Articles by Frugaling

A Debt Of Gratitude

Happy Birthday Cake Frugaling One Year Later — *Birthday Cake! Photo: flickr/Mark Skipper*

Today marks the first anniversary of Frugaling.org! It’s incredible to think that just a year ago I was in nearly $40,000 of debt. I was resigned to a future that included atmospheric debt payments and endless student loans. Then, I got a wakeup call that changed my financial future.

I’m thankful that on this occasion, I’m writing about a different debt — a debt of gratitude. It’s time for me to pay up and take some time to thank people behind the scenes. The following individuals make this website work, inspired me, and/or pushed me to think differently about my financial future. Without them, this site wouldn’t be here. There are many that I’ve forgotten or can’t be included, but trust me, you’ve helped!

Mom

For years you provided difficult grammar and writing critiques. You constantly pushed me to improve. I hated the process of completely restarting drafts, as you frequently said. Over time, that training and advice helped. While I still make plenty of mistakes, your expertise helped me grow. Thank you, Mom!

Dad

You’ve been a terrific support in this process. From sending me new articles to providing important feedback on the quality of my work, your involvement encouraged my growth. I’m lucky to have the support. Thanks, Dad!

Noah

I know you’re just starting out with creative writing. But your passion for it inspired and encouraged my own work. I’m really happy you’ve found pleasure in writing. Thank you, Noah!

Lisa

You were the greatest catalyst for this site. You questioned my simple assumption that there was nothing I could do to reduce my debt. Moreover, your questions changed my beliefs regarding money and student loans. Thanks, Lisa!

Danny

Frankly, I was embarrassed by all the people you shared Frugaling with, but I’m honored that you did. There’s a reason so many people mention “Frugaling.org” in casual jokes and conversation. You’re a major reason for this. Thanks for following along from the very beginning, Danny!

Evans

I shared this little idea with you, and it was the laughing stock of the staff. Every now and then you’d check-in and I’d have another great month. You were excited, and you helped right my financial course. I’m really lucky to call you “boss!” Thanks, Evans!

Guest Writers

Over this year, various people contributed new articles and material for the site. You were all incredibly grateful for the work and created top-notch articles. Thank you all!

Interviewees

A few months ago, I started an interview series with the founders of personal finance websites. I was deeply curious what motivated them to start and continue to write about financial issues. Their openness and vulnerability made the series a hit! Thank you all for participating!

Readers

Obviously, you make this site work. Without you, I wouldn’t have the motivation to write. Thank you for visiting, commenting, and returning! Don’t hesitate to subscribe, too!

I Am LaTisha Styles, Founder Of Young Finances, And This Is How I Work

By Frugaling 7 Comments

Latina Styles

Over the last couple months I have interviewed a growing number of top bloggers and writers to get their input on personal finance (e.g., the founders of Budgets Are Sexy, The Broke And Beautiful Life, Frugal Rules,Debt Roundup, and Modest Money). Today, I’m excited to share with you another terrific interview with one of the top personal finance writers on the Internet.

LaTisha Styles founded a popular website called Young Finances. Since 2010, she has become an Investment Analyst, entrepreneur, and was featured in a variety of publications. Here’s my interview with her. Thanks again, LaTisha!

What inspired you to begin Young Finances?

I started Young Finances because I graduated college in 2010 and I was having a hard time finding a job. I had a degree in Finance and learned a lot about the correct way to manage personal finances after recovering from several bad decisions I made with my money. I decided to start writing about what I learned to help other young adults.

How did people (friends, family, etc.) react when you first started? How long have you been blogging?

Almost all of my friends were supportive. I used to share each post on Facebook and I got a lot of good feedback and encouragement. I started the site in December of 2010, but I have been blogging much longer. I started an e-zine when I was 14 and I just found an old issue! It was such a blast from the past.

What was your experience with design, code, web work prior to starting your site?

I graduated with a business degree, and had to learn the basics of HTML and CSS in our business information systems class. We had a group project that involved creating a single page website from scratch using Dreamweaver. I later taught myself more using W3 Schools to understand the basics of PHP and Javascript for WordPress. I personally did a few customizations to my site but on the next redesign I would probably hire a professional coder.

What advice would you give to those thinking about starting their own site?

Don’t be afraid to just get started. You don’t have to know everything when you are first starting out and you won’t know everything. If you don’t like the name of your site you can always change it. More than once. I started out as Financial Success for Young Adults then moved to Young Adult Finances and now my happy home is Young Finances. I think this is where we’ll stay.

How do you make money from your site? Where does most of your revenue come from?

My site generates revenue primarily through affiliate marketing. When I first started, I sold text links and sponsored posts but I decided to focus on more stable revenue. If you’re like me and interested to see income reports, I share the income that comes from my web properties each month at TravelTish.com. Mostly I learn about the best financial tools and I test them out for myself before recommending them to my audience.

What do you think you’ve learned from your readers and fans?

I’ve learned not to be so scared. I used to be really scared about putting personal information out there and sharing my money mishaps. But once I starting sharing, more people (and even close friends!) started reaching out to share their stories about money. It makes me sad that personal finance is such a taboo subject because I think that we could all learn a lot from the mistakes and successes of others.

How I Work Youtube Latisha Styles Office — *LaTisha’s workspace where she films YouTube videos*

How can somebody in lower incomes best overcome financial hurdles and prosper?

I can only speak from my own experience here. I come from a low-income family and I was determined to set the bar high for myself. I was fortunate that my parents made school a priority and taught me smart study habits. I decided to learn about how money works and how banks and businesses make money. Learning the system is the best way to beat it.

Wherever you are starting, you can do it. I always imagined that someone held me back at the starting line of my financial life, but I just had to exert that much more effort to win and achieve my own financial success. And I’m still gunning for first place.

I had to be willing to be different. Turn off the TV, start reading about successful people, figure out the formula. It will take time but you can do it. And look for role models and mentors. Tell them about your goals.

“When you really want something to happen, the whole world conspires to help you achieve it.”

That’s from The Alchemist by Paulo Coelho one of my favorite books.

Who are your financial role models?

I admire the stories of ‘regular people’ as my financial role models. People who started with nothing and worked hard. Author J.K. Rowling who worked day and night on a book that helped pull her out of poverty and rapper B.o.B. who came from humble beginnings in Decatur, GA and played no name venues as he gained his fan base. I really admire that strong work ethic that unites successful people.

What personal finance sites do you read?

As a personal finance blogger, I like to read the sites that are very different. RomeoJeremiah.com has interesting posts about life and personal finance. I really enjoy reading AffordAnything.com. Paula really appeals to the rebel in me. I discover new blogs everyday but these are two that I come back to often.

To be honest, I would love to see more video personal finance bloggers. I enjoy watching FatGuyOnYoutube.com and of course, YoungFinances.com/tv.

What else would you care to share with the readers of Frugaling?

I would love to share my dancing skills! (And a bit of business advice). Please head over to this video and watch me do the hustle: youngfinances.com/sidehustle

How Is Your Relationship With Money?

By Frugaling 8 Comments

Balance Money — *Photo: flickr/pink sherbet*

I hate you. I love you.

The other day a friend asked, “Do you ever consider that you think about money too much?”

It’s a tough question that I used to hear a lot in high school. Back then I was gambling online and between classes – itching to throw down money. I had a problematic relationship with money.

I was surprised to hear it again. I’ve worked hard to change my relationship with money. How far have I really come if I’m hearing it again?

Denial didn’t work

In a way, the onslaught of student loans a few years ago was a consequence of not placing importance in my total bank value. I took out loans, and let them artificially fill my bank account. I stopped budgeting and tracking. Money was evil, and I would deny it’s presence and consequences — as long as the federal government was filling my coffers.

My hope was to talk about it less and never focus on it with others. The loans piled up. With nearly $40,000 of student loan debt after two years of graduate school, I was on track to graduate with $100,000+. Then, I was hit with the debt question: “how much do you owe?” The gravity of that changed my relationship with money. Essentially, I may lose opportunities in life because of excessive debt.

This prompted me to take action, reduce my debt, and start Frugaling. I accepted and embraced the effect money had on my ability to have a family and future. Not having it was at the root of much discontent and stress.

Balance is necessary but hard to find

Recently, over a more expensive meal, I remark aloud that the prices are exorbitant. The food is local, fresh, and natural, but after two small plates and a drink, I’m staring at a $30 bill. I feel guilty — I’m not following my budget tonight and it’s hurting my ability to pay off debt.

As the night rolls on, others mention financial concerns and questions. We’re on the subject because I started it. The topic stays on money for a while, and then the question that inspired this article gets asked of me.

“Do you ever consider that you think about money too much?”

Suddenly, I’m confronted with this scary feeling again. I wonder, “Am I doing it wrong? Is money too important again?”

The short answer is that I’m not sure. A lot has changed, but there’s more work to do. Focusing on money can metastasize its importance. What I know is that staying within my budget requires vigilance, but it can’t be my sole effort.

It’s hard not to reflect on this time and think, “Damn, I’m imperfect at this.”

5 Ways Public Universities Are Swindling Students And Turning Into Private Businesses

By Frugaling 9 Comments

Public University of Iowa Institution Taxpayer Funded — *Sunset over the University of Iowa campus.*

From public to private: The budgetary gap in American education

Public universities are generally funded by taxpayer dollars and the federal government. Contributions ultimately lessen the cost education for an individual, and help make a college education attainable for a greater whole. Tax revenues at the state and federal levels fell in recent years, and the share of tuition owed by students significantly increased — all while student loan interest rates skyrocketed.

This recipe has decimated our youth. We afford children the right to a free, public education from kindergarten to 12th grade, but when they graduate high school, the benefits evaporate. The voting public and politicians have argued that college is no longer a right; rather, an earned privilege to a select few (who can afford it).

Public institutions were supposed to be accessible and affordable to the people in state. Heck, there are land-grant institutions that were given vast acreages to educate future educations. Unfortunately, hawkish debt reduction tactics, private-interest groups, and misinformation campaigns created a climate that hated taxes — the consequence was the disintegration of our public universities.

A subtle shift happened over the last few decades, and it’s led to a massive, business-like privatization and profit-motivated aire amidst public universities. Suddenly, administrators are aiming at your wallet, rather than their intended goal: educating the finest group of students for many generations to come. The painful revenue gaps have led to a rise in tricky tactics.

5 business tactics that public universities use to supplement revenue gaps

1. International and out-of-state students are preferred

State schools accept more out-of-state and international students for full-price tuition and limited scholarship availability. This move effectively subsidizes the education of in-state students. Although, by accepting more students outside the state, fewer in-state students are accepted.

If you’re on the cusp of going to an out-of-state school, think about the price differential. Is it really worth the added tuition burden?

2. Degrees are created that offer no career paths

For instance, my alma mater had an oft-ridiculed bachelor’s degree entitled, “Liberal Arts.” This degree is useful as a temporary placeholder for students, while they make final degree decisions, but should not be a formal track. Graduate with a degree in Liberal Arts and you might as well use it for toilet paper.

Similarly, watch out for degrees in “General Studies.” Degrees like this simply milk monies from students and send them on their way without a lifeline. Avoid these at all costs!

3. Watch out for excessive, new construction projects

While these new architectural sights provide a heightened level of excitement to prospective students, they are only afforded through higher student fees and redirected public funds. Brilliantly upholstered and designed residence halls may attract new students, but everything has a price; last time I checked, enrollment and interest in college isn’t the problem, anyway.

If you don’t want to come to a university because hotel-like residence halls are absent, you are likely going to college for the wrong reasons. Much like the cliche regarding books, don’t judge a university by its buildings.

4. Massive interest in distance education programs

At a fraction of the cost to educating students on-campus, many public institutions have a growing body of administrators pushing for online education offerings. Stigma-be-damned, plenty of people are taking up the offer to be educated online. These institutions are frequently charging handsomely for the privilege of being educated online, and offer students little support when compared to their on-campus peers.

Steer clear of most online master’s degrees that purport to give you credentials — all while you are pantsless in a bathrobe at home. While you may be able to say, “Your Name, M.S.,” you’ll be missing out on various networking opportunities and paying some of the most expensive tuition rates available. Most online programs offer little funding, and public universities use these programs to further subsidize in-state students’ educations.

5. Financial aid offices don’t warn you about student loans

This is the scary one for me. It’s quite personal and disheartening that when I requested to get student loans, nobody ever explained to me how they worked. When I met to approve the federal aid a few years ago, I never had a human sit down with me and create a budget, set expectations, and explain how interest would quickly add up. While it’s my fault for not being more critical, I didn’t know what I didn’t know — the questions were not yet clear.

Pay attention to financial aid officers at universities. They usually have no interest in curtailing or slowing your interest in finishing a degree. There goal is to get you federal or private funding and keep you coming back to school — period. If you’re looking for student loan advice, start researching the perils and pitfalls before signing on the dotted line.

A Debt Of Gratitude

Mom

Dad

Noah