Frugaling

Save more, live well, give generously

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Frugality, What Is It Good For?

By Frugaling 15 Comments

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Toronto Harbourfront

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?

Filed Under: Loans, Save Money Tagged With: academics, Charity, college, education, fly, Frugal, frugality, give, Giving, graduate school, money, Save, savings, school, spending, Travel

I Have Zero Business Degrees

By Frugaling 13 Comments

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My Graduation Day 2011

What are my credentials?

Frugaling is a personal finance website where I regularly talk about financial concerns. I provide advice to save and make money, editorialize social justice issues, and argue in favor of minimalism over consumption.

But you might be wondering what credentials I have to proffer this help. Well, that’s a funny thing: I don’t have any. I didn’t get a business-related degree — there’s no formal finance education or economics indoctrination. My words are informed by something greater, and my hope is that they’re not the rote, memorized drivel that many financial advisors spout.

As a kid, I always thought I’d pursue something in finance. In fact, I want to tell you a little story from high school. It was there that I decided that to pursue a financial career path would leave me deeply unsatisfied, but my passion for personal finance never stopped.

Sam, you’re on the line!

I was giddy, but tempered in my high school science course. In about 10 minutes I’d ask my teacher to step outside and make a phone call.

My battery was fully charged, but I had to find a better signal. There was a field, away from the building, that provided a comfortable amount of strength. I dialed the number; I believe it was somewhere in New Jersey. I stayed on the line for what seemed like an abominable amount of time.

Occasionally, a pre-recorded voice piped up, that encouraged me to stay on the line. Then, I heard Jim Cramer’s — host of Mad Money on CNBC — voice and he shouted in my ear, “Sam from Golden, Colorado…” I melted with nervousness, but miraculously stated a ticker symbol (which I cannot remember) for a stock I was interested in.

Stocks were more important than classes

My latter high school days were filled with these moments. While fellow students studied diligently for their ACTs and applied to elite schools such as Duke and Stanford, my time was spent reading, trading, and watching the stock market. Because I was under 18, I forced my mom to co-sign and create a custodial account on an online trading site. I was hooked, and I loved the adrenaline.

Numbers pulsed through me, and I would binge on stock charts for hours. I hogged library computers and printer time to map them. In hallways and breaks, I drew lines on the charts, and practiced what I saw in books and television.

As an autodidact, the stock market provided an endless supply of data to be analyzed and understood. And the spoils went to the most educated people. I wanted to be one of them.

One form changed my degree, life

College was the path I was expected to follow. While my parents and grandparents never “forced” that path, it was strongly encouraged. The university life was where people went from good to great. I was open to that potential.

I applied to two colleges. The one I wanted to go to, Colorado State University, accepted me, but didn’t directly admit me into business. My less-than-stellar grades and contempt of mathematics meant that I would be an “open-option” business student until I proved my competence via good grades.

Prior to departing for Colorado State, there was an open house session. I attended one event geared specifically towards open-option students. For one hour, an advisor talked about academic success and finding your purpose in college.

I remember rolling my eyes, as the cynic in me dreaded the activity to come. We were split up into groups and then given about 10 minutes to complete a form and talk among the members.

The form asked us some simple questions, but one stuck out; it read, “How would you use your degree?” Despite the stupidly simple question, I had not really thought about this question before. I saw a response, “I want to help others.” Then I thought about my business degree — something wasn’t quite right.

I went to my advisor as soon as school started and asked to switch to psychology. There, I envisioned being able to listen and talk with others through their problems. That would be a degree to “help others.”

The psychology of money, spending, and society

After undergrad, I applied to graduate school and got into a counseling psychology doctoral program at the University of Iowa. I still wanted to follow the goals set forth in that open-option day. But in the back of my mind I recognized that investing and money issues still held great interest.

I still invested and read everything I could get my hands on regarding the stock market and business. I changed career paths, but my intrinsic passion for personal finance lingered.

As my own debt and spending spiralled out of control, I started Frugaling to right my course. It worked. I paid off about $40,000 of debt in about a year. I completely revamped my life — now incompatible with wanton spending and extravagances.

But I also started Frugaling as a perfect combination to meld my converging interests. I found that people’s (me included) monetary issues were closely linked to psychological concerns, distress, and stressors.

Psychology and business weren’t divergent topics. Additionally, I realized that most financial gurus blamed personal responsibility and character flaws on poverty, bankruptcy, and inadequate financial planning. There was room for a different voice — informed by psychological concepts and real counseling work with people suffering.

I’m not a financial-affiliated spokesperson

Over the nearly two years that Frugaling has been around, I have become an increasingly more passionate advocate for the underdogs. Financial markets are deeply unforgiving and unequal. People need to stand up and help others across diverse, multicultural backgrounds.

I ask you not to trust me for my financial degrees and letters after my name. I ask you not to trust me for how much money I’ve made for other people. I ask you not to trust me for being personally wealthy. I ask you not to trust me for my reputation (or lack thereof).

All I ask is that you consider the possibility that financial voices of reason come from those outside that insular world. I’m here to stand up for those who’ve been drowned out for too long. And I’m excited to continue building an audience (you included) that is inspired into action over social justice concerns and reducing consumption.

Filed Under: Social Justice Tagged With: Advice, Business, college, Finance, graduate school, investing, Personal Finance, Psychology, school, Social Justice, Stock Market, stocks, university

My Bike Ride Disaster: Wet, Dirty, And Full Of Road Spittle

By Frugaling 11 Comments

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Bike ride through the city
Photo: Dustin Gaffke/Flickr

My first fall in fall

This summer I purchased my first bike in years. It quickly became an enjoyable habit. My body became stronger and I can now bike about an hour before getting really tired (backpack and all). It’s forced me to think about climate change and my impact on society; thankful too, because I’m individually reducing carbon emissions. But I’m also open to the elements like never before, and that comes with serious risks.

It was drizzling today, and the roads were riddled with puddles and rivers. If I still had a car, I wouldn’t have thought much of it. I would’ve been isolated from the elements. Cars are protective bubbles and creature comforts. My commute into work would’ve been simple and relatively safe. Instead, I took the first fall on my bike.

Every time I hop on my bike I realize all of the variables that are working against me: my brakes might not work, a car may hit me or otherwise cause me to lose control, a tire may pop, etc. Unfortunately, I wasn’t considering the most obvious possibility this morning: pedestrians.

As I made my way to campus, I took note of my increasingly moist bum. I reached back to check, and found a nice patty of road spittle. Yes, this wasn’t one of my favorite bike rides. Nonetheless, I had no other option at this point and needed to get into work on time. My legs peddled onward.

I crossed the river and was nearly there. The light was green and I began to turn right, when a group of pedestrians crossed illegally. My brakes squealed, as I squeezed to prevent hitting one of them. Then, the bike lost traction and I completely slid off and down. My entire right side was covered in dirt and rain and ominous road schmutz.

People called out, “Are you okay?” Despite the immediate feeling of road rash, I hadn’t hit my head or broken anything. Someone picked up my coffee mug, and handed it to me. I fixed my helmet, put my mug away, and biked another 300 feet into work.

My foreign, happy reaction

But despite this inconvenience, anger, and wetness, I’m curiously happy. Even I question that feeling, “How could I be happy after a group of pedestrians caused me to slip and fall? How could I be happy sitting in wet clothing?”

Well, I’ll tell you!

When I first bought my bike, I wondered how long it would be before I was craving a car. But that feeling never came. Aside from stealing a ride with friends here and there, I haven’t driven more than a handful of times since mid-summer. Each month, I’ve been able to save an extra $300 dollars per month by not having a car (loan, gas, insurance, repairs, maintenance, etc.). Selling the car and pocketing the savings led to a reversal in my net worth, too. I’m finally in the black! And from a future standpoint, each time I take a bike or bus, I am contributing to a different carbon economy.

Dealing with winter

The seasons are changing. And now that I no longer have a car, I feel it like never before. My clothes are soaked and my body is ice cold from the spill. Work feels a bit more uncomfortable with the growing bruise engulfing my right side.

The weather will worsen. Winter in the Midwest is a horrific tragedy of gray and cold. Biking consistently through that will not be possible. While there are some buses that run through the area, the timing of interchanges may lead to severe delays and time lost. It will be a major time to question transportation and work-life balance.

No matter what happens, I’ll be sure to update you on my choices and how they affect my budget. For my bikers out there, be safe and ride on! And, read this awesome article about bike safety from Grist.org!

Filed Under: Save Money Tagged With: Bicycle, bike, Biking, campus, debt, net worth, Ride, Road, savings, school, transportation, Work

Entering My 3rd Year Of Graduate School

By Frugaling 8 Comments

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Target Semester School
I really liked these pillows (Target calls them “Poufs”). Not buying one at $45 — that’s for sure!

As the upcoming academic semester approaches (now two days away), I can’t help but notice how much worse my body feels. Nervousness affects me in atypical ways — mostly subconscious and physiological. But it’s this same undercurrent of stress that can sometimes lead to outsized spending. I need to be careful during these periods.

Yesterday, I saw sweaty, dew-soaked windows of the frozen food aisle and thought, “This is a perfect reflection of my toiling stomach.” I was a young whippersnapper when I first realized I had lactose intolerance. Then there were strange “allergies,” the removal of certain food groups, and tests to see what was wrong with me.

The best answer that doctors ever gave me was that I have Irritable Bowel Syndrome (IBS). This cantankerous medical condition wreaks havoc on my insides. I can feel food traveling through my system and doing battle with my intestines — harmony be damned. At the beginning and end of every semester, I have horrific flare-ups.

Like Drake’s recent single, life goes from 0 to 100 real quick when the semester starts. The world seems to enter hyperdrive, and I begin to notice significant changes:

  • I spend less time in the mirror (good).
  • I don’t floss as often (bad).
  • My hair gets crazier (take it or leave it).
  • I drink more coffee (probably exacerbating the hyper feeling).
  • I pack lunches (good).
  • I’m surrounded by people all the time (as an ambivert, a pleasure and challenge).
  • Procrastination increases, as academic projects feel less important when compared to working with clients (ambivalent).
  • I’m distracted by due dates (bad).

This semester will be the busiest schedule of my life, and I must trek all over the city to make it happen. I’ll be on the westside to eastside to southside of the city almost every day — and all by bike. The responsibilities and hours won’t cease for the next 3.5 months.

At the beginning of every year I panic, apply to/fantasize about other jobs, and think about whether I can handle it. My insides erupt and argue with me; screaming, “not again.” Despite these physical, emotional, and psychological challenges to come, life has never been more full.

I’m lucky to have incredible friends around me. They give me a positive energy and purpose. Likewise, I have this website, which is a wonderful distraction. I love being able to write to you all, save money together, and share our successes and failures. I paid off all my debt this year, and completely revamped my financial life. The stress of debt is no longer!

Graduate school is a challenge — every day — and I wouldn’t change it for the world.

Good luck to all of you who are headed back to school!

Filed Under: Save Money Tagged With: Academic, bike, graduate school, Job, Life, school, Semester, Stress, Work

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