Why bother with any financial planning when you don’t have any funds to… plan? While this line of logic isn’t entirely sound, I understand it entirely. It’s easy to see how it becomes reality if someone is stuck in debt quicksand, or has negligible savings or an unsustainable income. Toss in a couple of kids, maybe an illness, or a layoff, and forget it. Exhaustion usually wins out at that point.
It’s a relatable fact of life for many. Education was the “way out” in our house, valued above any other type of investment. Because there was no other option. I listened and put myself through school, graduating with 60k in student loans. Then I moved to Chicago with two suitcases, and $500 dollars to my name. No job lined up, no parental safety net. I shared a lilliputian studio apartment with a friend, sleeping on the floor because there wasn’t a couch to make a bed. At one point around this time, someone gave me Suze Orman’s Money Book for the Young Fabulous and Broke, which I read but didn’t manage to retain a lot of it. The entry-level design job I’d found by that point was paying me $12/hr, so I glossed over the non-applicable sections on 401ks (ha), buying a car (as if) or a house (not a chance). Suze’s mask-like perma-grin and aggressively popped collars didn’t help either.
Later, I did manage to set up 401k at another design agency job that offered a more respectable benefits package. However, it was for precisely 6 months. 2008 happened and it seemed like half the city got laid off, taking me with, and launching me into this life I have now. 6 months wasn’t long enough for the company to match the savings, so the modest sum was dispatched back to me and I had to pay taxes on it as income. Less than a return on investment.
These days though, after 5 years of self-employment as Pitch Design Union, it’s way more complicated than I could have expected. Still, every year gets a little better. Experience is everything, as is a good accountant. I still have debt, but it’s in a manageable place. There’s still so much more I need to be doing though, and I’ve been looking for ways to speed up this process. Lo and behold, the internet in all it’s wide and baffling awesomeness has many answers. (Spoiler alert.) At this point one of the tools that’s helping the most is NPR’s Marketplace Money show. Hearing people call in with questions is great because it makes me think of what my questions are. There’s always something new to think about that never would have occurred to me alone.
When I feel like reading the Billfold is my next step followed by Mr. Money Moustache. The Billfold’s series “How Do Other People Do Money” is great. It’s tag is simply: DOING MONEY which makes me laugh because all-caps blundering is pretty much what it feels like. Mr.Money definitely seems cheesy at first, but I swallowed that reaction when I saw that this guy was able to save enough money to retire at 30. Yes, he is a lunatic financial magician, but clearly this is a person who knows a thing or two about improving saving habits. Still looking for more, always. The Design Sponge Biz Ladies column might have some ideas, but not in their recent posts nor the first few search results. And since it’s 1 am I’m not about to click through years of archives. I’ve also found a number of resources that have a distinct bro-y vibe, or sound like a used car salesman. It’s hard to trust what they have to say. Have you found anything good lately? Send ‘em my way & I will put them in my newsletter. (If you’re new here, you can sign up here.)