Doing my civic duty.

This weekend, I watched an episode of Oprah from last week with Suze Orman.  It is no secret, I generally like watching the crazy that is Suze.  Her advice tends to support my own conservative financial nature.  But on this episode of Oprah Suze kind of jumped the shark.

On this show Suze actually recommended that everyone live on only 50% of their take home income.  The logic seemed to be if you get laid off, you will have to live on even less, so we may as well all get used to living as close to the bone as possible.

WTF?  Now, I am not going to argue that the economy isn’t bad.  It is.  I know that a lot of people are getting laid off.  I know it is scary.

BUT!!!!!

MOST people are NOT getting laid off.  In fact, more than 90% of people are still working.  If ALL of us cut back our spending by 5o%, then a shitload of people WILL get laid off.  All those retail workers, restaurant workers, people who depend on taxes from purchases to pay their salaries, and on and on and on.  If everyone who watches Oprah slams closed their wallets, the economy is going to go from bad to worse!

To be clear, I am not advocating that we should be going into debt to keep the economy afloat (I will leave those proposals to the government!).  But for those of us who have secure employment and steady income and are not at risk for layoffs or salary cutbacks, shouldn’t we just keep moving along at a steady and responsible financial pace?  We should keep socking away some savings (with the goal of 8 months take home in the bank) and not run up any debt, but if life doesn’t go on as normal for us, how can we ever expect things to get better?

And for the record, I find Oprah’s fake concern about the economy to be patronizing and annoying. (Oprah the queen of excess who even planted a rose garden specifically so she could have roses that coordinated with the rooms in her house!) Does Oprah really think she is making us feel better by not having a real Favorite Things show this year?  We all know Oprah’s favorite things are not cheap.  Is OPRAH going to live on 50% of her income?  I bet she isn’t.

Food Challenge: Day 15 (the day things started getting weird)

Breakfast: Mr. A let the girls choose their own breakfasts and they selected rice, dill pickles and chinese pickled vegetable.  I stuck to coffee, because pickles for breakfast sounded gross to me.

Lunch: L had Malaysian ramen noodles.  I ate the rest of her ramen and had beets with sour cream.  Note to self: Beets and ramen not a great combination.

Snacks: Dry cereal.  Apple.

Dinner: Red curry beef & veggies (carrots & potatoes) with rice.

Food Challenge: Day 16

Breakfast: The girls had cream of wheat.  I had coffee.

Lunch: I took the girls out for Ethiopian for lunch.  I am really afraid the only Ethiopian restaurant in town is going to go out of business due to the economy and a long term construction project that has made parking there a nightmare.  I used two weeks lunch out budget (but that is OK because I only had starbucks last week.)

Snacks: I made blondies.  We seem to  still have plenty of flour and crisco, so cookies are an easy snack to have on hand.

Dinner: We were at my aunts house and she ordered pizza.  Mr. A stayed home and had cereal.

Food Challenge: Day 17

Breakfast: The girls had oatmeal.  I had coffee.

Lunch: Mr. A and the girls had macaroni w/ red sauce & frozen mixed veggies.  I made myself tuna helper.

Snacks: L ate croutons.

Dinner:  We cheated.  After spending all day doing hard yardwork, neither Mr. A nor myself felt like trying to scrounge dinner out of the odds and ends in the cupboards.  We went out for tacos.

Food Challenge: Day 18

Breakfast: The girls had cereal I think.  I had coffee.

Lunch: Tater tots and hotdogs.

Dinner: Mr. A made chicken & bean burritos for us.

Snacks: I made oatmeal cookies for tomorrow too.

Money Mantra

We are wrapping up our two-month shopping hiatus.

Unlike the first one or the second one, this time not shopping hasn’t been painful at all.   Off hand, I can only think of two purchases that could be considered cheating:  a new purse ($28 canvas to replace the H&M manbag I stole from Mr. A back in Aug 2004 which was holey, and the third Twilight book because it was my birthday and I wanted to read it, dammit.  I did not not want to wait until the library reached my request 465 people from now).  I think we did go out to one sushi dinner which was a bit over our $50 weekly restaurant budget too.

I have totally gotten out of the groove of shopping.  When I read this article in the NY times, I started to worry that my thriftyness was singlehandedly going to lead the US down the road to economic misery.  I have to wonder though, if more people had only bought what they could afford, maybe we wouldn’t be in this mess right now.

Thoughts of money are never really far away for me.  Last week, ThatPatti and I were talking about our finances.  Without sharing too much of her personal information, we live in the same neighborhood, stay home with our kids, are in similar financial circumstances and share a lot of the same financial goals.  We spent an entire playdate talking about Dave Ramsey and Suze Orman.

Patti and I talked about trying to live within our means.  While we both like where we live, we don’t have big fancy houses.  We don’t have lots of new furniture, new cars or closets full of designer clothes.  We don’t have that stuff and for the most part, I am happy with the things I do have.  I will be just has happy driving a used minivan that will cost $8,500 as I would be driving a new one that cost $30,ooo.  (If we ever manage to buy a minivan that is.  Still no progress on that front.)

It just becomes frustrating when I compare our stuff to stuff other people seem to have.  I am working on learning to ignore other people’s stuff, but it isn’t easy.  Maybe they have tons of credit card debt and car loans.  Maybe they don’t have $78,000 of student loans (only 1/2 of what we originally owed!)  and a stupid HELOC (from the dumb, dumb, dumb 80/10/10 mortgage) like we do.  Maybe it is none of my business and I should just keep my eyes on my own plate.

Right now, I need to put my eyes on keeping our own financial house in order.

Our short term goal is to pay off the HELOC in one year.  We are designating all our tax return* and all the money we save by sticking to our monthly budget to it.  When we pay it off, we are going to reward ourselves by taking the next two month’s payments and visiting our friends in San Francisco.  Then we will roll all that monthly payment money over and start doubling down on the school loans.  I am hopeful we can be debt-free (except for a mortgage) in 5 years**.

I know I keep coming back to the topic of money, but writing it down is like a meditation on staying the course.  I am shouting my goals to the universe:

  • We will be debt free.
  • We will live within our means.
  • We will have financial security.
  • We do not need more stuff.
  • We have what we need.
  • What we have is enough.***

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*Except for $500 for an overnight weekend away from the kids because we haven’t been anywhere alone in over 2 years.  While I hate to spend the money, it is an investment in our relationship.

**Please don’t send me email about not paying off our school loans early.  I know the interest rates are low, but living with debt makes me crazy.  It isn’t worth a couple thousand dollars in accrued interest to live like that for the next 20 years.  Mr. A and I  have studied it and agree on getting rid of the debt asap.

***And while we are at it, let’s all humor me the next time I start fantasizing about a new house for the 10,000th time. A girl is allowed to have a fantasy, right?  Yeah, I know.  I still have work to do to really live those goals.