Eco-thrift: Going Green on a Shoestring
Louann Vertrees
Published by Louann Vertrees at Smashwords
Copyright 2010
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Table of Contents
Chapter 1: The Psychology of Money
Chapter 2: The Rise of Consumerism
Chapter 3: Eliminating Debt
Chapter 4: Developing an Eco-thrifty Mindset
Chapter 5: Greenwashing
Chapter 6: Reducing Energy Consumption at Home
Chapter 7: Water
Chapter8: Trash
Chapter 9: Food
Chapter 10: Clothing
Chapter 11: Cosmetics and Personal Care Products
Chapter 12: Cleaning Products
Chapter 13: Greener Homes and Gardens
Chapter 14: Transportation
Introduction
Despite the ongoing debate over climate change and its causes, there is no escaping the fact that we are using up the earth’s natural resources faster than they can be replenished. While environmental damage is a global concern, Americans are by far the worst offenders: we comprise only 5% of the world’s population, yet we consume 40% of the planet’s resources. For the past 60 years or so our consumption of manufactured goods has outpaced that of any other nation in the world, and this has had a direct impact on the environment from the production of these goods to their disposal. Americans not only consume more, we also lead the world in waste production, and there is no truly safe way to dispose of all of our trash. When the garbage in a landfill is incinerated, gases and particles are released into the air, and when it is buried it contaminates the groundwater supply. We enjoy a high standard of living in the United States, but it is clear that our excessive consumption is damaging the planet and driving many of us into debt.
The advertising industry spends $300 billion per year to entice us into buying everything from candy bars to diamond rings, but movies and television programs also have an effect on what we consume. If you have any doubt about the media’s influence on our spending patterns, consider the movie Sideways and one of its characters’ love for Pinot Noir. According to George Christie of California’s Wild Horse Winery, sales of that particular wine increased by 135% after the movie’s release. The layouts of department and grocery stores are not accidental; they are purposely designed to encourage impulse buying—to get to a gallon of milk, you have to first pass shelves of snacks and convenience foods. Expensive brand-name items are placed on shelves at eye level, but you have to look around a little for the more economical brands. Most of us consider ourselves too sophisticated to fall for these obvious marketing ploys, but stores would not continue to use them if they didn’t work so well.
Although we are influenced by advertising and marketing practices, we can’t place the blame on an industry that is just doing its job. At some point, we collectively bought into the idea that “more is better.” Easy credit has allowed us to have what we want now and pay for it later. We are even told that consumer spending is necessary in order to keep the economy healthy. After the attacks of September 11, 2001, we were advised to go shopping and go on vacation, and later received tax rebates that we were encouraged to spend, not save, in order to stimulate the economy. While we all bear responsibility for our own actions, it is hardly surprising that we so often confuse our wants with our needs, consider luxuries to be necessities, and have developed the poor spending habits that have caused so many of us to go deeply into debt.
But the current economic crisis has impacted even those who have spent wisely and managed their money well. With the collapse of the stock market, loss of retirement savings, and unstable job market, many of us have had to re-evaluate the way we earn, spend, save, and invest our money. At the same time, it is important to take a hard look at our own relationship with money, and decide whether or not our spending habits are aligned with our personal values. Our decades-long spending spree may be coming to an end as more Americans look for ways to simplify their lifestyles, spend more time with their families, and do their part to ensure that our children and grandchildren will have clean air to breathe, fresh water to drink, and unspoiled natural beauty to enjoy.
I don’t know who first coined the term eco-thrift, but it is a perfect description of a lifestyle based on frugal living and treating the planet kindly. Being eco-thrifty means managing your money, living within your means, and getting out of debt, while at the same time considering the environmental impact of each and every item you buy. It is about reducing, reusing, recycling, and repairing, and understanding that even small steps can make a real difference in our lives, now and in the future. But being eco-thrifty does not mean depriving yourself—you don’t have to hoard pennies or sit in the dark to save electricity. It simply means thinking differently about how you spend your money. And you can still live well; a home-cooked meal is a fraction of the cost of a restaurant meal, even if you serve lobster. Being eco-thrifty is choosing to live a balanced life, avoiding the extremes of a Spartan existence at one end of the spectrum, and excessive consumption and debt at the other end.
Many Americans would like to live a greener lifestyle, but few of us can afford to upgrade to a hybrid car, or install solar panels in our homes. Even green cleaning products are more expensive than conventional ones, although as demand continues to grow, prices are coming down. Living an eco-thrifty lifestyle means appreciating the value of both time and money, and understanding that sometimes you have to compromise. A homemade oven cleaner, for example, doesn’t contain the chemicals that make it work as quickly as a conventional one. But waiting a little longer for it to work is a small price to pay for a product that is better for the environment and healthier for you, your family, and your pets. Compromising may mean making a few small changes in your energy consumption to lower your electric bill, and with what you save in electricity, you are able to pay a little more for green cleaning products.
If there is a bright side to the recent economic meltdown, it is that more Americans are finding that it is possible to live comfortably within their means. But it requires an honest examination of the way we think about and spend our money. Eco-thrift: Going Green on a Shoestring examines the impact of consumerism on both the environment and our wallets. It offers practical tips on reducing, reusing, recycling, and repairing that can save you money on the products and services you use every day. Saving money and living a greener lifestyle truly go hand-in-hand, and this book was written to show you how making just a few changes can save you money and help save the planet.
The Psychology of Money
Over one million people filed for bankruptcy in 2009, a 35% increase over the previous year. The majority of these filers are not deadbeats, but intelligent, hard-working Americans who have somehow amassed too much credit card debt. A recent survey reports that 70% of Americans believe that they are only a few paychecks away from poverty. Adjusted for inflation, consumer debt in 1970 was almost $134 billion, about $650 per person. Consumer debt in the United States is currently around $2.5 trillion, or $8,265 for every man, woman, and child in this country.
Interestingly, in a recent poll, 80% of Americans said they would not feel comfortable discussing their credit card debt with someone they just met. People are relatively comfortable talking about their salaries, mortgage payments, and even their political or religious views, but there seems to be a particular kind of embarrassment attached to credit card debt. Our reluctance to talk about this subject may be based not only on how much we owe, but also on the kinds of things we charge. In September 2008, total credit card debt in the United States reached an all-time high of $975 billion. The loss of 2.6 million jobs in 2008 caused many Americans to use their credit cards for things like buying groceries and paying their utility bills, but according to financial analyst James Quinn, in that same year McDonald’s became the second largest credit card merchant-vendor in the United States.
Over the past few decades, credit card companies have actively encouraged people to incur more debt than they could reasonably manage. New laws were recently passed to stop the credit card industry’s most blatant abuses, but before they could take effect, credit card issuers lowered credit lines and raised interest rates, even for those who have good credit and have always paid on time. Clearly there has been a need for more regulation of the credit card industry, but at the same time, no one forced us to keep charging Big Macs the way we have, not to mention the billions spent on clothing, toys, and electronics. Our relationship with money is complex, and our spending habits often do not reflect our true circumstances. People worry about getting behind in their bills or running out of money before payday, but fail to see how their daily $4 cup of coffee and twice-weekly takeout dinners contribute to their personal budget deficit. Traditional economics operates on the assumption that when it comes to finances, human beings sort through all the available information and weigh the pros and cons in order to make the financial decisions that will best serve us. But maxing out our credit cards and taking on mortgages that we can’t afford are clearly not in our best interests.
The field of behavioral economics emerged about 30 years ago to try to explain why people so often make financial choices that get them into trouble. Researchers have determined that we tend to make gut decisions about purchases when pressed for time or when it seems to be too much trouble to weigh the options or compare prices. Rather than having a clear sense of where our money goes, we fall back on what economist Richard Thaler calls “mental accounting,” a particular way of categorizing and thinking about money. Thaler believes that mental accounting is the reason we don’t notice that daily $4 cup of coffee eating into our weekly budget: there is a mental account for “my daily coffee” that sets it apart from other expenditures, as well as an emotional aspect that tells us we deserve to have what makes us happy. The same kind of thinking allows us to absorb extra purchases into the grocery budget, or add extras when making a large purchase. If you are buying a $28,000 car, what’s another $2,000 for a navigation system? Mental accounting also explains why we look forward to splurging when our income tax refunds arrive: we consider it “extra” money, even though it is really just our own money being returned to us.
Author and psychologist Stuart Vyse believes that our unmanaged spending is due to both a failure to control our impulses and new technologies that make it easier to buy things. Cable television shopping channels, internet shopping, and credit cards allow us to spend money without even leaving home, and plastic makes it easier to spend money anywhere. Research shows that we don’t spend as much when we use cash for purchases as we do when we use credit cards or debit cards because whenever we spend, we weigh the immediate pleasure of the item against the pain of paying for it. With cash, the pain of paying is felt immediately, so we are more likely to think carefully about how we spend it. But when we use plastic we can have immediate pleasure and delay the pain of paying for it until sometime in the future. Credit and debit cards make it easy to forget that we are using real money, but the debt eventually must be paid, and with interest.
The Rise of Consumerism
In a recent American Psychological Association survey, 71% of Americans reported that money is a significant source of stress in their lives. Many of us are struggling to pay off credit card debt or worrying about how to save for retirement or college for the kids. The costs of food, fuel, healthcare, and housing continue to rise and just living from paycheck to paycheck has become more difficult. When faced with the fact that their expenses exceed their income, many people think the answer is to take on a second job. But in another recent survey the majority of respondents said that what they wanted most was to be able to spend more time with family and friends. For those people, taking a second job would clearly not be a satisfying solution and maybe not a solution at all because no matter how much money is coming in, we tend to spend as much as we earn. Rather than adding more stress by working more hours, a better solution would be to figure out how to live within our means.
Until fairly recently in our history, Americans have managed to live within their means. We spent when times were good, and were thrifty when we had to be. During World War I President Wilson expressed his hope that America would “...correct her unpardonable fault of wastefulness and extravagance.” Posters and radio ads informed the public that it was their patriotic duty to practice thrift and economy, and people responded by planting vegetable gardens and fasting so that food could be sent overseas for the troops. During the war, American manufacturers increased production of a variety of goods that were purchased by the army and exported to European countries whose production capabilities had fallen off during this period of time. But when the war ended and army purchases and exports slowed down, economists became concerned that manufacturing profits would suffer if people continued their thrifty ways. Posters and radio spots now urged Americans to buy, and consumer spending increased dramatically throughout the 1920s.
When the stock market crashed in 1929, businesses failed, jobs vanished, and Americans had no choice but to become thrifty again. Economists began to push the idea that consumer spending was the only remedy for the unhealthy economy, and government programs such as the Civilian Conservation Corp and the Works Progress Administration were instituted to create jobs and get people spending again. Recovery from the Great Depression was slow and in 1939 unemployment in the U.S. was still 15%. World War II put people back to work and gave them money to spend, but as during the First World War, people were again encouraged to buy only what they needed and make it last. Gas, meat, sugar, and other commodities were rationed, and people again planted gardens to make ends meet.
And again, when the war ended people were urged to spend in order to build up the economy. Americans had jobs, money to spend, and plenty of new products to spend it on. Soldiers returning from the war wanted to settle down and raise families, and suburban housing was developed to meet this demand. Things that many families had considered luxuries just a few years before, such as a second car, or even a washing machine, were now considered necessities. Shopping centers sprang up in the suburbs so people didn’t have to go into the city to spend their money. The advertising industry went into overdrive to promote the wonderful new products that were available, and lenders encouraged us to take out loans to pay for it all.
According to Lauren Weber, author of In Cheap We Trust, during the 1940s and 1950s buying was not only seen as patriotic, it was also considered to be psychologically healthy. The people who knew how to really enjoy life were the ones who didn’t hesitate to buy the latest refrigerator, television set, or vehicle. Being thrifty and saving money was for squares. In the 1950s, banks introduced the first general purpose, revolving credit cards. For many years, department stores, specialty shops, and gas companies had extended credit to their customers, but the charges had to be paid in full each month. Revolving credit card accounts meant that customers were able to make partial payments each month, and the cards could be used at any establishment that chose to honor them. Not only were credit cards convenient, they quickly became status symbols and outward signs of success.
Between 1946 and 1960, total household debt in the United States increased by over $51 billion, while Census Bureau records indicate that the median family income increased by only $3,221 during the same period. As early as 1958, economist John Kenneth Galbraith voiced his concern over Americans’ unrestrained consumer spending. In his book The Affluent Society, he argued that through their advertising practices, businesses created perceived needs and desires in consumers, and that this in turn created an artificial sense of affluence in society. Galbraith was especially troubled by the fact that our priorities appeared to be shifting: many Americans were able to afford luxury items, while their children attended rundown schools and played in polluted parks and playgrounds. While he was not anti-business, Galbraith believed that trade unions, consumer advocate groups, and government regulations were necessary to provide a balance between business interests and the need for a healthy environment.
The manufacturing industry went into overdrive to keep up with consumer demand for products during the 1950s, 1960s, and 1970s, resulting in increased environmental pollution. The popularity of disposable cans, bottles, plastics, and paper products meant more solid waste, and industrial waste and toxic chemicals were dumped into rivers and lakes, or buried in steel drums that later leaked, contaminating soil and groundwater. In January 1969, there was a “blowout” on an offshore oil well near Santa Barbara, California. Before workers could plug the leak, more than 3 million gallons of crude oil had spread over 400 square miles of ocean and 30 miles of coastline. Nearly 4,000 seabirds were killed and the bodies of dead seals and dolphins washed ashore for weeks. Later that year, Ohio residents were shocked to see the Cuyahoga River burning. Industrial dumping of oil and other debris had created a thick layer of sludge on the surface of the water that was ignited by the sparks from a passing train. The public was outraged by these two events and began calling for stricter industrial regulation, from extraction to waste disposal.
In 1970, President Nixon created the Environmental Protection Agency and set national air quality standards. Over the next few years the agency established limits on the amount of pollutants that industries could discharge into rivers, lakes, and oceans, and passed laws on industrial waste management. Manufacturers found that the new regulations were expensive to implement and cut into their profits. The solution for many of these companies was to move their operations to countries that had little or no regulation, decreasing the pollution problem in the United States, but increasing it worldwide. As American manufacturing plants closed their doors and more and more jobs went overseas, unemployment in the United States reached 9%. Those who had jobs found that despite rising inflation, their wages remained the same. Yet throughout the 1970s Americans continued to spend more and save less.
In a 1979 speech, President Jimmy Carter warned Americans that their self-indulgence and materialism could only lead to empty lives with “...no confidence or purpose.” But the American public didn’t want to hear about thrift and sacrifice. They responded to Carter’s speech by voting him out of office the following year in favor of Ronald Reagan who assured them that the economy was strong and there was no need to stop spending. The deregulation of the banking industry during the 1980s and 1990s made it legal for financial institutions to merge, giving banks more assets and encouraging them to take on more risk. Home mortgages were offered to just about anyone, even those without a steady income. Low interest rates encouraged people to take out loans to pay for new cars or vacations. Prices were up, and wages remained flat, but getting a credit card was easier than ever before and the spending spree continued.
We not only wanted more things, we wanted bigger things, and the 1980s, 1990s and early 2000s were, without a doubt, the era of “bigger is better.” As John De Graaf, David Wann, and Thomas Naylor point out in their book Affluenza, the average home in 1945 was 750 square feet. During the 1980s that had grown to 2,300 square feet, and many garages were bigger than a family home in the post-war period. In the 1990s, huge homes started appearing in suburban housing tracts. These “McMansions” or “Starter Castles” were unnecessarily large, as much as 10,000 square feet or more, and typically had 4 or 5 bedrooms and a 3-car garage. In 1999, one of these 5-bedroom, 5-bathroom monster homes cost between $750,000 and $1,000,000, depending on where you lived. Naturally, a home this size cost more to heat and cool, and property taxes and maintenance expenses were also significantly higher.
We also bought bigger and more expensive vehicles. Because of fuel shortages and high gas prices, during the 1970s and 1980s there was a trend toward smaller, more fuel-efficient cars, but by the 1990s loopholes in the national fuel economy standards legislation allowed automakers to produce larger, less fuel-efficient vehicles without penalty. Ford introduced its 9-passenger Expedition in 1997 to compete with the equally large Chevrolet Suburban, and neither of these vehicles averaged over 10-12 miles per gallon. But gas was cheap in the 1990s, and bigger was better. The Lincoln Navigator and Cadillac Escalade both sold well when they were introduced in the late 1990s, and if you couldn’t quite afford a $45,000 car, you could always refinance your home to pay for it.
For over 5 decades we have enjoyed an increasingly higher standard of living, but that does not necessarily mean that the quality of our lives has been better. In a 1957 survey, 35% of Americans described themselves as “very happy.” That figure declined over the years, but only slightly, to 30% in 2003. Some researchers point to that small drop and claim that it is indicative of a society that is both prosperous and healthy, but according to the American Journal of Psychiatry, the percentage of adults diagnosed with major depression has more than doubled since 1991, and in another recent survey 75% of Americans said that they currently experience moderate to high levels of stress in their lives, much of it related to money or work issues.
In a 2004 New American Dream poll, 93% of those surveyed felt that we are too focused on working and making money, and not enough on family and community. Outside of a few companies who offer job-sharing opportunities or flexible hours, the American business culture does little to make it easier for parents to spend time with their children. But our love of “stuff” has also contributed to a growing disconnect: families may live in the same house, but when each member has his or her own television, computer, and video games, there is not a lot of meaningful interaction. Parents work long hours and children have their own busy schedules; the average family is lucky to eat more than a few meals together in a week’s time. It is difficult to find time for our loved ones and friends when we spend too many hours working to pay for things we can’t really afford and that, in the end, don’t really bring us much happiness or satisfaction.
In the fall of 2008, Americans found themselves mired in what has been called the worst economic crisis since the Great Depression. Most economists agree that because of their risky lending practices, the financial industry bears much of the responsibility for this crisis, and that the federal government played a role in that it ignored the obvious signs of an impending collapse. But we also have to acknowledge the fact that American consumers took on more debt than they could handle. In an article entitled “America Without a Middle Class,” Elizabeth Warren rightly points out that by the early 2000s housing, energy, and health insurance costs had doubled since the 1970s, while wages stayed fairly constant for the average worker. Under those circumstances, it would have made sense to economize and save, but against our own best interests, we continued to borrow and spend.
There is no doubt that the excessive consumerism and the “more is better” mentality of the past several decades have caused many of us to lose sight of what is really important in our lives. In his book The Geography of Nowhere, James Howard Kunstler writes:
We’ve mutated from citizens to consumers in the last 60 years. The trouble with being consumers is that consumers have no duties or responsibilities or obligations to their fellow consumers. Citizens do. They have the obligation to care about their fellow citizens, and about the integrity of the town’s environment and history.
If we value our planet and wish to preserve it for future generations, we must return to being good citizens. It starts with examining our priorities and living lives that have personal value and meaning. It continues with understanding that excessive consumption not only drives us into debt, it is causing us to deplete our natural resources at an alarming rate.
Eliminating Debt
Making our way back from being debt-ridden consumers to eco-thrifty citizens will be easier for some than for others. It involves an honest evaluation of your spending habits, setting reasonable financial goals, and educating yourself about the environmental impact of the products you buy and the services you pay for. Like any worthwhile endeavor, living an eco-thrifty lifestyle requires some planning and discipline, but as many have found, being debt-free and living a simpler, more sustainable life is well worth the effort it took to get there. Taking control of your finances begins with realistically assessing your debt, developing a budget, cutting back on what you spend, saving, and then actively working at reducing your debt.
According to financial experts, the first step in becoming debt-free is to figure out exactly what you owe, outside of your mortgage. Don’t guess at it; use your bills and credit card statements and write down exactly what you owe on your car loans, personal loans, home equity loans, student loans, and medical bills. You can’t reduce what you owe if you continue to incur new debt, so beginning now, don’t finance anything and don’t use your credit cards. Call each credit card company and ask for a lower interest rate—they may refuse to do it, but it doesn’t hurt to ask. Cancel any recurring payments that are automatically charged to your credit cards. Remember that credit card companies make their money on interest, so when you use a credit card to make a purchase you end up paying about 3 times the original cost of the item. Don’t close your credit card accounts, but cut the cards up so you won’t be tempted to use them.
People often want to keep at least one credit card for emergencies, but too often the “emergency” is take-out food the day before payday, or a sale that is just too good to pass up. You can always get another credit card after your debt is paid off, but as many of us have found, it is possible to live without plastic. You can purchase an airline ticket or rent a car with a debit card, and yes, you do have to have the money in your account to pay for it at the time, but that is what living within your means is all about. Start a savings account for real emergencies, things like unexpected car or home repairs. Make a commitment to cut back on a specific weekly expense, such as take-out lunches or movie rentals and put the money you save into your savings account. Compare banks to find the one that pays the highest interest rate, doesn’t require a minimum balance, and doesn’t charge maintenance fees.
Personal savings rates have declined steadily over the past 30 years, but that is beginning to change. The Bureau of Economic Analysis reports that as of September 2009, personal savings rates had increased to over 4%, up from 2.7% in 2008. Wall Street, business leaders, and some politicians would have us believe that if we save our money rather than spend it, the country’s economy will never recover. They remind us that consumer spending now accounts for 70% of the Gross Domestic Product (GDP). But as many financial experts have pointed out, an economy based primarily on consumer spending is just not sustainable. According to Michael Strauss, Chief Economist of Commonfund, when people save their money it creates a pool from which businesses can borrow to invest in equipment, new technologies, and hiring. Growth in business and an increase in exports would produce a stronger and more balanced GDP, one that does not depend on consumer debt to keep it healthy. It may be a bumpy transition in the beginning, but better for everyone in the long term. Americans will continue to spend money on things that they need, and much of what they want, but an overall return to thrift and savings will benefit both the individual and the economy.
A budget is essential if you are serious about getting your finances under control. And a vague resolution to “stop spending so much” isn’t a budget. There is no need to go out and buy a fancy ledger book for your budget—you can use a school notebook or set it up on the computer—the important thing is that you do it. Start by listing all of your net (after taxes) income, including any from outside sources. Go through your bank and credit card statements, and any receipts to determine exactly what you spend each month. Some insurance premiums are paid quarterly rather than monthly, so for these and any other irregular payments, figure up what you pay in one year and divide by 12 to get a monthly figure. To find out where you may be “leaking” money, write down every single thing you buy in a day’s time. Keeping track of even your smallest purchases for a week or two will show you exactly where your money is going, and it isn’t as much trouble as you may think.
Once you have a clear idea of what you spend, compare it to your income. If you earn more than you spend, getting out of debt should be easier; if not, you will need to look at cutting expenses to free up money for your savings and to pay down your debt. To see where you can cut expenses, separate your expenses into two categories: fixed and variable. Fixed expenses are those that stay the same from month to month, such as rent or mortgage, car payments, insurance, cable and/or internet service, or trash pickup. Variable expenses are things like utility bills, groceries, gas, entertainment, and gifts. Each section of this book contains suggestions for reducing most of your variable expenses and some of your fixed expenses. It will be up to you to decide where and how much you want to cut your expenses. Reviewing your budget and expenses once a month will help you see whether or not you are staying on track.
Every year millions of people work out a household budget for themselves, follow it for a few weeks, and then abandon the idea altogether. A workable budget is not just about what you spent last month, but what you will spend next month and every month after that. Failing to anticipate future expenses can derail your budget and make you feel like giving up. If you know your tires are wearing out or your hot water heater is on its last legs, you need to plan for how you will handle the extra expense when the need arises. Another reason budgets fail is that they are often too harsh or require too many changes at once. If your budget makes you feel deprived you need to revise it to allow for a reasonable amount of wiggle room. A budget should be exact enough to help you manage your money and live within your means, but flexible enough to allow you to enjoy your life.
It may take several years to pay off your personal loan or credit card debt, but it can be done. Many financial experts recommend using a method called the debt snowball. To implement this method list all your loan and credit card debt in descending order according to their balances. Make minimum payments on the other balances, but put as much money as you can toward the one with the lowest balance. Use your budget to determine how much extra you can afford to pay. Continue to do this until that debt is paid off, then put that money toward paying off the one with the next lowest balance. A variation on this method is to arrange your debts from highest to lowest interest rates, and work on the one with the highest interest rate first.
Being in debt can strain a relationship to the breaking point, but trying to get out of debt can be stressful too if a couple can’t agree on how to proceed. Work together on a budget that is based on your shared needs and goals, make changes in your spending that you can both live with, and above all, be willing to compromise. You may be comfortable giving up cable television, but if it is important to others in your family, you may be able to compromise by downsizing to a less expensive programming package. If you have children, involving them in your debt-reduction plans helps them to understand and accept the changes. Have each family member list four or five things he or she would be willing to do without, then discuss these items and decide together which things to cut from the household budget. Even young children can appreciate thriftiness when it is a shared family goal.
Developing an Eco-thrifty Mindset
Living within your means is more than just matching your income to your expenses. It requires a shift in the way you think about money and what it can do for you. It is impossible to stop spending money altogether, but you can learn to spend your money mindfully. Spending mindfully means thinking carefully before you buy something and making sure you are getting the most value for your money. It means delaying gratification in the short term in order to have a better life in the long term. But it does not mean depriving yourself or going without things. There is nothing wrong with buying what you want as long as you have the money to pay for it without getting behind in your bills, dipping into your savings, or increasing your debt.
It can be difficult to change old spending habits, but remember that it only takes about 30 days for a new behavior to become routine. In the meantime there are some things you can do to keep your spending under control; the simplest one is not leaving yourself open to temptation. Never go shopping without a list, and make sure you stick to it. Never go to a mall or department store to “just look”—chances are you will end up spending money. Make it a rule to wait a specific period of time before buying something you want; if you wait a month you may find that you no longer want the item at all. Some people find it helpful to think about an item’s cost in terms of how many hours they have to work in order to buy it. For example, if you work eight hours a day and earn $15 an hour, you will have to work more than two days to pay for a $250 handbag, not a very good investment of your time or money no matter how much you love it.
Buying fewer things allows us to live comfortably within our means, but it also reduces the negative impact of mass production on the environment. The manufacturing industry uses up 1/3 of the energy and 13% of the water supply in the United States. Part of spending mindfully has to do with considering the resources and waste that are associated with manufacturing, packaging, and transporting a particular item. Living an eco-thrifty lifestyle means reducing the amount of stuff in your life, and finding ways to reuse items that would otherwise end up in a landfill. It also means taking care of your things so they will last longer, and maybe even learning how to repair something rather than tossing it and buying a new one.
Before the era of easy credit, cheap goods, and out-of-control consumption, most Americans saved for the things they wanted to buy, and took care of them so they would last. Because they were thrifty, reducing, reusing, recycling, and repairing things came naturally to them. It is encouraging to see a return to those values today. For some of us, the choice to live an eco-thrifty lifestyle is not just a rejection of excessive consumerism and its depletion of natural resources, but also a desire to live a more meaningful existence. A recent Zogby poll found that 46% of Americans between the ages of 18 and 27 said that they have chosen to live a simpler lifestyle. Many in this generation grew up during the peak of consumerism, but have apparently figured out that money can’t buy happiness after all.
Ted Daves, a Canadian artist, founded Buy Nothing Day in 1992 to encourage people to “...examine the issue of over-consumption.” Kalle Lasn, publisher of the magazine Adbuster’s, was an early promoter of the idea, and in 1997 Buy Nothing Day was moved to Black Friday, the day after Thanksgiving and one of the busiest shopping days in the United States. For those who observe Buy Nothing Day, Black Friday is an opportunity to protest consumerism, but for American retailers it is the beginning of the lucrative holiday shopping season, and heavily promoted. People spend the night lined up at store entrances to be the first to get to the goods. Out-of-control consumerism and its negative effects on society were tragically highlighted on Black Friday 2008, when Wal-Mart employee Jdimytai Damour was trampled to death as thousands of shoppers rushed the doors hoping for a good deal on a flat-screen television or video-game console.
In 2004, a group of friends in San Francisco were discussing the effects of consumerism on the environment. They decided that for one year they wouldn’t buy anything new, with the exception of food, medicines, personal care items, and things like underwear and socks. Their decision was based on a desire to save money, concern for the environment, and increasing dissatisfaction with American society’s rampant materialism. They called themselves The Compact, and soon local news outlets began to follow and report on their experiment. As word spread, people in other parts of the United States and throughout the world adopted The Compact’s views, and formed online groups to share their experiences. Today there are almost 9,000 followers worldwide, and the original year-long experiment has become a permanent way of life for many of them.
Not everyone has the discipline to forego buying anything new for a year. But small changes in your spending habits are easy to implement and you’ll find that taking one eco-thrifty step makes you want to take another. Some of the choices eco-thrifty people make have the additional benefit of being healthy as well as being green and saving you money, such as riding a bike to work, or eating more home-grown fresh vegetables. The important thing to remember is that it is not about making radical lifestyle changes, but making mindful choices whenever possible.
Greenwashing
If you choose to live an eco-thrifty lifestyle and spend your money more mindfully, it’s important to make sure that what you buy is truly environmentally friendly. The term “greenwashing” was coined by environmental activist Jay Westerveld, and refers to corporate marketing campaigns designed to make a company appear to be more environmentally friendly than it actually is. In a 1986 essay, Westerveld wrote about a new trend in the hotel industry that encouraged guests to save water and energy by re-using their towels instead of having them washed each day. On its face, the request appears to be an effort to conserve resources, but as Westerveld pointed out, the money spent on the “re-use your towel” campaign would have been better spent on implementing industry-wide waste reduction practices. Instead, hotels were able to project an environmentally friendly image while reducing their own laundering costs and doing little or nothing else to reduce their impact on the environment in any meaningful way. In other words, more effort was put into appearing to be green than in actually adopting green practices.
Marketers of other products and services soon recognized the benefits of appealing to environmentally conscious consumers. Their tactics range from overstated and meaningless claims of “natural” ingredients to outright deceptive advertising practices. In 1990, the Journal of Public Policy and Marketing found at least one deceptive element in 58% of the advertising for self-described environmentally friendly products. Another study found that 77% of consumers said that a company’s environmental practices affected whether or not they would buy their products. Green sells, and many companies are not above trying to make themselves appear to be more environmentally responsible than they actually are.
Terms such as “all-natural,” “non-toxic,” or “environmentally friendly” are meaningless because they are not regulated and can’t be verified. Deceptive marketing practices can cause well-intentioned consumers to buy products that are neither safe nor environmentally friendly. It is not unusual for companies to promote a product’s plant-based ingredients while downplaying its chemical additives. A commercial glass cleaning solution boasts of having added vinegar to its formula, but the product itself is unnecessary when vinegar alone works just as well at a fraction of the price and without the harmful chemicals. When companies are able to get away with these misleading claims, they take business from legitimate green companies. And when their greenwashing activities are exposed, consumers may become skeptical of all environmental claims, further hurting legitimate green companies.
In 2007, TerraChoice, an environmental marketing company, studied a variety of randomly-chosen products to determine whether or not a company’s marketing practices involved greenwashing. TerraChoice’s report, "The Six Sins of Greenwashing," found that the manufacturers of 99% of the products surveyed were guilty of misrepresenting their products in some way.
TerraChoice’s “The Six Sins of Greenwashing”
The Sin of the Hidden Trade-off. In this type of advertising, a single positive attribute is emphasized while the damaging environmental impact of the product’s manufacturing process is ignored. The automobile industry congratulates itself for researching ways to make more fuel-efficient cars, while continuing to produce large, gas-guzzling vehicles and lobbying against environmental legislation that would force them to cut down on carbon emissions.
The Sin of No Proof. This refers to an environmental claim that cannot be supported by a reliable third-party certification. The SC Johnson Company added a “Greenlist” logo to the label of their glass cleaning product, Windex. The label states that this Greenlist rating system “promotes the use of environmentally responsible ingredients.” The implication is that the product received this listing from an independent third party, when in fact, Greenlist is an internal rating system developed by SC Johnson. Not only did this company rate themselves as environmentally responsible, they did so without changing any of the toxic ingredients in their product.
The Sin of Vagueness occurs when a claim is so broad or poorly defined that its true meaning is likely to be misunderstood by the consumer. As TerraChoice points out, the term “all-natural” does not mean that the product is green—arsenic, uranium, mercury, and formaldehyde are all natural substances, but they are neither safe nor environmentally friendly.
The Sin of Irrelevance is committed when a company makes a claim that, although truthful, is not helpful for consumers looking for environmentally friendly products. Advertising that a product is “free of chlorofluorocarbons” is meaningless since these substances have been legally banned for years anyway.
The Sin of the Lesser of Two Evils. According to TerraChoice, this refers to claims that may be true within the product category but that distract from the greater environmental impacts of the category as a whole. Examples of greenwashing in this category are organic cigarettes and fuel-efficient sport-utility vehicles.
The Sin of Fibbing refers to marketing strategies that make blatant false environmental claims, for example, a company falsifying the amount of recycled paper in a product’s packaging.
In 2009, TerraChoice released a second report and added a seventh sin—The Worshiping of False Labels. This occurs when a product is falsely promoted as certified by a recognized environmental standard such as Energy Star or Green Seal. Scot Case, the vice-president of TerraChoice, has said that greenwashing activities are not always intentional and that many companies are still learning how to market their products in a responsible way. Green marketing may indeed be complicated, but it is important that as consumers we do not simply accept what is written on a label or stated in a commercial. While the Federal Trade Commission recognizes a “heightened potential for deception” in the marketing of self-described products, regulation in the United States lags behind that of other countries. Bente Overli, Norway’s government-appointed consumer ombudsman, recently chastised automakers in that country for claiming that their cars are “green” or “environmentally friendly,” and proposed strict advertising guidelines for the automobile industry. Overli’s position is that while a particular vehicle may be less damaging than others, no car is good for the environment.
Various industries in the United States continue to lobby for self-regulation despite a number of lawsuits filed against them for false advertising. The average consumer is often unsure as to what he or she is actually buying. Fortunately, advocacy and watchdog groups have stepped in to provide us with the information we need to make informed choices about the products we buy. Greenpeace, Co-op America, CorpWatch, and GreenBiz all provide news and information about legitimate green businesses as well as information on those companies whose environmental records are less green than their ads would have us believe. Greenwashingindex.com allows users to post examples of suspected greenwashing.
False advertising is illegal, but as Scot Case of TerraChoice points out, the environmental claims of many companies fall into a gray area in which the rules are not yet clear. Because of this, a company can legally claim that its product is “greener” even though it may only include a tiny percentage of recycled content. Check the websites of advocacy and watchdog groups for background information on the companies whose products you use. Be wary of any company that cannot provide proof of their environmental claims. And look for independent verification by respected organizations such as EcoLogo, Green Seal, and the USDA, which certifies organic products. For consumers, going green is a process in which we sometimes must choose between the lesser of two evils. This process may also be true of companies, but without meaningful regulation there is no incentive for companies to be completely honest about their environmental practices. Until that regulation is put into place, it is up to us to educate ourselves about the products we buy and refuse to be fooled by greenwashing marketing practices.
Reducing Energy Consumption at Home
The average American family pays more than $1,500 per year in home energy bills, with the majority of it going toward heating and cooling costs. Most of the energy produced in the United States is derived from fossil fuels petroleum, coal, and natural gas, resources that have a tremendous impact on the environment. At this time, renewable energy sources such as hydroelectric power, and wind and solar power, account for only 6.9% of the energy produced in the United States. Unwilling to wait for the federal government to act on this issue, several cities including Seattle, Portland, Oakland and San Francisco, have developed renewable energy sources on their own. Hydroelectric, wind, and solar power not only dramatically reduce carbon emissions, but they also reduce utility costs for the customer. The demand for these renewable energy sources will increase as more Americans understand the benefits of using them, as opposed to the detriment of continuing to rely on finite fossil fuels. In the meantime there are many ways to reduce our consumption of household energy and save money at the same time.
Much of our residential energy is wasted through poor insulation and inefficient lighting, heating, and cooling systems. Most utility companies will conduct free or low-cost energy audits for their customers, providing information on how much energy you use and how you can reduce your energy consumption. Utility companies pay more for power that is used during high demand, or peak periods, typically between 2:00 and 7:00 pm, and that expense is passed on to the customer. It’s difficult to know how much energy we are wasting when we can’t see it, but making it a habit to reduce energy usage during peak hours is a good place to start. Check with your local utility company about off-peak usage; some even offer rebates to customers who shift their heavy energy usage to off-peak hours. Making it a point to do your laundry and run your dishwasher only in the early morning hours or later in the evening helps reduce the strain on your local power grid and saves you money.
Heating and Cooling
To save on heating and cooling costs, make sure your home is well insulated and that there are no gaps around doors or windows. Adding insulation to your home can be expensive—between $1,000 and $5,000 dollars—but if you can afford the up-front costs, you will most likely be eligible for a tax credit to offset some of the expense. Cellulose insulation is environmentally friendly as it is made from recycled newspaper. A company called Bonded Logic makes insulation from scraps of denim left over from the manufacture of blue jeans, so it requires very little energy to produce and reuses material that would have otherwise ended up in a landfill.
Check for drafts around your doors and windows. Weather-stripping or caulking can deteriorate over time, leaving gaps that allow heated or cooled air to escape. Replacing it costs $20 dollars or less, but can save you as much as $180 per year on your utility bills. Install a door sweep to keep drafts from coming in under the door, or use a “door snake,” a long tube of fabric filled with sand and placed on the floor in front of outside doors. Heavy drapes on the windows also keep out drafts. Be sure that chimney flues are closed when the fireplace is not in use, and that forced air registers or radiators are not blocked by furniture.
In the winter, turning the heat down to 68° F during the day and 65° F at night can save you 5 to 10% on your heating bill. Setting the thermostat at 55 degrees when you will be away for a day or more will conserve energy but the house will be warm enough to keep the pipes from freezing. Change the furnace filters monthly during the heaviest use, and consider purchasing a reusable filter. Reusable filters trap more dust, pollen, mold spores, pet dander, and lint, making them a healthier choice. They cost around $20 as opposed to a couple of dollars for a disposable filter, but a reusable filter quickly pays for itself and doesn’t create any additional landfill waste. Follow the manufacturer’s guide for the recommended cleaning schedule and instructions. Have your oil-burning furnace professionally cleaned once a year, as by-products tend to build up in the heat-exchanger and can decrease the furnace’s efficiency by as much as 30%. Check with your oil provider to see if they offer a service contract for cleaning and whether or not this would be a cheaper option.
During the summer months, set your air conditioner’s thermostat at 78 degrees, and higher when you are away from the house. Keep shades, blinds, and drapes drawn during the hottest part of the day to keep your home cooler. Use ceiling or room fans whenever possible. A ceiling fan costs about a penny per hour to operate, while central air conditioning costs about 43 cents per hour. As with your furnace, consider reusable filters for your air conditioning unit and clean them monthly. Periodically clean the dust from the evaporator coil of the unit.
Shading your unit’s outdoor component can increase its energy efficiency by 10%. This reduces wear and tear on the unit, meaning fewer repairs. Consider installing an awning over the unit, or planting shade trees and shrubbery near the unit, but not so close that they obstruct the airflow. Cover the unit during the winter to protect it from debris and harsh weather. Evaporative coolers require more maintenance, but use about 1/3 of the energy of an air conditioner. At the beginning of the season replace the cooler pads, clean the water tank, and check the motor and belts for wear. Drain the tank and cover the unit at the end of the season. There are a number of websites that provide step-by-step instructions on maintaining your furnace, air conditioning unit, or evaporative cooler.
Lighting
Lighting alone accounts for at least 10% of your electric bill, and the simplest way to save money and energy is to turn off the lights when you are not using them. There is a small surge of energy when you turn a light back on, but in general it is best to turn off the lights when you leave a room for more than 15 minutes. Whenever possible, use lamps instead of overhead lighting, and place them in corners so the light is maximized by being reflected off of two walls. Using dimmer switches saves energy and can double the life of your light bulbs. A dimmer switch costs between $8 and $20 dollars and is fairly easy to install. Take advantage of natural light whenever possible. North and south facing windows provide light without the glare and direct heat of the sun in the summer.
Traditional incandescent light bulbs are extremely inefficient; only 5 to 15% of the energy they use is converted into light. A Compact Fluorescent Light (CFL) bulb uses 75% less electricity and lasts 10 times as long as an incandescent bulb. CFL bulbs cost a little more, typically $2 to $4 dollars each, but you can find them on sale for the same price as traditional light bulbs, and because they last so much longer they pay for themselves many times over. One downside to CFL bulbs is that they contain tiny amounts of mercury and must be disposed of properly to protect the environment. Retailers such as IKEA, Home Depot, and Lowe’s have drop-off centers for used CFL bulbs, or contact your local hazardous waste collection site for disposal information.
Appliances
Large appliances account for a tremendous amount of your home’s total energy consumption, with refrigerators and clothes dryers being the worst offenders. In 1992, the EPA and the U.S. Department of Energy created Energy Star, a joint program designed to provide consumers with information on energy-efficient appliances and electronics. Look for Energy Star-rated appliances when it is time to replace your old ones. An Energy Star-rated appliance sometimes costs a little more up front, but will use approximately 23% less energy and save you up to $75 per year on your utility bill. Depending on where you live, you may be eligible for a rebate from your utility company or a state tax credit when you purchase Energy Star-rated appliances. Check the website at energystar.gov for information on rebates and special offers. Check outlet or warehouse stores for the best deals on new appliances, and consider a less-than-perfect appliance: floor models and scratched or slightly damaged models are often sold at substantial discounts.
When you buy a new appliance, look for ways to extend the life of the old one. Organizations such as Habitat for Humanity, Big Brothers and Big Sisters, Goodwill, and Salvation Army take working appliances, and may even pick them up for you. Some of these organizations operate repair programs and welcome non-working appliances as well. You can also advertise the appliance on craigslist.com or freecycle.com even if it no longer works; someone with repair skills may be happy to take it off your hands. Some innovative companies have made it their business to recycle and dispose of old appliances. Appliance Recycling Centers of America, Inc. is a business dedicated to preserving the environment through proper disposal of old appliances. Visit arcainc.com for more information, or look online for an appliance recycling company in your area.
Because they are always on, refrigerators are responsible for a large percentage of your home’s total energy consumption. To maximize efficiency, set your refrigerator’s temperature at 37° F, and the freezer at 3° F, and consider turning off the automatic ice maker if you have one. Refrigerators and freezers operate more efficiently when they are full because there is less cold air to escape, and less warm air to cool when the doors are opened. If you don’t keep a lot of food on hand, fill milk cartons with water to take up the extra space, and freeze extra trays of ice. This will also help keep food cold longer in the event of a power outage.
Make sure your refrigerator and freezer door seals are tight by closing a sheet of paper in the doors. If you are able to easily pull the paper out of the closed door, the seals should be replaced. Look for replacement seals at appliance stores and follow the directions for installation. The coils in the back of the unit, or vents at the bottom should be vacuumed twice a year, and make sure there is at least 2 inches of space between the refrigerator and the wall and cabinets to allow for circulation and keep the motor from working harder. Let leftovers cool before placing them in the refrigerator or freezer, and try to open the doors as infrequently and briefly as possible.
The easiest way to maximize your stove’s efficiency is to keep it clean. Drip pans under the burners speed up cooking time by reflecting heat back toward the pot or pan, but they don’t work as well when they are dirty. Always use the right size pot for your stove burners: forty percent of the heat produced by an 8-inch burner is wasted when it is used with a 6-inch pot. Using the right sized pot seems like a small thing, but it can save you $36 per year with an electric stove and $18 per year with a gas stove.