Why you need an “abundance tracker.”

Recent talk of inflation (and the possibility of hyperinflation) has left me very jumpy. That’s why a squib in Melanie Lockert’s newsletter really resonated with me. 

“Do you ever feel like you’ll never have enough? This is a common issue when it comes to money mindset, and can impact our financial and mental health,” Lockert wrote.

“So one thing I’ve been doing lately is something I call ‘abundance tracker.’ I track all moments of abundance.”

A few recent examples:

Lockert’s health insurance premium decreased.

She received a gift card for food from someone who couldn’t use it.

She cashed in Starbucks rewards points for a free coffee.

According to Lockert, tracking “moments of abundance” can help reset your mindset: “From the discounts you get, to the gifts, time and support. It all counts.”

Turns out I’ve been doing that for the past week or so. I just didn’t know what to call it.

 

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“Nomadland”: An elegy.

From my first glimpse of the “Nomadland” trailer, I knew that pandemic or not, I would eventually see this movie. For starters, I’ll see anything Frances McDormand is in. The actor is a marvel of nuance. I have loved her work since “Blood Simple.”

Besides, the topic – people imperiled by the Great Recession – is one that I’d written about over and over for MSN Money. I was curious as to whether a director could truly capture that, rather than paper it over with a requisite Hollywood resolution.

Thankfully, director Chloe Zhao didn’t slap on a typical amor vincit omnia verdict – or even a happy ending as such. “Nomadland” represents  everyday life for a lot of people, whether they live on the road or not.

Working as many hours as they can get at whatever job will have them. Wondering whether the money will hold out. Hoping no one gets sick. Banding together with others who are living the same kinds of lives, and supporting one another insofar as it’s possible.

The film moves at a measured, almost mournful pace. In a sense, “Nomadland” is an elegy: not for the American Dream as such, but for the notion that any working person can ever truly be safe.

The fact that some real-life nomads play themselves in the movie is a case in point. It’s doubtful any of them ever thought, “Say, you know what would be cool? Losing everything and having to shovel sugar beets for minimum wage while living in a van in my 60s!” 

 

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How are credit scores calculated?

You try hard, but still have a mediocre credit score. You pay no attention and have a great one. Just how are credit scores calculated, anyway?

Good question – and it has a complicated answer.

This is a topic I tackled for the “How Credit Works” section at Self.inc. “How are credit scores calculated?” takes a deep and nerdy dive into the issue of credit scores.

<<Surviving and Thriving has partnered with CardRatings for our coverage of credit card products. Surviving and Thriving and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses and recommendations are the authors alone, and have not been reviewed, endorsed or approved by any of these entities.>>

Every so often I do a “read me elsewhere” roundup of articles I’ve written. Lately a lot of the work I’ve done is either editing someone else’s site, doing non-bylined stuff or writing stuff that’s so ridiculously specialized that I wouldn’t bore my readers by sharing it.

The topic of how credit scores are calculated is one that I think can help a lot of people, though. No matter how unfair you think the credit scoring system is, the fact is that we are currently stuck with it. A smart consumer will learn to operate within its confines. That is, unless you like paying many tens of thousands of dollars in extra interest during your lifetime.

From “very poor” to “exceptional,” credit scores matter. They determine the kind of interest rate you’ll get on housing, vehicle and other loans. They might determine whether you get that loan at all, at least from a conventional lender – and the others can somehow get away with charging loan rates of up to 35.99 percent. 

 

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“I can’t afford to retire.”

One day last week I was trotting around a big-box store, using the Shopkick* app. I hadn’t planned to buy anything; I was there simply to rack up hundreds of points by scanning universal product codes with my phone.

Out of habit, I checked the clearance rack and saw a slightly dented can of tomato soup for 55 cents. Since winter is coming and I loves me a grilled cheese sandwich with tomato soup, I grabbed it.

The last Shopkick scans were right outside the store’s beauty section, which has its own cash register. Rather than go to the front of the store and stand in line, I asked if I could pay there.

The cashier wore one of those clear face shields to protect against the virus. She looked tired, pale and a bit stooped. As she scanned my order she said, “It’s my 73rd birthday today.”

I wished her a happy birthday and she smiled just a bit. Then I remarked that I was on my way over to visit a retired friend in her 70s, and would now tell her to get off her lazy behind and get a job.

The woman smiled again, a touch wistfully. “I can’t afford to retire.”

Boy, did I feel like a horse’s patoot. Here she was, obviously fatigued and having to stand for her entire shift, and there I was, making a clumsy joke about working in one’s 70s.

I took a closer look and she seemed older than 73. DF’s mom is 20 years older than that, but doesn’t seem“old.” Sure, she has a lot of wrinkles and is increasingly frail – 93 years will do that to a person – but she still takes both a daily walk and a lively interest in the world. Heck, she gives her great-granddaughter art lessons every week.

The cashier, on the other hand, seemed beaten-down by life. Perhaps she’d had bad luck: illness, job loss, a divorce that didn’t come out in her favor. Possibly she’d earned very little during her lifetime due to social pressures to stay home with a family and/or social mores that didn’t encourage women to seek highly skilled (or highly paid) employment. Could be she’d made bad money decisions due to a lack of financial education.

Whatever happened has left her where she is: weary, and working because she has no choice. Which is why I wanted to share her story with you. The moral of that story is simple:

 

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Monday miscellany: Money mediocrity edition.

Note: Surviving and Thriving is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

This is the sixth year for Amazon Prime Day, but the first time that it happened so close to Christmas. Usually it takes place in mid-July; this year it starts at 3 a.m. Eastern Oct. 13 and winds up in 48 hours.

During that time you’ll see a lot of deals, some of which might be exactly what you want. Although I am an Amazon Prime member I have yet to take part in Prime Day. A single-mom relative of mine has used it to stretch her holiday budget, however.

It’s being said that Amazon is basically encouraging everyone to do their holiday shopping now. Apparently other retailers have the same idea, both in-store and online. Black Friday “previews” and “sneak peeks” are already showing up and may come out in force during the month of November.

According to Consumer Reports, the idea is to keep crowds down and thus reduce the risk of spreading COVID-19. Until I read that, I figured it was just another prime (as it were) example of “Christmas creep.” But the coronavirus angle makes sense, too.

To take advantage of Prime Day deals you must be a Prime member. You can do an end run around this by signing up for a 30-day free trial and canceling once Prime Day is over.

Consumer Reports has these tips for getting the most out of Prime Day:

 

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Monday miscellany: Mental ledger edition.

Note: Surviving and Thriving is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

Maybe you’ve heard yourself using this phrase lately: “I deserve it.” After all, the pandemic has caused so much stress and fear – and, often, financial loss – that many folks are in a constant state of anxiety. Thus we deserve that frou-frou coffee, some new nail polish, a great-looking book or two scoops of our favorite ice cream.

Personal finance writer Emily Guy Birken broke down that phrase in an intriguing way recently. In a post called “How to avoid a pandemic spending frenzy,” she said that the word “deserve” is a big mistake.

“If you deserve something, that means you could be un-deserving of it,” Birken writes.

Additionally, saying you deserve something “means you are placing yourself in a position where what you already have is not enough. This is no recipe for happiness, because there will always be another thing you feel you deserve at some point…Defining purchases and treats as something you deserve is a way to feel resentful, rather than satisfied.”

 

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What I don’t spend money on.

Note: Surviving and Thriving is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

Recently I encountered an article called “Things we do NOT spend money on,” on the ModernFImily personal finance blog. Although we have some differences – they have a small child and universal healthcare, and they don’t drink soda – this is a post I could have written.

That’s because it’s the kind of thing I’ve been writing about, for pay and for my own site, since 2007:

How to have the best life you can on the money you currently have, without losing your dignity or your hopes for the future.

How not to overpay even when times are good, in order to make your money go further in terms of helping others

How to edit the noise in your life so you can focus on what matters to you personally.

Their post inspired me to make my own, and to invite you guys to chime in with your experiences. So here goes, divided into a few broad categories.

 

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What to do with “extra” money.

Recently I interviewed personal finance blogger Jordanne Wells and something she said really struck me:

“If you know having money in your pocket will make you feel like you want to spend, then don’t have money in your pocket.” 

Wells didn’t mean using cash vs. credit/debit, or walking around without any money/plastic. She was referring to having “extra” money, as in spending less than you thought you would.

For example, maybe you budgeted $100 for groceries but the total was only $80 thanks to wise coupon use and some really good sales.

What to do with that $20?

“Put it toward something right now,” Wells says.

As in, right now. Don’t wait for the monthly credit card statement, or hesitate to move those bucks into your emergency fund. Do it nownownow.

“All of those payments just help to get you in that habit of ‘When I have money, I do something (positive) with it’,” the writer says.

She’s no ivory-tower theorist. Her lessons came the hard way. When Wells came to the U.S. from Jamaica to attend college she had zero information on how to handle money. Credit cards were a revelation: “I can charge $50 and I only have to pay $10? Awesome!” What with school expenses and then “work-appropriate” clothing, Wells amassed debt that she couldn’t pay in full – and that grew to $30,000 by her early 30s.

Needing to buy a vehicle after a car wreck, she learned that she had “awful” credit; the best car loan she could get was at 11 percent interest. So she set out to improve her financial life via what she calls the “Debt S.L.A.Y.E.R” method. Wells also wrote an e-book called “How to Build Credit and Raise Your Credit: Everything You Need to Know to Understand, Build and Maintain Excellent Credit.”

 

 

Right now a lot of folks would love to be in the position of having “extra” money. Plenty of people would have liked that opportunity pre-pandemic, too. If you’re living from paycheck to paycheck, or even just on very thin margins, the notion of surplus money cluttering up the checking account is something of a pipe dream.

Or maybe it isn’t.

 

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Extreme Frugality: Waste nothing edition.

(Note: This is one of an occasional series of articles on saving money.)

We took the second batch of apple rings from the dehydrator this morning. Made from windfall apples, they have a mildly sweet flavor that at first seemed bland. Yet after eating two or three, I was hooked. Really looking forward to snacking on these this winter.

The cores of those apples wound up in the slow cooker along with other cores from the freezer; they’d come from the previous batch of dehydrated fruit and from two batches of apple pie filling. When DF judged them done, he drained the liquid through a cloth-lined colander and poured the juice into wire-bail bottles, then stored them in the chilly basement.

And the gloppy pomace left in the colander? That went into the compost pit out back. One day it will become part of a garden bed.

Not everyone can (or wants to) garden, or to preserve food. But you can observe the “waste nothing” ethos in other ways, too.

Not-wasting is a central tenet of frugality. A life without waste is a life in which each decision means something. This doesn’t limit our choices, however. It merely refines them. Rather than drifting through life reacting to every trend or advertisement, we decide what’s really important to us.

DF and I didn’t set out to become Super Green Eco-Consumers when we chose to reduce, reuse and recycle. We were merely living the way we grew up, i.e., not spending more than we must on food, clothing, utilities, housewares and the like.

Sure, this affects our impact on the Earth, which I guess does make us eco-friendly. But it also dovetails nicely with my frugal mantra (which he now shares): I save where I can so I can spend where I want.

Because we’re careful with money, we can afford to save for retirement, which means we won’t be a burden to our families as we age. We can also afford to give to charity, help relatives and friends in need, and allow ourselves special treats (a trip to Phoenix, a massage, a really good meal at Kincaid Grill once or twice a year).

Living without waste makes our lives better. And one or more of the following tactics might make your life better, too.

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Poor, poor (but not pitiful) me.

(Happy Throwback Thursday! This piece originally ran on July 21, 2015. Right now seemed like a good time to remind ourselves that a lot of the things we think are necessities really aren’t.)

The response to my early-June reboot of “Surviving (and thriving) on $12,000 a year” was humbling. It was great to see reader comments about the impact this piece had on their lives.

When the post originally ran (January 2007) it got more response than anything else MSN Money published that year. The editor immediately said, “Write another one.” So I did.

The headline I chose was the one you see above; it got changed to “Living ‘poor’ and loving it.” (I refrain from comment.)

I’ve decided to re-boot the second piece as well, again in its original format vs. the MSN-edited version. Once again, asterisks indicate that updates can be found at the end.

Comedian Dick Gregory grew hungry and cold in an impoverished home. Yet his mother always assured the kids, “We ain’t poor, we’re just broke.”

 

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