Frugaling

Save more, live well, give generously

What Won’t You Do For Money?

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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?

$200 February Food Budget Results

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My food and drink budget was broken

A couple months ago I would’ve been ashamed to show you my food and drink expenses. They were atmospheric. I’d regularly spend over $400, with the occasional $500 or $600 month here and there. It was my one budgetary weakness, but something moveable and malleable. I decided to aim right at it.

In January, both to celebrate the New Year and form a resolution, I decided to set my first hardcore food and drink budget. I wanted to reduce everything: eating out, eating in, drinking out, and drinking in. I wanted to get down to $200 for anything food or drink related. I wanted to prove it to myself, and feel the budgetary benefit; frankly, I needed this change.

As the month came to a close, I reflected on what had worked, what I bought, and how much I spent. I was over budget — big time. My expense tracker showed a glaring total: $362.69.

What I learned from last month

While I had significantly reduced my food and drink budget compared to prior months, I was bummed. Here I was, trying to shape up and save. Heck, I’m the guy who runs a site about frugality and simple living, and even I couldn’t reduce these expenses enough.

Despite overshooting my budget by about $160, January provided some important lessons.

First, go to the store and buy strategically.

If you constantly go to the store and are exposed to new stimuli and purchase options, you’ll spend more. Go when you need to and bring a solid list of must-haves — not wants. This lesson is harder for me to implement, and you’ll notice how many trips are made because of it. I tend to go whenever I can, as I carpool with friends to the store.

Second, reduce date expenditures and eating/drinking out.

I’m a single guy, and in January I went on a few too many dates. Both of these killed my budget, but when decreased, they’d be an opportunity to save in February.

Third, with dietary restrictions, look for common products before speciality options.

I don’t eat entirely gluten-free, but I’m low-FODMAP, which often means less gluten-laden products. In January, I bought gluten-free pretzels and other assorted products that were made to taste and feel like normal foods. Buying naturally gluten-free items would save me a lot.

February’s results are in — drumroll please!

February is the shortest month of the year. I only needed to stay at or below $200 this month for 28 days. As the days rolled on by, I could feel it, I was going to be close.

Day 1: $54.81 (Groceries for self and hosted a party)
Day 2: $0
Day 3: $0
Day 4: $37.53 (Groceries)
Day 5: $0
Day 6: $0
Day 7: $24.52 (Groceries)
Day 8: $0
Day 9: $5.57 (Groceries)
Day 10: $0
Day 11: $0
Day 12: $1.77 (ARGHH, SO HUNGRY! Clif Bar)
Day 13: $28.50 (Groceries)
Day 14: $33.79 (Groceries)
Day 15: $0
Day 16: $3.66 (Coffee drink)
Day 17: $10.47 (Groceries)
Day 18: $0
Day 19: $0
Day 20: $4.32 (Groceries)
Day 21: $0
Day 22: $0
Day 23: $0
Day 24: $0
Day 25: $0
Day 26: $7 (Groceries)
Day 27: $0
Day 28: $0

Today, I’m happy to report I spent only $211.94! While that’s about $12 over the intended budget, I could not be more content. Woo!

Over the last couple years, I’ve cheated and procrastinated away thousands of dollars in food and drink expenses. I’ve rationalized the spending every time (“Oh, my week is difficult, I’m tired, and need some food.”).

Looking at the past, with $400-600 months of spending, I feel guilty and saddened. I was trying to save and build a better future, but one of the weakest parts of my budget stayed untrained. I was spending too much, and needed to do more than admit it — I needed to share it with you all.

Important strategies going forward

1. Get creative with social opportunities

Don’t be afraid to host and create social gatherings! Bring on the friendships — these are too important to miss out. Instead of going out on the town, stay in-house and when possible, make them potlucks. Likewise, game nights and good ol’ conversation doesn’t cost a thing.

2. Bring protein-heavy snacks to reduce cravings in a pinch

This particular strategy was vital to my success this month. If you don’t like protein powder, then I’m sorry, this tip doesn’t apply. For me, it’s a terrific mood and nutrient source. Protein makes you feel fuller, longer. By having dry powder on hand — ready to mix — I was able to stave off cravings, which could’ve led to outsized spending. Nowadays, I carry it nearly everywhere I go.

3. Intentionally cook and plan for leftovers

In past months, I’ve opted to cook for a single sitting. I totally exploded this mindset, and made more than enough every time. The extras went into tupperware to go. Lunches were constantly pre-planned and packed the night before. It made procrastination a difficult excuse, as it was too easy to cook more than enough.

4. Living simply means cooking simply

These days I’m living simply. I don’t have a car, rarely travel, and run to and from work. I’m trying to live within my means. But even greater, I’m trying to embrace these moments. This simple living includes basic meals. I’m not cooking anything fancy or with exotic ingredients — just wholesome, healthy foods. My tummy and budget love it!

5. Wealth can actually help decrease food budgets

Buying in bulk, storing foods, and planning for the store are all privileges. As a commenter noted in January, those in poverty and/or forced to stick strictly to $200 for one month would have it more difficult. I was able to buy more than enough every time, and the average month-to-month allows me to save more money. This is yet another example of how wealth and space can provide unique advantages.

This March I’ll be continuing the $200 food budget, and I’d love for you to join me again! The adventure begins today. Who’s with me?

Frugal Articles of the Week

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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!

Nine hard-won lessons about money and investing by Matt Cutts
Those of you in the personal finance, minimalism, and frugality worlds might not know his name, but Matt Cutts is a legend. He started working for Google in the early days, and became a master of spam — decimating it everywhere from email to search results. In his “spare time,” he manages a blog about various topics. In this article, Matt outlines a step-by-step action plan for saving and investing money. Rather than linking to affiliate companies and profiting off his suggestions, he gives honest advice.

Americans are having more trouble paying off their student debt than their houses by Danielle Paquette
The headline nearly says it all, but the statistics will surprise you. Student loan debt is surging, as many struggle to find good paying jobs in their field of study. Student loans are greater than credit debt and mortgages, too. It’s scary to be a student these days.

We are wealthy. And why it matters by Joshua Becker
Wealth is a funny concept. Hardly anyone thinks they’re rich, and few recognize the vast privileges they have already — regardless of comparisons to wealthy elite. Joshua beautifully captures the importance of keeping perspective in this article.

Alice Gregory on Finding a Uniform by Alice Gregory
This young writer talks about her journey to find a uniform of sorts. The big difference is that this isn’t about business; rather, it’s for comfort, style, and savings. Alice explains how her “uniform” works for nearly every occasion and rids her of unnecessary distraction throughout the day. Awesome article and idea!

Financial Strength Through Unity

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Photo: Kheel Center/Flickr

We get paid to go to school?!

I had this misconception about graduate school. See, I thought that when I worked for the university, added to the research landscape, and taught undergraduate courses, my own tuition and student fees would be paid. Even when I entered the University of Iowa for graduate school, I didn’t completely understand the financial obligations that are placed on students.

My first year as an instructor and employee of the university, I was quarter-time. That meant I would get 25% of a salaried employee (just over $10,000 per year). Additionally, because of my graduate student status, I’d receive a “tuition waiver.” This benefit sealed the deal and made graduate school sort of “affordable.”

Across the graduate colleges at the university, the majority of students received a 100% tuition waiver. Inexplicably, my college didn’t receive that benefit. That meant that around $2,000 per year of my tuition would come from the “paychecks.” To make matters worse, student fees cost about $2,400 per year.

If you’re doing the math with me, that means that I was getting paid in my first year of being a graduate student: about $10,000 minus $2,000 for tuition and $2,400 for student fees. It equaled roughly $5,600. Now, that quarter-time salary was decimated. Money for rent, food, and regular budgetary expenses disappeared. I had to take out loans to live.

Aren’t we trying to “better” ourselves?

As the years passed, I was afforded more opportunities and a semi-living wage. I was able to pay off my debt with my side income and stay away from student loans through a better “paycheck.” But the tuition waiver gap and student fees meant that I still paid much of it back to the school.

Those pursuing higher educations and degrees for more competitive employment should be commended. Unfortunately, our society and system doesn’t necessarily allow for all those to succeed.

Considering the cost of a graduate degree and the years of minimized/lost wages, it is an expensive proposition. Inherently, that means that only a select class of privileged individuals are more able to pursue this education. The consequences of pursuing a graduate degree without funding and few assets can be horrific, and lead to massive student loans.

That’s why students sometimes need to collectively bargain, unionize, and ask for better treatment.

Hope for a more respectful future

Last week, the union for graduate students at the University of Iowa accomplished something amazing. After months of consternation, threats to the tuition waivers, and proposed student fee increases from higher ups, the union demanded respect. They wouldn’t budge.

They asked for a 100% student fee waiver. While they didn’t receive that, the bargain was a 25% student fee cut for those on assistantships (working for the university).

They asked for a real 100% tuition waiver for all graduate students across the colleges. And they received that! Now, certain colleges within the university system that charged more tuition will be equalized.

Additionally, the union lobbied to provide better health coverage for transgender individuals, single-parent households, and much more. It was a moment of hope — of acceptance for diverse populations and classes.

And just like that, I received a nearly $3,000 raise! Without the union, I would still be bitterly explaining — to everyone who’ll listen — that my $22,000 ($18,000 after taxes) salary doesn’t actually equal what I take home.

The importance of collective goals

Unions have been villainized recently. Take Governor Tim Pawlenty of Minnesota, who said, “In many cases, [unions] exploit and abuse the taxpayers.” These disparaging remarks undercut the importance of unions for actors, on-air talent, auto-workers, politicians, teachers, students, professors, and countless others.

Historically, collective bargaining and unionization helped employee wages, voting rights, and improved safety in some of the most dangerous industries. Businesses weren’t interested in helping workers, and they didn’t have incentives to change.

When workers came together, worked towards similar goals, and collectivized, employers listened. If history repeats itself, then we ought to reflect on this lesson. Change and respect for students and others across the world will come from the bottom-up — not the top-down.

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