About sixteen years ago, I met him for the first time. My trainwreck sibling brought home this adorable puppy he had no business adopting because he had not one thing in his life that wasn’t a mess. I was furious at my sibling – he didn’t even take care of himself, how could he drag
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March 22, 2010
“Finite means, and deciding how to spend them, has a delicious tension that infinite means can’t supply.”
– From Carla Power’s The Pleasure of Pinching Pennies on Oprah.com
I can’t tell you know much I love that sentiment. The paragraph continues …
“If the lamp’s genie had granted Aladdin limitless wishes instead of just three, where would the fun be in that? The link between thrift and being fully engaged with life’s possibilities was recently noted by Barbra Streisand, of all people. Back before she got famous, she had to stretch her $45 clerk’s salary all week. “Those were amazing times,” she told a talk-show host, “when you have your future ahead of you, and the challenges of making that $45 last, and appreciating every penny.
Spoken like a true multimillionairess, you may scoff. The glamour of making ends meet frays pretty fast when you’re worried about losing your house or going without health benefits. There’s thrift, and then there’s fear, and nobody should confuse the two. But for those fortunate enough not to want for basics, there is a glorious discipline in trying to stretch your money to fit your vision of the world. Like a good workout, or great sex, weighing up how you spend your money recenters you, allowing you to feel the reach and heft of yourself moving through the world.”
The distinction made here between thrift and penury is critical — there was absolutely nothing fun about working 80 hours a week, trying to make decent grades in college, all the while wondering if I was going to bring home enough to pay both the rent and utility bills. There was nothing glamorous about dropping silent tears over my checkbook, willing the numbers to match up and stay in the black.
But years after that was over, when I graduated and started making a little more money, I made choices for myself. I started to appreciate what was truly important and why they meant more to me than eating out or buying Stuff. My parents’ choices made more sense: buying used clothes; handing clothes down through four cousins; only allowing me to borrow, not buy, books; and helping displaced family with comparative luxuries like take-out food, money and shelter. It took some years before I realized that they were making perfectly acceptable sacrifices for their kids to provide basic necessities to our extended family.
When you have just enough to get by, your choices are your values. Your lifestyle brings out the grit and creativity that usually hides deep in your bones.
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My post on buying a car (should I or shun’t I?) was included in this week’s Carnival of Personal Finance! ’twas rough times out there, the Carnival is overrun by the classic ninja vs. pirates vs. nuns vs. fighting robots vs. real estate agents vs. zombies!
March 20, 2010
Deep in the throes of moving and organizing preparations, I keep taking time out to do regular life things.
We had another impromptu sushi dinner last night post-finals. I desperately needed to get out and re-focus my eyeballs after 6 hours of exams. Robin to the rescue!
Speaking of Robin, his promotion came with strings attached; the kind that are designed to make you fail out of the gate because someone else has a pet project/agenda they’re determined to push at someone else’s expense. Unbeknownst to that higher-up, Robin has been heavily recruited by another company for years and their offer was still good. He traded that promo-with-strings for a vastly improved commute, better hours and decent money. Kick rocks, senior management!
The renters insurance paperwork came in today and I’m scanning in all 50 pages of it. While I do that with one hand, the other is making calls to find out why the policy coverage summary is incomplete. I’m pretty sure that splitting my attention like this will cause me to drop the ball on *something* but I can’t just do nothing else while I want for the Epson to scan one page at a time.
If I can navigate the shredder out from behind half a dozen packed boxes, I’m going to start shredding that junk mail; I’ve also just opted the entire family out of receiving prescreened credit card offers using OptOutPrescreen.cpm.
Oh, and I have to do something about those bees. I have no idea what, but there are a LOT of kids in this neighborhood and I would hate for one to go running through that pile of bees, squash some and get stung by all the rest. If anyone’s allergic, that would be a disaster. I don’t want to hurt them either, though, so kill options are not. Not an option, that is.
Oh! And I have to hunt through the house for my boots. I had an old pair of boots and a helmet somewhere around here and they should really come with me.
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And of course, keeping up with the blogging world! Reading and commenting, dashing off notes, etc.
Couple Money has a Netbook giveaway for their 6-month anniversary!
March 19, 2010
Michelle lit a fire under my butt with the suggestion to get my renters insurance in order. I hadn’t committed to a policy since talking about it in October for a very stupid reason: I was grumpy that my quotes were so high in comparison to everyone else’s. That’s just nonsense. I’m insuring a 3-bedroom house with two dogs and earthquake insurance in California; clearly I forgot I wasn’t comparing apples to apples.
But I’ve finally just bitten the bullet – I’ll be gone soon and won’t be here to take care of anything in case of theft, break-ins, etc.
With the following sage advice from my previous post
@Funny About Money: Be sure it covers full replacement value…that is, what it would cost to buy new stuff. Unless a policy specifically says that (and check with the agent to be sure what the wording means), the insurer may pay you only what it decides is the used value. And used furniture and clothing isn’t worth much, by anyone’s reckoning.
— My policy covers full replacement value.
@The Lost Goat: Make sure the plan covers your comic books … I have to get riders to cover my firearms, because they are not considered general household items. Expensive collectible things like firearms, jewelry, and stamps generally require riders (read: more money) if they are valued past a certain amount.
— A comic book rider will cost something like $15/$500 increment, well worth it. The interesting detail about the rider is that if a loss occurs just to the books, I don’t have to pay a deductible. They would simply pay out the claim in the amount insured.
I set up two policies
I’ve increased my required monthly contribution amounts to the Insurance Fund accordingly to make sure that I’m covered this time next year when the renewals come up. When I get the chance – honestly, probably in a month or so, I’ll rate-review again just in case another company had better rates. I don’t get a multi-policy discount anyway so there’s no real reason to be loyal to a single company if I can find comparable value and better rates elsewhere.
March 18, 2010
Does anyone have a safe deposit box for their important documents?
Now that I’m going to be more or less a denizen of California as a whole, and not just local to one or the other region, I feel even more nomadic than when I was just traveling during unemployment. I want to have a secure location to keep my birth certificate, passport, Social Security card, and eventually my will. (The will is still under construction.) It seems a little pretentious to rent out a safe deposit box for just those documents, though, and as though a fireproof, waterproof safe might be a better long term choice.
Until I called the bank, I had no idea the boxes were so expensive, so I’m a bit put off by it. I’d love to hear some arguments for or against the whole idea. Or alternative solutions I’ve not yet considered, even.
March 17, 2010
I was catching up on my Consumerism Commentary when something Flexo said held my attention: “I believe there are several stages to becoming financially secure or independent. There may be a time where it makes sense to save every cent possible…… I had to survive without a car (relying on friends and public transportation), eliminate cable television, and share an apartment with three roommates. Now that I’m earning more than what I need for basic expenses and long-term saving and investing, I don’t have to be as tight. I willingly give up some income in order to buy myself more convenience.”
Earlier this evening, while discussing the car hunt and the various finds under inspection, a friend asked me, “Do you really need a car? Public transportation won’t cut it?”
My initial answer was a glib “no, public transportation doesn’t quite cut it.” Reading Flexo’s comment above pulled me up short, though. Is that true? Do I really need a car to supplement public transportation or am I taking the easy way out and spending more money I can’t actually afford for convenience? *note: Flexo can afford to expand his spending horizons. I don’t mean to imply that he’s taking the easy way out.*
Since the search began, the budget grew to more than I’d wanted to spend because my requirements haven’t been met. If I’m spending enough to dip into the emergency fund, job or no, the decision has to be sound so I returned to the drawing board to rehash my reasons and evaluate their premises.
Reasons I thought I needed a car
1. Because of the Big Lie and the need to transport my personal effects, I needed a long-term car. A one-way rental is too expensive, a round-trip rental is a waste of time and I’d need to fly back.
— Since relocation was successfully negotiated, I should be able to afford to ship personal effects and fly.
Evaluation: Don’t need a car.
2. Driving would be easier due to potentially abnormal working hours.
— I haven’t experienced rush hour in the metro areas yet so I can’t speak to that, but parking costs between free (minimal street parking) to $20/day depending on the various lots. On average, $7/day, $140/month.
Meanwhile, commuting options exist, though inconvenient. The morning commute would require some combination of two buses and 1 rail system with a minimal amount of walking on both ends ($6.50 – 9.30/day) and travel time of 30 minutes. If the location changes as promised, the new commute requires some combination of two buses and 2-3 rail systems with a minimal amount of walking on both ends ($7-9.30/day) and a travel time of 1.5 hours.
Evaluation: The cost could actually be equal, given the trade-off between commute time/transfers and the wear and tear on the vehicle.
3. I’m choosing to find housing in more suburban areas for more affordability which also lends itself to free parking/no zoned parking.
— If I chose to live in the more urban area, I’d likely be in walking or biking distance of most nearby businesses such as restaurants or groceries, entertainment and shopping. But not #4.
Evaluation: I need more data.
4. My preferences for entertainment are far-flung and while potentially cheap or free, require that I be able to reach them somehow.
— I could always hole up in the room with a stack of books and become a hermit. I’m kind of kidding. The reality is that my preference for entertainment is rarely to go out. I prefer to spend quality time with friends or animals. While that can be low-key, it can only happen if you’re mobile.
Evaluation: At first I thought: I spent several years being a hermit in the name of saving money and paying down debt. But my social network won’t be strong enough to rely on friends for transportation.
5. I need to be independently mobile.
— I need to keep costs to a minimum.
Evaluation: No car.
That last part is really a tosser, though, because I have to be honest – I rated the anti #5 argument higher because I’m afraid to stop being being hardcore, down to the bone, slasher frugal. I’ve lived that way for years. Now that I have two (or 1.5 households) to pay for my instincts scream at me to stay that way.
Meanwhile, a competing sense of self(ishness) says that I’m old enough to be on my own and do what I want, and what I want is to be independently mobile. Is my desire to Stop Sharing so strong that I’d pay the cost of another car?
Let’s face it, a car will cost a lot of money for someone who won’t be making serious bucks.
First, there’s the fixed cost of purchase. Let’s say I go wild and plunk down $10k. A little more than half of that was my tax refund and money saved for two years just in case I had to pay taxes. So a little less than that comes out of the emergency fund.
Then we tack on a conservative $1000 for insurance annually. We also have the costs of maintenance and repairs which are typically budgeted around $1500/year. Remember now, that’s not just for the new car, that’s also for my old car which I remain responsible for. So the insurance and maintenance budget has doubled. Then of course, we have fuel, and since I live in CA we have fuel + $$. Conservatively we’ll call it $100/month, with say, $70/mo for parking assuming I cannot always get parking for free.
Can I afford an annual Convenience Fee of $4540, while replenishing a $5000 hole in the emergency fund?
Probably.
Can I afford an additional expenditure of $4540/year without creating major drag on my savings goals for the year?
Well, unemployment already did a number on them so I honestly haven’t set any, but probably not.
To be fair, let’s compare the cost of public transportation commuting against that annual fee.
On the low end, 20 days a month, 12 months a year at $7/day: $1680 x 2 trips a day = $3360
On the high end, 20 days a month, 12 months a year at $9.30/day: $2232 x 2 trips a day = $4464
I’ll be honest, I didn’t see the math playing out this way. I was pretty sure it’d come very firmly down on the side of public transportation. Tolls (for driving) and fare increases (for commuting) were not factored in as they’re not predictable. In truth, even with the car, I’d likely be doing some pub transportation once I figured out that traffic and parking vagaries so these numbers (and the difference in cost) remain soft. With any luck that would bring the daily amount down on average by half.
At the end of the day, after running the numbers, it’s partly a math and partly an emotional decision. If I’m willing to take the initial $5k+ hit to my net worth on the math side, then my emotional side argues for the buy as well.
I am, in essence, the personification of Newton’s Law. When “at rest,” I tend to stay “at rest.” When I’m limited to sharing a vehicle on someone else’s schedule, I have been categorically a shut-in working on my projects indoors from dusk to dawn and back again, without a break. I leave on the spur of the moment and if that’s not possible then I just don’t bother.
Historically then, my sense of stability and productivity is found in part in my ability to go about my business at will, without wondering if the car’s been taken by the shared individual, without having to cut short my errands or reschedule to accommodate someone else’s schedule. It is, I’ll admit, kind of ridiculous. But that’s how I function and that’s what I have to work around. And it’s kind of more ridiculous to refuse to make a purchase that is mathematically acceptable simply because I don’t want to backslide on my monthly numbers.
Note: the calculations for the car are based purely on the commute numbers, but clearly the car will be handy for longer road trips that are tentatively planned for later in the year. Increased usage would increase cost but it’s the function of the car to be used.
March 16, 2010
Now that I’ll be moving out, several things have to happen.
Moving Budget:
I successfully negotiated for a relocation allowance. They will either pay the service provider directly or reimburse me for all reasonable relocation related costs that include direct moving expenses (moving of household goods, storage, travel expenses during the actual relocation, and temporary housing). It’s a shame I can’t apply those funds towards anything else! It’s generous enough that I can afford to use movers instead of packing up a car and driving up the coast, though.
Movers:
They relieve the hours-of-driving headache, replaced by the Why-won’t-you-answer-my-calls? headache. It took a solid week for one of three companies to respond to me. Lame lame lame. An appraisal appointment has been scheduled to determine a quote for my stuff.
Packing:
I’ve begun splitting some boxes into “stays” and “goes.” After all, I’ve got to maintain the illusion I just travel a lot for work and still live at home and wield authority. Thanks to the Staples Rewards rebate offer from earlier this year, I’m set for bankers’ boxes in case I opt out of full-service movers. The concern there is that they likely won’t take responsibility for anything broken or damaged during the move unless they pack it. On the other hand, it’s probably just easier for me to organize and pack everything. Decisions, decisions.
Transportation:
My car’s likely to stay here with my parents. They need, and I need to know they’ve got, a reliable car with all the driving to adult day care and to medical appointments. But in two weeks, I’ve got to be outta here, getting ready to start my new gig. More than ever, I need to conclude my search for the new used car. Mostly because I hate the whole process, though.
In the meantime, 511.org may become my new best friend as I learn to navigate public transportation up north. Sorry Sigalert, we’ll still see each other when Friend calls for the daily traffic update.
Life:
I know it sounded melodramatic when I said I’d be leaving my hometown and friends, but the budget’s tight enough that I don’t think I can afford to travel back all that often. Not so often that I’m going to be able to have sushi nights with Robin, random comic shop stops, go hang out at Surrogate Family’s house. My family’s basic needs are more important than my hanging about with old friends, so if it comes down to a bill or charging a flight, you know what I’m going to choose.
Records:
My medical life has been rather extensive, especially over the past five years, so while I’m still covered by COBRA, I have to sign some records release forms to transfer all of those records to my new doctor whoever that may be. I’m hating that idea because my specialist doctor and my dentist is extremely responsive and helpful and I know how difficult it is to find a good health care practitioner with whom you can form a rapport.
Shopping:
Ugh, more unsubsidized spending. Behind me, the entirety of my professional “wardrobe” hulks in an assorted mass. There’s no beauty in that functional group, and desperately needs a fashionable mind to shape something of it. Honestly, a few minor additions would likely be sufficient to last the next six or more months, but what those will be remain to be seen. I wouldn’t be so anxious about it if the advice recently tendered to always dress better than my staff weren’t so true. Certainly competence and professionalism go a long way, but we all know how crucial first impressions and visual impressions are to forming an opinion. I’m going to need better clothes and even better make up to offset my superficial youthfulness and properly command the attention of an established team.
On the make-up front, I finally bow to my mom’s years of scoldings, “Wear some make-up! At least try!” [insert teenaged groan] To be fair, there were days I wouldn’t have been happy to be seen with me, had I seen me before leaving the house. But I digress. A good friend has been generously sharing her expertise and we created a list of the most basic cosmetics to form my First Time Ever make up kit. [insert more whining] More about that later.
Destination:
Now that I’ve moved past the notion that I could possibly afford my own place, I’ve come to accept that shared housing is in my future. Since living in more suburban neighborhoods doesn’t cut me off entirely from public transit, I’m much more open to that option. Besides, I don’t need to live in the more urban areas for access, I’m too old to party and will be too poor to go out! 😉
Experienced Movers (by which I mean anyone but me):
Have I forgotten anything? Does anyone have moving company recommendations?
March 15, 2010
I got the job.
<-- Congratulatory cake and root beer.
I’m kind of sad that I didn’t make it out to the East Coast like I’d originally hoped to when starting this journey because I’ve got so many awesome friends and blogger friends out there (so many, can’t link to all!), I’d yearned to take on the East Coast, and I’m a little envious of the crowd that populates the DC Blogger Happy Hour. But those are maybe not the best criteria on which to be gauging a relocation for a job, especially considering the HCOL and lack of jobs that were as interested in me.
And that’s not in the least meant to be a slight against my West Coast blogger friends (again, too many to list) because they are darn awesome too! We’re just so much more spread out over here that Happy Hours don’t actually happen.
Oh, “what about the job” you ask? Right, the job. I’ve been hired to a full time position for a non-profit in the colder, more northerly half of California. It’s going to kick my butt while giving me a chance to really learn and show what I’ve learned in more adverse conditions. I’ll officially be in charge of people and telling them how to do their jobs better. [It’s in the job description. Really. Don’t worry, I don’t plan to be obnoxious about it.]
More importantly(?), years after I defiantly made up my mind to do so, I’m finally moving out.
In light of recent developments with the family, I can’t cut the money cord so this poses some new budgetary challenges. I’ll be salaried for the first time so that’s made budgeting easier but affording life harder.
I’ve powwowed with Excel and calculated to a fare-thee-well my family’s expenses, my projected expenses against my probable take-home pay. It’s not unemployment but it’s no great shakes after all’s said and done. My savings will be a long time regenerating, and I’m definitely living on a broke student budget for at least another year. At that point, if I’ve done my job, they’ll be throwing the money at me. 😉 Just kiddin’, there are no guarantees there. I’ll also need to spend some or the better part of my 3 weeks of vacation doing freelance work.
The interview was a heck of a thing but not nearly as bad as what I’d braced myself for, only 6.5 hours, not 8.5!) I did negotiate though I’m not surprised that I didn’t get everything I wanted. I did my research, took into consideration the market and the fact that I didn’t have competing offers versus continued unemployment, presented a case in a friendly but firm voice, and let the die fall where they might.
They fell on the patch of felt marked, “this is our best offer,” and I took it.
I’m pretty nervous excited terrified nervous. I have mood swings.
I have two weeks to put my life in boxes and ship it out, I have two weeks to fully automate my family’s financials, I have two weeks to see and hug everyone one last time before I fill out a change of address and walk out of the town I grew up in.
The logistics are frustrating but I’ll get a handle on them. (It only took a week to get any moving company to return my calls! Hello! Are we or are we not in a recession? Isn’t cash-money what you want?)
I’m still working on that other part where I’m really truly moving out, except not really telling my family it’s a real move because I can’t trust my brother to act right if he knows I’m absent. I’m all kinds of conflicted about that. I need to be able to come home to a non-wrecked home and a set of live (and as healthy as possible under the circumstances) parents. I don’t see that happening should the sibling realize that he essentially has no parole officer.
But I’ve got a job. I’ve got a job.
P.S. Days of the week, like Mondays, are going to have to mean something again!
