Archive for the ‘consumerism’ Category

Bada bing, bada boom

May 15, 2008

One definition is “this “expression” can be used like the word “voila” —-> something is finished or completed…”

I’m not quite up to snowflaking yet….but I’m back on track ready to make things happen.

What can I commit to today? Here’s my list for Thursday:

1.) Pack my lunch
— I bought turkey and cheese and will pack a sandwich, an apple and a granola bar. I will try to enjoy it. No promises there.

2.) Drink free coffee
— No fancy lattes for me. The institutional free coffee or the good stuff at home. That’s it.

3.) Pay my bills tomorrow (payday)
— Some of the bills may not be due until the end of the month but I’ll aim to pay as many tomorrow to avoid late fees which I’ve been stung for due to the LONG period of time in which it takes epayments to clear (Don’t get me started on that one!). Another benefit of paying bills on payday is to keep up my financial awareness. Don’t want to think I have more money than I do…

4.) Return my library books!

That’s it for Thursday. If I do more, great. If not, this is enough.

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Pissing On American Express, or, Hot Air into Action

August 31, 2007

The hair that broke.
Oh, I meant pissing off. So sorry. Do I sound angry, bitter, resentful? I am and have been all those things, but the overriding mood is one of sweet, unalloyed triumph. As I mentioned early in August, American Express really pissed us off. I don’t know why. We should really not be so naive. They simply pulled the old bait and switch tactic, 0% followed by two late payments and then whack! 30%. Will we ever learn?! So I wrote of drastic measures. I even mentioned Thunderbirds.

Napalm for debt. Napalm for Chase. Napalm for Amex.
In any case, we converted some of this hot air into some active warfare. We liquidated an asset. We are sad about this. This was not part of the dream. But, as John Lennon sang, the dream is over, time to move on.

Recent payments, made August 3o:

United Mileage: $3207.32

Chase/ Amazon: $5999.24

American Express: $15,770.15

I am ecstatic that we have the resources to do this. Amazingly, we still have a couple grand of debt. But the bulk is paid off. I’m delighted that we didn’t take out a home loan thereby prolonging, and multiplying our debt for 30 years.

Not doing it again!
Now the trick is not getting back into a debt that even remotely resembles this morass. Since canceling credit cards hurts your credit rating we are pondering what do with the couple we won’t ever use again. I said never. Shame on me. Freezing them is not enough. How about preserving them in plexiglass? Or amber, maybe. Another idea is cutting them up and burying them in the back yard. Admittedly, these solutions are more based in poetic justice than any real contingency.

The morass.
This last bit about not doing it again is very serious. We still want to maintain a credit card for airline fares, that sort of thing. But we really need to get into a mindset where that card is literally frozen, is treated like a hand grenade, is kept under lock-and-key, sort of like a firearm that you wouldn’t want your kids to get their hands on. This will be the challenge. I’m hoping we’ll be more than up to it.

The addiction model — a little psychology.
I think debt is a little like addiction. It is, after all, largely a result of compulsive behavior. It creeps up on you. Little mindless impulse purchases, CDs, video rentals, trips to Vegas and then — kablooey — $20,000 in the hole. (I realize this scenario is not as common as some people would like us to believe, thus normalizing large debts. But it is fairly common, nevertheless.) So back to the addiction model. In Alcoholics Anonymous addiction is viewed as a disease. On a charitable day I view this as wrong-headed, perhaps even dangerous.

Biological determinism.
I am familiar with the brain science. Much of it is compelling. But I’m still not convinced that it fits the disease model. And as with much biological deterministic thinking there is the chicken-egg problem. What causes these mechanisms in the brain to activate? Another side to the disease model is that there is a high genetic component to alcoholism. This is undeniably true. But why is it that some become alcoholics and others don’t? What is the mechanism that activates the gene? My point is: We are not doomed to fulfill all the scenarios scripted in our genes. This makes for hopelessness and a willingness to shirk off responsibility.

Behavior.
In Marlatt’s relapse model relapse (in our case, think Doctor Debt shows up at the doorstep, “Damn, you again?”), relapse is viewed as inevitable. This is not fatalistic. It is just viewed as part of a process. Relapse is part of the process. It is not looked upon as being shameful. When it is viewed in this way, it is easier to pick oneself up and get back on track (hey, two cliches in a row!). You are not a failure! Your life is not over. You can be debt-free again. One does not have to return as a newbie and start all over again. Time and again I’ve heard from relapsed AA members that this can be a very shameful, even shaming experience. When relapse is a process it is treated matter-of-factly. And it is dealt with accordingly.

Making it official.
Once the transactions clear I’ll update our debt meter. But I want it to be all, like, official.

A Debt Reduction Carnival

August 6, 2007

Our First Carnival.
Warning: Many exclamatory statements ahead. I guess we’re just excited, excited, excited about hosting our first ever debt reduction carnival. It certainly has been inspirational to be a part of the debt reduction community, really.

Would You Consider Helping Another PF Blogger?
We’ve learned a lot. So, sit back and click. Would you mind? The pf community is a great place for otherwise scarce information about debt reduction. Pf bloggers are making a public commitment to debt reduction — a powerful motivator. Perhaps you will post something to the next carnival, respond in kind? Since you’re reading this, it only makes sense.

[If the previous paragraph reads like utter dross — please pardon, there’s a reason, to be explained in a later post about marketing that exploits our deepest, largely unconscious needs. Look for it on Wednesday, most likely.]

For the record, these are in absolutely no particular order! Enjoy.

Two Investment Mistakes:
I’m partial to this post, perhaps because it looks into two mindsets, cognitive rules of thumb, heuristics, that can get us into trouble when investing. That’s psychology folks. So read on… It’s hard not to want to spur someone on that has just started a pf blog, whatever the focus — debt reduction, money management, frugality, investment. Check it out!

Building A Better Snowball:
Is it possible to resist such a title. This is an awesome post. If you haven’t read it yet, get thee to consumerism commentary and check it out. It’s got Pink Floyd, it’s got a killer financial plan for getting out of debt, it’s got a credit reduction calculator, did I mention it’s got a plan. For my money, setting up the emergency fund is key, this message cannot be crowed off the rooftops enough. Check it out!

When You Put Your Mind to It:
Clever Dude is not kidding. He shares his method for destroying $58,000 in debt. There’s hints galore for even the most world-weary debt gladiator. One of my favorites is “We Fix Things Ourselves.” It doesn’t take much — not that I’ve done it — to change the oil in your car, does it? Check it out!

Free Credit Reports, A Cornucopia:
Hustlerama offers no less than 15 ways to get a free credit report. Not that I’ve actually ever done this, but this could be the inspiration that finally puts me over the edge. I’m actually kind of worried that some of our behavior has led to some nasty credit comments. Maybe not. An important step in reducing debt: Know where you are, financially. (And for the not-faint-of-heart, scroll down about halfway down his homepage and look in the left gutter — something to roil the emotions of any debt reductionist.) Check it out!

Alternate Income Streams:
I’ve ventured into this area, but think it is underutilized. An occasional CD sold on amazon has bought me the occasional lunch. At businesscreditcards, the focus is New Media Ways to Raise Capital. Some tips you’ve probably not considered. If you’ve got a little time, these could really pay off! Check it out.

David On Finance:
Has got some well considered thoughts on when to consolidate debt. He also uses the phrase “raw power”, which I think is highly under-used in the pf world. If it was good enough for Iggy… David makes some excellent points about credit unions (not always…) and extra payments (ah, the power!). Check it out!

Grad Money Matters:
He calls them myths. I call them heuristics, cognitive shortcuts, rules of thumb. Well, some of them, anyway. There’s a goldmine of good advices and links here. I particularly like what he’s done with the I’ll-never-get-out-of-debt-so-I’ll-give-up mindset. Check it out!

Mighty Bargain Hunter, Putting Things in Perspective:
This is a refreshing post that puts a little forest into the viewfinder (rather than trees). Your debt needs the context of your life. Not other people’s lives. An important thing to be reminded of, that. Check it out!

Sex for $3:
Can you beat that for a deal? Another whale of a post from one of the funniest bloggers around. If you’re not conversant with the ways of Bianca and Basil, you’re in for a treat. Check it out!

OOPS: It appears that the Bizarros have “scrapped” their blog. I’m not sure what this means, but hope it’s temporary. The link may not work. Sorry.

A Book Review. Now I Want to Read This Book.
Books are invaluable motivators for re-focusing. Get it at the library or one of those great used books sites (I kick myself when I think of all the new books I’ve bought — used books are simply no longer the coffee-stained acid-ravaged items we encountered in less-than-savory warehouses.) And of course, Trish at blogging away debt is a certified maven of personal finance. Check it out!

Another Lie About Debt:
Here’s another perspective enhancing article. (Or a link to it.) In the circle of linking, I got this one from blogging away debt. I found it so interesting I broke my goal of having 10 links for this carnival. So now we have a nice prime number. Check it out!

Am I Really Ready to Get Out of Debt?
Okay. So Let’s Make It An Even Dozen. NCN submits some interesting points, ready starting points for self-inquiry. I particularly liked the one about being ready to withstand the opinions of others. Let’s face it, turning down lunch because you don’t want to spend money is awkward, in many circles. Check it out!

Comments?
We’ve enjoyed hosting this incarnation of the debt reduction carnival. If there was anything you particularly liked or disliked, we’d like to hear about it.

Failure to Post: Blog Avoidant

July 15, 2007

Noma has been asking me why I haven’t posted recently. Hmm…It’s true I have become a bit blog avoidant.

I think this is due in part to our recent set back with having had to dip into our emergency fund. And because I know we’ll have to dip into it again to pay for the termite tenting we have to do in the next couple of weeks/months (unscheduled so far). I’ve got my head down and my blog between my knees. Who am I to write about battling debt? Perhaps I can offer some schadenfreude to those who have avoided dipping into their emergency funds this month.

The optimist in me thinks these are small setbacks and that we are still in a better place than we were before because we are much more aware of our spending. This awareness, however, does, not in and of itself bring any feeling of progress. In fact I’ve noticed it makes me feel more anxious and lackluster about life. This is probably because I’m more aware of our situation and how impossible it feels to get ahead.

Feeling more lackluster about life because of my financial situation doesn’t make me feel proud. Why should any of us not enjoy what we have in the moment because of something we’ve done in the past (incur debt) or something we want to obtain in the future (a car, a remodelling project, a vacation, keeping up with the joneses)? How is it that our financial situation can dictate how we feel about life and ourselves to that degree?

How can we work on achieving financial goals without losing a sense of balance? Any tips from fellow debt bloggers would be appreciated.

Kinda like finding out the hardware store owner sells crack on the side.

June 27, 2007

I got a really good buzz off this one. Check it out, here at the consumerist. The above comment is a reaction big banks funding payday loan companies. I’m feeling kind of naive, reading the comments people posted. But this sickens me. I know there are credit unions in Southern California.

I’m going to look into the options.

National Debt — Boomer Legacy?

June 21, 2007

Recently in my listening this track has struck me as being somehow related to the frugalist mindset.

Papa’s faith is people
Mama she believes in cleaning
Papa’s faith is in people
Mama she’s always cleaning
Papa brought home the sugar
Mama taught me the deeper meaning

Thoughts about this?

Since I’m not a baby boomer, I won’t list the artist, but you can check out her extraordinary fan website here. It includes tons of cool stuff like all the alternate guitar tunings for her songs, full lyrics, art, etc. As fan sites go it is stunningly competent, thorough, and useful.

Speaking of boomers — Ken Wilber (shudder?) has an interesting book called Boomeritis. One of the premises is that boomers eat their young. Highly pertinent regarding parenting we’ve observed. The book itself might be okay if it was the first of his you’ve read, but otherwise is mind-numbingly repetitive. Still, the guy obviously knows a lot and has lots of interesting ideas. Beware of New Age sentiments. To be fair, he is as critical of New Age marketing as the next skeptic.

If you’re in a reading type of mood, have bent toward social commentary, I highly recommend this book by Christopher Lasch, The Culture of Narcissism. A lot of it relates directly to spending habits, consumerism, current trends in helicopter parenting (eternal hovering). I just did a search on this site. I am dumbfounded that I’ve not mentioned this before. Dumbfounded.

My dad (depression-era generation) driving in parking lot: “Okay, here we go.”
“What?”
“Look at this, crikey. It’s a very interesting phenomenon. The me-generation in action. Look at them.”
The couple in front of us are wandering through the parking lot in front of traffic, seemingly oblivious to their holding it up.
“It’s a fascinating phenomenon. Other people simply don’t exist!”

My dad is, as he likes to put it, “a trained social scientist.” So he does have a frame of reference in his observations. Not sure I’ve connected all the dots here. One thought is that when the baby boomers are gone, it’s possible that the cycle of debt slavery at the personal and national levels, if it hasn’t collapsed already, will begin to subside.

Another thought is that with the boomer parenting in evidence, living without limits and incurring debts as ways of being in the world are actually going to get worse. Bummer. Must think good thoughts!

10 Horrible Things You Don’t Want to Do In Grad School Because They Are Financial Suicide

May 5, 2007

1. pay for compact discs, meals, drinking binges on credit cards and be shocked when you wade through the pile of bills on your desk only to discover you’ve doubled your APR and incurred multiple late fees
2. eat out at restaurants, especially like almost always
3. maintain the same spending habits from when you had a job
4. take classes that you could probably test out of because you’re afraid you’ll miss out on some illusory ‘experience’
5. not have a budget, and not track your spending
6. take out unnecessary student loans
7. visit ATM machines like they dispense coca cola
8. not consolidate student loans before you graduate
9. worry about what you’re going to do after grad school, when you could be investigating options
10. viewing fellow students as horrible nuisances and thinking that you’ll network after you graduate

I’m embarrassed to say I was guilty of most of these. Now I am doing post-doctoral training in clinical psychology and eager to make some dough, liquidate some junk, kick this consumerism habit, get back in charge — you know? I have over $150,000 in student loans and roughly $50,000 credit card debt. Watch me get out of this…

I’ve been touched and inspired by the frugal debt reduction blogs.