Go Green, Live Rich by David Bach
by Lloyd Alter, Toronto on 04. 3.08
David Bach has written a lot of books with titles like "Automatic Millionaire" and "Start Late Finish Rich" that appeal to many (he has sold millions of them) but I admit to never having had much interest in the genre. However, TreeHugger has always promoted living with less, using fewer resources and having a smaller footprint, and over on Planet Green we often talk of frugality as a green virtue. David Bach takes those ideas to the bank in Go Green, Live Rich.
It is a simple theory: do all the little things we prattle on about, like improving your car's fuel economy (save $884 per year); sealing the leaks in your home and save a little on energy ($129); turning back your thermostat ($85) and brownbaggging your lunch. ($1,560). Take that $3,758 and invest it. What have you got in 30 years? $ 678,146.
Suddenly the genre and going green looks very, very interesting.
Bach writes well, in a breezy style; it is an easy read. However by putting a dollar value on 50 different green steps that you can easily take, he changes the whole message about going green, from doing something good for the environment over time (a hard sell to all but the most dedicated TreeHuggers) to doing something good for yourself and your bank account. Self-interest is a great motivator, and if the result is a dramatically smaller footprint, everybody wins.
Bach notes in the introduction:
"My own personal transformation to becoming more environmentally conscious began to happen when I moved into one of the leading green apartment buildings in the country. Funny enough, I decided to move there not so much because it was a green building but because it was located right next to my son’s favorite park, where we spend lots of time together.
But then something happened when I moved in and it stopped me in my tracks—my lifelong allergies began to improve along with Jack’s asthma. I then began making more changes. I switched to green cleaning products, started using a green drycleaner, and even gave up my gas guzzling SUV. I soon noticed that I wasn’t spending more money to make these changes—I was actually saving money."
This is the kind of message that can change the attitudes of a whole group of people who still think that being green is the preserve of liberals and hippies, and take it mainstream; I hope that David Bach sells many millions of this book. Also, a buck per copy is being donated to the Waterkeeper Alliance. Its chairman, Robert F. Kennedy Jr, reviewed the book too:
"Great news; there is no green premium! By demonstrating how going green can fit any budget, David Bach shows that good environmental and financial decisions go hand-in-hand. Bach's "Go Green, Live Rich" gives great tips, useful to everyone, about how to save money and the planet at once."
It gives a whole new meaning to the name of our sister site, Planet Green, where we will be running a series of posts with some of Bach's suggestions for monetizing the green movement. ::Go Green, Live Rich
What are you investing in?
Exxon Mobil?
Chevron?
ConocoPhillips?
GM?
Ford?
Boeing?
Lockheed Martin?
Altria?
Monsanto?
Think about what you are investing your money in. If you are putting it in S&P 500 index funds you are investing in these bad companies and many more.
$884 a year averages as $73.67 a month.
How much gas would you have to burn to make $73 in savings per month just by improving fuel economy by 15%? That would mean that you're spending some $486 a month on gasoline.
Something's not right there. Maybe he bought a new car. Say he had a 2001 Ford Expedition that got 12mpg, and he traded that in for a new Prius, which gets 48. By using 1/4 the fuel, that would mean he was spending a little less than $100 a month.
That almost makes sense anyway.
By that same reasoning, by not owning a car at all, I should be saving up $20 (gas) + $100 (insurance) + $150 (payments) per month, for a total of $5400 a year.
I should be able to retire by the time I'm 45 by that measure. :)
This has always been my philosophy. The mechanism for change en masse isn't going to be "caring for the environment", sadly not enough people care to hug trees. However, once poeple realise that you can save money by living green, then that'll really set the ball rolling. You can live green and save your pockets, you can even make money!!
I'm getting the feeling that David Bach is smoking green. It doesn't take a financial guru to see that investing $3758 over 30 years in today's recession driven investment environment will not yield the kind of returns he is predicting.
With that said, it is critical that consumers see going green less as an investment but more as social responsibility. Sure it's going to cost but it's been a great free ride until now... I hate to break the news to you all but THE PARTY'S OVER!
Frankly speaking I find the book "Living with Ed" by Ed Begley a way more realistic and informative read with some great first steps that really are useful in doing the right thing the right way. Ed is a down to earth individual who is the real deal. I think David is riding the wave to fill his pocket. The truth is out there and there are way better and more reliable sources. This isn't a quick fix folks - it's a hard core lifestyle change.
"With that said, it is critical that consumers see going green less as an investment but more as social responsibility. Sure it's going to cost but it's been a great free ride until now... "
This is where I think you are dead wrong! Most people are trying to scrape by for themselves and their families, being socially responsible does not help put food on the table, stock up a 401K or save for a child's college fund. Sure I'd like to think that altrusim and social responsibility were at the core of all of us but the sad truth is they are not. Giving a money spent=money saved spin to tree hugging might just get more folks on board!
**Oh yes and while the economy may be tanking a bit now, it will come rebound as all cyclical things do. I'd not poo-poo the investment growth prediction just yet**
He is probably not talking about stock market investing which historically does not have the same returns that real estate does. Ya Ya we are in a recession, but all stock market money is discretionary where as real estate is where people live, work, and play.
I think this is a great book idea as most people only care about themselves and if this is what it takes to get them to "go green" then the end result is the same.