Money Changes Everything
I've become quite obsessed with my finances lately. I think it's a mix of post-vacation clarity, owing taxes, and teaching my zillionth money management class.
I have been teaching variations of Personal Finance for Low Income People since 2002. The content is pretty basic: your typical stuff on making a budget, choosing a bank, building credit. I learn something every time I teach, and I find that "students" of all backgrounds (from people in shelters to those buying real estate) get hooked into the topics, and enjoy exchanging strategies for tracking expenses and saving money.
My latest batch of students are immigrants, and last week I tried to impart the significance of "Money talks", "Put your money where your mouth is" and "Money doesn't grow on trees". These profoundly cultural expressions were very hard to translate. We reviewed a bunch of vocabulary and I asked if anyone had questions about other money-related words. One woman asked me to define "working class". I explained that "working class" is a little better than "poor", but the language barrier prevented a more nuanced explanation. Maybe next week.
Anyway. One essential part of the lesson is called "little things add up". Participants identify a recurring expense and calculate its cost over a year and the five years. I always use myself as an example. I buy a cup of ghetto Dunkin' Donuts coffee every workday. That's $1.45 x 5 days a week x 49 weeks a year (I have other coffee during my three weeks of vacation) = $355.25. This does not account for the higher cost of iced coffee in the summer. But you get the idea. This is no chump change--if I keep up the habit, I'll spend $1,776 on coffee over the next five years.
My students--even the rich ones--are always stunned by how much they unknowingly spend. And I always say (truthfully) that I feel OK about my annual $355.25 coffee investment. I like my mid-morning break; it makes me more productive and happier and you can't put a price on that. But if I hadn't done the math, I wouldn't know what it cost--or was worth--to me.
However. It is becoming apparent that I need to do some short-term economizing in order to facilitate longer-term happiness. And thus I have been scrutinizing my finances. I haven't given up the Dunkin' Donuts (although that may come next). BUT. Today I canceled my cable. Without Project Runway or Top Chef, I simply cannot justify the $69. On Saturday they're coming to pull the plug. Which means no more Friends reruns or trashy reality TV; no more My Super Sweet Sixteen. I feel panicky.
I am also determined to stop shopping, which shouldn't be hard because I hate shopping. BUT. I have a (truly) rich family friend who is constantly losing weight and giving me her fancy brand-name clothes. The latest infusion of free stuff includes a contender for the Cutest Skirt of All Time, but it doesn't really go with any top I currently own. I keep thinking about that skirt and how I'd like to wear it on Passover with my most adorable shoes and ... a bra? Because I'm not buying a top?
This really sucks.
Posted by Dori at 9:26 PM
12 Comments
That must be really strange, to explain the American class structure to people in various classes - so often we take the terms for granted with all their associated meta-messages.
I say buy a top if you need a top. It's not like you're going on an Ann Taylor bender. Buy a top and enjoy it and look cute this summer and let the compliments and refreshed self-esteem glide you through other financial pinches unscathed.
I hear you, sister. Economizing = good. But remember that you owe yourself a few small luxuries, even on top of the Dunkin Donuts coffee. And, let's see a photo of the skirt!
A) It's your birthday and you're wearing a free skirt -- enjoy getting yourself a gorgeous top!!!
B) One top can be excused in a time of austerity, no?
Rachel
Maybe we should have a clothing swap sometime soon. I've gotten great free clothing at those (and gotten rid of those not-worn-in-years items).
-K
Oh wow, you're a brave girl, giving up cable. But you're right. If there's nothing on worth watching, yank the plug, right? But you better get it back in time for the next season of PR and TC, because we'll need to discuss every week.
A thrift store will solve this problem! Top away!
Dori, I have a question and a comment. First of all, what does it mean when you say Dunkin' Donuts coffee is ghetto? I'm not trying to be PC, I'm Just curious. I have a general understanding of the term from working with kids but I'm wondering how you define it.
As for the cable thing, I agree that cable is way too expensive. I know it will never happen, but if cable could ever go a la carte where you can just pay for the channels you want that would be awesome.
There are a couple of things I've thought about with television. One is doing some sort of communal cable thing where you could share the cost of cable and some deal is made where the shows various people watch are recorded and shared with the folks who pay a certain amount to watch those shows. Technically I guess this is illegal, but for us consumers it would be more cost effective.
Another thought is to just download shows online or watch streamed shows. Are you keeping your high speed Internet access? You can certainly download practically anything illegally, which is not what I'm advocating, but you can download TV shows legally from like iTunes, Amazon, and other sites. I did a quick Google search and found this article about it here. Several TV shows are offering streaming of their shows. Unfortunately I don't think Bravo is doing this currently, but maybe someday.
http://www.techcrunch.com/2006/05/22/download-your-tv-the-current-options/
$355 per year really puts it in perspective, I think we are getting close to some belt tightening around here, and some of those details (like your cable) will have to go.
I had no idea that my spending habits would generate such interest!
LeRoy, I use "ghetto" to mean the opposite of "yuppie".
So ghetto : yuppie
Dunkin Donuts :: Starbucks.
Or something like that.
Hi. I really like your blog. Was wondering if you want to add it to my directory? Thanks Shelly
Weblog index
I wish we had the fortitude in my household to cut the cable. It is so expensive, and I feel like it creates the impetus to do nothing but watch trash. If only we could just order the 5 or 6 channels that we actually watch on a regular basis and forget about the rest!
That said, I think you deserve a new top as a reward for giving up t.v.!
UPDATE: I bought an adorable top for $4.99 at Goodwill. But the cost savings were outweighed by the fact that I also bought a red sweater (which I definitely did not need)for another $4.99.
Post a Comment
« Home