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8 Reasons to Rethink Fast Fashion

8 Reasons to Rethink Fast Fashion

Not too long ago, fast fashion megastore Forever 21 announced plans to launch a new brand called F21 Red. Already known for low prices, these stores would offer clothing at costs that make Goodwill seem pricey — jeans for $7.80, tanks from $1.80 to $3.80. How can a retailer sell jeans for $7.80 and still make money? You don’t want to know, but it’s vital that you find out. All of those inexpensive finds might seem easy on your budget, but the world is paying a high price for fast fashion.

1. Fast fashion exploits overseas workers.

Remember the boycotts against the Gap and Nike back in the 90’s for using sweatshop labor? Today, business practices have gotten even shadier — and perhaps because clothes are cheaper, shoppers seem to care even less. Fast fashion stores are particularly culpable here, due to their drive for lower-than-ever prices and the frequency of their demand for new goods.

Back in the day, companies ordered clothes for each season. (This is still the way most high fashion labels work — the clothes that are on the New York runways in October showcase what will be available for spring of the following year.) Garments might take up to a year to actually be produced, and if an apparel company wanted something faster, they’d have to pay up.

Now, fast fashion chains like H&M and Zara introduce new styles as often as every two weeks. Practically as soon as photos from fashion week go up online, there’s an immediate chain reaction of fast fashion stores rushing to duplicate the trend. How do they do it? By subcontracting manufacturing overseas to the lowest bidder — generally in countries that already have some of the leanest production costs on earth. Rather than having long-term relationships with the factories, companies are comfortable with abrupt break-ups — so if they want something faster, the factories have to keep up or lose their contracts.

The push to quickly create clothing that costs buyers as little as possible leads, predictably, to factories that put production schedules and companies’ demands ahead of safety or workers’ rights. This was highlighted by the catastrophic Dhaka fire in 2012 and the 2013 Rana Plaza building collapse, which killed a combined total of over 1,200 Bangladeshi apparel workers and injured many more. The faulty wiring, lack of exits, crowded conditions, and poor construction are reminiscent of New York City’s Triangle Shirtwaist Fire. But that happened in 1911. It’s 2014.

Why is so much clothing manufacturing is going on in Bangladesh? Mainly because rising wages and inflation in China have made producing clothing there prohibitively expensive for manufacturers who seek to feed U.S. tastes for ever cheaper clothing. It won’t stop there, either — U.S. News recently reported that the Gap is looking to move some production to Myanmar (a country not exactly known for a stellar human rights record), and H&M is expanding to Ethiopia.

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2. Fast fashion contributes to the decline of U.S. manufacturing.

Politicians and pundits often the lack of U.S. manufacturing jobs that pay a living wage, allowing people who maybe don’t have a college degree to support themselves and their families. When people ask where the “good jobs” have gone, one answer is well, we can’t have decently-paid factory work and shirts that cost less than $5.

According to Northern California public radio station KQED, in the 1960’s — when roughly 95% of clothing manufacturing was made in the United States — the average American household spent over 10% of its income on clothing and shoes (like $4,000 in today’s dollars). Your average American shopper bought fewer than 25 garments per year.

Now, all of those figures have flipped. Today, less than 2% of all clothing is manufactured in the U.S. The average household spends less than 3.5% of its income on clothing and shoes (less than $1,800). The most shocking number: Now, your average American shopper is buying roughly 70 garments per year. That’s nearly 3 times as many items as 50 years ago — and yet our annual household spending comes out to less than half of the amount spent in the 60’s.

Though clothing design and marketing still generally happens in the U.S., from the 1970’s onward more and more apparel manufacturing went overseas (and in case you forgot how that went, scroll back up to item one on this list). To maintain their profit margins while feeding appetites for inexpensive clothing, manufacturers have country-hopped to wherever can provide the lowest costs. You can guess how well U.S. factories have fared. Given the higher cost of manufacturing in the states, today only about 150,000 apparel manufacturing jobs remain. Those workers make about 38 times the wage of their Bangladeshi counterparts, so yes, clothing that is legitimately American-made is not going to be that cheap.

3. Fast fashion also exploits U.S. workers.

That said, apparel manufacturing in the U.S. isn’t all decent wages and reasonable working conditions. It’s mostly neither of those things. Sweatshops absolutely exist, particularly in large cities like New York and Los Angeles, and it’s not uncommon for these to be contractors manufacturing clothing on behalf of fast fashion chains.

In particular, fast fashion behemoth Forever 21 has been the subject of several lawsuits related to conditions in Los Angeles factories that make their clothing (there’s even an Emmy-winning documentary, Made in LA, that looks at the struggles of the immigrant workers to gain basic rights). The New Yorker reports that in 2001, the company was sued on behalf of workers who worked well over full time while earning much less than minimum wage in grotesque conditions. How did the clothing chain respond? They said they couldn’t be held responsible for their contractors’ practices and filed defamation lawsuits against the groups that organized boycotts of the stores. (The dispute was eventually settled with the company agreeing to help activists but refusing to admit wrongdoing.)

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But then virtually the same allegations cropped up in 2012, this time brought about following a multi-year investigation by the Department of Labor into Los Angeles sewing factories. The federal court issued a subpoena, then sued, then ordered Forever 21 to hand over records documenting workers’ hours and compensation. The workers in these factories are often unskilled recent migrants, who may be undocumented and/or unable to speak English. Their precarious status is something that unscrupulous manufacturers can exploit — and that’s how you they can be paid even less per hour than the cost of your $5.80 miniskirt.

4. Fast fashion is environmentally disastrous.

“Buying clothing, and treating it as if it is disposable, is putting a huge added weight on the environment and is simply unsustainable,” says Elizabeth L. Cline, author of Overdressed: The Shockingly High Cost of Cheap Fashion. In her book, Cline documents the numerous tolls that textile manufacturing takes on the earth. Though in the U.S., textile manufacturing faces greater regulation to make it less destructive, again, most of the manufacturing takes place overseas where there is much less oversight. Cline cites the stat that fiber production now takes roughly 145 million tons of coal and between 1.5 and 2 trillion gallons of water.

But it’s not just the resource strain caused by manufacturing — it’s also the issues at the other end, of people constantly getting rid of their used (or even unused) clothing. The Huffington Post reports that the average American throws out 68 pounds of textiles per year — not donates or consigns, straight-up throws in the trash. In case the sheer wastefulness isn’t galling enough, bear in mind that because most garments (especially fast fashion ones) are made with inexpensive, petroleum-based fibers that don’t easily decompose (such as polyester, nylon, and acrylic), they’re going to be taking up landfill space for decades to come. As Cline points out, people generally recycle plastic bottles or avoid buying them in the first place, but people are pretty okay with buying lots of plastic clothing.

Even if you donate used clothes to charity, at this point nearly half of all charitable donations go directly to textile recyclers. On the one hand, yes, a large portion of this is reused in different ways (recycled fibers can be used in stuff like insulation). On the other hand, though, it’s unbelievably wasteful. There’s the use of water, coal, and so on in the manufacturing process. But then there’s also the “downstream” costs, including to the charities themselves, which are forced to spend a considerable amount of money sorting through clothing they can’t use (like ripped, torn, or soiled items) and disposing of it. Fast fashion has even made the textile recycling business more difficult — the lower quality of the clothing, Cline reports, means that recycled fiber is often sold below cost (and for the record, recycled fiber is sold for less than a nickel a pound).

H&M has been faced especially heavy criticism for its espousal of “disposable fashion,” and has done more than other stores to combat that image. They have released the “Conscious Collection,” billed as “sustainable style” and featuring items like a $7.95 tank top made with organic cotton. H&M also now boasts a selection of “premium quality products” (like $99 cashmere cardigans) which cost more and are ostensibly longer-lasting. They’ve also started putting recycling bins right in their stores, which will accept used clothing in any condition.

It’s a nice gesture, but at times the company’s attempts at proving its ethics are ludicrous. For example, H&M has a sponsored story titled “Fast fashion doesn’t automatically mean unsustainable” published in the UK’s Guardian (styled to look like legitimate site content, but paid for, branded, and no doubt heavily vetted by H&M). In the story, the author argues, “…everyone in the fashion industry knows that luxury brands and high street brands more than occasionally use the same suppliers. Factory workers are paid the same salary to produce luxury goods as so-called ‘fast fashion’, and under the same conditions.”

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To recap then, their argument is that factory workers will be exploited no matter what, so might as well go with the cheaper pair of leggings. You can tell yourself that well, you’ll give those leggings to charity, and then someone else will wear them, but given the lower quality and cheap brand, they’re more likely to wind up in a landfill than on somebody else’s legs.

5. Fast fashion can wind up costing you more than “real” clothes.

If you’re on a budget and looking for ways to save money on clothes, one way to evaluate the price of an item is to calculate the cost per wear for each item. You could complain that this is just a trick to make an expensive item seem reasonable, but it’s actually a way to force yourself to think about the effects of your purchase on your bottom line. You need to think about both how often you’ll wear the item, and how long it will likely last.

Say you’re looking for a pair of black heeled sandals. You can buy a pair from Charlotte Russe for about $30. If you wear them just to one party buy them for a special occasion and wear them just for that, that’s your cost per wear right there — $30. Wear them three times, it’s $10. If the cheap pleather cracks, if the heel breaks, if the plastic soles are too worn, that’s the end of the road for those heels. If you’re going to replace them with a new pair, that’s another $30. It would be easy to wind up spending $120 per year on four pairs of the same cheap black heels, with a cost per wear of roughly $10.

Now here’s a different scenario. We’re still looking for black heeled sandals, but say you get them from Cri de Coeur. Founded by two Parsons grads, their vegan, sustainably-produced, and totally stylish shoes retail for around $150 for a pair of heeled sandals. If you wear them the same amount as the cheap heels, they’re only costing you a little bit more per wear — $12.50. But since these are considerably higher quality and will hold up much better, you’re probably going to wear them more. Even if you only wore them 16 times in one year, your cost per wear would drop below the $10 mark. You also don’t need to make those three additional trips to the mall to replace your busted-up heels. Which scenario seems more sensible?

6. Fast fashion’s low quality changes how you think about clothes.

Ellen Ruppel Shell, author of Cheap: The High Cost of Discount Culture, argues that when we buy “cheap chic” clothes at places like Target or Mango, even though there’s not planned obsolescence — the clothing isn’t designed to fall apart (though some have alleged that it is) — we don’t expect it to last. We don’t invest much in it monetarily or emotionally, it’s just to fill the gap (something to wear to that party Friday night) and then its job is done. Part of why Americans toss so much clothing is because we no longer bother to repair a lost button, or resole a worn-out shoe. If clothing feels cheap, fast, and disposable, that’s how we treat it.

In an article on the website College Fashion, after explaining “how Forever 21 works” (i.e., mentioning that unethical labor practices help keep prices low), the author goes on to give tips for shopping at the retail chain. For example, look at the seams: “If the two sides of the seam appear to come apart relatively easily, the thread starts to come undone, or you feel that with a little bit more energy you could rip the item in half, it’s not made well and won’t hold up for long.” Why would you shop in a store where the item literally falling apart in your hands is a likely scenario?

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Cline, author of Overdressed, also notes this phenomenon. She writes that “low prices and fast trends have made clothing throwaway items, allowing us to set aside such serious questions as How long will this last? or even Will I like it when I get home?” For many people, even bothering to return an item that looks less good outside the store is too much of a hassle. But cheap isn’t free. If you’re going to toss your clothes after one wear, you’re throwing money away, too.

7. Fast fashion collaborations trick you into paying for the name.

What used to be mega-events — round-the-block lines for Karl Lagerfeld for H&M, Missoni for Target crashing the big box retailer’s website — are now regular occurrences. Mass market retailers (notably Target and H&M, but also Mango, Topshop, and Zara) regularly trot out collaborations with high fashion designers, giving consumers a taste of what H&M has dubbed “massclusivity,” according to Dana Thomas, author of Deluxe: How Luxury Lost Its Luster. These limited-time capsule collections are designed to do pretty much one thing — send shoppers into a buying frenzy where they don’t even care what they get, they just know they’re getting something with the designer’s name on it.

Sure, that’s not how these brands would describe it. Thomas quotes Chanel designer Karl Lagerfeld as saying that fashion isn’t a matter of price, “It’s all about taste.” But how tasteful is waiting in line outside a mall store or constantly hitting refresh on your web browser just to grab something, anything that has a designer’s name on it? Considering that many fashionistas claim that it’s not about the label, it’s about the style, it’s more than a little surprising that these collaborations consistently create such buzz (Joseph Altuzarra coming to Target this fall is all over every fashion mag’s September issue).

Once the thrill of the initial scrum is over though, shoppers are left with items that say Missoni, or 3.1 Philip Lim, or Rodarte, or whichever designer they are. But are they really? Cline notes that actual Missoni dresses, for example, are made in Milan using natural fibers like virgin wool, viscose, and alpaca. Missoni for Target? That would be acrylic made in China. You could argue you’re paying for the design, but realistically, anyone who recognizes the designer is probably also going to recognize that you’re wearing the H&M version, not the real deal. Sure, it’s a lot less than a “real” item from one of these designers would cost… but chances are, it’s also something you wouldn’t even have considered buying if it didn’t have the designer’s name attached.

8. Fast fashion distorts your sense of value.

Though Americans like saving a buck — honestly, who doesn’t? — with the rise of fast fashion, we expect our clothing to cost virtually nothing. The strange thing is that even though we appreciate lower prices on all goods, we’re pretty willing to pay more for certain types of products. Some of the most desirable products — like Apple computers — are literally unavailable at a discounted price, and people still line up every time there’s a new iPhone. A computer or a smartphone is an investment and lasts a while, but think about other things in your life you’re willing to pay a bit more for. A grande latte at Starbucks costs around $4, and you drink it in a matter of minutes (or if you sip, we’ll call it an hour). If you’ll spend $4 on a bit of caffeination, is it really that important that a t-shirt cost only $3? The money you’re saving on that shirt has real consequences — it’s worth the time to reflect on what it truly costs.

Featured photo credit: Mike Mozart via flickr.com

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Last Updated on June 6, 2019

The Average Retirement Savings and How to Save Wisely

The Average Retirement Savings and How to Save Wisely

Are you on track for retirement?

If not, don’t worry, I’m not sure either. I save each month and hope for the best.

Fortunately, I’m at an age where most people don’t save so I’m ahead of the curve.

But, what if you aren’t in your 20s? What if you’re near retirement and are looking to gauge where you stand?

If so, keep reading. Here’s how to prepare for retirement and save wisely during the process.

What Does the Average American Have Saved for Retirement?

Saving for retirement is tricky.

Tell someone straight out of college to save $10k a year for retirement and it’ll be next to impossible.

Make the same request to someone decades older and they’d be more likely to be able to save this amount. But, a 20-year old college student can be “financially ahead” of someone saving more than them. Why?

Age matters in your financial journey. The younger you are, the more time you have to save and put compound interest to work. As you get older and have more saving power, you’d have less time to put compound interest to work.

Here are the average savings Americans hold by age bracket:

20’s – $16,000

During this stage, most people are paying loans and moving up the corporate ladder. Your best bet during this stage is to focus on eliminating debt and increasing your income. Don’t focus only on getting a high-paying job neither.

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Instead, focus on learning via Podcasts, reading books, and taking specialized courses. Doing this will make you more valuable and give you more career options.

30’s – $45,000

At this stage, you’ve hopefully escaped your entry-level salary and work at a career you enjoy. Your earning power has increased but you now have more obligations. For example, marriage, kids, and a mortgage.

Set a plan to pay off all your debt and focus on eliminating unnecessary expenses. Leverage financial tools like Personal Capital to ensure you’re on track for retirement.

40’s – $63,000

This is the stage where you’re at the prime of your career. Top financial institutions recommend you have at least 2 to 4 times your salary saved up. If you’re falling behind, start maxing out your 401K and Roth IRA accounts.

50’s – $115,000

During your fifties, you’re close to retirement but still, have time to save. You may be helping your kids pay college tuition and other expenses. Since you’re at the peak of your earning power, max out all your retirement accounts.

60’s – $172,000

By this point, you should have about eight times your salary saved up. If not, you’ll depend primarily on social security benefits averaging $1400 per month. Max out all your retirement options as much as possible before retiring.

Ways to Save Money on a Tight Budget

The sad reality is that most Americans aren’t saving enough for retirement.

Even high-earning power isn’t enough to secure one’s financial future. You need to have the discipline to save for retirement while time is in your favor. Don’t wait for you to have a high salary to save, start with having a small budget.

First, get a clear picture of where you stand. Write down a list of “needs” and “wants.” For example, Netflix and Amazon Prime are “wants” and a “cell-phone” is a need.

Use tools like Personal Capital to analyze your spending patterns. Personal Capital allows you to add all your financial data in one place–making it a powerful option to gauge where you stand.

Once you know all your expenses, organize them from highest to lowest expense. When you can’t cut more expenses, call your service providers to negotiate a lower price. If you’re not good at negotiating, use services like Trimm to lower your monthly expenses.

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How to Save Money Each Month

By this point, you know the average amount of money you should have saved for retirement based on your age.

But, breaking this down into monthly goals can be challenging. Here are some rule of thumbs to follow:

Aim to contribute 10%–15% of your salary each paycheck. Review your progress each week.

Why so often? The reality is that life gets in our way and you will have many financial setbacks. Your goal isn’t to be perfect but to get back on track instead.

Reviewing your finances weekly lets you know where you stand with your retirement. This doesn’t have to be a long process either. All it takes is login in Personal Capital to view your net worth and check how much you have saved for retirement.

Turn saving into a game and aim to save more each month. It will get challenging but you’ll get creative and find more ways to save.

Top Money Saving Challenge Tips

To prepare for your financial future and not be another statistic you need to be different.

How?

By adopting new habits that’ll help you become a saving machine. Here are some ways you can save more:

Automatically Contribute Towards Retirement

If you’re working for a company, you can automatically contribute towards your 401k. If you’re not currently contributing more than 10%, make this your goal. Contribute 1% more today and automatically increase this amount a year from now.

Odds are that you’re not going to be negatively affected by contributing 1% more. Many times we spend our money on things we don’t need. Contributing more towards retirement is a great way to secure your financial future.

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Use the Right Tools to Know Where You Stand

Once you’re contributing more towards your retirement accounts, gauge your progress. Make use of finance tracking apps to help you view the big picture of your retirement.

When I’d first signed up for the app Personal Capital, I didn’t know I had a negative net worth. Despite saving thousands of dollars, my debt brought my net worth to the negative. Knowing this motivated me to save more and spend less.

Now, I have a positive net worth. But, it was because I was able to view the big picture using the app. Find out what your net worth is using a finance tracking app and you may surprise yourself.

Bring in Experts to View Your Blind Spots

If you have too little or too much money saved, you should consider hiring financial experts.

Why?

You may need someone to hold you accountable to help you reach your financial goals. Or, you may need help managing your money as effective as possible.

Regardless of the reason, getting help may help improve your financial situation.

Before you hire an expert, find out which areas you need help the most. For example, if you’re constantly overspending, find a debt counselor. If you’re struggling with choosing the best investment options, hire a financial advisor.

Speed up Your Retirement Contribution

After learning how to manage your money well, the next best thing is to earn a higher income.

You’re capped at how much you can save but not much you can earn. Even if your employer isn’t giving you a promotion, you can still take charge of your financial future. How?

By starting a side-business.

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This will be something you’d work on after you’ve finished your day job. Once you start earning income from your side-business, you’ll be financially better off.

The best part is the more work you put into your side-business,[1] the more potential it has to earn more money.

So start a side-business in an area you’re familiar with. For example, if you enjoy writing, do freelance writing for small e-commerce businesses.

Once you’re earning a higher income, you can contribute more towards your retirement. Don’t wait for the right opportunity to secure your financial future, create one.

Reach Financial Freedom with Confidence

What if you were able to retire tomorrow with no problem, all because you’d have enough money saved up and little to no debt left to pay off? How would you feel?

My guess is that you’d feel happy and relieved.

Most Americans are falling behind their retirement goals for many reasons. They’re not prepared, they carry bad money-habits and are thinking short-term.

For you to retire successfully, you need to work backward and adopt better habits. Contribute more towards your 401K and focus on growing your income.

If you do, you’ll save money and pay debt faster.

Don’t beat yourself up if you’re behind your retirement goals. Take the first step today towards a brighter financial future. Isn’t retirement worth the hard work and sacrifice to be at peace?

Featured photo credit: Huy Phan via unsplash.com

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