Reader Mail: Starting and Sticking to a Budget

I live with my awesome, wonderful boyfriend who just found out that his awesome, wonderful full-time job that he loves has been downsized to part-time. Thankfully, our rent is pretty cheap (LES, represent!) and my job is stable (fingers crossed, amirite!?), but neither of us has much in the way of savings. Right now, his main concern is not to burden me while he’s “underemployed,” but I think this is a great opportunity for both of us to become more financially responsible. Unfortunately, creating a household budget seems like a daunting task to me. Any advice on making one (and sticking to it)? — V.K.

I get budgeting. It’s great, and I do it. But what percentage of your income are you supposed to spend on rent/food/commuting/bills/booze benders each month? I need some sort of benchmark because I know how much I spend, but I need to know if that’s okay. For example, I live in London where rent is outrageously high, but I don’t know if what I’m paying is above average, or just normal, relatively speaking. Do I need to feel guilty about that £45 weekday dinner out? Or can I relax a little. When I was growing up we never had much money, and I’ve had little to no money education. These days I’m making my own cash and it’s great and everything but I just don’t really have a measure on what is the done thing. — D.B.

So … any budgeting suggestions? I’ve taken a few different tacks but it feels like it’s never enough to get me on really solid footing. What I would like is to have a clearly outlined budget where I’m never scrambling to cover my ass. Which sounds like it should be easy considering I don’t even pay rent! — A.P.

I’ve been getting lots of questions lately asking me for tips on how to create—and stick—to a budget (in fact, I just got another one five minutes ago—hello Kathy!), and I’m going to tell you something that may sound surprising: I don’t use a budget. Some people need to have a budget to remain responsible with their money, while others find budgets to be too restrictive for their individual needs. I’m one of those people who find budgets too restrictive.  READ MORE

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Banker Happy to No Longer Be a Banker

Banking is fucking brutal. I knew this after my internship, but I didn’t care. I wanted money. I wanted respect. I wanted to be a somebody in the eyes of myself and others. But most of all, I wanted money. Why? Because money is freedom. Money means I can wear what I want, live where I want, go where I want, eat what I want, be who I want. Money would make me happy. Right? Well… not exactly I’m afraid. In fact, money didn’t seem to make any of the bankers happy. Not one person in the roughly 200 I got to know in banking were happy. Yet all earned multiples of the national average salary.

—Stephen Ridley was a young i-banker in London, and he was miserable. He quit one day and became a musician, which I’m sure you can learn all about in the movie that will come out in two-to-four years, but for now, you should read this essay he wrote on the website Wall Street Oasis (lol) about why he quit. Turns out banking wasn’t that fun.

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How Dream Jobs Get Lost (Ratings, Is How)

Here is some sadder news to start the week. On Friday evening, Lennon Parham tweeted, “BFF Fans: Wanted to let you know that our show is being taken off the air until the summer. Hoping to post ep 5 & 6 online asap. We love u.” To which, Jessica St. Clair added, “BFF fans: @lennonparham and I are so in love with each and every one of u – your support of the show means so much to us. #IamaBFFbeliever.”  READ MORE

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Department of Health Commissioner Thomas Farley is considering banning happy hours in New York City. I … can’t … even. What’s he planning on next? Permanently blocking out the sun with a giant disk?

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My Last Hundred Bucks: Brunch, Bacon, and a Busker

$100! It is a lot of money, and yet, it is also not a lot of money at all. Where did your last hundred bucks go, Miranda Popkey?

$14: Pack of Parliament Lights and a small, red lighter at a bodega: I don’t self-identify as a smoker, which means that I am that irritating person constantly bumming cigarettes from friends. Occasionally I’ll be overwhelmed by guilt about this and buy a pack, which I then mostly give away, in the spirit of karmic balance. And then sometimes I’m a little tipsy and I’m with a friend who doesn’t smoke and buying cigarettes suddenly becomes totally essential to my quality of life.

$15.60: Late brunch with a friend at Brooklyn Buschenschank in Carroll Garden; I ate an entire pizza and drank a Bloody Mary.

$9: Jameson on the rocks at the Ear Inn after a friend’s art opening. There was semi-secret beer at the opening, but no snacks, which shouldn’t have surprised me.  READ MORE

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How to Play the Airline Miles Game

I am a 30-year-old woman with an arts degree and some geographic commitment issues, so for much of my adult life, I’ve been in situations where I’ve earned unimpressive amounts of money, but have needed (or wanted) to fly to places semi-regularly. As a result, I’ve become a sort of unabashed, salivating fangirl for airline miles, and something of an expert when it comes to accumulating them. I offer here a primer on how you might join me in this rewarding hobby.

Not to be a scold right off the bat, but this method involves credit cards, so it may not be for everyone. You’ll need to have good credit, and pretty high levels of self-discipline for it to work right. If you’re the type who sees access to credit as an invitation to spend recklessly, I’m sorry, but this is not for you. You know that show on TLC about “Extreme Couponing” that is both inspiring and repulsive and you don’t know whether to pity the couponers or to cheer them on? This advice is going to be kind of like that, but for airline miles, so if you’re squeamish, don’t read any further.  READ MORE

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Talking to Our Kids About Money

The National Financial Educators Council is using “strong imagery” in their new PSA “to motivate parents to take positive action, action that will prove critical to their children’s futures.”

Mike: Did your folks ever have a “talk” with you while you were growing up? Like, “We’re going to sit down and talk about money.”

Logan: No.

Mike: Mine didn’t either! But it had to have come up in other ways.

Logan: But I never had a talk about sex either. We weren’t that kind of family. Things just kind of came up naturally.  READ MORE

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We Are Disillusioned, Frustrated, Angry Cynics (Yes, True)

Former Secretary of Labor Robert Reich has a new ebook out—Beyond Outrage: What has gone wrong with our economy and our democracy, and how to fix themand he took to Reddit to answer some questions about it, and anything. His responses make for a good cheat sheet to The Issues of the Day. Some highlights:

On where we are at this moment exactly:

I think we’re approaching the tipping point. The real problem is cynicism. Most people know the system isn’t working right, that it’s tilted in favor of people with lots of wealth and power. But they don’t believe anything can be done to change the system. It’s the when cynicism turns to hope — fueled by outrage — that social change occurs.
I worry that so many Americans have become so disillusioned, frustrated, and angry — they feel they’ve done everything they were supposed to do yet are falling further and further behind — that they’re easy pickings for demagogues (on the right or the left) offering easy solutions and ready scapegoats (immigrants, public employees, unionized workers, foreigners, the poor, the rich, etc.)

READ MORE

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Lindsay Lohan’s Confrontation with Class

Lindsay Lohan was at the White House Correspondents Dinner (of course she was, why wouldn’t she be), and Cindy Adams had this to report:

Lindsay disappeared a few times into the john. For a cigarette. Said she doesn’t usually smoke but is boning up on it to prep for her Elizabeth Taylor role. In the ladies room an elderly Hispanic named Bianca was cleaning the stalls. Tearing up, the front-paged blond actress felon said: “You’re too old to be doing this.”

She reached into her purse, crumpled a $100 bill in her hand and gave it to the attendant, who, backing away, said, “No, no, no.” Lindsay Lohan pushed the money at her with: “You’re too old to be doing this kind of work.” Bianca finally took it.

Okay, first: “An elderly Hispanic?” Jesus Christ, Cindy Adams (“an elderly white named Cindy Adams”). And Lohan: You don’t know a thing about Bianca or her circumstances, and to assume you do and that she’s to be pitied is gross. Don’t project your shit on other people, and don’t weep at someone because they have a job. Pity isn’t a good look on anyone. The tip was fine. The hysterics, not.

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How To Furnish an Apartment for $0

1. Get a roommate. Make sure your roommate comes with a loveseat, a kitchen table, a coffee table, and one chair that she found in a dumpster.

2. Have a friend who’s about to get married. Take her soon-to-be husband’s old twin bed. He doesn’t need it anymore.

3. Find a reasonably priced dresser on Craigslist. Find out too late that the owner had to be out of the apartment by noon and left it on the back staircase for you. Look everywhere for it; finally ask a man in a blue jumpsuit eating a sandwich in the courtyard if he’s seen it. He appears to be some kind of waste management worker. “A white dresser?” he asks in heavily accented English. “We smashed it.” He points to the dumpster. Do not pay the owner.  READ MORE

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