Are you a transumer? Don’t worry, this is the first time I’ve heard of the term. “Transumer” refers to a “consumer in transit”, and apparently, more and more people are joining the transformation.
MP Dunleavey wrote an interesting post on MSN Money (an aside – I would love to write for MSN Money. Just, um, throwing that out there if any MSN Money folks are reading! 
) on the ownership model vs. the “transumerism” model.
ABC News also had an interview on the subject (it’s a 6 minute video – worth watching).
From MP’s article:
The transumer philosophy is largely based on a “leasing lifestyle,” according to an analysis by Trendwatching.com, a global trend-spotting company based in the Netherlands. Rather than spending your money on individual things, which you then have to keep (suddenly an old-fashioned idea), you purchase access to an array of objects and experiences. It can save time as well as cash: The more you own, the more you have to worry about, maintain and upgrade.
I’m of two minds on this trend. There are some things that I rent, but others – I want to own!
Car: I definitely love owning my car – it’s paid off, it’s mine. I don’t have to worry about going over the mileage limit, or getting out of my lease if I have to move, or fixing the small dent on the side of my door.
Housing: At the same time, I love renting right now. I am not ready to assume hundreds of thousands of dollars worth of debt at this point in my life, so I will happily rent until I am financially and emotionally ready for the responsibilities of home ownership.
Purses: As for a bag – while I admire the ingenuity of companies such as Bag, Borrow, or Steal, I have to say that I would get more enjoyment out of a bag that I OWN, as opposed to one that is only mine for a week or two. I’d rather save my money and splurge on one bag that I know I will love (and have for years), rather than have to give back my bag at the end of the weekend.
Books/Movies: I like borrowing books and movies. But the books and movies that I really love? I want to own.
Another thing I realized is that in the ABC interview, there is a lot of emphasis on “not giving up your lifestyle, but living on a budget.” Is it just me, or does this sound an awful a lot like the monthly mentality? Just because you can “afford” to make a payment of XYZ every month doesn’t mean that it’s a wise financial decision.
What do you think of this trend? Are you a transumer?
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I also own my car…and I’m about to purchase a condo. I would never rent a purse (I prefer classic items that don’t go out of style), a watch or sunglasses. While I find the idea of art appealing, it’s not in my budget right now…instead of renting it, I buy prints and frame them myself (only type of art I can afford right now).
heck no! you know i just don’t get the concept. even though leasing cars has become normal, i still think it’s crazy. heck, i even think 30 year mortgages are ludicrous and yes, i have one but i’m working on that;-).
are you telling me that people are renting things like purses?! how ridiculous. i guess some people really enjoy the month to month lifestyle, sacrificing the opportunities tto build some sort of wealth for the desire to look the part today. oh well, it’s personal choice and fortunately for me, i choose not to participate!
Oh. I don’t understand a leasing concept but I can see how it’s freeing.
I did something similar for almost a year. Rented cars, took flights, didn’t have an apartment was in a hotel room.. and I could basically move and do whatever I wanted with just a suitcase…
With that being said, I felt homesick for a base. I didn’t want to rent my handbags (I love ‘em) and I want my own bricks and mortar, and my own car …
So no. I’m not into that kind of nomadic-ish lifestyle.
What an interesting word!!! You bring a good point. My mom is always telling me that I need to buy a house, but it makes more sense for me to rent until I’m financially stable to buy a house – at least in my opinion. I definitely rent from the library, too. I love that! I don’t really feel the need to own books…
I think leasing is bad when it incurs interest – like a car loan. Which is why I paid that bad boy off ASAP!
I think I’m a transumer halfie!
I think your last paragraph hit the nail on the head – the monthly payment mentality. Now people understand that they can’t afford the Prada bag, but they still don’t want to give it up. Ergo, they rent it instead of charging it.
Same problem, different way around it.
I get the appeal of not having too much stuff, but this reaction to owning anything seems off to me. Or may I just want to justify my constant clothing shopping.
Since I have worked at Avelle (Bag Borrow or Steal) I have been thrown into this new way of thinking and consuming. I have come to the conclusion that “Transumerism” is kind of freeing. Some investments are smart, if they are going to make you money in the end, like owning a home.
Since I have been renting handbags (I average a new handbag every 1-2 months), it has felt right. By the end of two months I am usually sick of the thing and ready to move on. Instead of spending $10K to own all of the handbags I have carried, I have spent $750 (which is the price of one new designer handbag)
But, in response to some other comments, if you are not that into fashion, it probably doesn’t make sense. I have generally had the state of mind that we don’t get to leave this world with any of the stuff we buy, so why gather a bunch of stuff just for the sake of having it around?
I love the MSN Money article. I love MSN money, but that’s neither here nor there. I actually am a transumer. I live in a hip neighborhood in Chicago because I rent there. I’m a member of Zip Car, used to be a member of I-go. I buy cheap clothes (think summer tees, frilly dresses and hangbags from Target/Forever 21/H&M, etc) because by the time they wear out (6 months to a year), they’ll be out of style anyway.
Side note: I don’t buy cheap shoes though. Shoes are an investment.
I’d like to think that the way I shop is due to my youth and lack of money to buy finer things, but being a transumer is SO convenient and the cost benefit analysis is working in my favor right now. For example, no, I don’t have any home equity, but living in a neighborhood I love beats having home equity in a neighborhood I hate any day of the week.
Great post!!!
I agree that transumerism is huge. My friend and I went on a cruise a month ago and half the cruise was rent-a-center employees. Apparently the stores are doing BIG BUSINESS right now and the top 10% of stores with serious growth received this vacation for two (the manager and friend) for free. It’s sad that people need to rent bunk beds and tv’s.