Vagaries in Increments

Thursday, December 29, 2011 Posted by Revanche 8 comments
Money has been a weird thing of late. And weird in odd chunks. Mostly me making mistakes. I haven't paid the stupid tax in a while but it burns me up just like days of yore.  Even if it doesn't immediately cause me to miss other bills anymore, it still gets my goat because it's going to get in the way of other goals. 

* I saved myself 10% on a big order from Ann Taylor by reordering everything at 50% off instead of 40% off.  Except carelessly, didn't notice that at 50% off, my order was $25 shy of the free shipping (no code needed) minimum that I usually never miss and cost myself an extra $13. Kicked myself up and down the street for that and couldn't get a reprieve from the company. I'm going to have to return most of those items because only one thing fit well so I'll have saved myself pretty much nothing.

* Bought PiC two pairs of potentially really nice sneakers from Amazon's sister deal site at a steep discount but made the mistake of letting it charge to my credit card instead of using the rest of my gift card balance. Ended up having to return them both as neither fit well and now I have a whole lot of extra Amazon credit.  Which I promptly dug into. 

* I tried to transfer a large amount of money from one Chase account to another ING account. Carelessly slipped when selecting from the dropdown menu and grabbed the wrong Chase account - the one that never has real money in it.  !!! @(#*$(#!!! 

* Received a bill from the dentist, which rather annoyed me because if my recent visit was going to incur cost above and beyond, I am accustomed to having the amount estimated at the time of the visit.  I planned to drop by the office to pay it by CC. Frankly, I've been a little busy. A lot busy. It's also only been about two weeks. Another bill came in the mail and they've adjusted the price downward by $53.  No reason given. Hrm. 

* I have GOT to get on the ball with figuring out creative flight financing for our honeymoon. Those prices are giving me heartburn like a ... well.  You know. 

Is anyone else's dander up?  

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In search of a common language: poverty and the great silence

Tuesday, December 27, 2011 Posted by Revanche 5 comments
Andrea's post Are We Defined by Our Mistakes? touched some nerves at So Over Debt.  Her personal life with being broke and professional experiences helping the impoverished and the reactions to her conclusions illustrates how complex the issues surrounding poverty. And every time it seems defined, there's another rock to label.

There aren't simple, easy, sound-byte answers. There isn't even an easy list of questions. If ever there was an area in which we tended to chaos, this is it.

Yes, our choices make us who we are. But yes, our nature make us who we are. And yes, our surroundings and environment make us who we are. So yes, until our mettle is tested, we won't discover who we are. The snake eats the tail. As much as I hate that image. All of those influences feed into one another, all of them overlap and intertwine and jostle for position.

*****

If ever we were emotional about money, I find that we are that much more reactive about the lack of it. And our neighbor's lack of it. And his neighbor's lack of it. Because no matter what politics you vote, no matter what religions you preach or practice, social inequality and ills touch us all. And it roots deeply, for some more deeply than others, for some more personally than others. 

There's what seems to be need to stifle compassion lest it be construed as weakness(?) in many reactions particularly for those who haven't experienced it; someone else's poverty is to be mocked lest it taint, spread or corrupt.  Judge lest ye be included, I suppose. It is a fact that in the greater picture, the existence of poorness affects us all. It could be you, there, one whisper says. It'd better not be, roars another voice, I work hard, I don't deserve that! It's another version of "there but for the grace of God go I." It's another version of "Get away from me." And so on.

And it could be your sister, your brother, your parents, your son, your daughter, your grandparents. Your friends, your cousins, your aunts or uncles. It could be anyone you know and love. And for every single one of those people who might be poor, we can search to find reasons why. Why this one succeeded and why that one did not, and eventually you may find patterns. There are, in fact, statistics and patterns - I've seen them, anecdotally, but I can't for the life of me see how to put them together and draw a good analysis from which we can do better.

There's also resentment, resentment that we work hard and have to keep doing so while others who are less well off are being helped along. Therein lies judgment. Therein lies the willingness to lay blame at others' doors whether or not it makes sense. I've been guilty of this a time or two with my brother. I sincerely doubt that his newly bloomed mental issues were always the cause of his behaviors in the past and it's still hard to move past that to a place where I can unreservedly do what I need to do. But that's hardly productive and doesn't get at the real issue. He needs help and with boundaries, I am capable of rendering basic assistance. It's always easier said than done. But that's the bottom line.

If there's a complicated question to be asked - why him? Why not me?  He was born with a myriad of talent, I, very very little. And raised in the same household with the same parents with the same educational benefits, except his was actually a little better. He had every bit as much privilege as I and yet here we are. 

*****

But the story, my friends, the story isn't over until it's over. Deep in the fabric of this country, in its soul, is the foundational Horatio Alger archetype that we can all bootstrap our way from rags to riches will-he, nill-he, the American Dream, the dream that we can all one day become successful - whatever that means.

That too, drives much of the emotion and expectation, by the way. Why can't you lift yourself up from the ashes? Well, sometimes, coming from someone who barely believes this in her own life but knows it really is true: sometimes you can't. And you certainly can't do it alone.

I do wholeheartedly know this: It's sheer folly and hubris to believe we exist in a vacuum and can succeed and achieve wholly on our own. There is an enormous amount of effort and blood, sweat and tears that has to come from you when clawing your way up. But alone?  Unlikely to the extreme.

Before there were helping hands, there were free internet forums and smart people setting up systems to make an extra dollar and sharing resources. Before there were scholarships, there were libraries with free books to borrow. Before there were blogger-friends, there were real friends who stood staunch in the breaches and supported me even when there was no personal gain or experience of what I was going through. Before I graduated college, there was at least a thousand hours of overtime. I had to do just about everything with my own hands, my own brain and my own breath and I had to sacrifice a lot to get there. But I had the support of a few good friends whether or no it made sense to them and I had one heck of a lot of resources provided by other people. There's no way I'd ever say I did it all by myself.

*****

People come here, my people came here, to live, to thrive, to make lives worth living. Not to fall to the depradations of political strife, corrupt government, grubbing out a living from the riverside or out in the jungle. Instead they faced a new world and its urban challenges of prejudice, language barriers, drugs, a corporate world rife with sheathed-claw politics, business conducted fairly or unfairly as the tempers befit the owners.

Should they be sketched, though, I suspect that the patterns of poverty would fall out similarly even accounting for personal choice and individual deviations. There are enough patterns over the generations that even my untrained eye can note them.

*****
Excerpts from what John Scalzi said:
Being poor is knowing you work as hard as anyone, anywhere.
Being poor is people surprised to discover you’re not actually stupid.
Being poor is people surprised to discover you’re not actually lazy.
Being poor is a six-hour wait in an emergency room with a sick child asleep on your lap.
Being poor is never buying anything someone else hasn’t bought first.
Being poor is knowing you’re being judged.
I could keep going down that list, nodding, but the even more compelling parts are the comments. This set, John's response to a (particularly, I thought, smug and righteous) comment, and the bolded bit is my emphasis, that was in no way reflective of the tone of the thread sums up much of why I'm going on about this:
Kathy Shaidle writes:
“Instead of posting a semi-romanticized, heart-wrenching litany of the things poor people have to put up with when they’re too lazy and/or dumb to get their acts together like we did, why not write another post telling poor people how you went from poor to not-poor.”

Ms. Shaidle, as you may or may not know, I live in a small Ohio town, most of whose inhabitants can be described as the rural poor: They work on farms and they work as blue collar workers. Many of them are poor, because as I’m sure you know farming and rural blue collar work doesn’t pay particularly well.
Very few of these rural poor are lazy, Ms. Shaidle. In fact, they work as hard or harder than anyone I know. And while many of them are uneducated, uneducated is not the same as stupid. In all, these are good, honest, hard-working people. Perhaps you are comfortable classifying them, and other hard-working poor, as “too lazy and/or dumb to get their acts together.” I am not.
Conversely, I’ve worked in high-tech and publishing for much of my life, and as a consequence I’ve known lots of middle and upper class folk. Some of them are quite lazy and/or stupid — so many, in fact, that I am quite comfortable making the observation that dumb and lazy can’t possibly be the deciding factors in who is poor and who is not in this country, because if they were, I wouldn’t be stuck in a three-hour meeting with this idiotic schmuck who is about to dump all his work on me so he can get out to the golf course.
I think it’s a problem that people assume that all the poor are either dumb or lazy, because it’s false, and because it allows the not-poor to go, oh well, they had their chance, and they didn’t do anything with it. As I mentioned before earlier in the thread, lots of poor people are doing everything right to improve their situation, but they don’t have any wiggle room when things go wrong.
The fact that people seem so willing to write off the poor as dumb and lazy is of course why I wrote in the original essay:
Being poor is people surprised to discover you’re not actually stupid.
Being poor is people surprised to discover you’re not actually lazy.
“Much more helpful than all the guilty white liberal, pseudo-Russell Banks stuff, what?”
I don’t feel in the slightest bit guilty, and I’ve never read Russel Banks. Also, Ms. Shaidle, I write what I choose. Maybe at some point I will write a “how I did it” piece. However, at this particular moment in time, for various reasons, I think it’s helpful to note to the comfortable what the experience of being poor is, because oddly enough, sometimes it seems like they don’t understand it well, even some of them who have come up from it.
*****

I've been there. I'm still there, in my head. My parents were there. For periods in their lives, separately and together, they experienced a poorness the likes of which most, average, middle and upper-class Americans simply do not know. But the fact they had experienced a poorness even more staggeringly numbing, or at least my mom did, the period in the later years was easy by comparison.  Physically, anyway. That's the one thing you can really count on with poverty. Once the grit works under your skin, some bits of it will always stay.

I know people judge. I know they assume. I hear it all the time. And there comes a time hearing shallow judgements, suggestions and assumptions leads to cutting off conversation about it completely which isn't productive, but it is protective. Appearances to the contrary, I'm no naive child who doesn't understand finances, the market economy or the basic idea that you get a job and hold it to make money to support a household.  I'm experienced enough to know that in the game of life, whether there is margin for error or not, errors will happen and having zero margin (we call it cash flow, an emergency fund, or cash cushion) is just one part of the inexorable slide into debt and poverty. So to all the people who said, "Why doesn't your dad just get a job as ..." while he was taking care of Mom ....That was not the problem. It was one of many problems. But it was a solution in the morass of problems I was dealing with.

In this newly married life, I'm having to relearn how to open these conversational paths, slowly and painfully, pointing out the complexity of the issues to PiC because he's never lived this life and frankly, I've guarded that side of my life from those in my life who had never experienced deprivation in their lives. And while explaining the situation that developed with my brother, I also had to explain county benefits and welfare, shadowed with the embarrassment of "this is life when you're poor." Bad enough poor, bad enough mental issues, we had to go and combine them.

Those nerves of mine had been exposed this holiday weekend as I visited home and caught the tail end of my brother storming at some dentist's office over their treatment and I don't know what. He muttered, stomped and threatened to call the corporate office.

What corporate office? You're poor. You have no money, no insurance, so you're using a county facility where the dental care has been notoriously poor, negligent even, and that's the normal state of affairs there. Do you think they care? Because I could tell you they really don't.

But there's no telling him. He knows what he knows and when he's waving his Sword of Righteousness there's no telling him anything. Then he comes to me. Do I know what dentist he can go to? Do I know the number he can call? Because he was given a "fake" number to their "corporate office." Because clearly I still live around here and can fix everything after he's gone up a tree again, as usual.

I was silent. He maundered off after a minute.

See that? See the blaming? It's still incredibly hard for me to let go of the rage he elicits by continuing in remarkably familiar behavioral patterns even with the revelatory knowledge that he's not in his right mind, probably.

But it's also incredibly hard for me to choose to suit up and get back into the cycle of poverty that he lives in because there's so little I can do to break it. It's going to be the county dentist unless I come up with cash, and a lot of it, to pay for his dental work. And then will he take care of his teeth? I don't know. And will that prevent any accidents or just regular degeneration that happens even when you do take care of them? No. And will I then come up with more cash when he next needs it? How long can I keep that up?  And what other medical issues can I support? 
 
Knowing I'm going to fight an endless fight is draining before it even begins, and I'm not one to back down from any fight. I suspect that may be part of our society's problem in learning how to deal with it. Because there's no simple answer, because there's no secret plan to fight poverty, because we can't list ten action items and know that there's a light at the end of the tunnel, it's debilitating and it's distracting.  

*****
I had a conversation with someone who's been a second mother to me. He'd gone to their house and had a meltdown. At first I wanted to be furious that he exposed us that way but then I just breathed deeply.  There's absolutely nothing I can do about it. And I'm going to have to accept that this is the state of affairs. So we had a conversation. She's convinced that he's fried his brain on drugs. She'd had some professional experience in the area so I couldn't say she was wrong; I haven't been there, I literally couldn't say what happened. She's the staunchest conservative thinker I know, but even she agrees I should try to get him into therapy when I am able to deal with it.

That takes us back to the boundaries and the limits. He is my brother but I, too, have to do as much as I can and no more than is sensible for our lives.  And because he's poor, because we're not rich or well off, because he's legally an adult and because I can not push my new family to the brink to provide for him, I don't think there's going to be very much I can do. At least, not to my satisfaction or socially acceptable conclusion, anyway. By which I mean, somehow get him to be in therapy, on whatever medication he may require if any, and working to support himself, out of the house, on his own.  He is going to have to be some combination of those things, but I can't hold my breath that he's going to become a fine upstanding citizen any time soon.

Having to discuss this openly, in real life, made me realize - there really has to be a way to have these conversations with less shame and less blaming. There has to be a way we can productively find big or small solutions with some heft behind them. Certainly this situation as an example is complicated with the mental illness muddying the waters, but when do they ever run clear?  Poverty encompasses this and many other encumbrances that could be managed tolerably in some circumstances, so while I haven't got the answers, I do think it makes sense to embrace the complexity in the conversation.

This post was included in the Carnival of Personal Finance: Australia Edition.
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Mid-month Progress: Pre-Christmas panic, family stuff, coping mechanisms

Monday, December 19, 2011 Posted by Revanche 4 comments
I'm still working on this deceptively short but ridiculously time-consuming list of things to do to save money for the household.  And I've added several items.  Lists make life seem more manageable. Until you have lists of lists, at which point the system starts to break down.

1. Benefits seemed easy but it's spawned more paperwork for life insurance purposes.  I say thee, tomorrow. I shall complete the last bits tomorrow. Or at least make the next sets of phone calls to finish the last bits tomorrow. 

2. Auto and property insurance research was utterly demoralizing. ie: took hours and was still nigh-on impossible to nail down a good comparison. 

3. The mortgage stuff we're getting a start on but we're not at the point of dealing with the actual refi. 

4. I've been madly dashing around at work trying to get everything to the right point for the upcoming new year and battling madly but quietly for my next step.

So .... 

Check! I have finally wrapped five gifts purchased earlier in the year.  But we're still down at least five gifts. Yeeks!
Check! PiC blew our gift budget on ME. It wasn't the classic (stupid) car commercial but it was a big gift I wasn't expecting.
_____  And has been mum on the subject of his family's gifts so they really may be getting socks. [see, blew our budget]
_____ We're traveling a little for the holidays and then hosting a full house for a few days so we're double whammy on the stress of preparations.
_____ I still haven't planned anything for our anniversary. He wanted to do something special for our 1-year engagement anniversary.

_____ And I'm working on Holiday Gifts for the Office, as blogged over on the Carnival site.

Check! Mission: Find Non-denominational Seasonal Cards was accomplished, though! I triumphed in the face of great mobs and traffic. *shudder* I had forgotten the state of any mall and parking lot in the end of December, since all the shopping's been online lately.

That's not terrible, eh? How's everyone else doing out there?

Barnes taking over Borders' customer lists: Will you opt out?

Thursday, December 08, 2011 Posted by Revanche 3 comments
(This post is going up a little late.) 

This is a first.

I received an email, as you might have if you were part of the Borders Rewards program, from Barnes and Noble informing me of the acquisition of Borders property in the liquidation which included "Borders brand trademarks and their customer list."

I have no idea what they intend to do with the trademarks but they wanted that customer list for obvious reasons.

Our intent in buying the Borders customer list is simply to try and earn your business. The majority of our stores are within close proximity to former Borders store locations, and for those that aren't, we offer our award- winning NOOK™ digital reading devices that provide a bookstore in your pocket. We are readers like you, and hope that through our stores, NOOK devices, and our bn.com online bookstore we can win your trust and provide you with a place to read and shop.

I don't know about you but my first skim/misreading of that paragraph completely had me thinking they were offering Nooks as bribes for us to not opt out. Wishful thinking.

How do you feel about being passed over, with your full knowledge, as a customer from one store to another? Do you expect Barnes to earn your business all over again or are you already a customer?  Would you expect them to start from ground zero if not?
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Married Life: Mortgage Prepayment for Refinancing

Monday, December 05, 2011 Posted by Revanche 6 comments
With just about all savings interest rates in the tank, PiC and I have agreed that without waiting for me to further flesh out our annual budget for 2012, his next expired CD will go into a large prepayment toward the mortgage.

It isn't the amount we need to get us at the right loan to value ratio for a refinance but it will be a substantial step in the right direction, and there's no reason not to start this process. This is our primary residence, and the interest rate is nearly 5% while savings rates are barely hovering around 1%.

Even if we wanted to move out and turn this place into a rental, the current total mortgage and HOA costs are too high in comparison to market rental rates for the same sort of housing for us to break even in this economic environment. Between bringing down the total loan cost a significant amount and locking in a much lower interest rate, I think we could ultimately save approximately 40% of the current mortgage.  That's no small beans in cash flow and would make it easier for us to take any kind of rental situation risk.

I plan to sock that saved cash away again because I'm pathological like that. ;)

Actually, there's a good reason - we would just have put something like $65,000 cash into the process. That's my current estimate of the cash cost. We should be able to swing it if we put together our savings, prioritized carefully and set aside a new emergency fund. The huge cash defusion will still give me indigestion, committing that much cash when I'm still worrying about my next job-related moves is worrisome, but I do think it makes sense overall.

As for allocations: while that increased cash flow needs to replenish our savings because it will have been much decreased and that makes me nervy, we still have to set aside money for mid-sized savings goals for 2013 as well.  That's yet another reason it would make sense to let loose the cash bomb, we'd only be limited to looking for ways to increase income to fund any expenses for the upcoming year that can't be carved out of this year's budget. I'm a fan of planning a year in advance to break down the savings necessary for really big bills like property taxes, travel, and that sort of thing.

I feel like I'd better hurry up and make all the changes we need to, I'm running out of steam already!

:: Is this normal to feel so responsible for stuff this early on? Was the first of married life this hectic for anyone else? 
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Married Life: Benefits

Friday, December 02, 2011 Posted by Revanche 5 comments
With everything going on, it took two and a half weeks into married life to even look at the benefits. Ree-diculous. I'm normally obsessive about benefits but even I am now thinking 30 days post wedding is simply  not enough time to deal with those changes.  Still, we managed to wade through the majority of the issues.

I've been added to his full benefits package - Medical, Dental, Vision - and am retaining my own FSA. I was rather on the fence about that one - does it make more financial sense in terms of tax breaks for me to have the tax benefit, him, or does it come out in the wash since we should probably file together?  I hadn't a minute to do any tax estimates for the purpose of estimating how we should file so I just had to let that go for now.

A few things are still left to be done. 

Because my additions to his benefits were made during his open enrollment period, his company won't activate my benefits until the new year.  Lovely.

Meanwhile, it turns out that I cannot, because of the way my benefits are structured, retain just my Dental and Vision with him as a dependent so that we have secondary coverary while dropping the Medical that I'm paying for.  So I will have to drop all my benefits.

{Break for a moment of spazzing: Even though I'll still be fully covered, that makes me feel naked. I haven't not had my own full coverage since I was 17.  Seriously. This is insecurity "I'm a dependent-what??" territory.}

I will now focus on the fact that I am exceedingly grateful to have the choice between two decent insurance plans that we can afford, even though his is more expensive, because there are too many people who can't afford insurance at all including my own family. {That's why the reaction, actually - I've always worked past the point of breaking to make sure I'd have coverage.  Now we're dependent solely on his job to provide.  Dependent. *breathe*}

You will note that while I may fully intend to make rational decisions, I still have emotions about my money.

Estimated cost: Increases in monthly premiums of approximately 20% overall, but coverage will be more extensive for routine procedures. 

One example: I'm expecting a slew of dental work to the tune of $1000+, and after the deductible, my cost was going estimated to be $388 on my own plan with a $100 deductible and an 80% basics coverage.

PiC's has a lower deductible ($50) and covers 90% of basic treatment.  While we're paying $8 more/month for that premium dental plan, I'm clearly going to be saving at least that $100 difference right off the bat with this single treatment between the deductible and the extra 10% coverage.

Next up: When my coverage starts with PiC, I have to cancel my own benefits using the Life Status Change for Reason of "Insurance Coverage Changes". I didn't even remember that was one of the options under qualifying life event/doesn't have to wait for open enrollment to change your plan!  Learn something new.

We also increased our life insurance to more adequate amounts based on our new financial obligations and added each other as beneficiaries. That was weird. But necessary. I wouldn't be able to carry this mortgage plus all the other finances without extra help and both PiC and my dad would need some financial assistance if I were bumped off.

That means filling out more paperwork this weekend and once again at the start of the year.  After that, we should be in good shape until the next open enrollment period!  *whew*

So much for simple, huh?
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