Archives for December 2013

New York City: I Love You

This week I’ve been spending some serious time exploring New York City. Halfway through, I’m falling in love with this city, and simultaneously realizing that this place might not be for me on any long-term capacity.

There’s a romanticism and history to this city that stirs an inner reflection about where I come from. My great-grandparents came through Ellis Island with droves of others to seek a better future and life for themselves and their children. They came with next to nothing, and New York City was their first open hand for assistance. One of my grandfathers grew up in the city – he still talks about his days playing with friends and going to Columbia University.

Sitting in my travel workstation at the nearest Starbucks, I imagine all those that are joining me here in the city; clicking and clacking away to write a masterpiece, or just a mere blog post. I imagine the start for my grandparents and great-grandparents that often began here in this city of everything.

New York City seems to be a place for connection, and I’m feeling it to my core. The hoards of people aren’t overwhelming and tumultuous; rather, they’re a cacophony of sounds that connect us all. This is what humanity looks like in large numbers, and it’s a beautiful sight. Surprisingly, I’ve loved being surrounded by so many people. Walk down any sidewalk at any point in the day, and you shouldn’t be surprised to find others.

As I drink up all of these wonders and explore the never-ending Central Park, I’m bothered by the city’s powerful emphasis on consumerism. Shiny, glossy, well-lit store fronts are pervasive. They make spending seem appealing, easy. All I want to do is walk around and explore, but in the process, the exposure to advertising and opportunities for purchase are enthralling. Frankly, I’m impressed by the merchandise I see. That spells trouble for my budget.

This city really does have the best of everything. Want to have some of the best French food in America? Go to NYC. How about Thai? Again, try NYC. Want to find a unique, impassioned piece of artwork? You’ll find more than you know what to do with here. Looking for a job in business? This is clearly – still – the epicenter of finance. But it’s not just a home for market makers. Fashion, acting, artists, and writers all can call New York City their home.

As a future psychologist, it’s easy to fall in love with New York City. There are people here that flock to the city and need basic mental and medical care. On any street corner you can see the people of the neighborhoods smiling and chatting each other up. No matter how casual this may be, the community feeling is amazing. You’d think that in this massive populace, something would be lost in connection, but it’s the exact opposite.

I’ve been amazed at the friendliness of New Yorkers. I can walk up to anybody on the street and chat them up. I can ask for directions and great spots, and they’ll all have different suggestions and ideas. People are willing and desiring of connection here. The important difference between New York City and my oh-so-rural place I call home is that people here really make an effort to connect everywhere they go. The local hangouts all seem to be occupied by people that know each other’s names and groups seem to form easily.

The Starbucks I am in is now full. But instead of people standing alone, waiting for tables, they join two-tops and long tables for a congregation of social time, shared. People that have never met before are know conversing and sharing moments – together and in person. It’s easy to love this, and I’ll miss it dearly as I pack up to leave. But, I’ll be happy to be back on my normal budget, too.

Becoming A Runner Saved My Budget

By Frugaling 8 Comments

Kali Hawlk is a freelance writer and blogger with a passion for helping twentysomethings learn to manage their money and live well on less. When she’s not out on a run, she blogs about personal finance and more at CommonSenseMillennial.com.

Although I hate to admit it now, the truth is I used to be far from frugal. I frequently gave in to the desire to accumulate more stuff, material things, clutter, and junk. Remarkably, I never went into debt, but I certainly didn’t have anything left over at the end of each month to save. I coveted what other people had that I couldn’t afford.

Kali running article — *Photo: Kali with husband*

I was miserable without what I thought I had to have, but even when I went on a shopping spree, the happiness was quick to fade. Before the day was done, I would be back to being bored, sad that I didn’t have what someone else had, or feeling bad about the way I looked and wondering when I’d have enough clothes to make me feel good about myself.

I used shopping and spending as a cure for boredom, a way to relieve stress, and to improve my mood and confidence. Unfortunately, at the time I didn’t understand that I was choosing a really bad coping mechanism for dealing with my problems.

I wish I had some sort of financial epiphany that made me see the error of my ways (it would be a fitting story for a financial blogger with ideas about what twentysomethings should know about money). But what turned my spending around – and what ultimately saved my budget from being annihilated every month – was a habit I gained: Running.

It was this simple activity – something that we’re all born to do – that allowed me to kick the comparison habit, stop wanting what I didn’t have (to start appreciating everything I already had), and helped me develop a greater self-confidence. Running gave me a purpose I didn’t have before.

Suddenly, every afternoon I had a task to complete; I went for a run, cross-trained, did strength training, or took a rest day and went for a walk instead. A less-than-stellar season on the high school track team that ended in multiple injuries and embarrassing showings during competition left me feeling as though I had something to prove, so I was extremely motivated to work hard and succeed.

Becoming a runner made me healthier in every way: physically, mentally, and fiscally. Though the physical benefits were an obvious plus, I was surprised when I realized I had made positive financial changes, too. I quit going shopping for crap I didn’t need. New clothes didn’t make me feel confident; my belief in myself and what I could do made me feel that way. I started saving all the money I previously would have spent on more stuff that was supposed to make me feel happy, but didn’t.

Before I started running, I’d often feel drained and miserable. Becoming a runner made me feel energized, inspired, and motivated to work hard in every aspect of my life. I realized how much I had the ability to save, and I made a plan to stick with a strict budget and make the most out of my small income. I started setting ambitious goals and then throwing myself into making my dreams into realities. Without a doubt, I wouldn’t have found the drive to start up a blog, pursue a career as a freelance writer, and start making plans to quit my day job to travel full-time if I never found myself as a runner.

Now, when I am bored, I go for a run (or at least a walk) or work out instead of riding in my car to the mall. When I feel sad, I go for a run instead of sitting on my butt in front of the computer for a marathon session of online shopping. When I am stressed, depressed, or confused about something, I go for a run instead of lying in bed, staring at the ceiling and moping.

Whenever things are bad or not right, I go for a run and everything is okay.

What do you do to save your budget and reduce your spending?

How I Earn A Living As An Actress

By Frugaling 33 Comments

How I Make Living as an Actress Money — *Photo: Stefanie*

This is a guest article from Stefanie! She’s trying to find ways to stretch her budget in one of the most expensive cities out there, New York City. A graduate of New York University’s drama and psychology programs at the height of the financial crisis, Stefanie discovered the world of financial planning out of necessity. Thanks for sharing your insight, Stefanie!

A couple weeks ago I shared some of the joy and the hardship that comes from my career as an actress. Today, I want to share how I earn a “living.” And by that I mean, quite literally, how I afford to live when I’m not working in “the business,” or when I’m being grossly underpaid, or when I don’t know how long it will be until I book my next gig.

In order to keep my days free for auditions and my schedule open for performance opportunities, I avoid jobs in the traditional 9-5 realm and focus on what many in the personal finance world call “side hustles.” My so-called “hustles” have ranged from being a trade show hostess at Comic Con to administering the musical theatre department at the New York Film Academy.

But my goal today isn’t to indulge you in crazy stories from my various gigs (maybe another time), but to share how I built and maintain an arsenal of side hustle options for whenever I need an income boost.

The conventional route of applying for jobs has never earned me enough to get by. Instead, my personal and life skills have served me most in making a living. Here are my top 5 recommendations to anyone trying to do the same.

1. Be a Nice Person

I could have also called this point “networking,” but there’s something inherently impersonal and limiting about that word to me. I’ve found that when you do your best to be a good person to everyone you come in contact with – in business or your personal life – opportunities follow.

In my five short years with the professional world, I’ve gotten countless jobs – in the industry and on the side – from relationships I have built with people personally and professionally. You never know where opportunities will come from. Be good, do good, and watch it come back to you.

2. Add Value

My biggest source of freelance writing work comes from people who have found or read my blog, not from the applications and proposals I send out. I do my best to contribute value in every facet of my life – online, among friends, or in a professional setting. When people see that I have some level of expertise to offer, I automatically become a resource which may lead to a future job opportunity.

3. Talk About It

I got my job at New York Film Academy two weeks after talking to friends about my unemployment benefits running out. I wasn’t asking around for jobs (though I don’t think that’s a bad idea as you’ll see in my next point). Quite simply, I talked openly about what was going on in my life.

Rather than being embarrassed or ashamed of unemployment or tight finances, being forthcoming can put you at the front of someone’s mind when an extra income opportunity arises. I get texts from friends all the time about babysitting gigs – my sittercity profile never saw that much action.

4. Ask

I have gotten side hustles from Facebook statuses – no joke! Don’t be afraid to put yourself out there or simply ask what’s out there, as you’ll never know what you might find.

5. Deliver

For goodness sake, when you get an opportunity (income, volunteer, or otherwise), work hard and put in the effort. Be prompt and professional, no matter how casual the setting. If you overdeliver, you’re practically guaranteed a future gig or recommendation.

What tactics have you used or found most valuable when looking for work or extra income opportunities? How do you make your living?

How Much Could A Lifestyle Downgrade Save You?

By Frugaling 9 Comments

Flip Phone Old Lifestyle Downgrade — *Photo: RobotSkirts/Flickr*

Before I flipped out and got all frugal on everyone, I was taking out as many student loans as the good ol’ US of A would lend me. At times, I was engaging in some questionable personal finance practices – balance transfers (aka, robbing Peter to pay Paul). I felt pretty helpless, but people around me kept saying encouraging remarks, as the bulk of my loans were for school.

Unfortunately, the investment and loan damage that’s incurred to graduate from university programs varies tremendously. Some programs are a wonderful investment of time and money – they’ll most certainly add up to a great job, benefits, and an easy retirement. Others are a bit more vague. Something just doesn’t sit right when people say one kind of debt is better than others.

In an effort to reduce as many extra costs as I can, I’ve frequently thought about a lifestyle downgrade. What is it, you may ask? Essentially, it’s about getting rid of as many of necessarily technological advances as you can and pocketing the difference in money to pay off debt. With around $30,000 in debt left to pay off, I recognize that every little bit can help. Moreover, the bulk of this $30,000 currently gets taxed at an abysmal, life-suffocating 6.8 percent, courtesy of the federal government. It’s easy to imagine selling some unnecessary creature comforts and design elements to close this gap.

There Are Assets At Your Fingertips

Man Typing On Keyboard Assets Lifestyle Downgrade — *Photo: Kacper Pempel/Reuters*

Many articles about personal finance stress removing your daily coffee at Starbucks or packing a lunch. These tips will certainly lead to better budgeting when you’re seriously starved for cash, but there’s more that can be done. Usually, it takes no more than a simple glance at the device you’re using to read this article. Are you using the latest technology? Is that an iPhone 5 in your pocket, or are you just happy to see me?

Personally, I have a number of assets that are slowly depreciating – losing their resale value every day I own them. About a year ago I bought a white iPhone 5 and a couple years before that, I purchased a Macbook Air. The iPhone 5 was purchased on contract and cost the traditional $199 upfront, but these devices are worth WAY more than that on eBay. The Macbook Air was purchased for over $1,000. Unfortunately, the computer has depreciated quite a bit over time. But how much could I sell these items to restructure my life, spending habits, and pay off the burgeoning amount of student loan debt I have?

Choose Your Medium Wisely

When it comes to selling used goods there are three major options: eBay, Craigslist, or your local pawn store. Pawning your old accessories can be the worst option. Because there is a middleman to the transaction between buyer and seller, you’ll likely lose a lot of value. To their credit, a pawn store needs to make a profit, too – there are margins to any business. For the purposes of making the most you can off of your tech and accessories, let’s rule this out.

Next, we should consider Craigslist. In case you’ve been living under a rock for about a decade (and you will be soon by selling off all these newer technologies), Craigslist is the ultimate local classifieds and it’s completely free to buy and sell online. This method will net you the largest profit as there won’t be any commissions skimmed in the process (unlike with pawn stores and eBay). The one risk is that you’re dealing face-to-face with other people, and they may not necessarily be interested in dealing fairly once you meet in person. Similarly, you’ll likely have to spend more time responding to personal emails and arranging meetings to finally sell the item.

The last (but not least) option is eBay. The auction site has become a behemoth in the tech world. It’s by far the easiest and most populated area for buying and selling goods. As a buyer, it can be a wonderful way to find used goods at deep discounts, but as a seller, eBay is a little less friendly. For starters, eBay takes a cut every time you make a sale. Then, like the mafia, they have created one payment process that they own: PayPal. You’ll suffer another payment cut there, too. eBay ranks somewhere in between a pawn store and Craigslist for the money you’ll make, but it’s a safe platform and guarantees a sale within a certain, set period of time.

Reap Your Rewards And Pay Off Debt

Chromebook Lifestyle Downgrade — *Acer C720 Chromebook*

In the end, the goal is to sell off the unnecessarily advanced, profit off the difference of a lifestyle downgrade, and pay off some debt. If I were to sell my Macbook Air and iPhone 5, I’d probably net about $1,000 off the entire transaction. By selling these goods, I could buy a cheap, affordable computer and buy an older, used smartphone.

Using the same methods outlined before, I would recommend looking on Craigslist and eBay for used laptops and smartphones. The Galaxy Nexus – once the hottest phone on the market – now is a bargain at $60 used, off contract. That would take my net profit down to around $960. As a graduate student and heavy researcher, I would absolutely still need a computer for day-to-day work. The most affordable computers on the market are Chromebooks. I could easily buy a used Chromebook for around $125. After buying both downgraded accessories, I would net about $835 for loan debt.

With all lifestyle downgrades there will be sacrifices. Google Chromebooks are not fully-featured laptops and there are a number of restrictions you’ll bump up against. Older model smartphones may have worsening battery life and poor reception at times.

The question then becomes, is the sacrifice and debt payment worth your inconvenience and potential discomfort?

Archives for December 2013

New York City: I Love You

Becoming A Runner Saved My Budget