Buying 2nd Hand Is A Way Of Life

Frugal For Life recently wrote a Consumer group doesn't buy notion that new is better

"About 50 teachers, engineers, executives and other professionals in the Bay Area have made a vow to not buy anything new in 2006 -- except food, health and safety items and underwear. They call themselves the Compact. They have a blog, a Yahoo group and monthly meetings to reaffirm their commitment to the rule, which is to never buy anything new"

"Compacters can get as much as they want from thrift shops, Craigslist, freecycle.org, eBay and flea markets, as long as the items are secondhand. And
when they're in doubt, they turn to their fellow Compacters for guidance."

"We had a little crisis when Matt and Sarah had to replace their shower curtain liner and we said no," said Perry, who lives in Bernal Heights. "But we put the word out and someone found one for them. It's like the Amish -- we help each other out. We raise a barn every week."

She quotes from an aricle originally published Here.

She concludes that it sounds like a good idea, that should be carried out in cities and towns accross the country. I have to agree.

In fact I have been doing this for quite a few years. Though in January, before I started my debt-free, cash only goal, I signed a six year note on a 2004 Malibu Classic. It is the newest thing I have. Would that be today, I would not have done it. Instead I would have found a car under $5,000, though it would probably have a lot more milage on it, it would be more within my budget. Should I sell this car? If I apply Dave Ramsey's teachings, that would probably be a yes. Will I? Probably not. It's the nicest thing I have ever had and I have another source of income, that I am using to build my emergency fund. This same fund, will also include enough funds to cover my insurance and check payments. That means instead of $1000 emergency fund, this savings will have better then $3000. It will take me 10 months to save up this much, but at that point I can switch from quartly insurance payments to annual. This will save me $4/quater and allow me to earn $30-$60/year in interest instead.

While I am building this fund, I will still be applying an additional $50-$100 extra a month to th car payments. Afterwards, I can apply another $200/month to the car payment, while continuing to apply $100/month to this savings to cover the insurance and tax payments.

I currently have $115 in this account, after I paid $339 in insurance this month. My hope is that in August when the next quartely payment is due, I can increase that to semi-annual and six months from then annual.

But I am straying from the topic at hand. The point is I don't own anything new, and buying 2nd hand is a way of life.

By the way I am looking for used futon to use as my small bedroom. The type I am looking for is one that folds down into a bed. The idea is that I can use it like a futon, nights that I am off work and watching videos, but can replace my bed in the daytme when I am sleeping. In addition I am looking for a barstool (29" or slightly higher) with a back on it. If you are in Topeka contact me and MAYBE we can work something out.