I've been incredibly absent because... work has been hectic, my other is back on the scene after being away for a couple of months, I finally made it out of the city to see my best friend and I'm moving more or less on Friday.
I got a blog award?! Well, a somewhat informal one. But nonetheless... have you SEEN this thing I've been calling a blog? Colorless and difficult to navigate and prone to typos and extended diatribes. Motivation to improve it.
Anyways. Here are seven things I like (and what I read, none of which I anticipate will know about or feel the need to meme on)...
(1) Monocle magazine. The podcasts are decent, too, but the print version is an intellectual vacation. The style points of Dwell meets National Geographic and just enough Economist-style coverage for a Saturday perusal. And, oh, the fashion spreads. My goodness. It's also printed on a matte/glossy mix and the perfect size.
(2) The smell of wax in the morning.
(3) Scars. I have a couple of wicked scars from a life well lived and think they're hot (they're not disfiguring, just character marks). I would never get them 'fixed.'
(4) Wool blend suits. It's a hallmark people can't quite place; I like how they hang and how they make me feel when I walk into a room. Down with polyester, I say!
(5) Trains. Train travel is, in my opinion, vastly underrated. And it lets me indulge all relevant Before Sunrise fantasies.
(6) People. I'm really picky about friends but I genuinely enjoy getting to know people, their stories, how they think about things, what they like. I like being in places where there's a constant flow of new people.
(7) Yoga. I've done yoga everywhere I've gone and I'm always amazed at how I can learn something new from every teacher I've met about something that seems so simple. My practice is fairly intermittent so I'm not exactly going to do any asanas that will blow any minds.
And here's what I read on the daily, beyond Brunette on a Budget, which is so well written I sometimes have questions. Can Brunette really exist!? Can there really be a Holly Golightly who doesn't rely on powder room stipends? Do non-Italians really get married in Italy?
Anyways.
(a) The Frugal Bachelor - currently there's some kind of transition going on but some of the archives are brilliant - justifying smaller sizes instead of bulk, for example. His morals may be dubious, at times, but at least they're consistent and honest.
(b) Vagablogging - Rolf Potts is kind of the man.
(c) Krystal At Work - the frequency is the substance and it allows a kind of evaluation most people wouldn't be comfortable with. It's like having a friend who will genuinely disclose all her financial choices. And I like her distinctly WestCoast Canadian lifestyle.
(d) Rainy Saturday - has no particular blog theme but the variety is entertaining and the writing is funny enough to be a good mid day diversion. And her musings about the Mac Snack Wrap actually got me to go eat one, which says something. East Coast!
(e) Not updated in forever, but Daily Routines is super fascinating - how, exactly, do successful people work?
(f) Matador Blogs - although sometimes veering dangerously towards being too conventional, still the best source for the under forty set for travel philosophy and advice.
(g) Third World Cash - one of the most useful things in getting some perspective on personal finance is to step outside the context you operate in, even slightly. TWC is young, female and successful - but living in a place where personal finance is sometimes radically different.
Showing posts with label PF blogs. Show all posts
Showing posts with label PF blogs. Show all posts
Tuesday, April 14, 2009
Thursday, March 19, 2009
Trillions and Tax Credits
In The News
The NY Times coverage of the new New Deal today bluntly referred to the fed as making up money it doesn't have and potentially destabilizing the currency. True.
Did everyone miss when Warren Buffet called the USD the next bubble? Or maybe I just imagined that one. The worst part about a rapid USD devaluation would be, as usual, the ripple - smaller countries that use it as a reserve currency, and potential reactions from China who has already been warning the USA to run things a little tighter in order to secure the value of it's investment. Ruh roh.
The Joy of Refundable Credits
On a lighter note, as taxes come in I was delighted to discover what I'd assumed was a non-refundable credit was actually refundable, to the tune of about $1000. If you can bring your taxes owed down to $0, as many recent grads can, refundable tax credits essentially meant the government pays you above and beyond what you've put in. A nice general explanation is, of course, provided at Wikipedia.
Obviously I plan to use the $1000 to offset student loans, putting me in an even better position after working for a year than originally assumed.
On Wealth
It was funny to read this post over at Brunette On a Budget.
Last night I was talking to my mom about how her business in the small city I grew up in remains very busy and in fact the whole area appears 'recession proof.' One of her clients, who has always been a multi-millionaire, was purchasing something substantial but doing so frugally and they started talking about how things are where we're from.
Where I grew up, there is no real upper class. There are "rich kids" but it really is so relative there is no discernible class difference. Similarly, there was a low level of real poverty comparable to what I've seen after leaving. You cannot now, nor could you ever, buy designer jeans of any kind within hours of the city.
Growing up there, people were taught to patiently save for a rainy day. Expensive purchases - clothes or homes or cars - become the subject of gossipy derision. Even if you could afford it, most people would consider it inappropriately showing off. Even if your parents could help you out, you were expected to work in order to access opportunities. Salt of the earth people were respected, laziness was not.
Obviously, there are contradictory examples, but overall it was an isolated community where the kind of values that breed stable, long term wealth were fostered. As a result, even with net worth declines there are few people who have to change their spending habits.
Entering the real world, especially during my second degree, was completely disorienting. I dated a guy whose parents gave him a new car to bribe him to attend school, he often complained how insufficient that was. Unemployed students would buy rounds of drinks for twelve friends. Everyone dressed well whether they could afford to or not. Rather than adopting the habits of my new friends, I went into the frugal closet. Sometimes it was hard. I had a roommate who would drop two hundred dollars on two litres of hair product as I was figuring out how long I could go between cuts. There were times I felt I was living in Edith Wharton's House of Mirth where money and opulence and corruption were a necessary accoutrement of my new social stratification.
And then, I graduated.
Unfortunately, the place I grew up is exceptional. We've made wealth too important and values too relative.
It's a tragic irony Ms. Wharton could have written that those who bought into image, entitlement, consumption and a lack of personal substance in pursuit of The Dream are those who can no longer afford the cost of living.
The NY Times coverage of the new New Deal today bluntly referred to the fed as making up money it doesn't have and potentially destabilizing the currency. True.
Did everyone miss when Warren Buffet called the USD the next bubble? Or maybe I just imagined that one. The worst part about a rapid USD devaluation would be, as usual, the ripple - smaller countries that use it as a reserve currency, and potential reactions from China who has already been warning the USA to run things a little tighter in order to secure the value of it's investment. Ruh roh.
The Joy of Refundable Credits
On a lighter note, as taxes come in I was delighted to discover what I'd assumed was a non-refundable credit was actually refundable, to the tune of about $1000. If you can bring your taxes owed down to $0, as many recent grads can, refundable tax credits essentially meant the government pays you above and beyond what you've put in. A nice general explanation is, of course, provided at Wikipedia.
Obviously I plan to use the $1000 to offset student loans, putting me in an even better position after working for a year than originally assumed.
On Wealth
It was funny to read this post over at Brunette On a Budget.
Last night I was talking to my mom about how her business in the small city I grew up in remains very busy and in fact the whole area appears 'recession proof.' One of her clients, who has always been a multi-millionaire, was purchasing something substantial but doing so frugally and they started talking about how things are where we're from.
Where I grew up, there is no real upper class. There are "rich kids" but it really is so relative there is no discernible class difference. Similarly, there was a low level of real poverty comparable to what I've seen after leaving. You cannot now, nor could you ever, buy designer jeans of any kind within hours of the city.
Growing up there, people were taught to patiently save for a rainy day. Expensive purchases - clothes or homes or cars - become the subject of gossipy derision. Even if you could afford it, most people would consider it inappropriately showing off. Even if your parents could help you out, you were expected to work in order to access opportunities. Salt of the earth people were respected, laziness was not.
Obviously, there are contradictory examples, but overall it was an isolated community where the kind of values that breed stable, long term wealth were fostered. As a result, even with net worth declines there are few people who have to change their spending habits.
Entering the real world, especially during my second degree, was completely disorienting. I dated a guy whose parents gave him a new car to bribe him to attend school, he often complained how insufficient that was. Unemployed students would buy rounds of drinks for twelve friends. Everyone dressed well whether they could afford to or not. Rather than adopting the habits of my new friends, I went into the frugal closet. Sometimes it was hard. I had a roommate who would drop two hundred dollars on two litres of hair product as I was figuring out how long I could go between cuts. There were times I felt I was living in Edith Wharton's House of Mirth where money and opulence and corruption were a necessary accoutrement of my new social stratification.
And then, I graduated.
Unfortunately, the place I grew up is exceptional. We've made wealth too important and values too relative.
It's a tragic irony Ms. Wharton could have written that those who bought into image, entitlement, consumption and a lack of personal substance in pursuit of The Dream are those who can no longer afford the cost of living.
Thursday, March 5, 2009
Simplifying Money Management (And, I Heart Leo Babauta)
J.D. Roth, guesting on Zen Habits, writes a quick summary of themes culled from his widely read blog. Aside from the obvious (make a budget, track spending), stopping junk mail and optimizing your bank account are solid advice.
I continually draw parallels between PF advice and dieting.
Both are infinitely easier for those who have a natural dose of self moderation (note, not control). Sometimes, self moderation is just an appropriate level of awareness - what are you really consuming? On the polar end, are you so obsessed with what you are consuming that you "fall off the wagon" easily? Trust me, the science backs the latter up almost irrefutably (and I leave you to Google et al. if you're curious).
Better, both have similar approaches when it comes to advice. Like the calorie-counting programs of the world (e.g. Weight Watchers), some people find keeping track of everything, maybe forever, is the only way to hold themselves financially accountable. In contrast, there's a very small body of writing that devotes energy to making your finances self regulating, with occasional tune ups coinciding with life changes. The comparator are successful "lifestyle" health books that advocate upfront re-education and retraining about nutrition and health and slowly forming new habits.
Ideally, I want my financial situation to self regulate. Something requiring intensive monitoring isn't worthwhile.
Strategy: investing upfront time to
There really is no excuse for a person to not understand the basic principles of income tax. It's actually simpler, in my opinion, than the idea of compound interest. Even if you never file your taxes yourself.
Why (I) Go With Less:
I continually draw parallels between PF advice and dieting.
Both are infinitely easier for those who have a natural dose of self moderation (note, not control). Sometimes, self moderation is just an appropriate level of awareness - what are you really consuming? On the polar end, are you so obsessed with what you are consuming that you "fall off the wagon" easily? Trust me, the science backs the latter up almost irrefutably (and I leave you to Google et al. if you're curious).
Better, both have similar approaches when it comes to advice. Like the calorie-counting programs of the world (e.g. Weight Watchers), some people find keeping track of everything, maybe forever, is the only way to hold themselves financially accountable. In contrast, there's a very small body of writing that devotes energy to making your finances self regulating, with occasional tune ups coinciding with life changes. The comparator are successful "lifestyle" health books that advocate upfront re-education and retraining about nutrition and health and slowly forming new habits.
Ideally, I want my financial situation to self regulate. Something requiring intensive monitoring isn't worthwhile.
Strategy: investing upfront time to
(a) Cancel anything lingering in my name (deactivated cards), use and remove rewards programs
(b) Make sure my bank fees are controlled and minimized
(c) Get rid of a cell contract and convenient 'extra' charges each month
(d) eliminate and avoid subscriptions, including junk mail, and
(e) centralize cash management so it's paperless and at-a-glance. This spring, an e-filing program will replace the small paper file I've been toting around, at minimum for credit cards and bank statements. I'm working on a method of organizing paper for tax purposes, although at this point a brown envelope marked TAXES has sufficed. The key to managing tax documents is being familiar with what can be claimed, for example most people miss medical claims (and there are software glitches that facilitate this). You can figure this out in an afternoon at a public library with one of many step by step books, along with the difference between deductions and credits and ideas about rolling over credits (i.e. maxing out deductions first).
There really is no excuse for a person to not understand the basic principles of income tax. It's actually simpler, in my opinion, than the idea of compound interest. Even if you never file your taxes yourself.
Why (I) Go With Less:
>> The simpler records are, the easier it is to spot anomalies before they're penalties.We live in an age of information management. More is available at any time than has been available to any previous generation. It's easier to track and analyze your own behavior. However, the dark side of information management is information overload consumes far too much energy and can cause confusion (and, if you're a news junkie, abject depression!) I'm still working on how to balance everything and taking an often Zen Habits-inspired approach of continuous gradual self improvement. Bless Mr. Babauta, seriously.
>> Unnecessary charges (and overcharges) stick out. A quick complaint call often rectifies the situation and then some.
>> Projecting income and expenses is ridiculously low-energy. If I have a busy month or am abroad my finances don't fall apart. I don't require an overly complicated tracking system because I don't have much to track.
>> Timing is a non-issue. Nothing is overdue, there are never late bills unaccounted for or cheques that didn't cash. Even with records, the more you keep track of the easier it is to make a mistake.
>> Limiting information inflow (for example, stopping paper flyers and just checking online) allows minimal time investment and focusing energy on what actually makes a difference to you. At the same time, automate information inflow for something you need to purchase - sign up for online alerts about flights or electronics.
Monday, February 9, 2009
Why Do A Second (or Third) Degree?
This article really raises some valid points about continuing education.
I do have two degrees. The second one took me from "vaguely employable" to "hot prospect." So, I've had a more or less positive experience with extensive post-secondary ed. A third degree remains an option at a later point, but would be purely for personal and professional development rather than the credential value.
The article is really good - any port in a storm is not a great philosophy when deciding on education. I'd like to add some considerations to the debate.
Benefits to A Second Degree:
(1) Networking. Both peer and industry. If you are someone who is able to build relationships with others, a second degree can put you in the position to become close with people who can give you access to opportunities. This may have been the major advantage of my second degree. However, most of my classmates didn't see the same opportunities or value-added aspects.
(2) Quality of Life Improvement. I learned things indirectly about how the world works, how to get information, and how to make people do what I need done. If you grew up in an upper class family, less useful. If you come from a middle class or lower class family, potentially life altering.
(3) A career relatively insulated from future downturns. When everything crashed, my boyfriend and I (different second degrees) looked at each other with relief that we didn't just take Super Well Paying HR Job With Oil Company X. You may not make as much during the booms but you survive the busts better in certain traditional career paths. Some of the article's criticisms are very true for the American system which does not control it's professional entry levels as rigorously.
Things to Consider:
(1) Do you have access to funding? The majority of my post-secondary education was scholarship funded. I chose a lower-cost (less prestigious) school because I knew I could be a bigger fish in a smaller pond - more opportunities (see "Networking" above) and funding were available. However, I would not have gone into a program with less esteem than my Alma mater - a fine balance.
(2) Are you interested in what you're taking? Lack of interest is related to poor performance which can translate into a poor investment. If you absolutely hated your undergraduate education it is entirely likely you will not enjoy your second degree, and vice versa.
(3) Are you willing to do what it takes to be in the top 25%? Unlike your undergrad, you may be faced with a harsh reality of no longer being a star player. Admission itself may not actually be worth much. The top 25% from my class universally have excellent employment prospects, downturn or not. We were the top from our first semester and took up a substantial number of the entrance scholarships. A harsh reality for incoming students, but worth considering.
(4) Are you putting a budding career or financial path on hold, potentially in reverse, to take this opportunity? One of my friends in my program was more than a decade older than me and had a successful film industry career. He knew he was giving up key income earning years to pursue this career change and his job prospects were limited to those that would replenish the missing income years and savings depletion required to support yourself without income. It's more than the degree sticker price.
(5) If you are unemployed, are you realistic about what led you there and if a new 'credential' is going to change your situation? Many are unemployed but many people remain employed. Without at all condemning those at the behest of layoffs, think seriously about whether you will be able to make gains with more paper. Success is mutifaceted. You may need additional things to even make the piece of paper worthwhile. You may be able to get what you need without the paper at all. Despite taking advantage of a great deal of post-secondary ed, I steered my younger brother towards a community college degree that has allowed him to get into the work force earlier. He's killing it and just got a raise that puts him in my wage bracket, he may even have more offers than I do. Different strokes, right?
My current situation is a combination of the following: luck, volunteering/community involvement, taking jobs for less cash to gain experience, building a solid network, seeking out opportunities that set my CV apart, and working. Hard. I have a list of things I want to do in the future to further craft my career that have nothing to do with more school.
If you believe that post-secondary education is the only way of advancing your career, you are not in any condition to be attempting to use post-secondary education to advance your career.
In regards to the assertion about PhDs, I was warned off one by several early-thirties PhDs who were my friends. After a decade of student poverty, they were faced with a demand to Publish or Perish and a further tenure competition. The rewards did not in any way compensate for investment - unless you really love your field, stay away!
I do have two degrees. The second one took me from "vaguely employable" to "hot prospect." So, I've had a more or less positive experience with extensive post-secondary ed. A third degree remains an option at a later point, but would be purely for personal and professional development rather than the credential value.
The article is really good - any port in a storm is not a great philosophy when deciding on education. I'd like to add some considerations to the debate.
Benefits to A Second Degree:
(1) Networking. Both peer and industry. If you are someone who is able to build relationships with others, a second degree can put you in the position to become close with people who can give you access to opportunities. This may have been the major advantage of my second degree. However, most of my classmates didn't see the same opportunities or value-added aspects.
(2) Quality of Life Improvement. I learned things indirectly about how the world works, how to get information, and how to make people do what I need done. If you grew up in an upper class family, less useful. If you come from a middle class or lower class family, potentially life altering.
(3) A career relatively insulated from future downturns. When everything crashed, my boyfriend and I (different second degrees) looked at each other with relief that we didn't just take Super Well Paying HR Job With Oil Company X. You may not make as much during the booms but you survive the busts better in certain traditional career paths. Some of the article's criticisms are very true for the American system which does not control it's professional entry levels as rigorously.
Things to Consider:
(1) Do you have access to funding? The majority of my post-secondary education was scholarship funded. I chose a lower-cost (less prestigious) school because I knew I could be a bigger fish in a smaller pond - more opportunities (see "Networking" above) and funding were available. However, I would not have gone into a program with less esteem than my Alma mater - a fine balance.
(2) Are you interested in what you're taking? Lack of interest is related to poor performance which can translate into a poor investment. If you absolutely hated your undergraduate education it is entirely likely you will not enjoy your second degree, and vice versa.
(3) Are you willing to do what it takes to be in the top 25%? Unlike your undergrad, you may be faced with a harsh reality of no longer being a star player. Admission itself may not actually be worth much. The top 25% from my class universally have excellent employment prospects, downturn or not. We were the top from our first semester and took up a substantial number of the entrance scholarships. A harsh reality for incoming students, but worth considering.
(4) Are you putting a budding career or financial path on hold, potentially in reverse, to take this opportunity? One of my friends in my program was more than a decade older than me and had a successful film industry career. He knew he was giving up key income earning years to pursue this career change and his job prospects were limited to those that would replenish the missing income years and savings depletion required to support yourself without income. It's more than the degree sticker price.
(5) If you are unemployed, are you realistic about what led you there and if a new 'credential' is going to change your situation? Many are unemployed but many people remain employed. Without at all condemning those at the behest of layoffs, think seriously about whether you will be able to make gains with more paper. Success is mutifaceted. You may need additional things to even make the piece of paper worthwhile. You may be able to get what you need without the paper at all. Despite taking advantage of a great deal of post-secondary ed, I steered my younger brother towards a community college degree that has allowed him to get into the work force earlier. He's killing it and just got a raise that puts him in my wage bracket, he may even have more offers than I do. Different strokes, right?
My current situation is a combination of the following: luck, volunteering/community involvement, taking jobs for less cash to gain experience, building a solid network, seeking out opportunities that set my CV apart, and working. Hard. I have a list of things I want to do in the future to further craft my career that have nothing to do with more school.
If you believe that post-secondary education is the only way of advancing your career, you are not in any condition to be attempting to use post-secondary education to advance your career.
In regards to the assertion about PhDs, I was warned off one by several early-thirties PhDs who were my friends. After a decade of student poverty, they were faced with a demand to Publish or Perish and a further tenure competition. The rewards did not in any way compensate for investment - unless you really love your field, stay away!
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