Jana Says

What would you do with $25?

August 17, 2012 by Jana 10 Comments

The moment you realize you’re officially getting old? It happened to me a few weeks ago.

I was not happy.

I was having a conversation with someone, I don’t remember who (yes, this is also a sign of my impending aging), about going to the movies. We were discussing how expensive it is to go, particularly if we take our kids and they want to go to a 3D movie. We joked that we needed second mortgages to do so, especially when we factor in the cost of babysitting, and then I said this:

“I remember when I could take $10, buy a movie ticket, a snack, and still have money left over for the next week.”

Um, what? When did I reach the age that I could lament how cheap things were in “my day” (and it be acceptable)? But sadly, it’s true (both the fact that I am old enough to do so and the fact that things are exponentially more expensive. AAHH…Grandma! Get off my blog!). Anyway…

A few days after that, I received a search term referral to DMS, “what to do with $25”. It’s a really good question and one that I feel compelled to answer (because, you know, I do that). It’s interesting, reflecting on my movie ticket conversation, how differently I would have responded 20 years ago than I will now. Twenty years ago, I would have said: buy a concert ticket, buy CDs (the music kind, not the money kind), buy clothes…pretty much all superficial stuff. That’s not to say I wouldn’t have the same answers now, particularly if the person asking the question needs new clothes or the concert ticket is a really good deal. But I’d probably offer some practical advice, too:

Start an emergency fund. As I’m a big proponent of the $20 emergency fund, coming into a random $25 is a great place to start that, particularly if you have no emergency fund to speak of. Many people complain that it’s difficult to find money to save, but if you have found money, why not use it for that?
Buy some groceries. $25 can buy a week’s worth of groceries at a discount grocery store like Aldi (for a single person or small family, not necessarily a family of 4 or more). It can also serve as money to stockpile necessities like pasta, beans, frozen vegetables, baking ingredients like flour and butter, and canned tomatoes. With those items on hand, you can make a number of meals and what better way to create a stockpile than with unexpected money?
Use it as a “snowflake”. If you’re paying off debt, you know how much it sucks to watch your hard earned money disappear to pay for past expenses. However, when you receive some unplanned cash, your knee jerk reaction might be to use it on a splurge but the practical side of you should prevail and say “hey, you know what? Let’s put this on some debt. It’s only $25 but it still puts us $25 closer to our goal of being debt free”. Remember, every little bit counts.
Put it into savings. It doesn’t matter what kind of savings account: holiday shopping, your dream trip savings account, back-to-school shopping, birthday presents…whatever. Just save the money somewhere that it can a) earn a tiny bit of interest and b) provide you with the funds you need to purchase gifts, wants or necessities later on. Or just put it into your regular savings account, and watch it sit there. That’s fun, too.
Purchase something practical that you’ve been putting off. Do you need new sheets or towels? Do you need to go to the eye doctor but haven’t had the co-pay? Do you need to rent a carpet cleaner for steam cleaning your carpets? Is there anything you’ve been putting off because you’ve just been a bit short on cash? Use this money for that. If you do, don’t beat yourself up that you could have done something else with it. These are important to take care of, just as much as beefing up your savings or snowflaking your debt.
Splurge. I certainly don’t recommend using all of the money on a splurge (well, in some instances I might but for the purpose of giving practical advice, I don’t) but taking a few dollars to treat yourself to a RedBox movie and a box of candy from the dollar store is fine. Taking a few dollars to go to happy hour with friends is fine. Getting an inexpensive manicure is fine. Even buying a new app or songs from iTunes or a bargain book is acceptable. I believe it’s okay to treat yourself now and again, to prevent both frugal burnout and going on a shopping binge. However, splurge with this money in moderation and promise that you will also do something practical with it.

Twenty-five dollars might not stretch as far as it once it (oh, to be 15 again and have $25 in my wallet) but it can still be a decent sum of money as long as your careful and have a plan.

Readers, what would you do with $25?

Money Tune Thursday: Responsibility

August 16, 2012 by Jana 4 Comments

So, I kind of missed this Tuesday’s Money Tune post. It wasn’t intentional, I just can’t keep track of days anymore. This is particularly unhelpful when you walk around all day Wednesday thinking it’s Thursday and then you get really disappointed. It’s also confusing and rather unpleasant. But I digress.

As most of you know, I’ve been home with my daughter all summer (hence my lack of participation in pretty much everything). We spend a lot of time talking, playing, going swimming, and just having fun. But what I’m learning is that, sadly, my little baby is growing up. You know that part in Billy Madison where he grabs the kid’s cheeks and yells “You gotta cherish it?” Yeah, I feel like doing that to her most days. Because although being a grown-up definitely comes with its perks (driving, living on your own, being able to purchase alcohol legally, eating pizza for breakfast and ice cream for dinner…stuff like that), it’s also exhausting. There’s so much to remember when you’re responsible for yourself and I remember that time at my alma mater’s homecoming that, while in a bar, I had a conversation about the pros and cons of a flat top stove. Uh huh. That’s the kind of exciting stuff we grown-ups get to talk about. Fun shit, right?

Sometimes, I want to just shirk all of my responsibilities and act like a kid again. And I’m not talking for a day, either. I’m talking permanently. Because this responsibility shit just gets too overwhelming. Then I remember that I like having my own money and my own rules, and I just listen to MXPX’s “Responsibility” instead. It’s a good enough substitute (also, check out Norm in the video. Awesomesauce!).

Please, just stop whining

August 15, 2012 by Jana 15 Comments

There is a blog I read semi-regularly that annoys, irritates and frustrates the hell out of me. Why do I read it? Good question. I read it for several reasons: 1) it’s not completely personal finance and I like to read sites that are out of my niche; 2) the woman is not a horrible writer and, at times, is kind of entertaining; and 3) the drama.

Oh, yes. This woman’s life is filled with more drama than an episode of 90210, The Real World and Teen Mom all rolled into one. Quite frankly, on some level, I do feel bad for her. She’s had series of horrible events happen to her, including a cheating husband, no child support, and a difficult time with the state of Connecticut’s family court system. From her description of her life the last few years, it hasn’t been a picnic. However…

If I had a chance to talk to this woman, I don’t know that I’d be the most supportive. I’m not saying that the events leading to her current situation were her fault (I’m the last person who would ever blame the one who was cheated on) but the way she’s approached some of the obstacles is a bit…well, terrible. She has a horrible, entitlement attitude that does nothing to improve her station. And it infuriates me. And because I do things like this, I’ve had dozens of imaginary conversations with her in my head and they went something like this:

Dear mommy blogger,

While I appreciate that you’re in a tough spot, and have been for many years, I am finding it increasingly difficult to be sympathetic towards you anymore. In the beginning, I did. You were left in a lurch and completely screwed over by a man who vowed to take care of you until the end. And he is a giant piece of shit for what he did to you and your children. However, I’ve noticed that, lately, you have made it difficult to feel any feelings towards you except anger and hostility. I imagine some of your other readers feel the same way.

I do feel that you need to take some steps to earn back my sympathy (providing you even want it. You may not. If that’s the case, you can stop reading now. I won’t be offended). Here they are:

Stop complaining and whining. I get that everyone needs to vent. I do it. But there’s a fine line between whining and complaining and venting. Venting means expressing your frustration while taking some action to improve your situation. Whining and complaining means you just incessantly bitch about whatever happens to be bothering you without doing anything to make it go away. You see the key difference? Action. People don’t mind listening to a person vent as long as there’s steps being taken to solve the problem. But whining and complaining gets grueling to read and even more tiresome to listen to. You will lose your support system if you continue to bombard your readers with complaints, and, when you do share something positive (like your new job—congrats!), it’s hidden in the middle of more negative thoughts and complaints. Please just be positive once and awhile. Your readers will appreciate it.
Stop playing the victim. Yes, you have been screwed over. By a lot of people. There’s no denying that. However, what you perceive as a personal slight and complete injustice thrust upon you by your state (and ex-husband) is not that. What you perceive as complete mistreatment by the system designed to help you (for the record, I feel you have been given the short end of the stick but, in some instances, you have not. You have an entitlement attitude that you deserves to be exempt from the same rules and requirements as everyone else) is not a conspiracy. Many of those people, particularly the caseworkers you have so much contempt for, are following the very strict rules attached to their jobs. If they don’t do that, they get in trouble by their supervisors and the courts. They don’t want that on their heads. It’s not personal and no one is attacking you because of your religion or anything else. You are not the only woman to have her husband walk out on her, yet you are one of the women who now acts like the world now owes her because of it. Stop it.
Stop making excuses for why you can’t do something. And please start assuming some responsibility. Never in my life, not even through spending 10 years working in social services, have I seen someone make so many excuses for not being able to do virtually anything. And it’s always someone else’s fault. Your husband walked out on you. Your car doesn’t work. You can’t give up your organic diet. You must homeschool. The state and the judges and the case workers are all in a conspiracy against you. You assume no responsibility for your situation (let me be clear: your ex-husband is an giant asshole. But he is not the only man to ever do so, yet you refuse to stop acting like he ruined your life. See bullet point above). You spent money that you don’t have on your kids’ birthdays. Yet, up until a few weeks ago, you didn’t work. You constantly complained about no heat, not having money for gas or food or necessary car repairs.
Stop expecting everyone else to solve your problems. You are abusing your readers. You are constantly asking us to provide financial support for your family because…well, I’m not sure why. You provide laundry lists for why your jobs (current and past) don’t provide enough, yet you spent years relying on your children’s part-time income and your church to provide for you. And now you ask it of your readers. You ask us to buy your daughters’ handmade dolls. To buy your book. To sponsor your children for school. We can help make things easier but these are not sustainable solutions to your problems. You must figure that out on your own. We can’t do it for you.

So that’s it. I wish you the very best of luck in everything. I hope, now that you’re working and some of your kids are either adults or in school, your situation improves. I hope that you can move on from this incredibly shitty chapter of your life, having learned some good lessons along the way.

I’ll still be on the sidelines rooting for you, despite our opposing views on virtually everything, but if some things don’t change, I don’t know that I’ll be able to follow your story much longer. In either case, I wish you the very best.

–Jana

Readers, have you ever known anyone like this? What would you say to that person, given the chance?

The Oregon Trail Guide to PF: Reflections on the Journey

August 10, 2012 by Jana 6 Comments

This is the final installment of The Oregon Trail Guide to Personal Finance. If you’re new, take a few minutes to browse Part 1: Preparing for the Journey, part 2: Shopping at the General Store, and Part 3: Surviving the Trail.

Congratulations! You’ve made it to Oregon. Hopefully you’re whole party is intact, no one’s been attacked by a bear, and your wagon is still in decent shape. It’s time to settle down now that the hardest part of the trip is over.

Or is it?

Sometimes the journey, although it seems contrary, is the easy part. Taking what you’ve learned and applying it in settling down is often more difficult than getting to the destination. We don’t want to repeat the same mistakes in our new life that we made in the old one. To avoid this, it’s important that we take some time to reflect on what we’ve learned. Thinking about what worked and what didn’t is not only important to help us, but it’s also useful to others who are beginning their travels. Imparting that wisdom on them means that their journey might just be a little easier.

Here’s a few things that I’ve learned along the way:

Seize opportunities at the right time

Although an opportunity might seem lucrative and beneficial, it’s all about the timing. For instance, if I’m in a race again Abraham Lincoln to get to Independence Rock, stopping and talking to a random hitchhiker or panning for gold might not be the best choice (however, if I’m really short on cash, I’m panning for gold. The money earned is well worth losing the race). On the other hand, I’m only going to accept the challenge to race is circumstances are right. If my party is sick, short on food, and my oxen are getting tired, I’m not entering them in a race, regardless of the payoff.

Opportunities will present themselves all the time. You just need to measure what’s a good time for you to accept it or pass. And your circumstances, and gut feelings, will give you all the information you need to make that decision.

Don’t always take the easy way

Because sometimes the hard way is more rewarding.

When you’re traveling the Oregon Trail, you will often face forks in the road. One way will inevitably be easier, less treacherous, quicker, and cost less. The other way? Well, that’s a different story. That way will be filled with hard times, bad weather, it’s slow, and can get pricey. But the hard way often has a bigger pay off in the end. For instance, on a number of the difficult paths, I stumble across dead buffalo to harvest, people to barter with and more challenges that reap greater rewards. Yes, it takes me longer to cross that part of the trail but when I’m done with that path, I’ve earned 100 coins, have 6 feathers, medicine and my food storage is completely full.

Although I get angry and frustrated that a particular leg is difficult and time consuming, when I look back at all I gained going through it, it all seems totally worth it.

Accept that bad things will happen

On the trail, you will face a series of bad events. People will get bitten by snakes, your wagon will get robbed and you will endure tornadoes, snowstorms and impassable trails. They’re unavoidable, unexpected and unwelcome. But there’s nothing you can do to prevent them. The only thing you can do is accept that they will happen and try to prepare for them as much as possible.

How?

Create a store of extra supplies. Have an emergency fund. Don’t freak out; stay calm, collect yourself, assess the damage and make a plan to fix what’s broken. Take the time to grieve for your losses but don’t let them overwhelm you so much that you can’t keep moving forward. Accept the negative turn of events but then, pick yourself up, restart your travels and whatever you do, don’t quit.

Take detours

In the same vein as forgoing the easy path for the more difficult one, there will come times when you need to take an unexpected detour. I can’t count how many times I’ve been walking down the trail and I come to a seemingly impassible part. At this point, I’m left with two options: 1) go around, which will cost me time, supplies, and sometimes money but we’ll get to our destination or 2) try to climb the impassable trail, causing undue stress on everyone and everything involved. While going around instead of continue on the straight path I had mapped out seems like a much less desirable option, it’s usually the more practical one. There’s no need to put anyone in harm’s way just to satisfy my need to stay on one particular road.

Besides, detours can often lead to fun, memorable adventures.

Stop and help others

We learned in part 3 how important networking can be to surviving The Oregon Trail. It’s also important to stop and help others simply because it’s the right thing to do, regardless of the reward at the end. If you see a woman being attacked by squirrels, take the time to help her survive. If a child is stranded in a lake, float your wagon over to him and pick him up. If a butcher wants you to deliver a letter to his wife at the next fort, deliver the letter. It really doesn’t take much effort to make someone else’s life a little easier, especially if you’re headed in that direction anyway. And the karmic rewards you’ll eventually reap are far more gratifying than any financial rewards.

There’s also the added bonus of knowing you did a good deed. That kind of morale boost is often what we need to keep going when times are hard. And morale boosts? Are often much more important than anything else.

This concludes The Oregon Trail Guide to Personal Finance. Thanks so much for sticking with it. I hope you learned something along the way that will be useful to you in your own travels down your personal Oregon Trail

The Oregon Trail Guide to PF: Surviving the Trail

August 9, 2012 by Jana 4 Comments

Thanks for staying on the trail long enough to make it to part 3 of The Oregon Trail Guide to Personal Finance! In this section we’ll discuss how to survive on the trail. Before you embark on this leg, please take a few minutes to look over part 1 and part 2.

You’ve finally made it onto the trail! What a happy day!

You’re to be congratulated for preparing for the journey by getting your finances in order and doing some savvy shopping at the general store. That’s a huge undertaking, and you haven’t even walked one step yet. I know that first step is both the most difficult and most exciting one to take. There’s a lot to anticipate, and it can be a little nerve wracking. But don’t worry; you can get through this long, arduous adventure. It’s going to take a lot of hard work to survive the trail, but I know you can do it!

Here are a few ways to survive the trail without destroying your wallet or your health and gaining a few skills along the way:

Accept odd jobs

We all find ourselves, at times, a little short on cash. This happens an awful lot on the trail. Fortunately, opportunities such as delivering packages, finding lost relatives, working a telegraph and even picking up hitchhikers present themselves as ways to earn a few extra dollars. I don’t turn them down often because I like having that extra cushion of money just in case something terrible happens (like a bear runs off with my food in the middle of the night or a gang of bandits rob my wagon). I also like having that extra money so I can treat myself to luxuries like a ferry ride instead of having to ford the river. If I didn’t take on these side jobs, I’d never be able to afford to do that. It’s a good feeling to be able to relax for a few minutes.

While we might not always want to do the extra work or do something that we feel might be “beneath” us, those odd jobs can help give us otherwise unattainable financial security.

Set your own pace

And don’t worry about how fast or slow others are going.

Pace is probably one of the most important parts of making it to Oregon with your whole party alive and in good health. The faster you race, the faster you use up your supplies, your food and the more exhausted your family gets. This makes for some very unpleasant, and expensive, traveling. A fast pace also means you’re going to need to buy replacement supplies, and your wagon can break down even more from the stress; this can get quite pricey depending on how often you need to repair it. But if you take your time, you’ll be able to make what you have last longer and you’ll end up at your destination without ever having to pawn your valuables to fix a wheel or buy a new ox.

Before you set your pace, determine what your goal is. Is it to make it to Oregon as fast as possible or is it just to make it there? Having a goal in place will determine how fast you truly need to go. And remember, you can always adjust your pace depending on what may or may not get in your way.

Challenge yourself

In real life, I do not fish. I have tried it and I do not like it. However, on the trail, I am an expert fisherman. How did this happen? It happened because each time a fishing challenge presented itself, I accepted. I practiced, got better and now, I pretty much qualify for some sort of fishing championship. Which is pretty awesome. But even more than that, by challenging myself to learn to fish, I can feed my party when they need it and by participating in challenges, I can earn rewards which help us later on (through bartering, selling items at the general store, trading with others along the trail for other items, etc). It’s a skill that comes in handy in more ways than one, and it’s proven to be very beneficial.

It’s important to challenge yourself to learn new skills and tasks. Not only can it save you money but you can use those skills to provide for your family in hard times. You may not need the skill all the time but it’s nice to have it in your arsenal.

Be mindful of your food and rest

Medicine is expensive. It’s necessary if you need it (and I certainly don’t begrudge you if you do; after all, I need it, too) but sometimes, it’s easier just to take care of yourself in healthy ways and that will help ward off physical illnesses (or at least make them go away more quickly). I realized this when I was on the trail and my family kept getting cholera and dysentery and some other diseases. I didn’t have the money to pay for the remedies so I opted to rest, hoping that would give them time to recover. It helped, but not enough. They still walked around ill. Then I started to restock our food supply AND rest. Lo and behold, that’s what made them feel better! Having that proper nutrition combined with enough rest made them healthy enough to continue without the looming thought of a roadside funeral.

Even in the thick of a major undertaking such as traversing the country for a better life, it’s still important to take care of yourself by eating and sleeping. Without that, you’ll have very little energy for everything else.

Talk to people

As I cross the Oregon Trail, I often run into people wanting to talk to me. Sometimes it’s to invite me to meet the rest of the Mormons at their gathering place, sometimes it’s to ask me to deliver a package, and sometimes it’s to offer me a hunting or fishing challenge. I take the time to talk to these people for two reasons: 1) it’s polite and 2) until I talk to them, I don’t know what opportunity might present itself. It’s often heard “it’s not what you know, it’s who you know” and on the trail, this is definitely the case. By talking to the right people, you can earn money, food, supplies or even get some medicine to improve your party’s health. And if you’re lucky, one small favor for one person (like delivering a package or a letter) can set off a chain of lucrative events. All of these are essential in making it to the end of the trail with everyone in tow.

Being friendly, talking to strangers (well, those that look safe and approachable), and networking are all key to getting to your ultimate destination. It’s almost impossible achieve your goals by going it alone.

Walking the trail is probably the ultimate test of endurance, discipline and perseverance. There’s a lot to do and accomplish to get to the end. And while it’s a long, difficult trek but it is possible to survive, thrive, and achieve your goal.

Come back tomorrow when we conclude our series with Part 4: Arrival in Oregon: Reflections on the journey