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Episode 2742:
Dori Cameron explores common misconceptions that lead to unnecessary spending in "5 Myths That Result in Excess Spending." By debunking myths such as the beliefs that items can always be returned, sold, or donated, Cameron encourages readers to reconsider the true cost and value of purchases, advocating for more mindful consumption habits to save time, money, and space.
Read along with the original article(s) here: https://www.becomingminimalist.com/myths-that-cause-overspending/
Quotes to ponder:
"When you have that George Foreman grill in your hands, it seems like a great idea."
"A rule of thumb when making a purchase is to assume it has no resale value."
"Is there a better way to give back to others or your community than dropping off used goods at a thrift store?"
Episode references:
Beyond Belongings Blog: https://beyondbelongings.wordpress.com/
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[00:01:16] from Optimal Living Daily. This is Optimal Finance Daily, episode 2742. Five myths that
[00:01:25] encourage excess spending by Dori Cameron with BecomingMinimalist.com. And I'm your host and
[00:01:32] personal finance enthusiast Diana Mariam. Now let's get right to it and continue optimizing your life.
[00:01:43] Five myths that encourage excess spending by Dori Cameron with BecomingMinimalist.com.
[00:01:51] It happens in an instant, the internal dialogue you have when considering an online or in-store
[00:01:57] purchase. For some people it's buying and restoring furniture, for others it's electronics.
[00:02:04] Whatever it is that you're considering buying, bicycles, clothing, household items, here are
[00:02:10] five myths that encourage excess spending you want to overcome. Number one, the I can always
[00:02:18] return it myth. The opportunity of returning an item is a common justification of excess spending.
[00:02:25] When you have that George Foreman grill in your hands, it seems like a great idea.
[00:02:30] Thinking you can return it to the store if you don't like it makes spending that $30 an easy
[00:02:36] decision. But have you considered the amount of time and effort that would go into the return?
[00:02:43] Surely you would have to store the packaging it came in, keep the receipt, clean it, repackage it,
[00:02:49] travel back to the store for the return, wait in line, and hopefully get a refund.
[00:02:54] Each store has a different return policy and rules that vary. Is the return policy 14 days,
[00:03:01] 30 days, 60 days? Does the item need to be unopened? What happens if you misplace the receipt?
[00:03:09] There are so many nuances involved with returning items that it can quickly become a hassle. Is
[00:03:15] there another way you'd like to spend your afternoon than waiting in a target customer
[00:03:19] service line? If you're thinking I can always return it, the item may not be something worth
[00:03:24] purchasing in the first place. Number two, the I can always sell it later myth.
[00:03:31] Selling online has evolved from eBay and Craigslist to smartphone apps that are incredibly easy to use.
[00:03:38] The LetGo app allows you to take a photo, name your price, and even generates a title for your
[00:03:43] item based on your photo. The app pulled items for sale in your area, creating a virtual endless
[00:03:50] yard sale. You would think it's easy to sell online given all these new tools and apps,
[00:03:55] but the ease of use increases the number of items posted for sale. Selling unwanted items also
[00:04:03] requires time, planning, and thought. How many messages do you check from people interested in
[00:04:08] your item? How many of those people scheduled to come see it but don't show up? How much time have
[00:04:14] you allotted to meet with potential buyers only to not make as much money as you expected?
[00:04:20] Of course, there are some people who run very successful resale businesses,
[00:04:24] but to others it becomes quite the time burner. Was selling your old iPod Nano for $25 worth the
[00:04:31] time and energy spent on the sale? Is there something else you would rather do with your
[00:04:36] time? A rule of thumb when making a purchase is to assume it has no resale value. Saying to yourself
[00:04:43] I can always sell it later before a purchase assumes that a buyer will follow through with
[00:04:48] the sale at the exact time you want to sell it. All variables which are not guaranteed.
[00:04:54] Number three, the I can always give it away if I don't use it myth. If reselling your clothing
[00:05:00] online via the Poshmark app doesn't work, you can always give it away, right? Surely there's a
[00:05:06] roommate, neighbor, or thrift store that could benefit from the blazer that's a bit too snug,
[00:05:11] but you purchased because it was on sale. By placing perceived value on your clothing,
[00:05:16] you're assuming that a thankful recipient is waiting for and ready to accept your donation.
[00:05:22] In the US, fast fashion clothing stores are creating a surplus of clothing in both retail
[00:05:28] and resale stores as well as landfills. Is there a better way to give back to others or your
[00:05:34] community than dropping off used goods at a thrift store? Becoming more mindful about your internal
[00:05:40] dialogue when shopping online or in person is key and could leave you with extra time and money
[00:05:46] to use in more fulfilling ways. Number four, the I can always repair or restore it myth.
[00:05:53] I admit there are times when I purchased a desk or coffee table that needed a little TLC. In my
[00:06:00] mind, I was seeing the item in its complete restored glory. But how much money and materials,
[00:06:05] sanding tools, paint stripper, stain, finish, would it really cost to restore? How much time
[00:06:11] would I need to invest in the restoration? There are those who find great joy in restoring
[00:06:17] furniture, jewelry or cars. But the average person may not have the motivation, tools or skill to
[00:06:24] repair or restore these items. If you're thinking, I can rebuild that engine, or I can restore this
[00:06:31] mid-century dresser to its full glory. Consider the time and materials involved before making the
[00:06:37] purchase. You may end up realizing there's a different way you would rather spend your time
[00:06:42] and money. And number five, the I can always put it into storage until I need it myth.
[00:06:50] On-site and off-site storage is extremely common in the US. If you go into someone's basement,
[00:06:55] attic or garage, you're bound to find seasonal or barely used items.
[00:07:00] When buying items used so infrequently that they must be stored out of sight,
[00:07:04] consider your alternatives. Do you need to have your own bike even though you could rent one
[00:07:09] instead? Do you need to hold on to old toys for the third child you may or may not end up having?
[00:07:16] Have you considered how a wet basement or a hot storage unit will affect your belongings?
[00:07:22] When deciding to store items or let them go, I like to consider the joy factor. Is there someone
[00:07:28] else who would get more joy out of the bike you're not using or the toys you'll likely donate straight
[00:07:33] from storage? When you're in buying mode, ask yourself where in your house the object will
[00:07:39] likely be a year from now. If you picture your purchase collecting dust in the garage, you may
[00:07:45] be better off not making the purchase at all. These five myths arise in order to justify purchases we
[00:07:52] may otherwise not consider. There's joy to be found in the things we purchase. The goal is to
[00:07:58] practice being more mindful about the things we do buy. You just listened to the post titled,
[00:08:07] Five Myths That Encourage Excess Spending by Dori Cameron with becomingminimalist.com
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[00:10:13] visit Acorns.com. I think it's important to remember that we've been culturally conditioned
[00:10:19] to be consumers. And so the mental justifications described in this article make a lot of sense.
[00:10:26] I think it takes a huge mindset shift to be more intentional about spending.
[00:10:31] And I also think it requires slowing down to be more thoughtful. We all move so fast through our
[00:10:38] days, getting things done, making decisions, etc. I think slowing down and taking our time
[00:10:44] to make a purchase can help thwart a lot of these justifications. It also gives us space
[00:10:50] to contemplate the trade-offs. Everything we buy comes with an opportunity cost that might not be
[00:10:57] immediately apparent. The accumulation of stuff gets heavy over time. We need to store it,
[00:11:04] protect it, maintain it, etc. When we're not careful, the stuff we own starts to own us
[00:11:10] and occupy too much of our headspace. And finally, when we slow down, we open up more opportunity for
[00:11:16] creativity and resourcefulness in getting our needs met. But that should do it for today. Have
[00:11:22] a happy rest of your day, and I'll see you on the Thursday show tomorrow where your optimal life awaits.