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Do You Care What I Wear?

By Frugaling 28 Comments

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Do You Care What I Wear? Society places inherent value on what we wear every day. But is anyone paying attention if I wear the same thing?!

The first time I “dressed up”

It was the homecoming dance in my freshman year of high school. There, I learned that dressing nicely would beget compliments; a simple conclusion, that would shape my purchases going forward.

Before that dance, I was a t-shirt, hoodie, and jeans guy. Afterwards, almost overnight, I embraced layers and logos. I lobbied my parents to pay for Abercrombie & Fitch, Hollister, Gap, and anything that my high school brain felt was “cool.” The bills stacked up… for them.

Increasingly, I loved bold colors and designs – embracing pinks and purples despite social stigmas. The compliments flowed from nearly everyone around me. Many of the opposite sex encouraged me, and noted my changed wardrobe.

The “dapper” dresser

It’s now about 12 years from that fateful moment. As I aged, my tastes changed and I discovered H&M, Express, and Macy’s. And yet, for years, I was on this prescribed rat race to look better, fresher, and wealthier.

The latter was a powerful realization over the years. Quite simply, our culture aligns clothing style and brand with power, money, and achievement – regardless of reality. The better I dressed, the more others noticed.

Imagine being in a bar or club and seeing someone in a ragged t-shirt, overgrown beard, and faint body odor smell. You’d assume that individual is from a low-income level. Trim the scruff, polish the shoes, and button up that shirt, and that same person becomes a successful businessman.

Minimizing my closet and loving it

Over the last two years, my clothing purchases have slowed. And nowadays, I don’t have a clothing budget. I rarely buy anything. I’d rather put my hard earned money in future savings and investments.

Since my frugal journey started, I’ve sold clothes, donated, and taken great care of what I currently have. The clothing that I currently have is important to me; not because I’m worried about it getting damaged, but because I don’t need anything more. My wardrobe is “complete.”

Generally, my day-to-day wardrobe consists of casual-formal clothing that’s appropriate for a work environment. The important part is that it needs to be flexible and comfortable, as I run in the clothes from school to work and back. My wardrobe does just that.

A wardrobe worth repeating

Through laziness and busyness, I was pushed to simplify my workday wardrobe. In these colder winter months, I’ve opted for more sweaters and colored jean/slacks. Still, I tried to vary what I was wearing… until recently.

These days I’m opting for a more efficient wardrobe: grabbing yesterday’s clothing. It’s not like I do this every day, but I’ve grown more accepting of uniformity in my outfits. The creative, “dapper” dressing is more frequently reserved for weekends.

After reading this article, some might be inclined to suggest that I’ve let myself go. Maybe, but I’m learning something in the process. As I’ve shifted to this repetitive wardrobe, I expected people to notice, complain, and/or question my decision. Last week I wore the same pants 4 days in a row and a sweater 3 days during the week. Nobody noticed (or mentioned it). Nobody!

Expanding the experiment to one year

There’s a sexist double-standard about clothing: men can wear nearly anything and women are carefully criticized. If a woman were to wear the same group of clothes or article repeatedly, they’d be questioned. Largely, men are overlooked and free to wear abominable outfits.

One world where women are constantly criticized is television. The on-air anchors and talent can be harangued for wearing the wrong designer, looking unfashionable, etc. Meanwhile, men are free to wear whatever, again and again and again – without critique.

Karl Stefanovic did just that. This broadcaster from Australia decided he would wear the same suit every day for a year in solidarity with his fellow female co-host. Nobody noticed.

Benefits of embracing a minimal, repetitive wardrobe

My high school and college days were fraught with an insecurity that prompted me to spend. I was desperate to fit in enough, and stand out with my wardrobe. I wanted people to notice me; to be unique enough, but not alone. My wallet suffered over the last 12 years.

Now, as I’ve slowed my purchases and become more minimalistic, I’ve learned some important takeaways.

1. Buy what you love, sparingly

Fundamentally, I’m buying less than ever. I don’t peruse catalogs, storefronts, or websites for the “latest” trends, designs, and brands. By avoiding these outlets that subtly market their latest styles, I don’t have the same urge to buy.

When I do find something, another item must be ready to depart. I’m no longer interested in amassing clothing. Everything must be functional, practical, affordable, and regularly worn. Otherwise, it’s just a waste of space.

I’m not advocating for people to embrace naturism or 1984-like uniformity. Buy what you love, but do it minimally. When you do decide to pull the trigger, make sure it’s something that will stand the test of time (from trend and wear).

2. Sexism, classism, and other cultural norms

I was chatting with a graduate student about his job. He mentioned that he has to wear a suit and tie once a week for business meetings. If I wore a suit and tie to my work, I’d be laughed out of the homeless shelter and/or never receive clients. Dress reflects a microcosm of culture, and portrays an intention. This aspect isn’t — by itself — a bad thing.

Although, clothing choices often become a point of criticism. What we wear can sometimes contribute and perpetuate a classist and sexist society that expects men and women to look certain ways.

Let’s buck these cultural norms that become expectations, prejudicial boxes, and prevent acceptance. Diversity should be embraced.

3. The efficiency chosen by experts

This last week I felt a freeing sensation that comes with efficiency. We are regularly flooded with choices throughout our day. What should I pack for lunch? Should I cut my toe nails? Which shirt and pants should I wear? Heck, look at the toothpaste and shampoo aisles! Try to find your one favorite.

The fewer extraneous choices made, the more we can focus on what’s important. I felt that by wearing the same thing. Just look at two terrific examples: Steve Jobs and Mark Zuckerberg.

Steve Jobs would constantly wear a “uniform” of sorts. He wore a black turtleneck, blue jeans, and some sort of tennis shoe. He drank SmartWater on stage — nearly every time. His life worked through routines; yet, it allowed for creativity where it mattered.

Mark Zuckerberg isn’t as repetitive as Jobs was, but he does tend to embrace a more casual style of t-shirts and hoodies. As one of the richest people in the world, he can do whatever he wants. He can set his own wardrobe expectations.

With both men, they minimize the time and cost of more fanciful clothing. It’s clear that focusing on what’s comfortable made them more capable. Additionally, that they could save time every morning throwing on what they know.

Filed Under: Minimalism, Save Money Tagged With: Clothes, Clothing, fashion, logos, minimal, Minimalism, trends, Wardrobe, wear

Frugal Articles of the Week

By Frugaling 2 Comments

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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!

Crank the heat of wear a sweater? by Brian Morelli
Over the last two days, I experienced some nasty cold weather here in Iowa. The lows were scary. Considering wind chill, it was getting down to below 20/30 degrees! As winter drags on, it’s important to think about how you can save energy and reduce fossil fuel use. The simplest option is often best: put on extra layers.

The early retirement / financial freedom spreadsheet by J. Money
Are you looking to leave the rat race and retire early? You’re going to want to read J. Money’s guide first! Early retirees need to think about how much they’ll have over time, and what they’ll need to withdraw each year to sustain themselves. J introduces some important rules before you take the plunge! A must-read.

Hidden advantages of savings accounts by William Cowie
Ah, the trusty savings account! Pretty boring, right? In this low-interest time, savings accounts have gotten a bad rap. This article lays out some tried and true reasons why everyone should embrace the trusty savings account.

The Gender Gap in investing needs to go by Kate Dore
Last, but certainly not least, is an article from one of my favorite personal finance writers. In her latest post, she details the many reasons why the Gender Gap in investments is a serious problem for everyone. From stats about financial knowledge/literacy to information about how to change that, Kate is an awesome example!

Filed Under: Save Money Tagged With: articles, Clothing, Financial, Frugal, gender gap, heat, Retirement, savings accounts, weather, week

I Owe $4,000 In Taxes!?

By Frugaling 29 Comments

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Self-Employment Taxes Photo
Photo: Philip Taylor/Flickr

Frugaling my way out of debt

I’ve been a student of some sort nearly all my life. I never worried about ponying up extra funds for a tax payment until 2013. And honestly, when I created Frugaling, I had nearly $40,000 in debt from credit cards, a car loan, and student loans. There was no way the taxman would give me anything but a fat return.

Then, a financial miracle occurred. In the summer of 2013, I began to make thousands of dollars in affiliate/ad revenue from Frugaling. The money poured in, and I was giddy. Finally, I could begin paying off all the debt — in record time.

I dropped all of it into student loan debt, and paid off nearly everything (finished the rest in 2014). My nerves calmed, and I could suddenly see freedom and future. Cheesy, I know, but my loans had dampened my spirits. Suddenly, I was renewed.

Ugh, self-employment taxes

As this new influx of funds padded my wallet, I unfortunately realized that by the end of the year, the taxman would be knocking. All of these funds from Frugaling were coming in untaxed — no withholding. These are self-employment taxes. Ultimately, this income must be declared and taxed at a penalty rate to pay for social services (i.e., Medicare, Medicaid, and Social Security).

After calculating all the money made and entering the numbers into TurboTax, the hypothetical refund reversed to a payment. The government wanted about $1,000. I sat there dumbfounded for a moment. All these advertisements and campaigns suggested I would “Get the biggest refund ever.” Those pesky self-employment taxes obliterated my student status.

It was a lesson in the difference between income and net worth. That year I had made over $30,000 between graduate student work and the website. I had barely any savings and negative net worth. Yet, I was being penalized for making money that could pay off financial aid faster. To me, it seemed preposterous that I was being taxed at a higher rate for this side income — with no net worth.

I owe Uncle Sam how much?!

In 2014, I paid off my remaining debt and my net worth has been hovering at a few thousand dollars. My stress over debt is non-existent, and I feel better than ever about my financial situation. But I’m not done with the struggle to make wealth while in graduate school.

I made over $20,000 “on the side” for Frugaling/business-related self-employment (I no longer make that kind of money, as I removed credit card affiliate links for now). After inserting my income and expenses into TurboTax, a shiver went down my spine. The numbers catapulted up over $4,000.

I’m fortunate that I’ve been saving for this moment. My savings account has enough to cover it, but my net worth will be swept away come mid-April. It feels awful to work this hard to save, make, and write. I have no net worth, and yet the funds I made will be disappearing.

But instead of letting this payment dampen my mood, I am more focused than ever on writing for you all, staying frugal and minimal, and building some real savings.

Filed Under: Loans, Save Money Tagged With: federal, Government, irs, Self-Employment, taxes, Turbotax

3 Lessons From The Great Recession

By Frugaling 9 Comments

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Banksy Follow Your Dreams Cancelled
By Banksy

“We learn from history that we do not learn from history.”
— Georg Wilhelm Friedrich Hegel

Making and losing money during the Great Recession

In 2007-08, the stock market dove. We entered a massive “Great Recession.” I had a measly amount in an investment account and sold every stock. I couldn’t afford to lose any more. The panic was great and I followed it.

I held mostly cash, but bought a dangerous ETF that shorts stocks at 2X investment. For every dollar down in the market, I’d make two. Although, for every dollar up in the market, I’d lose two. By buying the ETF, my future would be tied to the demise of the global markets. It felt sick, but I was making money seemingly every day in the tough bear market. As others clambered to secure positions, I was profiting. The demise of other’s portfolios meant I was in the minority, making money.

At the time, I kept telling my mom to sell out of a large, inherited position in AIG. The major insurance company was spiraling out of control, and the public would soon realize how much debt the company hid. I wasn’t prescient, but dead set on her selling much of the position. The wealth was directly tied to the most risky industry.

Her financial advisor asked her to sit still. His sentiment was simple: don’t worry, don’t panic, and everything will be alright. I remember urging her over the phone, “Mom, you’ve got to sell at least a bit. The portfolio isn’t diversified and could be destroyed by this market.” She followed the trusted advisor’s approach and held on to the position. She stayed with the stock until it was a small fraction of the inheritance, and AIG was unrecognizable to its predecessor — what it used to be.

A reminder of the Great Depression

My grandparents had their own economic tumult: the Great Depression. They were a product of a time when food was scarce, fortunes changed, and many suffered. Both my grandmothers — at separate times — would talk about this time of disparity. They seemed weathered and changed by this period.

The Depression had a lasting impact. In their adult lives, they saved nearly everything, invested, and were constantly frugal. Eating out was a privilege — a true rarity even when they had wealth. They got creative with meals, celebrations, and travel. They learned to travel with and for less.

Not everyone suffered, though. A select few — the richest elite — continued to enjoy the spoils of wealth. Robber barons, corporate titans in the 30s and 40s, held disparate levels of wealth. They suffered, but not like most of society.

It wasn’t until President Roosevelt, his new deal, and World War II that the economic despair lifted. A vision for the future came into the picture. My grandparents served bravely, and were able to cultivate a middle class life afterwards. They were never “rich,” but always well. Their goals weren’t for mass consumption, but for peace and calm.

Lessons from a time of scarcity

Just like my grandparents before me, this generation’s financial calamity changed me. The Great Recession permanently shifted my life and that of my parents. The following are a few lessons learned along the way:

1. Who you know counts, but gratitude is greater

I left high school at the height of the Recession, and graduated college in 2011, as things began to look brighter. Still, I applied to countless jobs and found nothing. I submitted applications to Starbucks, Target, Wells Fargo, and a host of smaller companies. No one answered. The jobs were scarce, and money was tight. Everyone — including companies — became more conservative with their money.

A dean changed my life and gave me a chance. She gave me a paid opportunity to study and prep for graduate school in counseling psychology. I considered the offer, realized I had nowhere else to go, and embraced the opportunity. I’m forever indebted to her offer and help.

Without that helping hand, I’m not sure where I’d be, how much I’d be making, or if I would be the man I am today. An age-old lesson for business people is to network unmercilessly, but for me, I learned about gratitude. It’s vital that we remember who helped us succeed.

2. Modest living matters, skip the material mementos

I saw countless Americans lose everything material in the Great Recession. Crying families on TV and in documentaries exclaimed how they had lost everything. They were leaving houses — foreclosed on by banks that “afforded” them way more house than is necessary.

Those with modest means and mindsets braced through the economic tumult, but usually were able to maintain their lives. Those whose lifestyles were paycheck to paycheck or near their means suffered greatly.

Living through this time cemented a new ideal towards minimalism and reduction of material worth. Now when I travel, I try to avoid “collecting” and taking physical mementos. When I get something new (to me or the world), I research everything about it and try to buy based on value.

Last year I was interviewed by USAToday on the topic of buying homes. I might be a kook, but I don’t believe I want to buy a house unless I have all the cash necessary to do so. This Great Recession taught me to distrust debt and mortgages.

3. Save like it’s the last day on the job

In struggling to find work and seeing others do the same, I’m uncertain about my ability to hold one consistent job in life. Employers don’t necessarily have the incentive that they once had for employee sustainability. Everybody seems to be replaceable in this new, globalized economy.

While the unemployment rate has recovered from the depths of the Great Recession, salaries have stagnated or decreased. People are employed now, but they aren’t making what they once made.

Whatever reaches my pocket today, I’ll fiercely protect. But protection cannot mean selfishness.

Despite the economic uncertainty that will forever be a hallmark of my adolescence, I refuse to believe that we cannot continue to help each other. Whether that means serving and giving your time, or scrounging for a few dollars to give to charity, it’s still important to give selflessly.

Filed Under: Minimalism, Save Money Tagged With: Banks, Banksy, Financial, Great Depression, Great Recession, jobs, Lessons, Making, money, saving, Stock Market

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