@Simplify
I've thinking about how to save money. Is it time to simplify my life, consume less, waste less? Yes! There are so many reasons to take these steps. I could use a little simplification by trimming my consumption habits. And at least in theory, consuming less should save me money. But as my examples will show, I think there's a right way and wrong way to individually respond to our collective economic crisis.
I started wondering how I scale down my personal consumption without fatally harming businesses and services I already use and love. After all I want all the online stores, local shops, malls and services to continue to be there for me. Ok, I doubt I could fatally harm a business all on my own but with your help, plus a few of our friends, we could take down a perfectly good small company we like, just because we are staying away from them in order to "save money". So I guess for me simplifying is not so simple. Here's what I came up with as a few guidelines for the new, simpler me!
1. I pay cash as I go. Businesses appreciate cash! I know this because I'm a retail business owner myself. If you have to use your credit card, remember credit cards cost businesses at least 2.5 to 5% per transaction. The expense is passed on the consumer; built in to the purchase price, of course. Cumulatively we can lower business operating costs by paying cash or even paying by check.
2. Buy local. 58% more of each dollar you spend locally gets spent again right in your region. That means that you are helping your friends and neighbors keep their jobs and funding local charities every time you buy from the cool businesses that make your town unique. You get all that PLUS the actual product or service too?! What a bargain! Check out Buy Local! for my city. Start one in yours.
3. Don't panic. As a business owner, I am well aware of the emotional component of our current economic situation. Let's say I decide to put off buying new running shoes. If lots of runners do the same, the clerk in the shoe store will eventually get laid off. Now the clerk, who is also a photographer, stops shopping in my store to feed her photography hobby. If we have lots fewer customers like the shoe clerk, we too have to lay off an employee at Photolab. It happens the laid off Photolab employee is also a runner who isn't going to buy new running shoes. See where this is going? Lost jobs, sore feet and a general panicky feeling. Economists call this The Paradox of Thrift.
4. And for business owners big and small: adjust short term by adding value for long term success. I've learned this from my landlord, Denny Abrams, a developer who has specialized on putting together great working, living and shopping spaces. When he started developing Fourth Street in Berkeley California he knew he needed to help draw shoppers to the industrial part of Berkeley. Early on he leased to Bette's Oceanview Diner, giving subsidized rent to the restaurant until it became a destination. If he had just collected rent and left the rest to the restaurant it might have flopped. By helping to build community, not just buildings, the developer went on to expand into many other successful projects. And after 27 years, Bette's Diner is still going strong.
Instead of spending nothing I will be thrifty. Instead of buying new running shoes when I need them, I will resist the temptation to buy nothing and instead look for a great sale from a local merchant. I will think of my purchases as a vote of support for businesses and services I want to help survive because I like them and use what they offer.
My fifth simple-way-to-save is really obvious and requires you pay only a little bit more attention to this subject.
5. Don't get parking tickets; don't get any traffic violations. I save money by not wasting it on stupid moves like not feeding the parking meter. Or even more expensive stupid mistakes like making a right turn at the light without coming to a complete stop. With a cop behind me.
