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Stopping Time Is Expensive, Isn’t It?

By Frugaling 20 Comments

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Buzzed Haircut

I started cutting my hair in the second year of college. Nascent tingles of frugality seemed to start that year, and I was looking for a way to save time and money. Buzzing my own hair solved both, as I probably saved $10-15 every time.

Going on my 7th year (and hundreds in savings), I can’t help but notice how many phases I’ve gone through. My hair’s been slicked back, spiked up, buzzed off, and everything in between. I’ve experimented and built up some skills over the years. Each style gives me a different drive.

Ostensibly, based on every kind word I’ve ever received, I look good when my hair is in between that spiky and slicked-back phase. It kind of has a natural tousle. I feel more confident “wearing” that haircut, too. If anything, this is the look I like when I’m dating.

But today, with buzzers in hand, I debate — once again — whether I should buzz it all off. It’s like hitting the reset button on my head — physically and emotionally. Instantaneously, I look like a Marine reporting for basic training. I don’t know that the style suits anyone, but it’s simple to maintain. Rinse off and you’re ready to go.

Each time I cut my hair, I’m forced in front of a mirror for long periods. I scan over every area of my scalp, and trim the sides by hand. It takes careful precision and patience. What starts out as necessary often becomes obsessive.

I start to see how I’ve changed and aged over the years. I didn’t look like this 7 years ago. I didn’t have fraying sides or a mysterious patch in the back when I first started. My hair was darker, too.

Stand in front of a mirror for any length of time, and my eyes begin to pour over every fault. The extraterrestrial divots of bad acne, the crease of a scar from childhood, and discoloration speck sit atop my face. History via epidermis.

I can’t help but notice, and wonder how to “fix” myself. My consciousness asks, “How can I improve this person in front of me?” Briefly, nearly every time, I think about who I want to be and how this physical presentation has aged in strange, foreign ways. Frankly, resisting it is what I’d like to do.

When I think about why I ask these questions and try to improve my physical features, I come back to the same conclusion: I want to be attractive. I want people to like me. I want to be able to date freely, and not have some strange physical feature that makes me stand out too much — that makes me “odd.”

As I probe my mind for why I think this way, I can’t help but reflect on a culture that encourages us to age slower, and if worst comes to worst, reverse it. We value youth and agelessness. Even more, we seem to be quick to ostracize those who are… different.

It’s in the resistance to aging that things seem to go awry. Suddenly, we spend countless dollars on creams, ointments, and cleansers to freshen our bodies. The average markup on cosmetics is about 78 percent. We’re desperate for something that once was us.

I hate to admit this, but I’ve already purchased many of said products before. There was a tanning cream when I was younger, with the hope of making me less pale and gaunt. All it did was make me look more like an oompa loompa. There were tens of creams and remedies and medicines for acne. They just made my skin red like a Skittles package. I went through expensive scar reduction bottles. And then those whitening strips that bleached my teeth to unnaturally white levels.

It went beyond youthfulness, as I wanted to be good enough — to be worthy of attention. The only way I knew how to make that happen was by spending money. There was one colossal problem: this was money I didn’t have, as I was using student, car, and credit loans to finance these adventures in attractiveness. My debt grew with this desire for outer worth.

$10, $20, $30, $40, and $50 at a time, the money drained out of my pockets and into the coffers of beauty and “hygiene” companies. I can’t imagine how much I spent on these products in total, and part of me is thankful to be without an amount. Just imagining how that money could help me and others causes my gut to wrench.

Most of us can logically say that change is inevitable, and resistance is futile. But that’s the tough part, beauty, attraction, and youthfulness are powerful, emotional drives. They push psychological buttons that aren’t rational. Before we know it, we can virtually or physically pull out our wallets and let corporations take us for all we’re worth. Stopping time is expensive, isn’t it?

I slap on a 2 clip and flip the switch. The gentle vibrations hum up my arm, and the sound of a little lawnmower ignites. Momentarily, I hold the buzzer up and wonder if I should do it. Do I really want it to be so short, simple, and plain?

It’s not till the first clump falls off my head and into the sink that I realize what motivates me to do this. I’m saying no to the system that says beauty looks one way. I’m saying no to products that would wash, condition, and spike my hair. I’m saying goodbye to resistance. I’m saying hello to fault, age, and the very probable/highly likely/I-don’t-know-how-it-won’t-happen chance that this hair won’t always be here.

It’s practice for the big day.

Filed Under: Save Money Tagged With: Age, Aging, Attraction, Beauty, Buzzers, Cosmetics, Creams, hair, haircut, health, money, Products, time

Finally, You Can Trade Stocks For Free!

By Frugaling 3 Comments

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Wall Street Free Stock Trading
Get ready world! Wall Street is about to get a lot more friendly.
Photo: Michael Daddino/Flickr

Back then, free stock trades weren’t possible

Free stock trading isn’t exactly new. In fact, plenty of companies have tried and failed in the process. Any number of problems have beset these pioneering companies. From beginning to charge commissions and fees to questionable management to poor corporate reputations, they haven’t stood the test of time.

When I first started investing and researching individual stocks, I was a wee middle schooler. As I tried to understand the markets, my burgeoning interest was dampened by trading fees. With only a couple hundred dollars to my name, stock trading fees of about $50 made it financially oppressive. I couldn’t invest in Apple (ticker: AAPL) right after the iPod was released, but I wanted to.

Fees destroy profits and wreak long-term havoc on investment returns — especially for those getting started. Thankfully, fees have been on a precipitous decline in recent years. From that abominable $50-fee time to now, you can see great change. Most online brokerage companies are around $10 or less per trade.

Unfortunately, if you’re an average investor — or even a day trader — you’ll spend money every year rebalancing your portfolio to better diversify. Whether you choose individual stocks (more risky) or exchange traded index funds (more diversified), you’ll be spending about $20 per stock to get in and out. And that should be frightening to anyone. Heck, that’s 10% of my monthly food budget!

The hope for fee-free stock trades

The lingering question: Is there actually a non-scammy, reputable way to trade for free? Until very recently the answer was still no. Unless you had gobs of wealth ready to trade, investment and brokerage companies had no interest in providing for the little guy or gal. Free didn’t really exist; the handful that tried, failed.

Today, there’s good news for everyone — at every income level — because data and tech companies have solved this wretched problem. Today, I’m making a rather lofty prediction: nobody in the United States will pay to trade at average investor levels within 7-10 years. Today, there’s hope on the horizon for a more affordable, accessible investing world.

The cost of everything tech-related has fallen. We can store more and get data faster than ever before. It makes all of our consumer products less expensive to purchase, and has the added benefit of making cloud applications cheaper, too.

We are just beginning to benefit from these reduced costs, as many cloud-based providers have opted to slash costs for services. For instance, Google Drive offers 15GB free and for $2.00 per month, you can receive 100GB. Think about it, only a few years ago we were working with floppy disks that stored about 1.5MB!

As technology prices decline, the consumer has benefited appreciably. And it’s leaving room for innovators to save us even more when trading stocks. If a company can utilize the latest technology, reduce brick and mortar costs by only having an online presence, make money off of user data, and turn cash-on-hand into interest for them, then you could have a success story.

Robinhood saves money for everyone

The other day I was reading up on a new tech startup that’s aiming to do everything I mentioned. They have an office — not hundreds or thousands of offices. They have a staff of coders, developers, graphic designers, and technical support to make something for the 21st century.

The company’s called Robinhood. I don’t know if they could come up with a better name than that! They aim to “democratize” stock trades by removing the “$10 [fees] for every trade.” Now, the wealthy and the hopefully-soon-to-be wealthy can participate in the market without being eaten alive by trading fees.

Instead of porting over old ways about investing, Robinhood revolutionizes everything about trading. All you need is a smartphone (iOS only, Android coming soon). With a few taps, anyone can invest for free.

Here’s where I want you to ask, What’s the catch, Sam? Nothing in life is free, right?

True. Nothing in life is completely free. There’s always some trade off. The fees that used to be captured by older brokerage houses are eliminated; instead, the company profits off of unused cash balances in portfolios. For instance, say you deposit $1,000 in a Robinhood account. Until you formally invest in a stock, that money is borrowed by the company and put in an interest-bearing bank account for them. As you research and decide on a stock to buy, they scoop up a little interest in the process.

Additionally, Robinhood uses advanced technical features that will likely be able to track user data far better than stodgy companies. I’m always cautious about data-based companies, but the potential gain is worth the information loss.

Robinhood Investors Google Ventures

Robinhood is backed by some of the biggest names in Silicon Valley, including Andreessen Horowitz and Google Ventures. That has provided them with some much needed funding to get off the ground and running. With Google behind them, I trust their platform and user-focused future. This isn’t a company that will crash and burn like Zecco did.

First impressions on this new app and trading platform

Robinhood iOS App

I deposited my first funds into Robinhood’s iOS app a few days ago. Trading stocks and ETFs were easy. As if conditioned to wince over the costs like before, I clicked and beared for some strange $7-10 trading fee. It never came.

Robinhood is an honest platform with some exciting energy. When I reached out for support via their FAQ forums and Twitter account, responses were delivered within 24 hours — usually in a couple hours. That’s impressive for a small staff with plenty of new accounts. The company seems to understand that if it’s to appeal to younger, more tech savvy generations, they’ll need to meet them where they are — Twitter included.

Reducing these trading is a wonderful first step towards a more accessible, affordable stock market for all. The dangers of stock market manipulation are still ever present, but being able to enter the market without these fees is amazing. And having a terrific platform on top of it is a wonderful thing!

Want to try it out? Unfortunately, it’s invite-only at this stage, but I have 3 invite codes up for grabs! Comment below and share this article on Twitter. I’ll email the codes to 3 people within 7 days of this article.

Filed Under: Save Money Tagged With: Free, invest, investing, market, money, review, risk, Robin Hood, Robinhood, stock, trades, trading, Wall Street

Frugal Articles of the Week

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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!

The Keurig K-Cup’s inventor says he feels bad that he made it — here’s why by Drake Baer
Mmm… The smell and sound of a fresh pot of coffee brewing is the perfect way to start a day. For many, saving time during their morning routine is important. Years ago, an inventor thought of an ingenious way to make coffee faster, with greater variation, and in seconds. Unfortunately, that invention, the Keurig K-Cup, creates scary amounts of waste — all for about one cup of coffee per pod. What’s worse, the company charges atmospheric prices for the coffee and tries to prevent people from using their own cups with the product.

The slow death of the home-cooked meal by Roberto Ferdman
A frightening decline in home-cooked meals is occurring. Americans are eating out more, buying pre-packaged foods, and eschewing the frugal homemade items for something more. But that something more has a price. This is a trend we need to think about working on immediately. Eating out costs a fortune and many people can’t afford to do it — even if their bank accounts have enough cash.

How To Make Six Figures A Year And Still Not Feel Rich – $200,000 Income Edition by Sam from Financial Samurai
Today, I wanted to include an article that I don’t necessarily agree with. This article from the awesome writer of Financial Samurai analyzes what it means to be “rich.” Fundamentally, he asks, what does $200,000 a year get you and would you feel rich? While I disagree with his conclusions, I think this article illustrates the wide divide between wealth in this country. When someone can afford $8,000 a year in vacations and doesn’t feel rich, there’s likely an internal, psychological mechanism that’s askew.

France wants companies to make appliances that last longer by Associated Press/WashPo
What a novel approach! France is lobbying companies to make products that last longer. Simple, right? Well, companies rely on products expiring in regular intervals to allow for new products, consumption, and spending. This phenomenon is called “planned obsolescence.” We are consuming too much, as a country, people, and world. We need to cut back. One way is to build and buy products that will stand the test of time.

Filed Under: Save Money Tagged With: articles, Consumption, Food, Frugal, home, meal, money, rich, Save Money, Wealth, week

What Won’t You Do For Money?

By Frugaling 11 Comments

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Manhattan Skyline
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?

Filed Under: Make Money, Social Justice Tagged With: achievement, advertising, dollars, Finances, Greed, Income, money, Success, Wealth

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