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More people make ‘no-buy year’ pledges as overspending or climate worries catch up with them

More people make ‘no-buy year’ pledges as overspending or climate worries catch up with them

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More people make 'no-buy year' pledges as overspending or climate worries catch up with them

A 35-year-old Brooklyn resident gave up buying new clothes. A 22-year old in San Diego swore off retail therapy at Target. A 26-year old in England banned carbonated drinks from her shopping list.

These three women, who don’t know each other, all started the year resolving to spend money only on necessary purchases, or what is popularly known as engaging in a no-buy challenge. The self-imposed rules of the challenge are simple: participants pledge to stop buying non-essential items, be they unneeded shoes, additional beauty products or other impulse buys for a set amount of time, usually 12 months.

What started several years ago as a blogged-about experiment in budgeting and mindful spending has become a popular trend on social media. A Reddit group where people share their experiences has 51,000 members. The challenge primarily gained popularity on TikTok, where some videos of users seeking to hold themselves accountable get hundreds of thousands of views.

Elysia Berman, a creative director who lives in Brooklyn, decided she needed to drastically change her spending habits after she accumulated a collection of vintage designer clothing and a five-figure credit card debt. Her no-buy pledge included no new clothes, getting makeup and hair products only after she finished the ones she had, and limiting social outings to low- or no-expense activities.

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“Having this lifestyle adjustment, I was anticipating that it would make a huge difference in my ability to pay down my debt,” Berman said.

Talking about any personal financial struggles is difficult for most people, but Berman approached hers head-on by discussing her financial struggles with friends and family and then posting about these issues on social media. The latter action resulted in more exposure than she originally expected; she has over 60,000 followers on TikTok, where a video in which she displayed her empty skin and hair products received over 1 million views.

While the trend has been growing for some time, the beginning of 2024 provided another opportunity for people to gain back agency over their finances following the “doom spending” of the COVID-19 pandemic, according to Courtney Alev, a consumer financial advocate for the personal finance company Credit Karma.

“It’s just people trying to reclaim what’s been a rampant cycle of overspending, to be able to get their financial situation back in order and be able to save money,” Alev said.

Not everyone electing to join the no-buy trend has debt. Amea Wadsworth, who moved back home to San Diego, California, after graduating college, wanted to use her first full-time job as a chance to save, both the environment and money for her future.

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After returning to live with her mom, she began noticing how many things she had that took up space. Working for a sustainability app also has made her more aware of her personal contribution to the world’s mountains of waste.

“I’m tracking everything that I’m spending. I’m writing it all down,” said Wadsworth, who also writes down the times she wants to buy something but doesn’t. She reviews the entries at the end of the month to determine if her purchases were really necessary purchase or a response to a quick craving.

Mia Westrap, a PhD student from Southampton, England, also uses TikTok as a way to keep herself accountable during her no-buy year. Her goal is to save three months’ worth of rent, since she currently lives month-to-month. While Berman’s Achilles’ heel was fashion items, Westrap’s was food and beverages.

“I figured out that I was spending four figures on just carbonated drinks and Pepsi Max,” she said.

Since social activities like going out for dinner or drinks involve spending money, Westrap decided to put a pause on dating during her yearlong no-buy challenge.

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“I don’t want to turn up to a date and expect them to pay for me,” she said. “And I also don’t want to get up to date and meet someone and be ‘Oh look, I make these TikToks about not spending any money and here I am,’”

Other no-spend participants give themselves some latitude. Wadsworth, for example, is not buying any physical items but does allow herself to occasionally eat out with friends and the cost of visiting her long-distance boyfriend.

Sabrina Pare, 31, of Detroit, Michigan, approached cutting back on purchases from an environmental perspective. A sustainable living aficionado with a large social media following, Pare decided to participate in the no-buy year as a way to limit her contribution to the world’s waste.

She began by decluttering her closet and then looked for environmentally friendly ways to build a minimalist wardrobe, like hosting a clothing swap and avoiding fashion trends. At every step, Pare brings her followers along by filming short videos and sharing tips.

“If you’re buying less, it’s better for the planet. Overconsumption, it’s such an issue in our society,” she said.

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But just as social media can be used for accountability and support when participating in the no-buy year challenge, it’s also one of the reasons many overspend. Berman, for example, stopped following a lot of fashion influencers to reduce the urge to buy things.

Learning to avoid impulsive shopping takes rethinking your habits and becoming aware of your triggers, said Carrie Rattle, CEO of Behavioral Cents, a financial coaching company.

“(The challenge) does help you try to push back against that need for dopamine. Every time we shop, any of us shop, we get that little dopamine hit,” Rattle said.

While the challenge is meant to last for one year, people trying it say they are learning new techniques to help them avoid overspending in the future.

Westrap carries a bag big enough to hold something to read when she leaves her apartment so she won’t have an excuse to buy more books. Pare unsubscribed from newsletters that tempted her to buy clothes and skincare products. Berman dyed her hair back to its natural brown since salon appointments to keep the color bright blonde were costly.

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“My consumer habits have changed so much through this,” Berman said. “Just because you see all the waste and you’re like, ‘Why is this necessary? Why buy a million little things when you can just buy one big thing, and it’s even better if it’s refillable.’”

After she makes a significant dent in the credit card debt, Berman hopes to start saving and investing. Wadsworth plans to focus on spending her money on experiences with her loves ones rather than material things. Pare hopes to pay off her student loans.

Wadsworth advises anyone who hears of the no-buy challenge and can’t imagine doing one to give it a try, even if it’s just for a month.

“They say that it sounds so hard and yeah, it sounded hard to me, too. But if it sounds so terrifying to you, it probably means that you need it,” she said.  

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Asset managers headed for increasingly lean years, study says

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Asset managers headed for increasingly lean years, study says

Profitability at asset managers has slipped for the past two years and is likely to decline further through 2028 as investors increasingly opt for products with lower fees, such as exchange-traded funds (ETFs), according to a new study.

“The good years are over for now,” zeb senior consultant Fränk Hamelius, one of the study’s authors, said on Monday.

Over the past five years, the assets under management of the firms studied have risen by 8.8% annually on average, but their operating profits have only gone up by 0.7% per annum, it said.

Under the baseline scenario forecast by the study, profits would likely slip to 5.5 basis points of assets under management by 2028 and could fall to as little as 3.9 points. In the best case, they could increase to 9.1 basis points, it predicted.

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With interest rates having risen in the last few years, investors moved money from equity funds into bond funds, yielding lower profits for asset managers, the study said.

Medium-sized asset managers are on average significantly less profitable than large and small ones, it showed. 

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Trump gets ire over work at McDonald’s without hairnet, gloves

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Trump gets ire over work at McDonald's without hairnet, gloves

Donald Trump’s obsession with questioning Kamala Harris’ work experience at McDonald’s peaked over the weekend when he worked the fry cooker at a Pennsylvania branch — without a hairnet or gloves.

McDonald’s workers have now given their verdict on the former president’s performance – and came away less than impressed.

Trump has baselessly called his Democratic opponent’s summer stint at a McDonald’s “a lie,” so he decided to try his hand at the fast-food chain himself, shutting down a Bucks County restaurant to do so.

While serving food through the drive-thru window and working the fry cooker, some have pointed out that he wasn’t taking proper precautions — at a location that has previously been cited for health code violations.

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Earlier this year, this location didn’t meet the compliance requirements of the Bucks County Health Department. A health inspection in March at the Feasterville-Trevose location resulted in four violations, including citing employees not having their “hands clean & properly washed.”

“Food employees are not washing their hands as required before putting on gloves, after handling soiled tableware, after handling raw meat, before handling clean tableware, equipment, utensils.

CFSM must review hand washing requirements with staff. Observed employees handling raw beef with gloves and then switching gloves without hand washing step in-between,” the health inspector wrote.

The report also noted a lack of hairnets: “Food workers are not wearing hair restraints as required, which includes management that assists in packaging and preparing food. Employees shall wear hair restraints such as hats, hair coverings or nets, that are effectively designed and worn to keep their hair from contacting exposed food; clean equipment, utensils and linens; and unwrapped single-service and single-use articles.”

This Sunday’s photoshoot of the former president captured him in a white button-down shirt, ketchup-colored tie and a blue apron with yellow stripes — but without gloves or a hairnet while working at the McDonald’s stop in the swing state.

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The Independent has reached out to the Bucks County Health Department and a representative for McDonald’s for comment.

Workers for the fast food chain shared their opinions in the Reddit thread r/McDonaldsEmployees and were quick to point out that Trump did not seem to meet the chain’s typical requirements. 

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PSX makes history as KSE-100 index reaches 86,733 points

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PSX makes history as KSE-100 index reaches 86,733 points

The Pakistan Stock Exchange (PSX) on Tuesday continued to witness bullish trend after President Asif Ali Zardari signed the 26th Constitutional Amendment, making it legally applicable.

The KSE-100 index traded at 86,733 points after gaining more than 600 points.

It must be noted that the KSE-100 index closed at 86,057 points on the first day of trade in the PSX during this week after gaining 807 points.

On the other hand, the American currency further depreciated by Rs.0.09 in the interbank market, taking it to Rs277.60 from Rs277.69.

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