Category: Money

Quick Poll: Reframing Your Narrative

“When one door closes another door opens; but we so often look so long and so regretfully upon the closed door, that we do not see the ones which open for us.”
― Alexander Graham Bell

This week’s query, kittens, is whether time and distance has ever changed your mind about a financial circumstance or event? Was losing a job ever a blessing in disguise, or did a promotion or a move turn out to be a kick in the teeth?

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Perspective is everything. 

One of the biggest changes of mind I’ve had to make is about my experience with the Great Recession. For a long time I’ve looked on this global circumstance as a personal setback that ever since has had a delaying effect on my career goals and work life. I’ve resented it and oft played the “what if” game, dreaming of what might be different today if I didn’t “get stuck” at the job I had then because I wanted and needed financial stability.

When the truth is that not only was I lucky enough to have a job during that time, I made enough to be the breadwinner while my partner finished both an undergrad and a graduate degree abroad, which in turn is what enabled us to move to the UK. Seen through this much more long term and less childish lens, far from being a setback, my experience was that that dead end job actually turned out to be a launchpad.

Your turn.

Politics and Money

“The hardest thing in the world to understand is the income tax.”
― Albert Einstein

For obvious reasons, politics is on my mind this week.

Something I’ve probably not spent enough time thinking through is how politics affects my money choices. A lot of the “big” purchases normally associated with American politics are simply not part of our lives at the moment. We have only ever bought one car and that was from a family member, we have never bought a house, and the biggest choice we’ve made is to live and work abroad which obviously makes an impact in our taxes and expenses. I know that political policy informs my life day to day, but I’d never really really done an examination as to how or how intimately.

That started to change last year after the Brexit vote. It was a political decision that had and will have enormous consequences for the industry I work in, to the tune of millions and perhaps billions of pounds. Of course I know that every budget the US Congress has passed in my lifetime has affected me, but this was the first time that I felt the financial implications of politics hit my work and wallet directly since the Great Recession. It was sobering and it changed several of our potential futures.

 photo DeathtoStock_Creative Community8_zpsmxybcv1y.jpgimage via Death to the Stock Photo

We love living in London, the idea of ever leaving cracks my heart…but we do occasionally take a look at career opportunities back in the States where we’d be likely to make larger paychecks (Jeff in particular). Meanwhile the exchange rate is now much less favorable to us than it once was, with more uncertainty in the forecast. Given these financial realities, influenced by international and local politics, it’s not inconceivable that we may move back to the States or to another country at some point. If we do our taxation will change, so will other political realities.

As the future of the Affordable Care Act is currently in a state of limbo in the States, I just had the cervical exam I’m entitled to as a person who pays UK taxes that funds the NHS–I won’t call it “free.” I’m also provided access to regular birth control at no additional cost to me and regular dentistry (joke about UK teeth care all you want, I still get mine checked out every six month and it costs a fraction of what it would in the States). On the flip side, there are legitimate critiques for a system that many find bureaucratic and overstretched, and that some people dislike.

Money and politics are a constant trade off for what we have, what we want, what we are able to provide for ourselves, and what we deem that government/society/employers should provide for us. The financial choices I/we have made are personal ones, but they are political as well. As the saying goes, “The personal is political.”

But we’ve not yet really parsed out how politics will affect our desire to invest, to save, to retire. These still feel like “far away” problems, even though I know they aren’t.

So, wiser, older, and more experienced friends, talk to me about how politics has affected your money choices. What decisions did you have to make under the past administration (if you’re American), and what decisions do you think you will need to under the new one? Brit friends, ditto your experiences under recent governments?

The Paradox of Space and Stuff

“Our pleasures are not material pleasures, but symbols of pleasure – attractively packaged but inferior in content.”
― Alan W. Watts

When our friends were in town the other week it was an amazing chance to catch up. One half of the pair, Chris, and I have been friends since freshmen year of university. In fact he, Jeff, and I were all in an assigned cohort for freshmen students and it’s kind of funny to think about how life has turned out for us in the past 12 years. I absolutely adore his wife, who I’ve known almost as long, and having the ability to see friends from the States is such a rare pleasure for us.

In talking all things work, life, and adulthood related we got on the the subject of upgrading. They live in California and bought a house there. Since then they’ve been working on all kinds of DIY projects to improve their home and add value to it, and seem to be enjoying the process. But in spite of being able to do these improvements on a tight budget and by themselves, we quickly found we were dealing with a similar issue even though we live in a rented apartment.

The famous saying is mo’ money, mo’ problems. Add mo’ space, mo’ spending to the mix.

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We started comparing notes on how that as soon as we’d either moved into a house or a larger apartment, we found our “stuff” multiplying. Closets full of items they rarely used on their end, furniture we’ve never previously owned on ours. More empty space that we feel compelled to fill for us, a garage for them to store stuff, which means they’re holding on to things that they’ve never accumulated before.

Chris told me of a piece of motorcycle equipment that he doesn’t use anymore, but is loathe to give away or even sell because 1) it cost him a pretty penny to get in the first place and, 2) what if he needs it again in the future? We now have a second bedroom (currently being used primarily as storage) which is where, if an item doesn’t really have a home yet, there it goes! A quick, sheepish scan of the contents this morning revealed a number of older cords and electronics I should probably recycle and a bag of linens and stuff that I’ve been meaning to drop off for donation since we moved in. Oops. Having space clearly does something to our mental relationship with stuff!

In our old flat, we didn’t have room for much…and so we didn’t have much. When we moved to a twice as large apartment in October, we suddenly had twice the space to fill. Plus we gave up landlord-provided furniture as part of a negotiation for lower rent and so had to buy furniture for the first time since living in London. Our old apartment barely held a loveseat, but suddenly we needed a sofa to fill a living room. In our old apartment, that loveseat and a desk chair were the only places we had to sit down in, in our new apartment we had a breakfast bar but we now needed stools to sit at it. We have two bathrooms and so needed two bathmats. We have more than one cupboard now and have somehow acquired a mug collection. Oops again.

Like water, people, their money habits, and their stuff seem to expand to fit their containers. Ours certainly have. When we have made more money, we have historically spent more money…even after living quite comfortably on less! Before moving to a larger apartment, our expenses didn’t necessarily change, but we found our habits did. Both we and the handful of friends I have unscientifically surveyed for this post have also found their ability to accumulate and retain stuff grow significantly due to moving into a house for the first time, a bigger apartment, or a first home all to one’s self after leaving the sharing economy that is living with roommates. Call it the curse of comfort! Part of the reason I don’t want a big house anymore is because I don’t want to have to pay to outfit it, keep up a yard, and take care of the whole thing. I’d rather have a much smaller home with fewer, nicer things, and spend my money on other priorities.

On the other hand, I do think there is a correlation between generally being in a position to make more money, and it having more places to go. If you are working full time, you are likely to be an adult with either rent or mortgage to pay. If you’re living in certain areas, you are more likely to require a car. Past a certain age you are statistically more likely to have a partner or children, leading to different kinds of costs. Life gets more expensive the longer it goes on.

As I’m working to limit my consumption, I’m starting to think a portion of that mindset long term will come from limiting my space, both physical and metaphoric. What else will I have to resize besides a “dream home?”

Have you found this same correlation between space and stuff? Those of you who have up- or downgraded at some point in your lives, I’m doubly curious to hear from you.

 

The Picture of Success

“Try not to become a man of success. Rather become a man of value.”
― Albert Einstein

Once upon a time if you asked me to describe my dream house I’d have given you a roof to basement description of a three level red brick colonial (inspiration via Colonial Williamsburg, Virginia) with a massive lawn and back garden. If it was historic, so much the better. Nowadays, rereading that description, my reaction is a low whistle and the thought, “That sounds like a lot of work!” Growing up a military brat we moved every few years and seldom owned a house. We also didn’t have to put in the effort of maintaining several of our homes as government support services often did so when we lived in base housings. Even when growing up I also had the idea that I wanted to continue to live abroad and travel–what on earth would I do with a massive house in that case!

Not only does the vision no longer really appeal, but more recently I’ve recognize that the idea of a grand house was something more of a symbol for me than an actual goal. In some corner of my mind, the idea had developed that if I were “successful,” that’s the kind of house I’d live in.

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image via Death to the Stock Photo

We all have assumptions about, and unique frameworks for how we view personal success. Mine have shifted a bit over the years, and even now, having arrived in a relatively healthy place, I am constantly checking in with myself and my aspirations.

Jeff has a more financial view of success than I do, which makes a lot of sense to me. He works in and related to financial industries, there is a more traditional track of advancement in his line of work, and salary can be a good indicator of where a person is at in his or her career. It’s a simple but highly informative metric to him. On the other hand, I tend to think success in terms of achievement. This wasn’t always the case, when I was younger I framed the idea of success in certain status markers, like that big house I envisioned. I also used to  measure success by work I accomplish. On the surface this may sound much more zen than Jeff, but with my personality that can sometimes lead to bad health decisions (like burnout), hyper self criticism or other setbacks. I’ve done some pretty amazing things in terms of my writing, and yet some days (usually ones where pitches have been met with radio silence, I’ve lost a gig to a competitor, or I’m just feeling down about myself) I still have to remind myself that I’ve been able to support my family on writing for years, or achieved a byline that many can only dream of. Reframing success through the lens of achievement rather than how much work I’ve done in a given day has been a big breakthrough for me in the past year.

I’m open to the idea of my views shifting again in the future, goodness knows they’ve shifted in the past! I’d certainly like to make more money than I currently do, and perhaps shifting my mindset to a more quantifiable way of thinking for a time might be useful. I think it may even help me build the more long term financial mindset I’m working on. On the other hand, I think most of us have or know someone who has chased only money before and didn’t necessarily end up better off because of it.

What does success look like or mean to you?

Spending Diary Vol. 2

“Money is better than poverty, if only for financial reasons.”
― Woody Allen, Without Feathers

After allowing ourselves to indulge last week, we put ourselves back on more typical austerity. Knowing I’m going to publish a full list of accountability each Saturday this month is an excellent tool to keep me frugal, even if it’s a lot more intimidating than I initially thought it would be to do (perhaps naively). Judgement and scrutiny, self inflicted or otherwise, is not fun to volunteer for. But still, expenses will happen. I knew I had a big yearly cost coming this week and so, anything not spent on groceries was basically restricted. It’s worth noting that my biggest drop of money was an automated payment that required precisely zero effort from me but still accounted for 60% of my spending, hence my query yesterday.

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Sunday
We made “brunch” at home, did some meal prep and a ton of chores to get set up for the week, and exercised. I also spent some time on writing projects, and exchanging emails with friends. I’m doing the Yoga Revolution program from Yoga With Adriene this month for my flexibility (and to tick off a goal!) which is free and available on YouTube. But it was time for the annual renewal payment of my professional site, which is an automated payment…so, without so much as lifting a finger…
Annual site renewal/hosting/domain fees: 75.00.

Monday
I headed into the city to work even though a Tube strike promised to make the commute a mess (previous strikes have resulted in me spending up to four hours a day on foot getting to and from a workspace) so I got up, packed a lunch, and got some mileage on my FitBit. It was a longer day that usual, but far from fatal. Unfortunately I’d snapped a cheap hair clip I use daily and so had to stop into Boots to replace it: 1.50

Tuesday
Ditto most of the above, minus any strike headaches and the need to replace things. Thank goodness. A no spend day.

Wednesday
No spend day again! I worked from home on a bunch of pitches in preparation for…

Thursday
I worked from a good friend’s office all day until meeting up with another friend and member of an editorial team for a magazine to pitch some collaboration ideas and content. It’s a great opportunity, so fingers crossed! We could only meet up in the evening and so had food together and split the bill.
Dinner meeting: 25.00 (paid in cash)

Friday
A couple of meetings today that required getting up and about the city but all my food prep was ready to cope, snacks included. I also landed a new gig with a great day rate, hurrah! Heading home and into the weekend I had to pick up a few things and, after reviewing our cupboards and budget, Jeff and I decided we could afford some pizza.
Groceries 10.oo
Takeaway dinner: 15.00

Saturday
We decided to make it a home day with chores, and so delayed renewing our travel cards and doing a full food shop until tomorrow, aka next week’s budget. Sneaky, but that’s three no spend days this week to counteract some freelance costs.

Total: 126.50

Friday Poll: Recurring Costs

“Don’t you ever mind,” she asked suddenly, “not being rich enough to buy all the books you want?”
― Edith Wharton, The House of Mirth

Quick query, dumplings. What are your monthly recurring costs [ETA, I’m speaking of discretionary spending]? When I was doing my first Spending Diary entry, I had tallied everything I had either personally or jointly put a card or cash down for that week, but walking into the gym for an evening workout, I was smacked with the realization that we have multiple monthly or annual payments for services that I hadn’t considered. I amended my post to include one, and will have more listed tomorrow in the next installment.

What are yours? Gym, media subscriptions, paper/magazine deliveries, meal box services, club memberships–what’s your grand total if you add them all up?

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What Do You Already Have?

“Buy what you don’t have yet, or what you really want, which can be mixed with what you already own. Buy only because something excites you, not just for the simple act of shopping.”
― Karl Lagerfeld

This weekend and next week I am going to do a wardrobe review of my closest with an aim of putting together that lookbook project I have for myself. Why? Because–not to brag–I have great clothes and I want to use them better than I do. It’s taken me years to do it, but I’ve put together a wardrobe with which I know I am happy and that serves almost all of my needs. It was a purposeful project too, I didn’t sling money around willy nilly. Over time I found the styles that I liked and suppliers who provided clothing I found attractive in ethical ways. I put together lists of gaps in my wardrobe and filled them a piece at a time. I bought from second hand or consignment shops, eschewed fast fashion, invested in quality brands and well made products.

I am on record as being content with my wardrobe where it’s at for right now. I am not looking to buy the next furniture pieces for our apartment for months. I don’t want any household goods at the moment. I’ve cut myself off from frivolous spending for months.

So, why am I still subscribed to a seeming infinite amount of mailing lists?

Since Christmas I’ve been unsubscribing left and right from suppliers who seem to bombard my inbox daily with discount codes, offers of gifts with purchase and, in more than one sneaky emotional attempt at my wallet. “We miss you! Come back and check out our store.”

Consumerism, you are not subtle!

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image via StockSnap

It got me thinking though, about all the ways we are surrounded by messages telling us to spend to buy more. It’s constant. From window displays to pop up ads, even arrangements of goods and signage at grocery stores, it is everywhere and a lot of it is subliminal or emotionally based. Trust me, I work in marketing! There are companies spending huge amount of time and resources to get us to spend our time and resources on consuming their products and come back regularly for more.

And I know I’ve been suckered by these kinds of messages more than once. I’ve bought the 2 for 1 deal on groceries and ended up throwing out food that I didn’t manage to cook fast enough. At this moment, I have multiple bottles of the same spice in my cupboard because at some point another I was either too busy (or more likely lazy) to double check if I already had it before putting it on a shopping list. I’ve been lured by the siren song of discounts. Hence my desire to eliminate as much advertising as possible from my life, as part of this conscious attempt to shift in my money mindset and exert a bit more effort in planning out my spending in advance.

Not only that but these days it’s frighteningly easy to spend money. I’ve mentioned in the comments section before that one of the inspirations for this project was a day where between a trip the dentist, dry cleaning, and groceries, I dropped over £100 in a single afternoon. I didn’t even have to leave my neighborhood to accomplish this. Almost everything in Western consumerist culture is built around the idea of eliminating a customer’s reason to say “no.” As a result, products are cheaper and more quickly to hand than ever before. In some cases this is great–I for one like regular and affordable dental care! But in many, many others, it’s bad for us.

If you are buying fast fashion, especially as a woman, you are buying crap. That stuff is practically designed to fall apart the first time you wash it, requiring you to make another trip to the shop and drop some more coin on a replacement that was probably produced by low wage labor at tremendous environmental cost. If you are buying cheap and processed food, you are again buying crap. It’s enjoyable as hell, yes, but it’s not providing you a quarter of the nutrition you need and very likely contributing to any of the vitamin deficiencies and physical ills that affect our society. 9 times out of 10, if you are buying a branded product for your home, a chunk of your spend is for the name of the item rather than any intrinsic material value.

Now, I’m wholly not opposed to some of these as tradeoffs. We might have bought our sofa on sale, but we still bought it from West Elm. I’m just as guilty as anybody of being susceptible to style or brand cache.

But in my day to day life? I know intellectually that in many areas I have all I need for right now. Hence my decisions to be aggressive about monitoring and clamping down on my less-conscious money decisions. Eliminating emails beckoning me to buy things I don’t need was one step. Putting together a lookbook documenting my wardrobe is another, and I’m also in the midst of a kitchen audit to keep a better stock of my food basics so I can use ingredients I already have to hand in cooking. It’s small potatoes, maybe, but I want to be very conscious and more intentional about knowing and using what I already have.

How about you guys? What do you already have that you could use better, more often or more intelligently? Have you ever tried specifically to reduce your waste or consumption? Are you susceptible to any particular temptations and, if so, how have you staved them off? And have you ever gone on a massive unsubscribe spree? 

Cash or Card?

“Take care of the luxuries and the necessities will take care of themselves.”
― Dorothy Parker

One of the best money practices I’ve found for for living in an expensive city is to give myself a cash allowance. I set up an account for myself that gets £100 a month paid into it automatically–no more, no less. I have a card for this account that allows me to withdraw cash from a machine, but is not usable in any other way, and that cash is my spending money for the month. If I forget to pack a lunch, or want a hot/iced drink in the morning, that’s the fund it needs to come out of. Same with purchases at markets or indulgences like magazines. At my very best and most diligent, if an item wasn’t groceries or a travel card, it was paid for out of that stash.

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Some months I’ve barely touched it and the fund has accumulated nicely, other months I’ve dipped into the extra to get a specific purchase. The bag I mentioned as part of my end of year shopping mission was a cash buy after haggling down the seller at Portobello Road, for instance. Secondary pro tip to this story, go to markets at the end of the day when sellers are looking to make one last sale or two before packing up and heading home. Yes a lot of things will have been picked over, but good stuff remains if you’re willing to look for it. I’ve also pulled this trick to get a week’s worth of produce from Borough market in a box for £5 on occasion. It never hurts to make your cash stash stretch as far as possible, and if that means you suddenly need to learn how to cook with beets that week, so be it!

Do you have a cash or card trick? Do you give yourself a strict allowance, or do you frame your spending money through another lens? 

Bans, Budgets, and Cutting Myself Off

“To be really mediæval one should have no body. To be really modern one should have no soul. To be really Greek one should have no clothes.”
― Oscar Wilde

What’s your relationship with shopping and consumption, kittens? I’m curious because I’m in the process of resetting mine, and that’s primarily what we’re going to be chatting about this week.

Towards the end of last year I did the first of three shopping bans as part of my 101/1001 project. The self imposed rules were simple: regular expenses, utilities, and things for the house were permitted, but all personal purchases (with the exception of toiletries or replacing an item if damaged beyond repair–RIP cheap, shredded tights, hello Heist) were verboten. I’m not a massive clotheshorse or a major spendthrift, but I’m also not immune to consumer culture and its emotional traps, hence my goal to push the pause button on self-centered consumption at least once a year.

Rather sneakily, and perhaps not fully in the spirit of the challenge, as previously mentioned, I timed it so that the first ban would end in time for Black Friday. My motives were partly altruistic (Christmas shopping for other people) but not entirely. However, after three months of not buying anything for myself…it turned out that I didn’t want much.

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Stuffocation?

One of the things I started doing last summer and during my first shopping ban was to start and keep a “To Buy” list. If I spotted an item I like, a trend I wanted to try, or a piece that appealed to me, I wrote it down rather than whipping out a card/cash or trying to justify buying it. I sat on the idea for a while. Shock surprise, it often turned out that a trend played itself out in a matter of days or weeks, the appeal of a piece faded, or…I just didn’t think about it again until I consulted my list and remembered, “Oh yeah, I did see that. Guess it wasn’t as memorable as I thought.”

By the time my self-imposed strictures lifted, I took a look at my list and asked myself what I really wanted. The answer was a handful of shirts/sweaters that would be good enough for work but also dress up my casual clothes (an ongoing project), a bag to replace my day-to-day one that was ripped and stained, one new accessory, and one trend piece (a velvet blazer)–plus beauty buys. So counting Black Friday and excluding Christmas presents, my end of year personal shopping comprised the following:

Glossier/Pestle & Mortar – skincare and not really part of my ban, but I’m counting it for the sake of full disclosure (discount codes)

Sephora – makeup (Black Friday deal)

Everlane – two shirts and a sweater (discount code)

Nepheliad – a pair of earrings (discount code)

Brora – two sweaters (Black Friday deal)

282 Portobello Road vintage – a blazer and a coat (discounts from shop seller, and the coat was my Christmas present from Jeff)

Portobello Road vintage seller – a bag (haggled down price)

And that’s it. I decided that was going to be the total of my fall/winter shopping for this year and I’m considering my wardrobe updated for two seasons. Almost on the heels of one shopping ban I dove straight into another and the list above will represent everything personal I purchase for six months total…if I don’t screw up. The timing of this second ban also isn’t entirely altruistic because I’m publicly documenting my spending this month and don’t want to be disgraced in your eyes; I consider your oversight a way to keep me honest, kittens.

Your turn: talk to me about how you spend and why. Do you have regular luxuries you allow yourself? Are you tightening your belt, and if so, how? I’m very nosy, but genuinely want to know!

Spending Diary Vol. 1

“Money is a great servant but a bad master.”
― Francis Bacon

Well, this was a more expensive week than initially anticipated as we had friends in town who we had not seen in years, but I also incurred no or low costs by working from home for a couple of days which is good news. If nothing else this proves how expensive food and going out is in this city! I bought one item for the house, mostly because our apartment is cold during the day (we keep the temperature low to save on utilities), and used points programs to get some toiletries. Kinda. We did a grocery shop the day before this challenge started with a meal plan which meant that all meals that were not for the purposes of entertaining were made and eaten at home, and we did another meal plan for next week so we can compensate for some indulgences this week by not eating out at all.

ETA: I’m including recurring costs like membership fees in my tracking because I think it will be interesting to see how some of them stack up, plus I think it’s more honest. There are a lot of day-to-day costs of city living which are both interesting and a bit scary to acknowledge.

What, if any, were you indulgences this week, kittens? Drinks with friends? An Amazon order? Post-Christmas sales? Let me know!

Sunday
Brunch with friends split bill: 41.00
Blanket for our living room: 75.00

Monday
Gym membership (not technically paid today, but a monthly ongoing expense): 20.00
Quick grocery run: 9.00

Tuesday
Nada! Worked from home.

Wednesday
Toiletries from Boots: Free! I used accumulated points from previous purchases. However my order may have gotten lost with the Royal Mail so this might be a bit of a wash…

Thursday
Waitrose grocery order: 66.00
Quick groceries for that day: 7.00

Friday
Night out with friends: 110.00

Saturday
Travel card renewal (a weekly expense): 32.00
Borough market cheese, meat, and bread: 18.00
Dinner with friends: 45.00
Dessert with friends: 14.00
Total: 437.00