Carrots & Sticks

I read an article in Money Magazine once (while on the elliptical, so I have no idea what issue, etc. and can't provide a handy link) about how to keep yourself motivated towards your financial goals – and they debated whether carrots or sticks were more effective. Money ultimately recommended a combination of both. So you grant yourself a reward if you make your savings goal, and “dock yourself” in some way if you don’t make the goal. To me, carrots have always worked better, and I’m really not sure how the concept of a money “punishment” would work. But maybe I just have the wrong ones? Anyone have an effective combo of carrots & sticks to keep them motivated? Obviously from my last posts, I could use it.

April Goals Review

So I had four main goals for April – let’s review.

-- Really lock in on my budget (Not really. I feel like this month was unique, with two different trips. I DID record everything meticulously. I DIDN’T do very well with keeping my spending reasonable. I will record everything for May, and try to keep costs down so I have a reasonable budget estimate).
-- Budget equal posts/time to my writing and my literary interests as well as pf (Not so much, I think I only had 2 all month…)
-- Keep birthday celebration expenses low. (mmm, depends if we count my New York trip as part of my birthday… cause that’s where I blew it).
-- Move up to 85% of my emergency savings goal (No again…. I actually moved down to to 72%)
I guess the only good news is that I moved up in my B-School savings, which wasn’t one of the original goals. Sheesh. Maybe I should post my May goals somewhere where I see them more often and am able to put a greater focus on them.

April Read/Bought Review

Weird that it's already the end of April....

Bought:
Last Night by James Salter $6 at Housing Works bookstore in NY. Worth it, since it’s $6 towards a good cause. Housing Works is a non-profit that benefits AIDS research and related initiatives. They also have thrift shops across NY. Very cool, this would definitely be something I’d volunteer with eventually.

The Geography of Bliss by Eric Weiner One of those insane $25 hardcover, really silly impulse purchase when I was shopping with my parents. But the book does look good… so I will report back next month after I’ve gotten through it.

Read:
A Theft by Saul Bellow.
I read this in an hour on my flight to New York. A quick, emotional, weird read. Bellow is one of those writers where I don’t necessarily relish the story, but rather, the individual lines and images. There’s some brilliance in the way he can imbue these ordinary words and phrases with more depth of meaning than they have.

Last Night by James Salter
A collection of short stories that I’ve been piecing my way through. Very beautiful. My favorite so far is the first, called Comet. Salter takes on unexpected characters for a literary writer. Very refreshing.

9/11 Commission Report
I bookmooched this… and while this sounds so dry, it has actually been so much more engaging than I thought it would be. It provides in clear, plain-English language the history and background leading up to the attacks, how the concepts of “terror” and “counter-terror” even developed. I’m only halfway through because it’s (obviously) not a beach read. I only wish I had read this sooner so I could have been dissecting the news a bit more. It’s sad, but I just know that I can’t trust network news anymore. Too many soundbites, so little nuance. On a side note, Elizabeth Edwards had a fantastic Op-Ed in the Times yesterday, Bowling 1, Health Care 0, reaming the media for their unreliability.

Where will my economic stimulus rebate check go?

So the not so surprise direct deposit of $600 finally arrived. Unfortunately for George Bush, I will not be stimulating the economy by heading to Costco for a stereo system. $400 just went to stimulating my B-School Savings in my ING Account. I want to see some real progress here and this will get the best savings return. $200 will be a little extra cushion in my account, April has been a rough month. Thanks W!

The Story of Stuff

I’ve been a bit spotty of late, but I just got back from a really great two-day conference for work on sustainability. I must admit that I’ve never been someone anyone would call eco-conscious. Sure I recycle and I’ve seen Al Gore’s power point, but I’ve never made demonstrable changes in my life. The past two days had their ups and downs, but the overall effect was profound. Not that I left all granola, in tears and vowing to make my condo carbon-neutral. But a lot of things clicked about my own views and thoughts on sustainability, and I left with a picture of the world that matches up with what I see everyday.

It links back to an episode I had a month or so back in San Francisco. When I told my friend over dinner that I wrote a personal finance blog, she looked a bit stumped and then ventured, “So you would write, say, ‘Oh man, I went to Starbucks today and had a latte and I really shouldn’t have.’ That kind of thing?” And while this is occasionally the scope of what I write about, I was deeply offended.

It hit that personal pride thing. My friend makes more money than I do. In college, this of course wasn’t the case, and we both came from the same middle class families. Her comment was an affront to my personal pride. She implied that I was miserly, watching my pennies, denying myself the latest trend in retail.

But the principles I espouse here are not just about reducing spending to be thrifty, but also about reducing the value you derive for yourself from buying stuff. To expound, stuff is just STUFF and I want to make sure that it never defines me. As nice as it is to have nice things, enjoy music and experiences that cost money, it is not me. Part of this new revelation came from seeing Annie Leonard’s Story of Stuff film. Here she investigates the consumptive patterns and rituals we observe America and the “work—watch—spend” cycle we get roped into. It’s true… as she says, the first thing President Bush told us to do after 9/11 wasn’t to grieve or hope or get involved, it was to BUY STUFF. He appeared in advertisements telling us to go back to our normal lives, go shopping, keep the economy afloat. No wonder all of our ego satisfaction comes from this same stuff.

The first reaction to watching the Story of stuff is to put a moratorium on all spending and to seek out sustainable everything, sustainable toothpaste and reading lamps and beach towels. But as Adam Werbach instructed us at the conference, it’s not about what you do or don’t do, but about how much, and to what degree you’re doing these things. In short, sustainability is about balance and it’s about being a perpetual student, learning where stuff comes from and how the choices you make influence the world. And that is the kind of non-granola vision that I can subscribe to. So I haven’t made any unattainable commitments; I’m just thinking about balance and how I can rethink my attachments to my STUFF. Believe me, I have them…

Yeah, Women Still Make Less Money

Today is Equal Pay Day, emphasizing the fact that the Wage gap is real. It feels like a 1920s issue but unless there is increased activism it will be an issue in 2020 as well. I’m certainly not completely resolved on how I feel about some aspects of feminism. I don’t think there is any way to regulate equality down to the hair among groups of people – whether that’s based on gender or income bracket or whatever. Life is full of inequitable situations. But getting closer on the wage gap is a made-up holiday I can support.

More Financial Aid Websites/Resources

I found a few more sites and resources and specific fellowship awards that I could apply for over the weekend, and thought I’d list them here in case anyone is in the same boat (mostly focused on business school, since that’s where I’ll be headed).

American Association of University Women http://www.aauw.org/
Career Development Grant $2000 – 12000 – Applications Available from August to December

Forte Foundation http://www.fortefoundation.org/site/PageServer

Citibank MBAchiever Loans – defer payment up to 9 months after graduation
http://studentloan.citibank.com/slcsite/myslc/index.asp

National Alliance for Excellence – general scholarships www.excellence.org

Jane M. Kaulson Fund – for second year b-school students $4,000
http://www.zonta.org/Our_Foundation/Jane_M__Klausman_Fund/jane_m__klausman_fund.html

C200 Scholarship Awards – 1st yr woman MBA
http://www.c200.org/external/education/scholars.asp

Karla Scherer Foundation
Website: http://comnet.org/kschererf/
women who will become CEOs of mfg companies – must study finance

How to Make Life Decisions

I just read this great article from Salon which while talking about someone’s choice of a grad school program, hits on the idea of how we make decisions and whether or not we’re truly basing them on what makes us happy vs. other irrelevant factors. I think this is very apropos for the career world and how silly things often enter into the decision tree about when to take a job. A good read…

Fun Site: Bag Borrow or Steal

I know this goes against my whole philosophy of avoiding temptations to spend (even when it’s a sale, or an awesome deal, etc. etc.). However, when there are those real occasions (like the umpteen weddings I have this summer) where you want to look good or have that extra special something, it could be worth it to “rent” an expensive item vs. dropping tons of money on it. Bag Borrow or Steal lets you rent bags by the week or by the month, and it’s really not that expensive.

Definitely become a member, even if you are just borrowing one accessory. The one month membership fee of $10 usually makes up for the savings discrepancy between the member and guest rental rates. There are some awesome bags out there for super cheap (as long as you have the discipline to send them back after a week or so) and this is one where I think the return and enjoyment of using a designer bag outweighs the total cost. I think it seems like a really great business model as well, especially in these economic times where everyone is experiencing a bit of lifestyle inflation regardless of income (it always shocks me to see people who I know are not wealthy carrying around a brand name bag that you know is in the hundreds and thousands of dollars). I think it would definitely be a great “savings” for an event for which you would normally purchase new things.

Only thing to watch out for – pretty expensive shipping fees. Think ahead and make sure you’re only paying the standard rate vs. any of the speedier options.

Gratuitous Gratuity.

Since I often criticize the Guy about some of his financial practices and spending habits, I thought I would brag on him for once. The Guy has helped break a bad habit of mine – overtipping. I know this isn’t a character flaw, and it feels odd to even talk about. But it really was a consistent issue of mine, and it stands out among the rest of my frugal principles. Maybe because I used to be a waitress, but sometimes I would even tip 50% on restaurant and bar tabs. I just feel bad otherwise. It’s a weird psychological thing that the Guy has cured me of for the most part. And maybe one day I will be able to return to service generosity, but for now I need to stick to 20% until I can really afford it…

Next Round o' Submissions

I tend to submit my stories to online magazines and literary journals in one big “round” of energy and optimism. Then I sit back for a few weeks (months) until I can muster up the courage and enough stamps to do it again. It’s been almost three months since my last round of submissions. Last time I submitted to 14 publications, got 3 rejection letters, and 11 no-answers. Makes it hard to go back in for another round. I think what I really need is to establish a more persistent routine for submissions, and impose some deadlines on myself. Right now it’s definitely a “when I get around to it” kind of thing. So I am now amending my April goals to add in this one: devote significant time each weekend to actually preparing another story for submission. The goal is to have something ready by summer!

Money IQ Quiz...

I got this quiz from my financial advisor’s monthly newsletter (called the Money Maladies Test from Northwestern Mutual) and I didn’t do as well as I thought I would! I got only 11 out of 14 correct, which was only a C. Yikes… here’s what I missed, in the case that you’d be in the dark on those too:

Q - What do index funds do?
A – Match the investment returns of a specified stock or bond benchmark.

Q - When interest rates decline, the price of a bond or bond fund generally…
A – Increases

Q – Which of the following statements is true of an immediate annuity?
A – Your income from the account is guaranteed for as long as you live.

PF Shock: Older Does Not = Wiser

I had a bit of a shock the other day as I watched my manager jot a note to herself to pay her rent. I was a bit shocked to know that an HBS grad who makes 3x my salary and who is so much older and wiser than I am – is still renting. In the Midwest. We’re not in New York, people. Her husband makes the same six-figure salary she does. This seems unconscionable to me. I know that I rent and this bums me out… but she is in her mid-thirties, not mid-twenties. I know there are extenuating circumstances but I still felt like giving myself a little pat on the back that I hopefully won’t be in the same situation at that age.

I Heart NY & Mapquest for Public Transportation

So, returned late last night from a really fun weekend in New York! Out visiting friends, checking out grad school and exploring a future home(?) It was just so good to be back on the East coast. I got to see so many old friends, had more people to meet up with and plans made than I had time for in four days, was surrounded by fashion and literature and Starbucks and intellectual goings-on. Just too good. A bit exhausting though. The Guy made a comment that the more he comes back, the less he likes New York as a visitor. You’re always trying to cram everything in when you’re a visitor, so it ends up being so tiring and too much. Even after four stretched days though, I could understand how it made him so happy to live there. And I could see myself there too.

And even though it is an insanely expensive city, and you do end up taking cabs more than you think you will, I kept my transportation spending down thanks to this fabulous website: Hopstop.com. The site is essentially Mapquest for public transportation, letting you map out the best route across the city, which train or bus to take, which way to turn on the street, how long it’s going to take to walk a few blocks, etc. I planned out my trip to the T, with everywhere I wanted to go while I was solo and didn’t have a native New Yorker with me. I jotted everything down in my Moleskine, which I *think* was subtle enough to keep me from looking like a tourist! They only have a few major cities rolled out, but really helpful for those that do.

Free Birthday Loot

Yay – Today’s my birthday! In honor of that, some free stuff that you may not have known you can get on your birthday... There are lots of places who give you free stuff, but VERY few who dole out the goods with no strings attached, no purchase necessary. They are:

BAKERS SQUARE - free pie
BASKIN ROBBINS - free ice cream treat
FUDDRUCKERS - free burger
PERKIN’S - free stack of pancakes
CARIBOU COFFEE – They email you a week before your birthday with free drink coupons.
WHITEHALL JEWELERS - free $50 gift certificate

I will only be taking advantage of a free car wash that’s local in my area. The rest aren’t
really all that convenient or appetizing to where I am. But if you have these near you, you might want to put them on your list. Everyone loves jewelrey and baked goods, right?

Return to the Slush... & Financial Literacy in Congress

Back from my Chicago weekend, which was great fun! All of the wedding festivities were cute, and for the most part I was really good. The only thing that I bought was this really cute shirt from Threadless. They opened their flagship store in Chicago, and the Guy’s a big fan, so we had to check it out. And you know how much I love vegetables! I couldn’t resist.

In other news, in last Tuesday’s edition of Iconoculture, they announced that Senator Patty Murray (D-Wash) recently introduced a bill that would reserve $250 million for financial literacy education in public schools. Looks like the government is not only looking at quick-fix stimulus checks, but also long term measures, including The Cardholder’s Bill of Rights, which was also proposed. Really great news for next generation… just reminds me how cyclical all of our economic issues are. I also wonder what this will look like, since I think personal finance is so personal and so individual, depending on one’s circumstances. It’s hard to dole out generic principles for kids that really work hard for everyone.

Off to Chicago

So, as stated in the former rant, headed to Chicago this weekend. And in line with my April goals, I will NOT spend money on retail “STUFF” in Chicago. The Guy bought my ticket out there and the hotel since I’m his date for this wedding, which is nice. I will probably end up spending some money on the experience of being there, and buy the Guy dinner and transportation and drinks and what not, and I’m fine with that. But no shopping! Promise! I’m not back til Sunday so probably won’t be posting. See you back in the grind.

The Quarter-Life Thing

Warning, this is going to be a bit of a random rant. So, where I currently work, I’m pretty much the youngest one in the office. The rest of my peers are all married with kids. Which I can deal with, I’m adaptable! But in our lunchtime conversations they pretty much squash all romanticism one could ever have about the future. They complain about their spouses, about their kids, about their lack of freedom, and basically sound miserable eighty percent of the time, and bored to tears the other twenty percent. I exaggerate slightly. But, really. They have basically stripped me of any desire to daydream. Now I know that being married’s not all that great, and having kids is the worst idea ever.

So my quarter life is not all “what do I do with my life? What’s my purpose?” My quarter-life is delaying all of THAT as long as possible. Maybe that’s why I’ve let that wedding fund hang out there at 0% for so long. For now, I just want to move to a fun city with the Guy and have adventures and travel and eat at nice restaurants and entertain in our cute boho condo and play hip music that really belongs in an ipod commercial.

Sorry not more substantive, but that’s what’s on my mind this week. While I might envy their financial stability, sometimes it’s just pretty damn nice to be young in the world. (And probably why I already spent $60 of my $100 clothing budget on lingerie. Oops.) So, I’m going to Chicago for a long weekend and it’s going to be fabulous. Starting Friday at 9 AM, I will be in high heels the entire weekend, playing and exploring in the city, heading to a posh wedding, staying out late, having lots of drinks, and meeting new people. Yes. Good.

Writing Down my Budget

So the name of this blog is quite deceiving. As it turns out, I don’t have a real budget yet. I have loose principles (that float around in my head) on how frugal I want to be and I definitely restrict my spending based on that. But as a newly professed pf guru, I know that sounds shady, so I have finally put pen to paper and gotten a REAL BUDGET calculated in a REAL EXCEL SPREADSHEET. Wow. Exhilaration. Here goes:

Rent & Utilities: 1,000
Food – Groceries: 150
Food & Drink – Out: 125
Entertainment & Fun: 50
Clothes etc.: 100
Gas: 100
Target-like expenses: 50
TOTAL: 1,575

This doesn’t include my automatic withdrawals and is loosely based on Mint.com reports, but at the end of April I will evaluate all of the spending on my credit card and see how realistic this might be. It’s definitely exciting to feel more in control of my expenses, and I’m determined to be realistic with what I really am going to spend so I won’t get discouraged. I think that’s been the main budget downfall in the past. Now I’m just going to be honest with myself, and work to get it where I need it to be gradually, over time.