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If I Were Rich, Would I Still Be Frugal?

By Frugaling 7 Comments

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Thanksgiving Dinner, Wishing I Was Rich

For my first year of graduate school in Iowa City, I wasn’t able to get back to see family for Thanksgiving. Motivated by the irony and sadness of spending the holiday alone, I watched a sappy movie and ate a cold turkey sandwich. This sorry state was only amplified by my linoleum/concrete floors that were like permafrost ice blocks for my feet, and the dingy, yellowish light of my apartment. All I could think was, “If I were rich, how would this be different?”

Dreams of a vacation I didn’t have

Presumably, I would’ve sat near the front of the airplane — speeding to my destination. The service would’ve been better, too. Maybe I could’ve afforded a first-class ticket. Perhaps this could be a regular weekend getaway. Luggage fees wouldn’t have been usury and awful — just mere pennies to my millions. Although, I probably would not have needed to pay for those fees anyways, as my credit cards and connections would lead to waivers. Either way, I would’ve been wealthy enough to afford whatever outcome. I would never stand in front of a ticket counter, after buying a ticket online, and be surprised that there’s an additional bag fee — breaking my budget and robbing me of my little available savings.

Finally at my destination’s airport, I would’ve rented a car. Not just any car, but a luxury vehicle to speed around the mean streets — something familiar and like my lifestyle. Again, I would have enjoyed the whisk and breeze of skipping lines, priority rentals, and free upgrades. My parents, family, and friends wouldn’t have needed to worry about me; I’d show up on time, no help and reliance necessary. Time would continually be on my side, as waiting would be heavily reduced.

As I walked through the airport, and saw the nice luggage and bags, I could have looked them up on my phone and instantly purchased my own. I wouldn’t need to hesitate to buy something so practical and helpful. Why not get some class with a Louis Vuitton set? Throw in those shoes, too! Traveling in style feels better.

Going home, I would have been excited to see all the friends and family I could. But I’d have to look sharp. Maybe I could stop by my favorite barber for a cleanup? My photos would be filled with the material goods that ooze success. I could show my parents, in person, what they had raised — that I had picked up my bootstraps and become a capitalistic achievement. They could be proud of my wealth and ability.

Thanksgiving without family, but not without heart

Reality is a cold shower. I can’t remember the last time I purchased something and didn’t feel guilty, nervous, and anxious for the added expense. I had looked at plane tickets for this Thanksgiving, but at nearly $500 plus airport shuttle fees, I couldn’t afford it. In a way, it felt like I was forced into frugality, without a choice (unless you consider debt to be an option, which I don’t).

As my friends and the rest of this consummate college town fled their studies and small-town lives for another location, there was a powerfully isolating feeling to my thriftiness and decision to stay. I fully expected it to be another cold turkey sandwich and night alone, but that all changed when a co-worker invited me to dinner. He knew I’d be here, without plans, and suggested I tag along.

What really matters

In that moment of deep gratitude, the Louis Vuitton dreams subsided. Pictures of first-class comfort and VIP lines faded. Suddenly, I felt humbled by his generosity and honored to be included. I was truly thankful — without any need for material goods, money, or proof of my worth.

Wealth is a funny target. If I only wanted to make money, I should’ve chosen a different career. Instead, I was motivated to help others and temporarily delay earning potential. My path to occupational success likely won’t include boatloads of cash.

Undeniably, if I had enough money available, I would’ve flown to Colorado to see my family. And honestly, if I had the money, I would’ve loved the creature comforts of first class. Both of these decisions would get me spending more money and being less frugal.

But at the end of the break, it was clear and simple: I just wanted to enjoy the day with people who are kind and open-hearted. Wealth just didn’t matter. If I were rich, I would’nt have wanted anything more than to share that moment with those I care about.

Filed Under: Save Money Tagged With: airport, cash, flying, holidays, money, rich, savings, Social Class, Thanksgiving, Travel, Wealthy

4 Charities For Thanksgiving

By Frugaling 5 Comments

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Thanksgiving Dinner
Thanksgiving dinner. Photo credit: Satya Murthy/Flickr

Thanksgiving is four days away! It’s a time for unusual abundance and tradition, with food nearly spilling off the sides of tables and soon-to-be ballooning stomachs. Yes, we Americans are fantastic at recognizing those we care about on this national holiday.

There’s a special energy around this day, as it tells us to be thankful for what we have and share with others. These are the most humble, honorable thoughts you can have, and they directly affect everyone around us. It’s kindergarten all over again — share your toys and candies. But we needn’t make this a brief aside in our otherwise short and busy lives.

This day can inspire us to act, change, and provide for those who need help most. Last year I wrote about 3 charities you should consider supporting in this day of thanks. I have a brand new list this year!

The following are 4 charities for Thanksgiving that I’ll be donating to:

1. Doctors Without Borders

A couple years ago I watched a brilliant documentary entitled Living in Emergency. This soul-crushing film captured the difficult and dangerous world of war-torn countries. And there are a select few helpers — non-violent humanitarians — that run towards these struggles and help the suffering people of these countries.

Doctors Without Borders has a history of exceptional success and medical advocacy for those most in need — internationally. They are mostly active in African states and failed nations, and I’m happy to be supporting this organization this year.

Donate here: http://www.doctorswithoutborders.org/

2. Wounded Warrior Project

I have had the fortunate opportunity to work with a deluge of veterans recently. I’m immensely honored by their service and dedication. There are various organizations and charities that provide support, but none has reached vets quite like the Wounded Warrior Project.

The WWP aims to help vets return to civilian life by approaching solutions that are both education-related and emotionally supportive. This strikes a powerful balance that’s necessary to help vets recover. We owe it to these heroes that served — regardless of the political turmoil that surrounded the decisions to put these men and women in harms way.

Donate here: http://www.woundedwarriorproject.org/

3. The Always Remember Never Surrender Endowment

About four to five years ago, I was deeply affected by suicide. A resident of mine in a college residence hall died by suicide, and I have been forever changed by this event.

To honor this man’s life and provide an outlet for suicide prevention, I created the Always Remember Never Surrender Scholarship Endowment. Now, around 4 years into fundraising and giving, the endowment has raised nearly $35,000. Each year, that money goes to undergraduate students looking to reduce stigma, create research, and/or provide services for those suffering from thoughts of suicide.

Donate here: https://advancing.colostate.edu/ARNS

4. Shelter House of Iowa City

This year I’m working in a homeless shelter for my counseling psychology doctoral degree. Before this experience, I thought I understood the “facts” about homelessness. I thought I was understanding and empathetic to the plight of those with less. But being here, seeing their faces, and hearing their stories, I’ve been activated more than ever.

We need to make more of a fuss about how we treat those with the least. We need to stand up for them and support their educations, basic shelter needs, and respect the diversity of mental health functioning within this population. Shelter House provides a wealth of services to the homeless in my community, and I’m happy to be able to donate to help them this year.

Donate here: http://www.shelterhouseiowa.org/want-to-donate/financial-contributions.aspx

Filed Under: Save Money Tagged With: Charity, donate, Giving, Holiday, scholarship, Thanksgiving

Should You Donate While In Debt?

By Frugaling 14 Comments

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Colorado State University Endowment Report Donate

I started fundraising and creating an endowment for suicide prevention at Colorado State University in 2010-11. Before I graduated and went to my doctoral program in Iowa, the fund was permanently endowed — reaching $25,000 in about a year. Last week I received my annual “Endowment Report,” which provides the earnings, contributions, and total value of the fund.

As I opened the report, it was hard to stay standing. Today, about 3-4 years since the founding, the scholarship has nearly $34,000 in funds! When the scholarship reaches about $50,000 in savings, it should be able to pay out multiple scholarships each year — or one large check. Ultimately, this can go into the pocket of a college student in need, who hopes to make a difference in the field of mental health.

But back in college, I only had a few hundred dollars in my name. When I got the idea to start a scholarship, I donated nearly everything I could to help seed the fund. I was passionate beyond belief and this cause was everything to me. I remember looking at my bank account, wondering how much more I could give without going broke. It was a delicate financial time, but I had money. And that’s an important point.

When I entered graduate school, I took out massive amounts of student loans, was ignorant about budgeting for the semesters, and irresponsible in spending. Between car, credit, and student loans, I amassed about $40,000 of debt in two years. Throughout this period, I never stopped giving to charity.

Each year, I spent anywhere from $200-500 — small sums in the grand scheme of things — in donations. I kept giving and giving — even when I had nothing. Zilch, nada, zero. Loans were the only thing keeping me afloat.

Even worse, I began to feel the pull of credit debt. This is the particularly nasty kind — an undertow that’ll sweep you out before you know it. With thousands in credit debt, I started engaging in credit balance transfers. These are financial shell games that you can play with yourself and credit companies. You open a new account that provides a 0% balance transfer, and then pay a little fee. Usually, that company provides 0% interest in those funds for about a year. A great deal, if it weren’t for the fact that my spending never stopped.

My spending was out of control and that included charitable spending. I hate writing that line. I hate the idea of cutting back gifts to charity. And I certainly hate the advice I must give today.

I need you to be ruthlessly defensive of your finances when in debt. I need you to ignore your desire to help others, so that you can help yourself. I need you to consider a future where you can help others even more, when you have the savings available.

To those in debt today, you need to put the mask on yourself first — before helping others. Now you may ask, “Why would I do that? Generosity is exceptionally important to me!” In response, I’d say, “I can relate to that feeling. I have given every year of my adult life to charities — in and out of debt.” But it’s time to change our perspective to charitable giving while in debt.

See, when you spend beyond your budget and give to charities when in debt, you’re actually writing a fat check to banks. Those that retain and house your loans — from the federal government to private corporations — receive their own donations when you make this financial mistake. The interest on loans given to you allows banks to realize ever increasing profits and earnings. Worse, it forces you into debt longer than you need be, and prevents you from being able to give more at a later date.

It’s with a pained heart that I must suggest that you stop giving until you’re back in the green (or black). I don’t want banks to make another dime off you, and I’m sure you don’t either. So let’s make a pact to stop giving until we’re done with debt. Then, and only then, let’s consider how we can best help those in need.

Special shoutout to Ben and Stefanie at The Broke and Beautiful Life for an awesome article that inspired this!

Filed Under: Loans, Save Money Tagged With: Cards, Charity, Colorado State University, credit, debt, donate, Giving, poverty, Student Loans

The Partitioned Life Destroys Creativity And Fosters Income Inequality

By Frugaling 13 Comments

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Ralph Steadman Art Cartoonist
I Am Not Like The Others by Ralph Steadman

Recently, I watched a documentary of Ralph Steadman. He’s an infamous cartoonist whose work graced the covers and pages of Hunter S. Thompson’s rowdy reads. Steadman has a natural ability to start with a splash of paint and envision the result. Sometimes what starts as a mean dragon, turns into a wicked politician. It’s a beautiful form of art.

The other day I set out to write a brief update on how much biking is saving me. But something larger was calling. What I realized in crafting my next article was that biking was part of a grander picture. This article is about life, partitioned; perhaps more catchily titled, “The Partitioned Life.”

The specialized workforce we never wanted

The separated, divided, specialized life is largely due to our strict capitalistic culture. Adam Smith, writer of Wealth of Nations and oft-cited theorist about the “invisible hand” of markets, suggested that capitalism would succeed via economic specialization. Essentially, with professional expertise emphasized, we could separate the economy into different vocations. These vocations would enable society to produce at faster rates, because time would simply be spent on one’s expert area.

Lawyers, doctors, and teachers all take distinctly different directions to accomplish their career goals. Most go to graduate school and receive mind-numbing didactic training. But each is partitioned and specialized.

The days of da Vinci are gone. Leonardo da Vinci was a polymath — a man with various skills. This painter, sculptor, philosopher, and anatomist was responsible for early explanation of medicine, astronomy, art, and more. Without his versatile background, each would suffer. He was the antithesis of singular specialization. But our economic interests have destroyed this path. The generalist is less valued compared to the highly-specialized “expert.”

We are partitioned beyond our wages

With disparate workforces, specialized employees are needed for a variety of tasks. Now we need a secretary, assistant, web designer, etc. But each of those three jobs could be accomplished by one person. This is the conundrum and false growth that’s associated with Adam Smith’s legacy. The more specialization associated with our jobs, the more employees that are needed for administrative needs.

Now, we need to partition even further. Picture your local city. What do you see? I see a series of shops, restaurants, bars, research parks, industry, fast food, and gyms. Break it down even further, and I see the burger flipper, salt and pepper shaker, and checkout representative. I see management, accountants, lawyers, bosses on bosses on bosses. We are operating within this highly specialized economy that works beyond vocational structure — it fundamentally affects how we shop.

The following is highly dependent upon your age, demographic, socioeconomic status, and personal interests, but the partitioned life also affects your monthly costs. Last time I flew into New York City, I asked a Millennial what she recommended I do in the city. She talked to me about the bars, restaurants, and museums. Then, she asked if I liked exercise. I do! She suggested Soulcycle.

When I landed, I Googled the name and found the chain was all over the city. Soulcycle has developed a sort of cult following. It intrigued me until I saw the price: $39 for one class. I’m always ballin’ on a budget, and $39 for a bike class was senseless. Needless to say, I didn’t go.

That price, class, and exercise studio impacted me. Here we have an economy so separated and partitioned that people decide to work all day, go home, and then go to a workout class. This Kubrickian hallway seems to be an endless procession of work on work — working to work out.

Bike in Autumn LeavesCrush the divides for creativity, clarity, and savings

Buying and riding a bike 90% of the time has changed my relationship with our economy. Every day I choose my bike, I feel a minor pang of anarchy. I’m doing my own thing to contribute to the collective — not contributing to climate change, capitalistic malignancies, and health problems that are affecting us all.

As mentioned, I started this article with the desire to focus on a number — the true savings associated with riding a bike. Instead, I’ve decided to talk about the bigger economic effect of our partitioned lives. But let me briefly entertain some calculations. With a bike, I pay for my gym membership ($0) and fuel up with food ($0 in gasoline). If you were to analyze your car-less savings, you’d need to immediately start with a couple hundred dollars every month.

Over the last 30 days, I’ve biked about 200 miles. There have been no parking fees, maintenance costs, or police to worry about. If I drove those 200 miles, AAA estimates that that would cost me $156.60 per month. But the savings goes beyond this and works to break the traditional partitions that our economy has parcelled off for us.

Recognizing and appreciating the generalist in all of us

We currently live in one of the most unequal times in American history. We have followed the wizened advice of economic thinkers like Adam Smith, and it’s led us astray. The “invisible hand” and free market principles have led to broken roads, broken budgets, and broken families. We are a country of financial elite and impoverished masses.

Economic specialization is no longer working. We must recognize the generalist is more powerful. Knowing how to repair a bike, being fit, planting your own garden, collectivising, and democratizing are our last hope. It’s our world’s last hope.

We must create an economy and emphasize the power of the generalist. We deserve to give ourselves the opportunity to be radicalized and empowered by the next da Vinci, don’t we?

Filed Under: Save Money, Social Justice Tagged With: Adam Smith, bike, Biking, Business, Economy, Generalist, Income Inequality, Inequity, Leonardo da Vinci, Partitioned Life, Polymath, saving money

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