joining us once again on the program is
mister money mustache he runs the personal finance blog must mister money mustache dot com it’s
great to have you back let’s start there do you call it I a personal finance blog
I know is in that category broadly speaking heard you call it
something else I still like to call it a personal finance blog because I love
people go out looking for personal finance blogs and that’s what this one
is about about fixing your monetary situation in order
to have a better life it’s just that once people get there we
tricked them into not wanting to spend the money anymore which is accident secret way to get
wealthy alright so after you run the program last time to kinda recap last
time we talked about how people should kinda think about
their daily expenditures in a different way we talked about the formula for figuring
out if I’m spending fifteen dollars a week on coffees what is that really add up to over five
years or ten years of my life if I take into consideration the interest they
would have burned had i save that money instead invariably as you get on your blog after your
appearance I got a ton in the mail saying listen this mustache guy was interesting but he’s basically advocating just taking
out all the pleasures in life but what will cares if if two times a week I want to get a coffee at Starbucks and
it’s a five dollar copy and I get enjoyment out of that what’s
wrong with that now do you have a specific thought I
know you get these emails all the time broadly how do you respond to people who
have that point of view yeah we call those on know the emails
complain the parent emails as a broad category and but really it’s a it’s a valid thing
I mean of course should be seeking out the happiness in your life I’m a big argument though is that on think when you when you think that your
happiness is coming from coffee is our dinners are like a BMW instead of a
Corolla I think you’ve been fooled you know
that’s that’s not really where the source happiness is but if you’ve just grown up
your whole life watching TV you can program to think that and there’s a much better way to live
which is just erase the whole that a program you know you got from the ads in figure out what really makes you happy
and there’s a much deeper layer stuff that does that you know for example having having good
friends and being close to family and being generous people and just getting out and enjoying the
world in nature and learning is a big thing for me is I’m a lot happier learning man and
consuming so if you find that you think you happiness coming from buying stuff you gotta dig deeper and work on it cuz
you can be happy you know living on a beach in now in the
tropics with their feet just and coconuts in a beautiful can you to go fish from you know that’s
been happy people have been happy doing that in the past and you can too Brazil have to do that
but just just totally separate this whole
idea of spending is what makes you happy so let’s use me as an example here
because I don’t by myself someone who is kind of obsessed with the consumer
culture I think about every purchase and say
does this really make sense I don’t buy it right away I weighed a
say do if I still feel like a need this then I’ll reconsider purchasing it you know I have a car would with good
gas mileage all these things they have friends I enjoy learning I like the
outdoors however most to the week I work either in my
office studio or just at home at my desk once
or twice a week I like to on my half day off take my
laptop to a coffee shop get a two dollar and fifty Cent drink
and just sit there with my laptop and do my work there I don’t go every
day I otherwise don’t get these five dollar coffee drinks even is is that even excessive or I’ve evaluated and said within the broader
context that my spending that make sense to me is that okay or do
I still need to change my priorities I think you don’t have to change
priorities it’s just a matter of being aware so where you describe that as the the
description a very aware person was not going to get themselves into
financial trouble and you know in a in a country like the United States
there’s so much money to go around you know even if you’re making twenty thousand dollars a year that’s
enough for plenty of food and a place to live you know you you can have a lot to love
lectures and i know im as you go up you can afford more and
more so really what you have to do is just what so forgetting over the top 10 most people
are just seriously over the top as an example buying a car when you
don’t even have the cash in the bank to pay for that car outright is an example have extreme behavior but
its it’s so common that people think it’s
normal that the car loans are normal in this country which is completely like a
financial experts foods just it’s ridiculously terrible
way to manage their money but it is common so you know separate
coffees from from the car loans and and at all scales
according to how well you’re doing in other areas the last if you have
credit card debt your ping 24 percent on it no you can’t even get one QA you know
you got a beating like boats an hour potatoes and that’s it you
know until the emergency love your debt is done but there’s all
kinds levels a reasonableness so speaking a
reasonableness let’s talk about Black Friday with you because it just so
happens we just had this crazy start to the holiday a buying season on Friday called Black
Friday earlier in the show we had the videos of
people stampeding at Walmart in this entire thing I’ve told stories from when I worked at
the now-defunct Circuit City when I was in high school and I used to have to work Black Friday
sometimes in the morning now then it wasn’t nearly as crazy as it is now whenever I hear about Black Friday the
one thing that sticks in my mind is the following when people are talking about how much
they’ve saved it assumes they had to buy those
products they should be thinking no no no I’ve
spent X amount not I’ve saved X amount it why
does nobody think that way that’s true well it’s because they’ve
probably been programmed to think that buying at a discount as the same thing saving
annex saving is a measure of how much you’ve grown your investment account
what you’ve contributed to for example your 401 K are your other investment account at the end the
month that’s worth saving is om buying stuff is totally different
Black Friday sale might be good like for example with you think right now what do I need and you
write it down if you still want it by next Black Friday 2014 then it’s probably a
good idea to to get it on sale at that point but if
you’re just going out to sea let’s see what’s on sale and you go into
the stores in 2010 discount on the Nexus 11 in all this stuff that’s a that’s not
really saving money is dis creating wants that you didn’t have before the
sale came up so and that’s really what that the kinda
consumer culture is about right which is let’s create a look first let’s create demand and then
let’s create these false discounts which Wall Street Journal has widely shown a Black Friday sales are often marked up
over the three month that go before it so then you
create a higher retail price of which you can create a
discount this is all common retail tactics and then once you’ve created that demand
you create urgency right is this basically the mechanism
first the demand then the urgency to act right now that sounds like a reasonable
technique you know I’ve never been black credit for a shopping on so I didn’t even know all the tricks
that they do I just gonna stare the whole scene and it’s a nice place to be I just wanna
actually yesterday I spent the whole run for Black Friday that the whole day just
biking around town in building some part to the new house I’m working on
renovating in a the whole thing came and went in there
was no lineups I didn’t even know there was like to read it alright so the last thing I want to ask
you about it this also relates the emails that I got after last appearance
when you talk about in you write about this extensively on your blog how twenty
thousand dollars in the United States is more than enough money to live
comfortably when people invariably say the job I
have is in an area with a much higher cost of living in order to live with twenty thousand dollars a year I
would need to move is your response well yeah everybody
should move out of those expensive areas should be an option think it’s great to
some delivered an expensive area usually
those prices are high because salaries are right so you should get one
of those salaries that that justifies living there or consider
moving on courses of other the other stuff like
family and friends to consider but yeah you should never
think of your living situation as fixed as soon as they open up your mind to
moving well kinda stuff can happen that you can
certainly live within walking or biking distance at work you can live in a place where property
taxes are almost no none but yet you get great city services
in and a high salary like the place that I
live here colorado is is like that so yeah just keep your mind open for
fordice in and you can also live in expensive
places cheaply I get I get letters from New Yorkers in Silicon Valley people who have these
amazing like two thousand dollar-a-month lifestyles just by being innovators like figuring
out who to live with them where to shop what to do after work alright I don’t
know why he’s just like a friendly guy but he’s very controversial every time
is on the show people must actually be listening to the content of what you’re
saying because every time it’s just crazy and it’s the same thing on your
blog people just get very agitated when you tell them this thing I don’t know what that if you look at
the comments section reblogged yeah the complainers have mostly been scared
away I they have okay that’s good so much that people accuse us of being
freaky call to prayer ready just agrees with each other yeah it’s great that they can’t wait
till it’s like minus 10 tomorrow and I can ride my bike with a hundred pounds
the groceries up the hill they’re bigger it be challenged and yeah
that’s that’s the way the blogs readership has become these days in I
think it’s great the way you know people feed off each other and
get inspired to live more rugged and you know Hyatt effort lives all right
mister money mustache check out his website I’m a reader mister money mustache dot
com thanks again for being on alright thanks for the invitation

Tagged : # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

15 thoughts on “Black Friday Madness Part of Consumption Craze”

  1. I like this guy. It is good advice to think about how much you saved and acknowledge spendings as spendings and not how much the price tag says you saved. I always try to keep that in mind. I have many would have been purchases if I didn't have the mindset and I would probably currently regret them. Financial security > more stuff

  2.  Skip the Frozen aisle. Cook your own meals. Take up reading(books, blogs, audiobooks!). Ride a bike. Try yoga. 

  3. make extra coffee in the morning and take it with you in a thermos instead of buying ridiculously expensive prices or buying some horrible crap from a vending machine.

  4. Black friday is a joke – you can find better deals all throughout the year.  Especially if you order online with free shipping.

  5. I'm loving the content but the bearded fellow needs to stop kicking the desk his camera is sitting on; maybe it's a directorial tool, designed to emulate the viewer nodding in agreement? :s

  6. He said it – "Emergency Debt". I bet 80% of the people who purchased stuff on black Friday used credit cards. Was that an emergency or a impulse?

  7. I like iced coffees, knitting, listening to and engagin in political conversation,  sandwiches (especially subway). 
    Some people are happy from other things.that's fine. But don't act like everyone has to be happy with the same things.

Leave a Reply

Your email address will not be published. Required fields are marked *