Frugaling

Save more, live well, give generously

I Deleted All The Ads. Now I Regret It.

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The last two months have been tough. While crafting my dissertation proposal and beginning to finish my Ph.D., I’ve tried to maintain Frugaling and prepare for career plans. Balancing everything has been difficult; thankfully, writing on this site has been a wonderful respite from my normal obligations.

Frugaling has always been for fun. See, I established this site as a creative outlet, break from academic writing, and source of additional revenue. It was never a charitable writing endeavor; albeit, I wanted it to be for good. In the process of writing about my journey to zero debt, I did pretty well for myself. I hustled and was rewarded for it. I paid off five figures of debt in no time.

Eventually, as the site aged and my debt waned, I started to question my values and decision to advertise. With the release of my new book in August, I thought it might be an opportunity to censor the ads. I took a gamble and deleted them.

In the place of ad revenue, I decided to rely on donations and book sales. It never made up for lost ad revenue, but it made a difference. Without those pesky intrusions, I felt free to talk without shame, fear, or question. Heck, I even wrote some scathing critiques of advertising since then!

Cleaning up my site from advertising made me feel good. I felt like I was honoring a value to reduce the urge for consumption. Unfortunately, revenue soon petered out. Despite growing traffic to the site, the revenue continued to plummet. What used to be a stable side hustle, which helped me save and earn despite a tiny graduate student income, was now non-existent.

Over October and November, I paid careful attention to the earnings, and now felt pigeonholed. I had railed against ads, and yet the business might be unstable and unsustainable without some extra revenue from visitors. Perhaps I had gone from one extreme to the other too rapidly?

This week, I reached out to other bloggers and friends to talk about this revenue problem. Most all of them recognized the need and importance to earn something for all the writing and extra work. Simultaneously, they seem to empathize with the wonderful ideal of going ad free. I admire people like Joshua Becker, who go without ads and potential revenue. But I entered an unstable level of revenue for Frugaling. Deleting these felt freeing and exhilarating in a new way, but the revenue loss didn’t allow me to save and earn.

Recently, I talked with a blogging friend of mine about this conundrum. I finally expressed the crux of the matter: I have two values, which are precariously unbalanced right now. One states that I should go ad free and resist anything that potentially encourages consumption. The other focuses on the very real need to earn some revenue from what I do here. Despite trying, donation buttons and book sales haven’t filled the gap.

One value is fulfilled while the other wanes. What’s the solution for this imbalance? This puzzle has led to a surprising number of doubts, questions, and nerves. I’ve felt guilty thinking about backtracking and placing the ads back on the site. I’ve felt nasty about engaging in affiliate marketing. And I don’t have time to create a class, campaign, or course that could potentially bring in additional revenue. School must take priority, but Frugaling shall be an integral, secondary part of my life.

For now, I’ve decided to bring back the ads. They’ll be basic Google ads, which won’t distort my voice or manipulate what I decide to promote. These ads aren’t my favorite, but in an effort to strike a balance between making money and reducing consumption, I’m taking the middle path.

Because of this backtrack, I’ve refunded and repaid everyone’s donations, too. Although their support was deeply appreciated over the last two months, I would feel slimy keeping them. As readers of Frugaling, I’d love to know what you think about this decision. Your support and readership is what keeps my site going. Thanks for listening.

Your friend,
Sam

How Joshua Becker Plans To Revolutionize Orphan Care In 2 Years

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I was raised in a middle-class household by smart, educated, and caring parents. It was quintessential suburbia throughout much of my life. And I’ve been incredibly privileged for it.

My parents held me when I was sad. They fed me when I was hungry. They clothed me when I was cold. They read to me – building a strong appreciation for language. They encouraged me to go beyond my assumptions and expectations. Without them, I’m unsure where I’d be in life.

Unfortunately, many aren’t afforded these privileges. In fact, more than 26 million children live without parents. What are first smiles, steps, and words without those who matter? The feedback and social interaction that comes from parents and their children is essential to healthy psychological development.

There’s a gap for those who need help most. Many institutionalized orphans struggle to develop at the same rate as their peers. Various developmental factors can be delayed. Some struggle with feelings of abandonment for their entire lives.

Despite being a tragically difficult problem to solve, I spoke to one man who’s looking to change everything: Joshua Becker. Better known for his successful blog, Becoming Minimalist, Joshua is taking a tremendous risk by starting The Hope Effect. The non-profit foundation is dedicated to bettering orphan care, and his plan might just work.

Recently, I had the pleasure of chatting with Joshua about his new foundation. From learning about what the heck motivated him to how he plans to make this a success for generations to come, I wanted to share some of my conversation with him today.

What motivated you to start The Hope Effect?

I asked Joshua why he wanted to work with orphans. He explained that issues of adoption and orphan care have always been important to his family. Joshua’s wife was orphaned in South Dakota, and ultimately adopted by a Nebraskan couple. That process made an imprint on his wife, and thusly, impacted him.

They were moved to give back to this community. The Becker family investigated how to better adoption processes, as they are full of institutional and governmental flaws. The bureaucracy can significantly hinder people’s ability to successfully adopt. With countless of complications, they found out that their time, money, and potential foundation would be better spent on orphan care.

What are some of the current problems in orphan care?

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I couldn’t help but wonder what orphanages are like and where care can be improved. Joshua noted that one of the biggest problems is the ratio of caregivers to orphans. There just aren’t enough people to be there for their children. In many households across America, two parents take care of two children; effectively, this makes a 1:1 ratio of caregiver to child. But in orphanages, money is tight and care is often what’s minimally needed.

Over time, this ratio can lead to serious psychological concerns. Whereas many people are held, cared for, and talked to, orphans can suffer from neglect. Joshua acknowledged that problem solving and more advanced intellectually decision making are also held back frequently.

How will The Hope Effect address these systemic problems?

Joshua aims to establish a “highly reproducible model” for orphan care – a blueprint to build homes and create avenues for change. The foundation will pay for the building, maintenance, jobs, and everything else needed to support a home for children.

The Hope Effect will start in Honduras, building a home on the site of the existing La Providencia orphan care community. La Providencia has been implementing a family-based solution to orphan care for several years. They are equipped with staff and even medical and educational facilities, making the partnership very attractive. As Joshua said, “They have a lot to teach us about what works and what doesn’t.”

As an added bonus, La Providencia employs a child psychologist. This is important to Joshua and his team as they appreciate the need for psychological wellness. Because of the great burden placed on these children, The Hope Effect intends to hire a child psychologist at all future orphan care communities they develop.

Briefly, Joshua broke away to explain the standard he wanted to achieve. These homes wouldn’t be more of the same. His bar was set high. Joshua wants his foundation to make homes he could imagine sending his own children – if something unimaginably horrible occurred. He wants every child to have an opportunity to succeed.

How can people help?

It’s all well and good to want to help others, but there are also pragmatic issues that prevent ideas like this from succeeding. Money can be a big problem – without it and this idea evaporates. I wondered how he intended to make this work.

Joshua spoke earnestly about making sizable sums of money from new book advances and his website. He said that money wasn’t the greatest concern for his family – they weren’t looking to buy a bigger house or a new flatscreen TV. Their hope was to put this money to work helping others.

Shockingly, the Becker family is funding the foundation with six figures of their own money. This seed money is intended to kick start fundraising and home building. By May, they hope to have the house built and care offered. It’s an ambitious timeline, but one they’ve researched in depth.

Additionally, The Hope Effect would look for donations to sustain development and maintenance of homes. Their initial investments radically change their charity, too. Remarkably, 100% of donations made to The Hope Effect will be given directly to orphan care. No administrative costs. No marketing fees. Nothing but direct giving to those most in need.

How did you go from minimalism and simple life advocate to philanthropist?

Becoming Minimalist was founded out of a need to cut back on excess. Now, Joshua has been writing about simple living for years, and published books to prove it! As I talked with him, I thought about his transition – from minimalist to philanthropist. How’d he go from one to the other?

Joshua rhetorically asked, “What’s next? What comes after saving money and spending less?” His family has everything they need. With the new income from book deals and constant revenue from the site, he explained that they were eager to do something other than spend it on themselves.

For the Becker family, giving generously goes hand-in-hand with living simply. To save is to ultimately be able to serve and give back. Joshua expounded that they are “committed to not buying,” and that empowers them to think of how to help. For them, it seemed like a natural progression to fund this foundation.

Where can people go to help?

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Over the next couple years, Joshua is looking to fundraise hundreds of thousands of dollars and fund multiple projects. He wants to change the paradigm for orphans.

For starters, Joshua recommends checking out The Hope Effect’s website for more information about the charity. Donations will fuel this organization to be able to directly impact the lives of orphaned children.

I was so moved by our conversation that I set up my own fundraising page to support The Hope Effect. Instead of gifts this Christmas, I’ll be asking for your help fundraising $500 by December 31st.

Will you help me?

Donate here to support this incredible cause: https://my.hopeeffect.com/frugaling

Living For The Moment – Not Spending It

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There are constant pressures to spend – especially as a twentysomething. Marketing companies have perfected the appeal to youthfulness and adventure. And sometimes people get trapped in façades of the “good life.” They buy expensive cocktails, go to clubs, and spend til the only thing that’s dry is their wallet.

I’d be lying if I said that doesn’t sound fun from time to time. It’s a blast getting to hang out with friends, blow off some steam, and recognize that life is finite. Let’s have fun when we can and spend in the moment. For a few moments we can pretend like the financial pressures of student loans, income inequality, and variable credit debt don’t exist. When we swipe, the worries disappear.

Why am I talking about spending like there’s no tomorrow? Because two days ago I read something that shocked my senses. An Elite Daily author, Lauren Martin, wrote an article entitled, “If you have savings in your 20s, you’re doing something wrong.”

The entire foundation was on the premise of partying hard, networking, and enjoying life when you can. Instead of saving money or contributing to a 401k, Ms. Martin advocated for being on the edge and nearly penniless.

She explained that you needn’t worry about saving at this time because later in life you’ll be making more. With great simplicity, a friend of Lauren’s says, “Don’t save money. Make more money.” From then on, she’s awakened to the idea that buying expensive items is her right and obligation. When she turns 40 and looks back on her twenties, she feels confident that it will all be money well spent.

Her article wraps up with 7 of the most egregious statements I’ve read about finances:

  1. “When you’re too worried about your bank statement, you’re not making your own.”
  2. “When you’re saving for yourself, you’re refusing to bet on yourself.”
  3. “When you have something to bank on, you have nothing to reach for.”
  4. “When you live your life by numbers, you strip yourself of poetry.”
  5. “When you die, you can’t take your money with you.”
  6. “When you deprive yourself, you don’t learn how to TREAT YO SELF.”
  7. “When you care about your 401k, your like is just a ‘k.’”

Giving Lauren the benefit of the doubt, her words can almost be read as aspirational and inspirational. You might think, “Yes, I’m going to live it up while I can and make a name for myself. I’m going to show everyone who I am. Watch out world!” But read them again, and you’ll begin to notice privilege, ignorance, selfishness, and myopia.

Perhaps most egregious of all her recommendations is the age-old line, “When you die, you can’t take your money with you.” The adage is right, when you’re dead, you’re all dead. Unfortunately, this author is missing many of the reasonable reasons to save. By socking away cash when you’re young, you’ll be better prepared for uncertain medical complications, job loss, and anything life throws at you. But even more, death brings an opportunity to give back. I intend to give what I can to charities and offer the rest to family. If, instead, I spent it all on drinks in my twenties, I’d have nothing for either.

The second line I want to focus in on is, “When you’re too worried about your bank statement, you’re not making your own.” Presumably, Lauren’s suggesting you must spend money to make a name for yourself. Whether it’s the expensive clothing she purchases or fanciful “networking” opportunities at restaurants, she seems to know how to make her own statement.

But making a statement is complex in a society bombarded with advertising. Being unique requires constant reanalysis of culture. To be countercultural and your own person is actually difficult when certain brands aim to sell to that exact demographic. The good news is that statements needn’t cost anything. I can make a statement by saving, and that might be the most powerful of all.

The Internet is vast and diverse. Finding voices that encourage wanton spending is easy. What took me by alarm and spurred a response was two-fold. First, the article was published on a fairly popular news and opinion website. Second, the article had been shared over 35,000 times in two days. Lauren hit on the pulse of a large group of twentysomethings. Her article explicitly supported spendthrift ways. Anyone that needed an excuse to empty their wallets could find solace in her words.

We’re constantly at a precipice between spending and saving. Each day we are confronted with this choice. We can spend our savings away in a flash of 20s, or save for the many moments that life brings. To break away from the herd mentality and save can be challenging, but the choice is ours.

Frugality, What Is It Good For?

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When I talk about frugality, I tend to focus on saving money, living simply, and making more. It’s a winning combination. By combining all three components, I knocked out nearly $40,000 of student loans, a car loan, and credit debt.

Unfortunately, I sometimes develop fatigue from concentrating on ways to prevent spending. It’s tiring to always keep watch for wasteful spending, and easier to simply swipe a card.

Thankfully, strong reasons such as reducing climate/carbon impact and disdain for contributing to major banks’ profits keep me motivated. I have a purpose, rationale, and philosophy undergirding everything I do. Without these, I’d fall off the wagon and spend crazily again.

Ironically, part of the reason I live this way is to spend money. I mean it. I save and save and save to spend money. Crazy, right?

The difference, now that I’m without debt, is that when I purchase something, there’s no interest against me. I’m following the age-old wisdom of the financially privileged/savvy to be liberated from banks’ powers to constrict and restrict.

Without loans and carried credit card balances, I’m free. And now, I can spend it the way I’d like. So after all the money gets deposited, invested, saved, what do I actually spend it on? What are all these efforts good for?

Since I’ve embraced frugality, three major spending areas continue to be of importance:

1. Travel

I’m currently in graduate school, which keeps me restrained from many travel opportunities. Frankly, that’s probably a good thing for my budget. But every now and then, I can save and purchase a flight — all interest free.

Most of my money actually gets spent to see family twice a year. Although, this fall break I’ll be going to Colombia!

When I fly, I look for the best deals possible by shopping various sites, check my frequent flyer mileage accounts, and book about 1.5 to 2 months out. I tend to decline most forms of trip and travel insurance, as my credit card provides those benefits for free. When I land in a new destination, I immediately try to find local shops and supermarkets to try and stock up on a few snacks/non-perishable foods. This planning allows me to experience the local cuisine and cultural foods, while managing the budgetary blast.

Travel is exceptionally important to me, but it has a powerful price tag. I don’t offer unsolicited advocacy for travel and don’t recommend that people travel to some faraway place. The fact is that travel remains relatively expensive, and it’s one luxury that I’ve been able to partake in with a positive net worth. It’s okay if you can’t travel today. Save for that opportunity.

2. Charity

Recently, I released my first book, Frugaling: Save more, live well, give generously. The title seemed to summarize everything about this site. The latter aspect – giving – is one of the most significant reasons for my frugality.

Throughout my life I’ve always given money to charity. Regardless of my current debt load, I’ve made efforts to give to others in time and donations. Today, charity holds great importance in my life, as I can give without going into debt. Every dollar to my favorite charities doesn’t represent a dollar to a bank, which will be placed under a horrific interest rate.

I don’t have a set percentage, amount, or expectation for giving each year. Rather, I find causes over the course of the year that mean a great deal and/or donate to what’s consistently moved me. Two organizations that I regularly donate to are Doctors without Borders and the Always Remember Never Surrender Endowment.

3. Professional opportunities

As a graduate student, I get paid a small stipend to work and study. Soon, I’ll be applying for internships (similar to a doctor’s residency) for counseling psychology. That process may cost $2000-3000, but is an essential part of the process to get a Ph.D. Afterwards, I’ll hopefully be hired at a site and begin to have more substantial paychecks.

Having my own savings allows me to pursue various options for employment without going into debt. Additionally, the process of becoming a licensed psychologist, which I desperately want, requires a formal examination. The test costs thousands of dollars – not to mention the study materials. It’s another area I’m saving and planning for.

From travel to charity to academic opportunities, these options became possible after I paid off the debt. Previously, I used loans as a method for travel and adventure and even giving. But I was simply digging into a deep, dark hole of debt. There was little hope or light before. All I can say is that good things come to those who can cut costs and pay off their debt fast.

A lot has changed during my journey to change my debt. What you’ll notice is that I’m not saving for a car, house, or large physical objects. I’m a product of the Great Recession, skeptical of big banks, and not ready to make such financial commitments. As such, I cannot envision taking on a mortgage, car loan, or anything else at this time. For now, I’m free from the trappings of debt and living well.

So what is your frugality good for and where do you ultimately spend money?

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