Three Passive Barriers I Use to Counter Consumerism
Published on - June 3rd, 2010 (Modified on - June 18th, 2010) (by Adam Baker) This video post is by staff writer Adam Baker. Baker previously featured a post on his own blog entitled, Dave Ramsey Vs. Suze Orman.
Passive barriers are those small mental impediments that keep us from making smart choices. Things like over-drafting your bank account because you’re too lazy to stop by the bank to make a deposit, or not going for a run because it’s a pain to get your exercise clothes together. But while passive barriers can prevent us from meeting our financial goals, they can also be used as a force for good.
In the video below, I discuss three passive barriers (some might call these money hacks) that my wife Courtney and I use to help fend off consumerism. In the past, we’ve had these sorts of barriers work against us in our finances. It feels good to turn the tables.
Rather than just have passive barriers that work against us, Courtney and I decided to install some that would work for us! In the video above, I discuss the following concepts that have worked well for us:
- The 30-day list for Wants – [1:20]
- Two items out for every on item in – [2:40]
- Experiences over possessions – [3:55]
The trick for us is to make these consistent. Whenever we face a buying decision, we want it to pass through these barriers. If it makes it through, then great! There’s nothing wrong with purchasing something valuable or that we’ll really enjoy.
Using these barriers helps to ensure that our spending is as intentional as possible. They counteract (and even replace) our old barriers and justifications. Of course, these are just three examples of dozens that could be effective.
I’m sure that many of you use similar methods. What barriers or filters have you experimented with in your life? Let me know in the comments below!
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Here are mine:
I don’t consider shopping a form of entertainment or a past time.
I perceive of and talk about shopping malls as places designed explicitly for consuming.
I don’t watch TV, don’t own one. I throw junk mail out and don’t attend to sales, specials and all junk that keeps your brain engaged with consuming. I don’t accept those store member cards. In short, I distance myself from the machinery and gimmickry of consumption, in ways that give me control over what, when and how I buy. I like online shopping for this reason.
I give gifts of being with someone, like taking them to dinner, rather than buying them something. I try to leave the country once a year for a reality check.
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I really concentrate on experiences over items. I love my memories of our vacations way more than I’d enjoy a new knick-knack. For my last birthday, my husband took me on a picnic and we fed the ducks. I love that kind of thing!
Our ultimate barrier is each other. When either of us want to spend more than $20 on something other than regular expenses (like groceries), we mention it to the other spouse. It helps us keep things in perspective rather than going consumer crazy.
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Interesting post. I like the 2 for 1. The only trouble with my wife and I, we already have next to nothing. I think we’d probably keep the folding chairs when we end up buying a set of kitchen chairs. Or books, I like to keep them for reference. With that said, I love the idea of getting rid of a pair of shoes when you buy one. Unless you really need the additional shoes for your job, there’s no reason to just collect for the sake of collecting (at least for me).
One that we really live by is to wait 6 weeks before a purchase. We don’t always follow it, but it works well before buying anything significant.
Great post.
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We’ve started reducing the amount of things that we have this year, and the idea of getting rid of 2 things for everyone brought in is a great one – I’ll have to run this by the wife!
I’ve also found that waiting 30 days – or at least overnight – certainly cuts down on the amount of stuff i actually buy.
Love the idea of purchasing filters!
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All three are great ideas, but they seem more like “active” barriers in that you have to remember to do them. At least until you make them a habit.
A passive barrier would be, to me, something like putting your credit card in a block of ice. (Or even just leaving it in a drawer so you have to go get it if you want to spend money).
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My sister in law and I just had this conversation the other day. Because she tends to be an impulse buyer. Her faves to help keep her at bay… making a list of her wants and waiting 30 days. She said by the end of 30 days… she usually doesn’t even want it anymore. go figure!
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An expansion to the 30 day list is the secondary and tertiary list. Once it has survived 30 days or list 1, move it to list 2. Once, it’s been there, move to list 3.
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Passive barrier to impulse shopping in general: the Amazon wish list.
Passive barrier to impulse shopping at the grocery store: don’t go when hungry.
Passive barrier to impulse shopping at World Market: don’t go unless we are seriously out of wine.
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I simply ask myself the following question:
If I use my money now, what will this do for me in the short and long term?
Will this help me in my everyday life a while from now?
Or will this simply be an self-indulging act for short-term benefit? (like going to eat out)
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I don’t know… seems like you’re overthinking it, but I guess some people need to structure these things. I try to follow the principles “If you can’t afford it, don’t buy it” and if it’s a big item I think on it for at least one night.
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I bent my credit cars so that they are not ‘swipeable’-I actually have to stop and give the card to the cashier who in turn must manually type in the numbers.
A major and embarrasing hassle-works for me!
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The video does not show up on the iPad.
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Cesar, why do you think that is? Actually, you probably know why that is. As a fellow iPad owner, I’d argue the correct response here is to tell Apple, not me. They’re the ones who don’t want to support Flash on mobile devices.
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My passive barriers are just stay out of the store and then you can’t want what you don’t know you didn’t need to begin with.
Whenever i think i need something (food included) i look around the house and ask myself is there something already here that will work. Most times i can answer with a yes.
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I cancelled all of my credit cards just as the big credit crisis hit at the end of 2008, and have forced myself to live within a budget since then. That absolutely made me think more about every purchase since the payments wouldn’t be deferred.
I still make some impulse purchases and I really like the idea of creating barriers to consumerism in my life. I will adopt all three of these and see how they work for me, thanks!
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@ JD
Well, I disagree. But i admit my reasoning is based on what several friends in the field have told me and not from personal experience.
My programming friends say it is just as easy to have your video in flash as it is to have it in html5. so if you can reach more people by not using flash, why wouldn’t you — aside from the whole “I’m not going to give into Apple” attitude some people take, which i think is weird. but there you go. Apple doesn’t control your site. It influences it, but you are in control. I love my ipad and would love to see your vids on it.
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I’m with Sam. My friends and I used to go out to lunch and shopping for fun. I’d end up buying tons of stuff I didn’t really need. (Not to mention all the calories!) Now that I’m not friends with most of those people anymore, I choose to do different things with my time- volunteer, craft, hike. I still enjoy a brunch out once in a while–but it’s once every month or two, not once a week, and I don’t go to the mall to browse anymore. I shop when I need something, I go in and get it, and come out. If I see something in the store that I am tempted to get, I put it in the little child seat in the cart and walk around with it for a while, and often by the time I get to the register I think “Do I *really* need that?” and the answer is quite often no.
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Eating out is both a product and a service, and it definitely creates an experience. I tend to indulge in experiential consumerism way too much. If I pay for an experience such as a lovely lunch with a friend or a pair of expensive sunglasses, I should make sure it’s very special. And when they are few and far between, they are even more fun.
I think what you have to remember is that every non-essential purchase is an experience. The marketer’s purpose is to create an experience in a product or service. When you buy something (even something small) from SAKS or Whole Foods or Tiffany’s, there’s a feeling of being part of a luxurious, leisurely community. It makes you feel special.
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I’m a big fan of getting rid of stuff when you get new things- I just need to remember to do it more. It is a really good idea with kids- all of those toys can get out out of hand quickly if you don’t get rid of things on a regular basis.
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I’ve got a pretty good filter – since I’m pretty thrifty and not a fan of shopping in general. But when I’m out and about with my kids, I can get overwhelmed with the “I wants”. My filter for them? Ask them how they’re going to buy it… so far, it’s quite effective. Maybe I’m in trouble though – when they actually earn that money.
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I use Amazon for my 30 day list. If something passes the 30 day test (more like 120 days) I’ll sell some unwanted books or DVDs on Ebay and use that money for the new item.
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I actually figure out how many hours I need to work to purchase the item (if over $100). Then I ask myself if I would work that time in addition to my regular work hours to purchase the item. Typically, the answer is “hell, no!”
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On experiences over possessions, I’d like to point out that sometimes our possessions can create great experiences too.
Case in point: my Xbox 360. It gave me countless hours of great gaming pleasure, and even today my friends and I still recall all the fun we had with our night long gaming sessions.
Geeky, I know, but experiences don’t always have to be vacations.
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I’ve become worse at this lately, largely because I just don’t care so much. I avoid advertisement as much as possible, by not having a TV and only listening to satellite radio, and I think that helps. But really, I just don’t care lately. I spent $1700 on a camera and two lenses a couple weeks ago. Consumerism? Sure. I like my camera, though. I’m putting money in savings faster than I spend it on toys and vacations, so it’s hard to feel like I’m doing anything wrong.
Lately, the whole philosophy behind so much of the “personal finance” discussion on the internet has been lost on me. Everyone’s trying to skim a few percent here, and a few percent there. When you’re right on the borderline between sink and swim, this makes sense, maybe 3% or 5% more gets you out of the “sink” range and into the “swim” range. There’s a lot bigger difference between slowly sinking and barely swimming than there is between swimming alright and swimming really well, though. I may not be Michael Phelps, but I’m definitely swimming alright — I don’t feel like I need to come up with passive barriers or money hacks to try to get up to that olympic level. I just don’t care to be there. I have other priorities.
The experiences thing in particular is interesting — I agree with Baker, experiences often (most of the time) turn out to be much more valuable personally than physical things. But for me, buying physical things isn’t something I’m trading experiences for. It could be, sure, if I went overboard on purchasing things, but the level at which I’m purchasing stuff is well within the sustainable limits dictated by my income. I’m not trading experiences for things — I’m getting both. If it came down to me being able to afford a vacation *or* a camera, and I could only pick one, that’d be something, but that’s not how it is. I can afford a camera *and* a vacation. In fact, my vacation time is limited by my work to 6 weeks a year, and so there’s only so much vacation I can purchase. With what I have left over, why not buy camera, or a new surfboard, or a new bike? By the time next year comes around, I’ll be able to afford another vacation or two regardless. In the last three years, I’ve visited five new countries, I hardly feel like I’m missing out on the opportunity to have new experiences.
None of this is to say that these things are bad ideas. They’re very effective if this is what you’re trying to accomplish. It’s just not what I’m trying to accomplish recently.
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Baker, will give you a free first hour of acoustic guitar lessons, and then every hour after than only $30 bucks! Good price fo u!
Cheers,
Sam
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We use the $100 rule and the $300 rule.
The $100 rule, if something costs $500 we have to wait 5 days (1 day per $100) before we can purchase the item. This gives us time to both contemplate the purchase and do further research.
The $300 rule, if somthing costs more than $300 we have to discuss it as a family and reach an agreement. This is sometimes difficult since there are only two of us and the dog doesn’t really help break a tie. Seriously, most of the time we can agree but the discussion process is very helpful.
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I find I’m not inclined to buy toiletries and miscellaneous cosmetic crap if I avoid the magazines that have all the advertisements for them.
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One rule I have been trying to follow, which isn’t as much about the money as it is about the decluttering is “is there a non-material equivalent?”.
If I want a CD, is it available for download? And if the answer is “yes”, is there any reason to buy the physical copy?
For instance, I bough an album that had all the lyrics of the album with an illustration for each song, all illustrations together forming a story (like a comic without balloons). I felt I was getting an actual advantage there.
However, most of the time, I use a CD only to rip it on my computer, then never again. So, I try to skip the middle man.
To some extent, I do the same with movies, games, books. Is there a digital version, and if so, does the physical one have clear advantages?
I like your 2 for 1 rule, it seems like a good rule for decluttering, and I think I might apply it in some areas. For instance, we have many DVDs we don’t watch, if we do decide to buy a physical ones, I’d like to sell/give two in return. I don’t think it would work as well for me in a general way, but within categories I think it would.
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Thanks for sharing this advice! Overcoming Consumerism takes lots of discipline and practice. Good thing you and your wife are able to keep each other on track!
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Avoid TV commercials like the plague. Since getting my first Tivo years back, I have noticed that my urge for impulse shopping has died to almost nil. Now I don’t subscribe to cable and just use netflix and other sources sans commercials. Commercials are one form of “demand generator”…they make you want stuff. If you avoid them, guess what…no more wanting stuff
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I may be in the minority but I like reading posts more than watching videos.
My passive barrier to buying crap is to not go to the store (or the website!), but I need this passive barrier less and less because I’ve got it in my head that I don’t want or need anymore crap! My true goal is grad school abroad, so I try to filter purchase through that.
I think a fantastic passive barrier in my life has been ditching the car – I always had an excuse to drive somewhere and buy something I “needed” before, and now I can’t! Not without some hassle anyway, which is what a passive barrier is.
However, it’s true that when you buy something you know you’ll use a lot (a bike, pair of shoes), the purchase doesn’t feel like a failure to adhere to your ultimate goal.
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I always think it’s smart for people to acknowledge areas of weakness and come up with ways to strengthen their resolve, whatever the issue might be.
#8 chacha1 – good suggestion about not grocery shopping while you’re hungry. Likewise, if you’re an “emotional” shopper, who purchases too much while you’re angry or depressed. Find healthier ways to cope with those feelings.
Sometimes when I get the urge to purchase a book (one of my weaknesses) I sort through books I already own. Especially the piles of unread ones, lol. The urge to purchase diminishes when I’m reminded of the quantity that I already have. Going to the library serves the same purpose.
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Funny thing for me, I don’t buy enough groceries if I don’t go while I’m hungry. So I end up having to go more often, which ends up costing more time and money. I’ve found making a list while I’m hungry the right solution for me. And then making sure I buy everything on the list.
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But….wouldn’t anyone who rushed out and bought a newly-released & pricy ipad tech-toy not be interested in barriers to passive consumerism? I think that’s why they don’t have flash…
(sorry, couldn’t resist!)
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I love the 30-day idea, yet I have one problem: I’m a gadget nerd and have had items sitting on my Amazon wishlist for ages now, and I still lust after them just as much today as I did when I first put them in, and the totals still go well over a thousand dollars. On top of that, I’m always searching out computer parts to upgrade my desktop with, as well as new laptops that catch my eye. When 30, 60, or even 365 days doesn’t make me change my mind about potential impulse purchases, how would you suggest I can fight off the constant desire to buy the newest gadgets?
The article and video are great, though, and they definitely seem helpful to most people…just not entirely to gadget addicts such as myself.
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Experiences over things. I’ll take it everytime.
http://www.joelrunyon.com/two3/experiences-things
Baker’s starting to get serious about video blogging, huh?
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Adam – where are you getting 2 months of guitar lessons for $100?!? That’s a good deal (or a terrible teacher)!
My husband and I do swing and Latin dancing and it is a blast — I’d definitely take that over a gadget or two!
On the technical side: all of Adam’s videos (regardless of which site) take a significantly long time to load — his are the only ones I have trouble with (and I’m not on an iPad). That 6-minute video took me just over 20 minutes to watch. A different source or a transcript would be swell.
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