Frugaling

Save more, live well, give generously

  • Home
  • Start Here
  • Popular
    • Archives
  • Recommended
  • Contact
  • Save Money
    • Lifestyle Downgrade
    • Save Money with Mindfulness
    • Save at Starbucks
    • Psychological Trick To Reduce Your Online Shopping
    • Best Freebies
  • Minimalism
    • 8 TED Talks To Become A Minimalist
    • We Rent This Life
    • Everything Must Go
    • Lifestyle Downgrade
    • The Purchase Paradox: Wanting, Until You Own It
    • Nothing In My Pockets
  • Social Justice
    • Destroy The 40-Hour Workweek
    • Too Poor To Protest: Income Inequality
    • The New Rich: How $250k A Year Became Middle Class
    • Hunter Gatherers vs. 21st Century Desk-sitters
  • Make Money
    • Make $10k in 10 Months
    • Monetize Your Blog
    • Side Hustle for Serious Cash
  • Loans
    • 5 Rules To Follow Before Accepting Student Loans
    • Would You Marry Me?
    • Should I Have a Credit Card If I’m In Debt?
    • $50k in Scholarships in 70 Minutes

Archives for March 2015

Finally, You Can Trade Stocks For Free!

By Frugaling 3 Comments

Share This:

Wall Street Free Stock Trading
Get ready world! Wall Street is about to get a lot more friendly.
Photo: Michael Daddino/Flickr

Back then, free stock trades weren’t possible

Free stock trading isn’t exactly new. In fact, plenty of companies have tried and failed in the process. Any number of problems have beset these pioneering companies. From beginning to charge commissions and fees to questionable management to poor corporate reputations, they haven’t stood the test of time.

When I first started investing and researching individual stocks, I was a wee middle schooler. As I tried to understand the markets, my burgeoning interest was dampened by trading fees. With only a couple hundred dollars to my name, stock trading fees of about $50 made it financially oppressive. I couldn’t invest in Apple (ticker: AAPL) right after the iPod was released, but I wanted to.

Fees destroy profits and wreak long-term havoc on investment returns — especially for those getting started. Thankfully, fees have been on a precipitous decline in recent years. From that abominable $50-fee time to now, you can see great change. Most online brokerage companies are around $10 or less per trade.

Unfortunately, if you’re an average investor — or even a day trader — you’ll spend money every year rebalancing your portfolio to better diversify. Whether you choose individual stocks (more risky) or exchange traded index funds (more diversified), you’ll be spending about $20 per stock to get in and out. And that should be frightening to anyone. Heck, that’s 10% of my monthly food budget!

The hope for fee-free stock trades

The lingering question: Is there actually a non-scammy, reputable way to trade for free? Until very recently the answer was still no. Unless you had gobs of wealth ready to trade, investment and brokerage companies had no interest in providing for the little guy or gal. Free didn’t really exist; the handful that tried, failed.

Today, there’s good news for everyone — at every income level — because data and tech companies have solved this wretched problem. Today, I’m making a rather lofty prediction: nobody in the United States will pay to trade at average investor levels within 7-10 years. Today, there’s hope on the horizon for a more affordable, accessible investing world.

The cost of everything tech-related has fallen. We can store more and get data faster than ever before. It makes all of our consumer products less expensive to purchase, and has the added benefit of making cloud applications cheaper, too.

We are just beginning to benefit from these reduced costs, as many cloud-based providers have opted to slash costs for services. For instance, Google Drive offers 15GB free and for $2.00 per month, you can receive 100GB. Think about it, only a few years ago we were working with floppy disks that stored about 1.5MB!

As technology prices decline, the consumer has benefited appreciably. And it’s leaving room for innovators to save us even more when trading stocks. If a company can utilize the latest technology, reduce brick and mortar costs by only having an online presence, make money off of user data, and turn cash-on-hand into interest for them, then you could have a success story.

Robinhood saves money for everyone

The other day I was reading up on a new tech startup that’s aiming to do everything I mentioned. They have an office — not hundreds or thousands of offices. They have a staff of coders, developers, graphic designers, and technical support to make something for the 21st century.

The company’s called Robinhood. I don’t know if they could come up with a better name than that! They aim to “democratize” stock trades by removing the “$10 [fees] for every trade.” Now, the wealthy and the hopefully-soon-to-be wealthy can participate in the market without being eaten alive by trading fees.

Instead of porting over old ways about investing, Robinhood revolutionizes everything about trading. All you need is a smartphone (iOS only, Android coming soon). With a few taps, anyone can invest for free.

Here’s where I want you to ask, What’s the catch, Sam? Nothing in life is free, right?

True. Nothing in life is completely free. There’s always some trade off. The fees that used to be captured by older brokerage houses are eliminated; instead, the company profits off of unused cash balances in portfolios. For instance, say you deposit $1,000 in a Robinhood account. Until you formally invest in a stock, that money is borrowed by the company and put in an interest-bearing bank account for them. As you research and decide on a stock to buy, they scoop up a little interest in the process.

Additionally, Robinhood uses advanced technical features that will likely be able to track user data far better than stodgy companies. I’m always cautious about data-based companies, but the potential gain is worth the information loss.

Robinhood Investors Google Ventures

Robinhood is backed by some of the biggest names in Silicon Valley, including Andreessen Horowitz and Google Ventures. That has provided them with some much needed funding to get off the ground and running. With Google behind them, I trust their platform and user-focused future. This isn’t a company that will crash and burn like Zecco did.

First impressions on this new app and trading platform

Robinhood iOS App

I deposited my first funds into Robinhood’s iOS app a few days ago. Trading stocks and ETFs were easy. As if conditioned to wince over the costs like before, I clicked and beared for some strange $7-10 trading fee. It never came.

Robinhood is an honest platform with some exciting energy. When I reached out for support via their FAQ forums and Twitter account, responses were delivered within 24 hours — usually in a couple hours. That’s impressive for a small staff with plenty of new accounts. The company seems to understand that if it’s to appeal to younger, more tech savvy generations, they’ll need to meet them where they are — Twitter included.

Reducing these trading is a wonderful first step towards a more accessible, affordable stock market for all. The dangers of stock market manipulation are still ever present, but being able to enter the market without these fees is amazing. And having a terrific platform on top of it is a wonderful thing!

Want to try it out? Unfortunately, it’s invite-only at this stage, but I have 3 invite codes up for grabs! Comment below and share this article on Twitter. I’ll email the codes to 3 people within 7 days of this article.

Filed Under: Save Money Tagged With: Free, invest, investing, market, money, review, risk, Robin Hood, Robinhood, stock, trades, trading, Wall Street

Why Trying To Be Happy Makes You Sad

By Frugaling 11 Comments

Share This:

Happiness of children
Photo: Geraint Rowland/Flickr

“Ask yourself whether you are happy, and you cease to be so.”
–John Stuart Mill

“Hose off before you come in the house!”

My brother stood there, covered head to toe in mud, shirtless and wearing an awesome grin. For the last few hours, we had destroyed my parents’ manicured backyard. With sticks and odd tools (we really needed a shovel), we carved into the grass and dirt until we had a small, 12-foot long canal of sorts. Then, we poured unknown quantities of water down our makeshift river. It was the perfect project for an unscheduled summer day.

When I think back to this moment, it’s easy to be nostalgic. Here, my brother and I worked tirelessly on a project without meaning or reason — just childhood fun. We both smiled back and forth, and were filthy by the end of it. It was a freedom that children seem to have that adults relinquish.

But happiness was an elusive quality back then. I know that during my childhood and adolescence, I felt sad much of the time. There were various factors influencing my sadness, but I know that internally something was off, too. I was desperate to feel “normal.” I was desperate for others to like me. Really, I was desperate to feel happy. Yet, I couldn’t be more miserable.

The media message of happiness

In the worst of moods, hardest times, and deepest depressions, all I wanted was happiness. It’s frequently been the mantra coursing through me.

The world around us says we deserve to be happy. Growing up, I had the unfortunate inclination and timing to enjoy shows like FOX’s The O.C. and MTV’s Laguna Beach. They each flaunted an inconceivable wealth and privilege.

They seemed happy, even in their dramas. It was an endless party for them, and I wanted in. The mundane aspects of life didn’t exist in these shows. Abnormally long bathroom routines, cooking breakfast, writing for hours, and listening to a lecturer drone on weren’t the focus of these “teenagers’” lives. No, the excitement was in the sex, fashion, and material wealth.

These shows helped craft a warped sense of drive towards income and status. Unfortunately, each step towards those goals made me more miserable. Happiness was eluding me.

Suppression of thoughts only causes more

Stop thinking about polar bears.
Stop thinking about polar bears.
Stop thinking about polar bears.

Have you stopped thinking about polar bears?

Oftentimes, to find happiness, people attempt to suppress thoughts/feelings of sadness. For short periods, individuals are able to say, “I’m not going to let myself feel sad.” And it sort of works. We can temporarily tell ourselves not to be sad. It’s just that over time we suffer from this forced suppression and rejection of feelings.

Researchers have consistently found that thought suppression doesn’t work longer term. What happens is that people frequently endorse an ironic “rebound effect” in feelings of sadness and are less capable at suppression later on. In other words, by forcing our natural emotions down and rejecting them, we do more harm than good.

“I’m just trying to be happy”

The consequences of our culture messages and thought suppression may be grave for both your happiness and budget. Oftentimes, people try to spend their way to happiness. Popular media spoon feed us a message that we deserve to feel this way, and that it is accessible through purchases.

When we can’t buy our way to happiness because our budgets are too tight, we feel sadness and unease. When we can buy material goods that are supposed to provide us lasting happiness (at least, that’s what the commercials suggest), we often continue to feel sadness and unease.

The traditional methods of “trying” to find happiness seem stale. There’s something wretched and moldy and overgrown. We’ve let corporate messages persuade us into thinking that Lexuses will make us better people, and in turn — finally — happy. We’ve let Coca-Cola re-brand itself repeatedly — most recently taking on the Internet and cleaning it up. We’ve let alcohol and tobacco companies objectify women to sell us drug-addled euphoria.

And yet, we’re still not happy.

Going with the emotional flow

I propose we smash these corporate-defined messages of success, achievement, and happiness. They’re not working for you, are they? Do their messages of pre-scripted happiness help? Do you watch beautiful people enjoy expensive goods and feel better about yourself?

If the solution was in our media, thought suppression, and material goods, we’d be the happiest people on Earth. Unfortunately, these methods don’t make us happier and they goad us into spending more money. There must be a better way.

As someone with a psychological background and soon to become a counseling psychologist, I hesitate to “prescribe” any one solution. We all come from different backgrounds, environments, and experiences. One size does not fit all, but I do have some propositions.

1. Change the end goal

Frequently, the reasons for saving, making, and spending money are aimed at satisfaction and happiness. It sort of sounds like, “I’ll be happy when I’ve earned a million dollars.” In framing our futures in this light, we’ve locked up an emotion for a later date. Until certain levels of wealth and material worth are achieved, people with these goals and ideals will experience emptiness.

It requires a certain level of mental flexibility, but if we can change the end goal, there’s hope for a better moment-to-moment life. Society says we should always be happy, but what will you say? Change the end goal to something like mental wellness and a fuller life may follow.

2. Learn to accept all emotions

As a counselor, I understand that many people grow up hearing these messages: “Stop crying,” “Cheer up,” and “It’ll be better next time.” Each of these negates the very real feelings beyond happiness that people might be feeling. They lay the groundwork for a life that will soon be happy — if only you’d stop being “weak.”

Life is not good or bad — happy or sad. When it’s boring or sad, we tend to spend more for excitement and happiness. It’s a self-medicated response that’s learned through the mass consumption of a culture that proselytizes this value.

Life is good and bad. There are swings of emotional highs and lows, and sometimes it’s boring and dull. That’s the real normal. If we can accept and think, “I’m sad right now, and that’s okay. At some point I’ll be happy again, too,” we’ll be better able to save.

3. Question anything that purports to provide long-term happiness

Hershey’s candy bars and BMW M5s can make us feel better. Likely, most of us have felt the joy of buying a treat. There’s this immediate headrush of excitement — from yum to zoom. But however much we might want it to stick around, it fades away.

Buying stuff is a short-term solution to long-term emotions. Feeling dull or down? Take a hit and buy something. Your immediate, short-term response will be happiness.

Instead, stay with it, don’t immediately try to “fix” your feelings. No purchase will ever solidify and halt emotional change forever.

Let’s define a new normal, where we accept our own and each other’s emotions — whatever they may be. Let’s recognize that no emotion is permanent, and that buying stuff should never be the long-term fix. Let’s learn to embrace the thoughts that scare us, because they’re only that — thoughts.

Filed Under: Minimalism, Social Justice Tagged With: buying, feelings, goals, Happiness, Happy, Materialism, Minimalism, Purchases, sad, sadness, saving money, Stuff, thought suppression

Frugal Articles of the Week

By Frugaling Leave a Comment

Share This:

Reading Nook Photo

Every week I like to feature a few frugal articles that caught my eyes. Curl up in your favorite reading nook and enjoy. Hopefully these encourage you to live frugal lives!

The Keurig K-Cup’s inventor says he feels bad that he made it — here’s why by Drake Baer
Mmm… The smell and sound of a fresh pot of coffee brewing is the perfect way to start a day. For many, saving time during their morning routine is important. Years ago, an inventor thought of an ingenious way to make coffee faster, with greater variation, and in seconds. Unfortunately, that invention, the Keurig K-Cup, creates scary amounts of waste — all for about one cup of coffee per pod. What’s worse, the company charges atmospheric prices for the coffee and tries to prevent people from using their own cups with the product.

The slow death of the home-cooked meal by Roberto Ferdman
A frightening decline in home-cooked meals is occurring. Americans are eating out more, buying pre-packaged foods, and eschewing the frugal homemade items for something more. But that something more has a price. This is a trend we need to think about working on immediately. Eating out costs a fortune and many people can’t afford to do it — even if their bank accounts have enough cash.

How To Make Six Figures A Year And Still Not Feel Rich – $200,000 Income Edition by Sam from Financial Samurai
Today, I wanted to include an article that I don’t necessarily agree with. This article from the awesome writer of Financial Samurai analyzes what it means to be “rich.” Fundamentally, he asks, what does $200,000 a year get you and would you feel rich? While I disagree with his conclusions, I think this article illustrates the wide divide between wealth in this country. When someone can afford $8,000 a year in vacations and doesn’t feel rich, there’s likely an internal, psychological mechanism that’s askew.

France wants companies to make appliances that last longer by Associated Press/WashPo
What a novel approach! France is lobbying companies to make products that last longer. Simple, right? Well, companies rely on products expiring in regular intervals to allow for new products, consumption, and spending. This phenomenon is called “planned obsolescence.” We are consuming too much, as a country, people, and world. We need to cut back. One way is to build and buy products that will stand the test of time.

Filed Under: Save Money Tagged With: articles, Consumption, Food, Frugal, home, meal, money, rich, Save Money, Wealth, week

What Won’t You Do For Money?

By Frugaling 11 Comments

Share This:

Manhattan Skyline
Photo: Geraint Rowland/Flickr

Hoping for a better life

As children, we’re often exposed to idealistic messages: work hard and become whatever you want. But possibilities change and reduce as we age. The responsibilities grow, and the window to become whatever you can dream up tends to dissipate.

It would be nice to champion what many popular businesspersons say about success and achievement. It would be nice to say that the world is your oyster, and you can do anything you can think up. Unfortunately, that would negate the very real circumstances that we all find ourselves in. We come from different races, ethnicities, socioeconomics, genders, and more. Life varies, as do the opportunities.

Most of us cannot drop everything — all our responsibilities — to fulfill dream vocations. Many are just working to pay the bills — to get by. Some are burdened by being single parents, persons with disabilities, and any number of things that pose greater challenges to “making it.”

Debt holds back those dreams further

My frugal journey started with many zeros in the opposite direction. I was in debt to the tune of nearly $40,000, and without an escape plan. I wanted to have a life of freedom to ponder my intrinsic interests and passions. I wanted the opportunity to find my dream job — regardless of income level.

Before I could pursue those future possibilities, I needed to make more income and pay off massive amounts of debt. My paychecks weren’t enough to pay off loans and survive in graduate school. The equation didn’t compute, and I was running a scary deficit.

The mountain of debt seemed unconquerable. Dreams of a pleasant future were held back, and replaced with terrifying sweats and nervous nights. Debt was closing doors in my life. I needed more money.

Desperate times, desperate measures?

From the very start of Frugaling, I received emails from individuals and organizations wanting to write articles for me. At first I was flattered by their offers — some even included payments! Swirling with pride and appreciation at being offered real money to simply publish articles, I contemplated their offers, but hesitated.

I soon learned that these were “sponsored article” or “paid guest post” emails. They increased in frequency and payment amounts as I continued to write and grow Frugaling. Over the course of nearly two years, I received thousands of dollars in guest posting opportunities, but never accepted them. The emails tended to be from predatory lenders and questionable corporations. They seemed eager to receive traffic from websites and to pull from others’ reputations.

That money could’ve taken me on a European vacation, if I accepted every offer that came my way. My debt would’ve been paid off faster, and investing started sooner. There’s just one catch, I would’ve sold out my entire audience — including you!

Recently, I received another email that stated I could receive about $500 to place a sponsored article on Frugaling. Again, I thought about what it meant if I shared it with you all. What I found was that it wasn’t worth it. What I do on this website is about more than just making me more money. Ironic, seeing as this personal finance site, isn’t it?

Finding limits and sticking to them

Most individuals don’t kill, lie, cheat, or steal to make money. Whether religiously informed or intrinsically motivated, these are ethical/moral limits that prevent people from acting on individual needs. They recognize — whether consciously or unconsciously — that hurting another for one’s own gain isn’t collectively advantageous. In other words, individual achievement should not trump collective successes.

Turning down hundreds of dollars for 500 to 700-word articles from shady organizations and individuals was a limit for me. Motivated by a fear of alienating you and misrepresenting my values, I decided against any of these offers — and will continue to.

Nonetheless, I’m left to wonder:

  • What won’t you do for money?
  • What are your limits?
  • Where do your ethics come from?
  • How do you find ways to financially better yourself and others?
  • When have you said “no” to money?

Filed Under: Make Money, Social Justice Tagged With: achievement, advertising, dollars, Finances, Greed, Income, money, Success, Wealth

  • « Previous Page
  • 1
  • 2
  • 3
  • 4
  • Next Page »

Follow

  • Facebook
  • Google+
  • Pinterest
  • RSS
  • Twitter

Subscribe

Best Of

  • 8 TED Talks That Will Inspire You To Become A Minimalist
    8 TED Talks That Will Inspire You To Become A Minimalist
  • Everything Must Go
    Everything Must Go
  • How Much Could A Lifestyle Downgrade Save You?
    How Much Could A Lifestyle Downgrade Save You?
  • Ownership Isn't Real, We Rent This Life
    Ownership Isn't Real, We Rent This Life
  • Destroy The 40-Hour Workweek
    Destroy The 40-Hour Workweek
  • Do You Care What I Wear?
    Do You Care What I Wear?

Recent Posts

  • Débuter en photographie sans se ruiner
  • How to Eat Healthy on a Budget
  • How To Live Stream Your Art
  • 5 Fun Summer Activities on a Budget
  • How to Pay Off Medical Debt

Search

Archives

  • August 2025 (1)
  • June 2023 (1)
  • May 2023 (2)
  • January 2023 (1)
  • March 2022 (3)
  • February 2022 (2)
  • November 2021 (1)
  • October 2021 (2)
  • August 2021 (4)
  • July 2021 (5)
  • June 2021 (3)
  • May 2021 (2)
  • January 2021 (2)
  • December 2020 (2)
  • October 2020 (2)
  • September 2020 (1)
  • August 2020 (3)
  • June 2020 (1)
  • May 2020 (2)
  • April 2020 (1)
  • February 2020 (2)
  • January 2020 (1)
  • December 2019 (1)
  • November 2019 (5)
  • September 2019 (4)
  • August 2019 (1)
  • June 2019 (1)
  • May 2019 (1)
  • April 2019 (1)
  • March 2019 (3)
  • February 2019 (1)
  • January 2019 (3)
  • December 2018 (1)
  • September 2018 (2)
  • July 2018 (1)
  • June 2018 (2)
  • May 2018 (1)
  • April 2018 (5)
  • March 2018 (6)
  • February 2018 (4)
  • January 2018 (1)
  • December 2017 (10)
  • November 2017 (3)
  • July 2017 (2)
  • June 2017 (5)
  • May 2017 (2)
  • April 2017 (8)
  • March 2017 (4)
  • February 2017 (3)
  • January 2017 (2)
  • December 2016 (2)
  • November 2016 (4)
  • October 2016 (2)
  • September 2016 (1)
  • August 2016 (4)
  • July 2016 (1)
  • June 2016 (3)
  • May 2016 (3)
  • April 2016 (4)
  • March 2016 (5)
  • February 2016 (2)
  • January 2016 (2)
  • December 2015 (3)
  • November 2015 (5)
  • October 2015 (5)
  • September 2015 (4)
  • August 2015 (6)
  • July 2015 (8)
  • June 2015 (6)
  • May 2015 (14)
  • April 2015 (14)
  • March 2015 (13)
  • February 2015 (12)
  • January 2015 (15)
  • December 2014 (10)
  • November 2014 (5)
  • October 2014 (6)
  • September 2014 (7)
  • August 2014 (12)
  • July 2014 (11)
  • June 2014 (12)
  • May 2014 (16)
  • April 2014 (13)
  • March 2014 (13)
  • February 2014 (9)
  • January 2014 (20)
  • December 2013 (9)
  • November 2013 (18)
  • October 2013 (15)
  • September 2013 (11)
  • August 2013 (11)
  • July 2013 (27)
  • June 2013 (18)
  • May 2013 (16)

Best Of

  • Start Here
  • 8 TED Talks That Will Inspire You To Become A Minimalist
  • Popular

Recent Posts

  • Débuter en photographie sans se ruiner
  • How to Eat Healthy on a Budget
  • How To Live Stream Your Art

Follow

  • Facebook
  • Google+
  • RSS
  • Twitter

Copyright © 2025 · Modern Studio Pro Theme on Genesis Framework · WordPress · Log in