As featured in The Wall Street Journal, Money Magazine, and more!

Search: community


We live in an era of cheap, disposable goods. My closet full of clothing, much of it rarely worn, even though I sort through my wardrobe about once a year to eliminate items I no longer need, is a good indicator of this situation. For a good period when I was a kid, I wore hand-me-down clothes — as the eldest child, I received clothing from a family friend — and when an item became damaged, my mother fixed it with her sewing machine.

Prices for clothes have certainly increased over the last few decades, but clothing is not expected to last. When a piece of clothing becomes damaged, it’s easier and cheap enough to replace.

Broken ToasterBroken kitchen appliances, lamps, and other household devices past their warranty periods can’t be fixed with a sewing machine. Many would need specialized care by a professional, and with today’s disposable consumer culture, many people just opt for replacement rather than finding a repair shop and paying nearly as much money as they would to buy a new item.

Additionally, retailers and manufacturers have embraced the concept of planned obsolescence. To keep manufacturing costs low and to maximize profits, there is little concern for making products that last as long as their owners. This is a primary feature of high technology — a house phone sold fifty years ago may still function properly today, but a cell phone purchased five years ago not only doesn’t keep up with the latest technology, but it likely doesn’t work at all. Furniture built in the eighteenth century was made to last in a family for generations; IKEA furniture might last a few years under regular stress of use.

In Amsterdam, there is a small movement in opposition to this disposable consumer culture. The community has come together to repair its members’ broken items. Volunteers bring their tools and sewing machines to an open building several times a month and offer to fix any broken item brought to the gathering. This Repair Café helps reduce waste by encouraging reuse of broken items, and makes fixing an affordable alternative to replacement.

The government in the Netherlands, private groups, and individual donors have helped the Repair Café Foundation raise $525,000 over the past few years, and these funds have helped the organization create these gatherings at various locations across the country. These Repair Cafés provide a chance for consumers to make better use of their goods and for volunteers, particularly those with repair skills that might no longer be in demand, use those skills for a good cause.

Would Repair Cafés; be welcome in the United States? It’s not exactly a profitable business venture, and as such, is unlikely to draw much attention. The model, however, could easily be recreated, perhaps in low socioeconomic neighborhoods, to provide a money-saving alternative for spending money to replace slightly damaged items. Strong marketing encouraging consumers to exist in a cycle of buying and replacing comes at a price to retailers and manufacturers. If these expenses were redirected towards making better, durable products without planned obsolescence, consumers might lose the desire to constantly have new items, and would be able to hold onto the same products for a longer period of time. There would be less waste. Companies and their shareholders would find they have more loyal, life-long customers. Customers would shop with a focus on the differentiation in quality rather than with their tunnel-vision focused solely on price. Companies that build their products to last would succeed while those focused on the short-term would fail.

Could Repair Cafés be an answer to the consumer culture of disposable products? Would the availability of free repairs in the United States change the way consumers buy goods, and thus force companies to build products that are made to last rather than go obsolete? Is the trend towards disposability reversible at all?

Photo: phozographer
New York Times

{ 10 comments }

Last month, I received the news that Aurora Bank deposits would be assumed by New York Community Bank. Aurora Bank is yet another online bank that increased its marketing efforts leading up to a sale. For a while, Aurora Bank was a branch of Lehman Brothers, and part of that company’s bankruptcy proceedings required the bank we sold by May 2012.

With that date now here, and with New York Community Bank as the designated buyer, the acquiring bank has sent all Aurora Bank customers more information on how their accounts will be converted.

Central Park New YorkThis is bad news for Aurora Bank customers, who as a group have done well to avoid fees. Aurora Bank’s online money market account has not been completely free; if a customer’s balance were to drop below the minimum balance of $1,000 or if a customer were to leave the account dormant for three years, there would be $5 fees to contend with. These fees are easy to avoid, but New York Community Bank is raising the barriers.

Beginning June 4, 2012, as long as the bank receives regulatory approval for the acquisition (which is very likely), Aurora Bank online money market accounts will become New York Community Bank’s “My Community Gold Money Market Checking” accounts. Among the features are the following:

  • Minimum initial deposit amount: $2,500
  • Minimum balance to earn interest: $2,500 (up from $1,000 at Aurora)
  • Minimum balance to avoid monthly service charge: $2,500 (up from $1,000 at Aurora)
  • Monthly maintenance charge: $15 per cycle if balance is below $2,500 any day during the month (not an average daily balance, not a monthly ending balance)
  • Tiered interest rates ranging from 0.05% to 0.30% APY

The schedule of fees beyond the above, including the other types of accounts at New York Community Bank, is extensive. This bank may have community in its name, but its policies seem more like a large regional or national bank. The “welcome package” I received from New York Community Bank also included the funds availability policy, explaining how some funds you deposit in the form of checks might not be available until the ninth business day after the deposit. The consumer agreement and disclosure statement is 52 pages. The privacy policy is included in a short pamphlet.

I don’t really need an excuse to close one more of my dozens of online savings and money market accounts, but within five minutes of receiving and reading the letter I received with this information, I scheduled a transfer for my entire balance (just north of $1,000, Aurora’s minimum, plus earned interest) from Aurora to my linked checking account.

ÐIÐËO

{ 2 comments }

This is a guest article by Jennifer Calonia, Junior Editor at GoBankingRates. In the article, the author offers suggestions for staying fit without breaking the bank.

It’s that time again: Beach season is fast approaching and franchise gym promotions are in full swing to lock you and your checking account into a pricey workout regimen. It may be tempting to jump on board the latest exercise trend, but expensive programs and spa-like facilities are not only unnecessary, they’re a hazard to your financial well-being.

Instead of signing up for a pricey membership, consider low-cost fitness options and free workout routines that don’t muscle hundreds of dollars out of your pockets monthly.

Skip the treadmill

Purchasing a treadmill can cost at least $400 (or much more) and an annual gym membership runs about the same amount for a mid-level fitness center. A frugal alternative to the treadmill routine is simply running outdoors. If your neighborhood isn’t necessarily runner-friendly, seek out jogging paths near park facilities or visit your community track (typically you can use a local community college or high school track during off-hours) for a free run.

At most, you’ll want to purchase a quality pair of running shoes (which costs anywhere from $75 to $150) to withstand the rougher elements of the outdoors. Not only do you save hundreds by avoiding a gym contract with free workout routines like this, you also get a more challenging workout due to the added wind resistance and have interesting scenery to look at as opposed to the back of someone else’s head.

Editor’s note: See ten things your gym won’t tell you.

Tap into the web

The internet offers a range of free exercise videos that focus on a variety of muscles and help raise your heart rate. These videos are also a great alternative to specialized exercise studios, which charge upward of $100 per month for workouts.

For example, unlike the financial demands that yoga studios can inflict upon your budget, YouTube can satisfy all your yoga needs with beginner to advanced poses at no cost. A simple search using the keyword phrase “yoga workout” bring up a list of 20-minute to full 45-minute yoga classes at varying skill levels. This workout routine will, at most, require you to buy a yoga mat at under $10 from a local sporting goods store.

If you really must have a more standardized yoga practice, try visiting YogaVibes.com, which offers unlimited yoga class streaming for $20 a month. While this option requires that you join a membership program, it is at least cheaper than the $100 or more you’d pay monthly at a boutique yoga studio.

Join the community

For active bodies that are motivated by the perseverance of others, a community fitness event may be more to your liking. Joining group activities like trail hiking or a community basketball league are great ways to get engaged in a fun workout while meeting new people.

These group settings typically come at a low out-of-pocket cost. For example, I joined a paid basketball league and the registration fee was only $20 for the three-month season. To get the same group atmosphere, you can also visit your local recreational park for a free pick-up game at the basketball or tennis courts.

Keep on swimming

If your apartment facility already has a pool, or if your home has the luxury of an average size swimming pool, you might as well use it as an in to free workouts. You’ll get a low-impact workout that is great for muscle definition, just in time for the summer months.

Workout junkies who don’t have a pool at home can visit public swimming pools in the area. Generally, a low entrance fee of about $5 is collected at the door for each swim.

Preparing yourself for a beach-ready physique doesn’t have to topple your finances. There are legitimate and effective free workout routines and free exercise videos that can be used to achieve comparable results and maintain the motivation you need to reach your fitness and health goals.

{ 13 comments }

Art Is Not a Good Investment

This article was written by in Investing. 10 comments.

A few months ago, art and money were connected in the news when Andreas Gursky’s “Rhein II,” a photograph depicting a still river and walkway, became the highest-valued photograph sold at auction. The buyer paid $4 million to walk away with the larger-than-life print. Art is in the news again today, with one of Edvard Munch’s renditions of “The Scream.” At a recent Sotheby’s auction, “The Scream” was sold for $119.9 million. This price set a record, making “The Scream” the most expensive work of art ever sold at auction.

For those who have the money to spare, art is a popular investment. Trading masterpieces of art among a small subsection of the population, less than 1 percent, is not without criticism, however. Many artists do not live to see their works become valuable, and do not benefit from the high prices sought for their work. I addressed both the criticisms and the benefits of giving art a significant societal value in the article about “Rhein II.”

The Scream - Edvard MunchWhile it may be good for society to value art highly, is it a good investment for any one individual who has millions of dollars to spare?

Well, first of all, there is art accessible at all levels of investment. With research, you might find works available for $50 that could certainly increase in value over time at a rate better than what financial advisers offer as typical long-term stock market returns. Art is not an investment solely for the 1 percent. And with the right buying choices, your smaller investment in living artists has a more direct effect on the artist community.

Investing in art isn’t going to be right for everyone. While some consider art to be one of the best investments outside of real estate, the economy has seen would-be real estate investors struggling when the market isn’t robust. The same is true with art. The market is subject to bubbles, the latest trends play a significant role in determining prices, and you may not be able to sell your art at the price time you need the proceeds. Artists whose work have proven to appreciate and are highly recognized as masters, like Dali and Picasso, have price appreciation almost guaranteed, but the barrier to entry for investments in proven artists is too high for investors without the desire to risk large sums of money.

Outside of artists whose works have proven worth, it’s risky to invest in art with the goal of making a killing between the purchase date and the sale date. Even the best research won’t guarantee performance. To mitigate the chance of loss, when choosing art, find something you like. As long as you enjoy looking at your art collection, you won’t mind as much holding onto it until it has the ability to fetch the price you desire — which may be never. At the auction where “The Scream” sold for $119.9 million, one fifth of the pieces on the auction block failed to sell because no investors were willing to pay the asking prices.

Another problem with investing in art is the due diligence required to avoid scammers and fraud-minded people in the industry. Even experts can be wrong about forgeries. Investments in art are not subject to the same kinds of regulation that allows investors to feel generally safe and confident when investing in stocks and mutual funds.

Unless you have the financial ability to invest in artists whose names you know from high school or your college’s Art History course, you might be better off staying away from investing in art if your purpose is finding the next Rembrandt.

Photo: br1dotcom

{ 10 comments }

Thanks to the Consumerism Commentary Community

by Flexo

In just a short period of time, Consumerism Commentary will be entering its tenth year of existence. The site’s ninth anniversary is approaching, and I’ve been involved with the website longer than I’ve been involved with any other commitment in my life. Jobs and relationships have come and gone, but Consumerism Commentary remains. I started ... Continue reading this article…

13 comments Read the full article →

The Next Credit Crunch

by Flexo
Captain Credit Crunch

There are signs that the economy might be in more trouble in the near future. One of the symptoms of the recession was the credit crunch. Banks and other lending institutions tightened up their previously loose standards for extending credit, and in order to prop up their own organizations financially, banks held on to the ... Continue reading this article…

1 comment Read the full article →

Aurora Bank’s Deposits to Be Acquired By New York Community Bank

by Flexo

Last year, I opened a money market account with Aurora Bank, a division of Lehman Brothers. If it seemed like an odd thing to do, it probably was. Lehman Brothers had filed for bankruptcy in 2008, yet in 2011, they were promoting their online retail bank and looking for new customers. Not wanting to associate ... Continue reading this article…

0 comments Read the full article →

Most Wealthy Individuals Earned, Not Inherited, Their Wealth

by Flexo

When I first read The Millionaire Next Door by Thomas Stanley and William Danko, it didn’t inspire me. It’s not that I disagreed with the authors, but I found the book uninteresting. It was one of the first financial books I read after beginning Consumerism Commentary, and it came highly recommended from readers here and ... Continue reading this article…

19 comments Read the full article →
Page 1 of 2912345···Last »