Cucumbers from the garden
Have you ever started reading a "How to Save Money" article and the first item was, "Stop buying a $5 Starbucks drink every day", and you ditched it on the spot?
Yup, me too.
I do have a background in frugality: I grew up in a thrifty household (my mom published several books having to do with money-saving), in a community of mostly single-income families (homeschoolers), where thrift was a cultural value out of necessity. Frugality was a way of life that enabled families to follow their goals of homeschooling: a way to have greater control and agency over their lives and dreams. But the kind of thrift that assumes you're buying Starbucks drinks five times a week just don't apply to me. And maybe not to you, either.
I've written about thrift before, and have always enjoyed spending frugally and finessing our finances to help us both enjoy rest and reach our goals. However, over the years my perspective has shifted as I've begun looking past the "Make food at home" and toward the "Why aren't people making a living wage? What might solutions be? How might we mutually aid each other to create a stronger, more resilient community?"
So let me preface this list by saying: modern America has a lot of societal ills, and one of the biggest ones is the way the wage gap has widened and income has stalled. However, as much as we rail against the unjust systems, we all still have bills to pay.
Frugality is a form of self-care. Just as fresh air and sunshine won't cure clinical depression, frugality simply can't save a person from many different kinds of financial situations. But practicing frugality, like getting out in the fresh air when you're depressed, is still a gift a person can give themself. It's a way of gaining agency, control, and creativity, no matter what numbers are in their bank account
So how do we manage the little bit of money wisely, giving us more room and freedom to fight for what really matters?
I started writing this blog post on my own, then decided to ask my Facebook friends for input. (This was, like, a year ago, but still!) I got so many great ideas and perspectives! A huge thank you to Jodi, Amy, Rhonda, Sarah H., Kathryn, Jessica, Candace, Mary, Elizabeth, Sarah A., Kelly, Bethany, Phebe, and Rebecca for your input! Since most people suggested ideas for multiple topics I broke them up and haven't attributed them specifically, but I do put other people's words in quotation marks when I use their direct quotes.
GENERAL ADVICE
1. See what government programs you qualify for. If you're in a really tight spot, this is the first place you can go to help you tread water instead of drown. Receiving government benefits that you qualify for is no different from, say, claiming a tax credit for a dependent, or driving on a road, or sending your kid to a public school: the programs exist for a reason, and if you qualify, they exist for you! If you're unsure where to start, check out https://www.benefits.gov/benefit-finder, which has a survey that will help point you in the right direction.
2. If you need a one-time bill payment, such as a utility, contact a local church. Any church worth their salt has a formal or informal budget line for this kind of money distribution, so don't hesitate to reach out if you're in a tight spot. It's not a long-term solution, but it can help you bridge a gap.
3. Join a mutual aid network. This is a group of people who commit to helping each other meet needs (usually financial, but it can take other forms too). It's not charity, but a place for money to circulate freely to those who need help. If you're in the St. Louis area check out St. Louis Mutual Aid, or search for one in your area. (Here's a link to help you get started.)
4. Keep track of how much you earn, spend and save. It's easy to get stressed about money and not look at the cash flowing through your life, but tracking and paying attention to these details can give you a bigger sense of control and help you decide what steps make the most sense for you. Apps like Mint make it easier than ever to track spending. (I've also heard good things about You Need a Budget, although I've never tried it.)
5. Regularly evaluate your income and expenses. Once you figure out where your money is going, make a regular habit of sitting down, looking at your cash inflow and outflow, and deciding whether or not you're happy with it. Zach and I like to do some sort of frugal challenge every couple months (for instance, spending the bare minimum on groceries, avoiding entertainment expenses, or shopping around for cheaper insurance) to keep ourselves from falling into the trap of "lifestyle creep."
6. Triage your expenses. "Know your bill cycle and late payment consequences such as fees or having a service disconnected and there being reconnection charges. Sometimes you have to skip one bill that has a lower consequence to make sure you pay the other bill that has a larger consequence. Also, know if there are time periods that something can't be turned off (such as gas in the winter in St. Louis…)." If you have to sacrifice a bill, knowing which one has the fewest consequences is a wise move.
7. Look for ways to cooperate with other people. "Always be looking for win/win/win scenarios that involved bartering and sharing resources." This can be making meals for large groups of people, swapping skills, starting a babysitting co-op, getting a roommate, carpooling, or anything else you can imagine. American culture lies about individualism— many people who appear self-sufficient are actually just deeply in debt or have a lot of money to catch them, but when you're broke, people are your biggest safety net.
8. Find like-minded people. If all your friends are spendy (either because they can afford it or because they are relying on credit cards), it will be harder to be thrifty and keep a positive attitude about it. I'm grateful for friends who are happy to have a picnic or a potluck instead of going out to restaurants, for instance. "It’s so much easier to be frugal when you have like-minded friends. There’s no 'keeping up with the Joneses.' Instead [my friends and I] would share the joys and fruits of thrifty successes and shared resources."
9. If you work for someone else, talk to fellow employees about your wages, and shop around. I talked to someone who had worked at a mid-sized grocery store who, after years of service and being high up enough in management to carry a key to the building, was making barely more than the starting wage at Walmart— and this was a union job! Be open about your wages and try to look out for yourself, as switching to a comparable job can often be a big step up in wages.
10. If you have a job with benefits, max out every one of them. For instance, as a full-time employee with Walmart, Zach gets a 401(k) match; a Health Savings Account Match; subsided medical, dental, and vision insurance; and paid time off. We milk those benefits for all they're worth, which makes his overall pay higher.
11. Consider whether an extra freelance job is worth it for you. I personally am thoroughly disillusioned with side hustles, but they can be useful for getting through a tight spot, especially if you carefully consider the time to money ratio. Some advice from my contributors: "Convert any space and skill you have to extra cash; convert anything you do have to income generation; get creative. If between jobs, network and volunteer if you have capacity, it puts you in the right place to land the job when they open up and to be referred to quality job opportunities." "In 2008, I rented my small garage space to someone that needed to store a vintage car. I relied on Craigslist to take on new roommates (before the days of AirBNB etc). And - I found [a seasonal weekend job] because I was looking for supplemental income."
DEBT
12. Figure out how much debt you have and what the interest rates are. It's tempting to let the months slide by just paying the minimum on loans and credit card debt, but getting out of high-interest debt is, for most people, by far the best thing they can do for themselves. And you don't know until you pay attention. Figure out who you owe money, the total amount, and— most importantly— what the interest rate is.
13. If you have a high-interest debt, treat it as a huge emergency. If you're paying 10% or more on a debt, it's likely siphoning away your money far more quickly than any spending habits you have. American culture normalizes debt to an infuriating degree, but if you are broke and struggling, treating debt as an emergency is the best thing you can do for yourself. With all the tips below, if you find yourself saving money (for instance, going to the food pantry once a month), you can take that money and put it toward your debt.
14. Make a repayment plan. If you're really over your head with debt, "call the creditors, they will work with you. Nothing shameful." In fact, many credit card companies will not even consider lowering your monthly payment until you miss a payment. One way or the other, calling a creditor (whether that's a credit card company, your car loan company, or a hospital where you got an emergency treatment you can't pay for) is always better than staying silent, and sometimes you can negotiate a much lower monthly payment. Some credit cards offer 0% APR for a year, so you can consolidate your debt and pay it off quickly.
15. If credit cards make you spend too much, cut them up. Personally I've never had a problem with overspending because of credit cards, but it is enough of a risk that if you know yourself, why not make it easy to do the right thing? Also take your payment info out of all online sites and log out of Amazon. As a rule, the more time-consuming it is to spend money, the less you'll spend!
Stay tuned for Part Two tomorrow!
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