The Economics of: Buying Nothing New March 2016
We have entered month four of buy nothing new for a year. It is time to look back on March to see how the Sasquatch family did. First, I want to tell you all the truth, I am loving this experiment! It really makes you think before every single purchase and truly appreciate what you already have and question what you really need. In March, our family took a trip down south to Mexico. I was very happy not to buy any souvenirs or other unneeded stuff you buy while traveling, instead, we spent money on what really matters, food and fun. The fun being snorkelling trips, day trips, and horseback rides along the beach.
You can see in the chart, March would have been our most expensive month if we bought everything new. The biggest ticket item was Mama Sas, losing her iPhone to a giant Pacific Ocean wave. Thankful we had a friend with an old one that we just needed to unlock, saving us a bundle. We also stocked up on used summer clothes for the trip. All in All, we saved a Whooping $806.01 in March.
So let's do our trusty Math. $806.01 compounded at 5% over 40 years turns into $5674.30 so like always that’s 7 times our initial investment. If we invested this much every month for 40 years we would get $1,226,809.41. Hello, retirement!
Now that we are 3 months in, we have saved $1400.51 which averages out to $466.84 a month. Which is a 40 year 5% compounded amount of $710,566.50. Man not buying anything new is really helping out our retirement!