It's always easier to do something when you have a community of like-minded people around you or supporting you. That's why I love the TikToks and YouTube videos and Reddit groups. It can seem overwhelming at first, and comparison can be difficult. But knowing other people out there are doing the same thing as you is also energizing.
As I mentioned above, my goals are usually guide posts. As long as I'm not straying too far from the path I want to be on, I'll feel satisfied with the process.
Links
1. The economy's fundamental problem has changed
2. On aging, mortality, and happiness at 64: A conversation with Mom (this one hits hard)
3. Rookie traders are calling it quits, and they're families are thrilled (this is good..I guess??)
4. The year in Quiet Quitting: A new generation discovers that it’s hard to balance work with a well-lived life
5. I wrote about going back to the (financial) basics, and key points to know about the changes coming to your IRA/401(k) this year
Have a great week,
A
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