The Economics of: Buying Nothing New April 2016
We are over 4 months in and the savings of buying nothing new have been astronomical. I have noticed that no matter how hard our family has tried to save money in the past there has always been at least one large expense each month. This is where the major savings of buying nothing new has come in. Whether it’s the skylight cover in January, Mama Sas’ iPhone last month, to the Trail a Bike we got for free this month the savings have really been adding up. Another thing that we have found dominating our monthly budget is Cub clothes. Those little buggers keep growing and wrecking clothes, thank goodness for the local Thrift store, they have saved us a bundle on clothing costs. As you can see by our savings table we saved $456.90 in April. If we invested this for 40 years we would have $3,216.57.
Basically, you can think of every dollar saved in this exercise as $7, because $1 invested at 5% for 40 years is $7. You can use this math in everyday life now. Example: next time you are thinking about buying a chocolate bar for $1, think to yourself is this chocolate bar really worth $7?
So far this year we are averaging $464.35 in monthly savings by buying nothing new. We have also found since starting our challenge our monthly visa bill has been about $1,000 less. Impulse shopping is nil and the thrift stores don't break the bank! If we invested our average monthly savings for 40 years we could have $706,776.53. We have just started to scratch the surface of how wasteful buying some particular items new can be when there is a used alternative.