So I had this little happy accident when I put limits on my buying an spending for one year. If you follow me on my YouTube Channel, Facebook, or here you know I made a pact to not spend money on clothes, shoes, purses, jewelry or books for one year. Through this I discovered the net zero purchase, which is when the money you spend on something equals or is less than the money you received for that same type of item.
Here is how it works. This year I made a caveat to my challenge. I could not buy these things unless I sold the same type of item and earned the money for it. So if I sold $11 worth of books I could spend $11 on books. I indeed spent 9.99 on a magazine and .99 cents on an ebook.
On clothing I've been doing this for years but never really thought to much about it. I sell my clothes to a resale shop and get a credit that I can either cash in for a check or use in the store. I use the credit to buy new to me clothes.
I've been thinking of doing this with my car. So my car is only three years old and I'm known to drive a car for a long time. However I've put almost 100,000 miles on my car in three years due to a crazy work life. I'm now considering driving my car two more years, saving the money I would spend on a payment and then selling my car and using that money to buy a new to me car. If I spend the amount of money I sell the car for then it is Net Zero. If I use the money I saved plus the money I sell the car for it is not Net Zero but I will have no debt.
Recently we purchased a 2009 Camry with 50,000 miles on it for a second car for my husbands business. We paid $8000 cash for the car.
If I sell my car for $10,000 in 2 years (now it's worth about $16,000) and I save $7320. Then I could spend a total of $17,320 for a new to me used car with low miles. Or I could choose to spend $10,000 on an even older car with less miles.
How can you apply this in you daily life?
Well you can apply the examples I've given above or similar examples but also think about the hours you work in a week.
If you make $20 an hour and you spend $800 a week, that is similar except you need to have some savings for when big things come up.
Well you can apply the examples I've given above or similar examples but also think about the hours you work in a week.
If you make $20 an hour and you spend $800 a week, that is similar except you need to have some savings for when big things come up.
Start thinking about would I work this long for this item? If you want a pair of shoes and they cost $200 but you can find a similar pair for $60 or another pair at a nice resale shop for $20. Then you either work 1 hour, 3 hours, or 10 hours for that pair of shoes. Applying this to your purchases will help you keep your priorities in check.
You can also barter for services. I will sometimes barter my services for hour for hour cost of someone else's services. $60 of yoga for $60 of massage.
Living a Net Zero life and having savings and no debt will get you to a life of Financial Freedom which means being able to choose your work and how you live your life. You will be free of being a slave to the lender and have more control over your choices.
5 Tips for Net Zero Purchasing
1. Grow food and barter for other folks who grow food.
2. Barter your services for other's services in dollar value.
3. Sale your clothes and use that money to buy new clothes.
4. Sale your books on Ebay and buy new books on Ebay.
5. Sale your jewelry, sunglasses and purses and buy new to you similar items at resale shops.
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