The most common trait I see in people I coach, coworkers, friends, hell...everyone I come in contact with, is that very few people spend in a manner that reflects their values. On the surface, this seems simple. You may not value a "fancy" house, but most of your money goes to rent or mortgage payments because you happen to live in an expensive city, etc.
But I think that for most of us, a lack of congruity regarding what we spend and what we truly value is a result of a profound disconnect between the self (knowing who we are) and our spending (how we express that knowing through money). The first thing I do with any client, beyond telling him or her to track spending, is to have them list their top five goals in life, asking a series of questions as to why they desire the items on their list. Common desires encompass emotions like security (home ownership and retirement savings), generosity (philanthropy) and curiosity (travel).
Once we start looking at actual spending, it's shocking to see how little our actions surrounding money reflect who we are. We may be generous people who desire the security of home ownership, but we spend like people who have no regard for tomorrow or whose generosity is based in fear. For instance, we want to give to charity but instead give to a demanding friend who we fear will leave us if we don't buy his or her affections. We cherish security and want to have a home to live in during retirement, but spend all our money on clothes and take-out every month.
Most self-help and pop psychology, even the financial stuff, teach us how to "become the person we want to be." But what I have found most helpful and healing is honoring the person we truly are instead of forever striving for some mythical destination of who we think we should be. Saving because you should isn't really what it's all about.
In essence, we have to learn to drown out all the noise telling us to behave in a certain way or spend to achieve a certain identity. We have to learn to listen to our voices, our singular heart song in this often chaotic and disconnected world. It's then that we begin to understand that a new sweater will provide only momentary relief from anxiety, and that who we are is more important than the fleeting emotion of the moment. It's not through behaving as we "should" that we learn to change our ingrained habits but by embracing who we truly are. Call me crazy, but I've found that most people are loving, compassionate souls who want a just, safe world for all. Can you imagine what the world would look like if we stopped striving for a mythical destination and instead began to behave as we truly are? What if we stopped ourselves before we plopped a dollar down and asked, "Does this purchase accurately reflect who I am?" And if not, what would?
Tuesday, September 16, 2008
Monday, September 15, 2008
Summer Ends but Road Trips are Forever
Road trips are one of my favorite things in the world. Yes, yes. I am acutely aware that travel by anything other than foot or bike does horrible things to the environment. Lots of folks these days are buying carbon offsets to neutralize the impact of their love of driving on an open road. Since carbon offset companies aren't regulated and I've seen my share of scam artists jumping on hot trends, I've yet to develop any confidence in these companies. Just give them (and me, if you don't mind) time, and I'm sure we'll have some regulation in place noting how fabulous they are.
In addition to a hefty carbon footprint, the price of gas has made the traditional summer road trip too expensive for many of us. But fuel costs have soared across the board, making air travel more expensive as well. If you're not traveling for pleasure but actually need to get from point A to B (bye bye, summer!), how do you know which method of transportation is cheaper?
The insurance and roadside assistance provider AAA has a handy fuel cost calculator on their website. Type in your starting location, destination and vehicle make, model and year and it will tell you just how much gas you'll need to get to your location. You can then venture over to Gas Buddy to find the cheapest gas prices in your area. Compare gassing up the car to taking a plane, train or bus and you'll discover the cheapest travel option. Not that any price can be placed on the freedom of the open road, of course. But change, just like the end of summer, is inevitable. Unless we can find cleaner, more sustainable methods of travel, the sacred summer road trip may become a thing of the past.
In addition to a hefty carbon footprint, the price of gas has made the traditional summer road trip too expensive for many of us. But fuel costs have soared across the board, making air travel more expensive as well. If you're not traveling for pleasure but actually need to get from point A to B (bye bye, summer!), how do you know which method of transportation is cheaper?
The insurance and roadside assistance provider AAA has a handy fuel cost calculator on their website. Type in your starting location, destination and vehicle make, model and year and it will tell you just how much gas you'll need to get to your location. You can then venture over to Gas Buddy to find the cheapest gas prices in your area. Compare gassing up the car to taking a plane, train or bus and you'll discover the cheapest travel option. Not that any price can be placed on the freedom of the open road, of course. But change, just like the end of summer, is inevitable. Unless we can find cleaner, more sustainable methods of travel, the sacred summer road trip may become a thing of the past.
Saturday, September 13, 2008
Urban Frugal Living: Laundry
I've noticed a trend. Most info on frugal living focuses on folks living in rural or suburban areas. The stuff that does talk about urban living doesn't seem to reflect the environments with which I am familiar. They talk about balconies and large living spaces. Obviously, these people have never lived in New York or Los Angeles.
For instance, all the money saving tips I've seen regarding laundry don't take into account people who don't have clothes lines or in-house laundry facilities. I have to admit, I am one of the few urban dwellers who has access to a laundry facility and clothes lines, both of which are located on my roof. So, the standard advice of hanging laundry to dry works well for me. But what about those folks who have to travel several blocks (or more) just to wash their clothes and have less than 500 square feet in which to live without access to any outdoor space?
Here are a few tips that can help folks living in deep urban country save on laundry costs:
1. Wear items more than once. This applies to everyone, but if you have to haul your laundry across town, it's even more important. Unless you have a clinical problem with sweating, you can stand to wear items a few times before washing them.
2. Don't let laundry pile up. Weeks and weeks of laundry will be hard to handle if you have to take it to another location, and you'll likely be tempted to pay for a more expensive service to deal with it. Carrying one or two loads is much easier.
3. Get a handy dandy cart. Folding shopping carts are everywhere in my neighborhood and are extremely handy for all sorts of chores. I take mine to the farmer's market, grocery store and laundromat. The easier your trip is, the less likely you'll be tempted to pay for more expensive laundry services. I've found that the upright carts with four wheels are the easiest to use.
4. Try not to purchase "dry-clean only" clothing. Most clothes that have "dry clean" on their tags can be cleaned conventionally, but if "only" accompanies the suggestion, it's not a good idea to toss them in the wash. Dry cleaning is expensive, particularly the more environmentally friendly processes. Most dry cleaning chemicals are toxic, not to mention that dry cleaning one shirt can cost as much as conventionally washing an entire load of clothes.
5. Hand wash items. It's a great way to cut down on the amount of laundry you have to lug to a laundromat. It's easiest to wash non-bulky items by hand, and by doing a few pieces a week, you can save a bundle over the course of a year.
6. Use a dryer rack or hang clothes on hangers in a well-ventilated area. The racks are incredibly handy and rather compact and will pay for themselves in no time. They're especially handy for hand wash items. For studier pieces, I have placed them on hangers on my shower curtain rod (I have a window in my bathroom to help with ventilation). It costs me $1.25 to dry one load, so saving on drying adds up quickly.
7. Purchase laundry products on sale in bulk. This trick applies for everyone, no matter where you live. I purchase a store brand of a plant-based detergent (traditional detergents are made from petroleum, hard on clothes and bad for the environment), which is cheaper than name brands like Seventh Generation. However, when combining sales and coupons, name brand detergents can be cheaper than their generic counterparts.
If you're worried about storage space, think about places you might not normally consider a "storage" area. Underneath furniture, unused drawers and kitchen cabinets can all be used to store bulk purchases.
8. If you use dryer sheets, cut them in half. They work just as well.
If you're an urban dweller and have any suggestions not listed here, please share!
For instance, all the money saving tips I've seen regarding laundry don't take into account people who don't have clothes lines or in-house laundry facilities. I have to admit, I am one of the few urban dwellers who has access to a laundry facility and clothes lines, both of which are located on my roof. So, the standard advice of hanging laundry to dry works well for me. But what about those folks who have to travel several blocks (or more) just to wash their clothes and have less than 500 square feet in which to live without access to any outdoor space?
Here are a few tips that can help folks living in deep urban country save on laundry costs:
1. Wear items more than once. This applies to everyone, but if you have to haul your laundry across town, it's even more important. Unless you have a clinical problem with sweating, you can stand to wear items a few times before washing them.
2. Don't let laundry pile up. Weeks and weeks of laundry will be hard to handle if you have to take it to another location, and you'll likely be tempted to pay for a more expensive service to deal with it. Carrying one or two loads is much easier.
3. Get a handy dandy cart. Folding shopping carts are everywhere in my neighborhood and are extremely handy for all sorts of chores. I take mine to the farmer's market, grocery store and laundromat. The easier your trip is, the less likely you'll be tempted to pay for more expensive laundry services. I've found that the upright carts with four wheels are the easiest to use.4. Try not to purchase "dry-clean only" clothing. Most clothes that have "dry clean" on their tags can be cleaned conventionally, but if "only" accompanies the suggestion, it's not a good idea to toss them in the wash. Dry cleaning is expensive, particularly the more environmentally friendly processes. Most dry cleaning chemicals are toxic, not to mention that dry cleaning one shirt can cost as much as conventionally washing an entire load of clothes.
5. Hand wash items. It's a great way to cut down on the amount of laundry you have to lug to a laundromat. It's easiest to wash non-bulky items by hand, and by doing a few pieces a week, you can save a bundle over the course of a year.
6. Use a dryer rack or hang clothes on hangers in a well-ventilated area. The racks are incredibly handy and rather compact and will pay for themselves in no time. They're especially handy for hand wash items. For studier pieces, I have placed them on hangers on my shower curtain rod (I have a window in my bathroom to help with ventilation). It costs me $1.25 to dry one load, so saving on drying adds up quickly.
7. Purchase laundry products on sale in bulk. This trick applies for everyone, no matter where you live. I purchase a store brand of a plant-based detergent (traditional detergents are made from petroleum, hard on clothes and bad for the environment), which is cheaper than name brands like Seventh Generation. However, when combining sales and coupons, name brand detergents can be cheaper than their generic counterparts.
If you're worried about storage space, think about places you might not normally consider a "storage" area. Underneath furniture, unused drawers and kitchen cabinets can all be used to store bulk purchases.
8. If you use dryer sheets, cut them in half. They work just as well.
If you're an urban dweller and have any suggestions not listed here, please share!
Friday, September 5, 2008
Grant Money for Small Businesses
I've worked in the non-profit sector as a fundraiser for most of my adult life. In addition to my day job and financial coaching, I also do freelance grant writing. Over the years, I've had several folks who are in the process of starting businesses ask me to help them find seed money from foundations.
There exists a common misconception that there are billions of dollars in grant monies just sitting around, waiting to be given away to any ol' person who strolls up and asks for it. There are countless websites willing to give you "secret" or "insider" information about where to find grant monies to start a business, buy a home, etc. for a nominal fee. So, folks come knocking on my door, asking me to help them bag some of these easy breezy billions. Unfortunately, it doesn't work quite that way.
There are billions of dollars out there under the umbrella of foundations. However, foundations do not give all of their assets away. Instead, they give a small portion annually, and 99.99% of the time (that's another way of saying always), it is given to non-profit organizations. In short, there isn't a bunch of free money out there, waiting for you to come and get it for for-profit ventures or any of the other lies that are fed through advertisements and websites. All that noise is just scammers trying to take your money.
Very few foundations give money to individuals and the majority of the time, it funneled through a non-profit organization that provides services or is given directly to a business that is providing a service for an individual (e.g., a homeless shelter gets a grant to help Susie buy groceries or the foundation will provide the security deposit for an apartment). And to get those funds, you need to be involved in a program of a non-profit--a homeless shelter, a drug rehab facility, etc.
There are programs available to help first time home buyers, but none of them involve giving away "free" money. They usually involve down payment assistance (with strings attached and a great many hoops to jump through to qualify) or a fixed rate mortgage that you couldn't normally get at a bank. Programs like Habitat for Humanity, a previous employer of mine, are a good example. Habitat families buy their homes at a reduced cost, providing both a monetary down payment and "sweat equity" hours.
There are programs to help small business owners, especially women and other minorities. Most can be found through your local Small Business Administration office. The SBA offers access to loans, not grants, with reasonable interest rates. The SBA and many universities also offer coaching assistance to help you build a business plan, etc. I've even found a few programs that offer interest free loans. A great deal, for sure, but certainly not free money.
There are also a few competitions for small business owners or competitions that provide access to grant monies, mentoring, venture capitalists and/or loans. A couple example of such programs are the Cartier Women's Initiative and Make Mine a Million $ Business. These competitions are fierce. The Cartier award gives $20,000 to one applicant in the United States. Hardly billions in easy money. There is no such thing as "easy" grant money.
ACORN and other community groups do offer matching savings programs to very low-income families through IDAs. IDAs are one of the few programs where families can get "free" money, but you must be very low-income and use the money and its match for a specific purpose.
When the scammers are referring to all the billions available just for little ol' you, they are referring to money invested through foundations, only a portion of which will be distributed in any given year to non-profit organizations. They're largely referring to scholarships as well, and if you're not headed off to school, those funds will be of little use to you. Essentially, they're just trying to get you to part with your money over a myth, hoping you never run into someone who actually works in the field who will tell you: Ain't no such thing as a free lunch.
There exists a common misconception that there are billions of dollars in grant monies just sitting around, waiting to be given away to any ol' person who strolls up and asks for it. There are countless websites willing to give you "secret" or "insider" information about where to find grant monies to start a business, buy a home, etc. for a nominal fee. So, folks come knocking on my door, asking me to help them bag some of these easy breezy billions. Unfortunately, it doesn't work quite that way.
There are billions of dollars out there under the umbrella of foundations. However, foundations do not give all of their assets away. Instead, they give a small portion annually, and 99.99% of the time (that's another way of saying always), it is given to non-profit organizations. In short, there isn't a bunch of free money out there, waiting for you to come and get it for for-profit ventures or any of the other lies that are fed through advertisements and websites. All that noise is just scammers trying to take your money.
Very few foundations give money to individuals and the majority of the time, it funneled through a non-profit organization that provides services or is given directly to a business that is providing a service for an individual (e.g., a homeless shelter gets a grant to help Susie buy groceries or the foundation will provide the security deposit for an apartment). And to get those funds, you need to be involved in a program of a non-profit--a homeless shelter, a drug rehab facility, etc.
There are programs available to help first time home buyers, but none of them involve giving away "free" money. They usually involve down payment assistance (with strings attached and a great many hoops to jump through to qualify) or a fixed rate mortgage that you couldn't normally get at a bank. Programs like Habitat for Humanity, a previous employer of mine, are a good example. Habitat families buy their homes at a reduced cost, providing both a monetary down payment and "sweat equity" hours.
There are programs to help small business owners, especially women and other minorities. Most can be found through your local Small Business Administration office. The SBA offers access to loans, not grants, with reasonable interest rates. The SBA and many universities also offer coaching assistance to help you build a business plan, etc. I've even found a few programs that offer interest free loans. A great deal, for sure, but certainly not free money.
There are also a few competitions for small business owners or competitions that provide access to grant monies, mentoring, venture capitalists and/or loans. A couple example of such programs are the Cartier Women's Initiative and Make Mine a Million $ Business. These competitions are fierce. The Cartier award gives $20,000 to one applicant in the United States. Hardly billions in easy money. There is no such thing as "easy" grant money.
ACORN and other community groups do offer matching savings programs to very low-income families through IDAs. IDAs are one of the few programs where families can get "free" money, but you must be very low-income and use the money and its match for a specific purpose.
When the scammers are referring to all the billions available just for little ol' you, they are referring to money invested through foundations, only a portion of which will be distributed in any given year to non-profit organizations. They're largely referring to scholarships as well, and if you're not headed off to school, those funds will be of little use to you. Essentially, they're just trying to get you to part with your money over a myth, hoping you never run into someone who actually works in the field who will tell you: Ain't no such thing as a free lunch.
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