The Recession is Over...So Why are All the Cheap Living Articles Still Out?

According to the National Bureau of Economic Research, the "Great Recession" has been over since June 2009. Hmmph. Wish they'd let everyone know. The NEBR warns that although the recession is over, the economy's sluggish metabolism is not going to speed up overnight. Well, ya think? Elementary, my dear NBER, elementary.

Actually, I think it's good that the economy recovers slowly. It'll give us more time to think about what happened and how we got there. It cheers me to see articles titled "Save with scratch-and-dent food", "Jackson-area residents revert to traditional ways to save money", and "Are you misplacing hundreds of dollars?". The more our population strives to stretch pennies in one area, the more individuals can free some up for important items like savings accounts, emergency accounts, and IRAs (all of which are usually considered "frivolous" in times of economic hardship).

When we realize our personal buying on credit has turned our debt-based economy into a bi-partisan mess, we can clean up our spending, start saving, and get educated on the politicians who want to represent us. So many of us vote for the here and now solutions without bothering to consider what impact they'll have on tomorrow. Let's force our politicians to offer us viable solutions that have a realistic look at tomorrow by only voting for those who are socially and environmentally responsible for today and tomorrow.

Additionally, let's get educated on where exactly all of our stuff comes from and what impact that has on us as Americans and as Earth-dwellers. For example, do you have any idea how your jumbo-sized chicken breast got to your table or why tons of inner-aisle grocery products have corn-based ingredients? How does our constant need for meat and sugar affect our economy, environment, and health? Watch Food, Inc. to get a few of these answers. Check out ShopResponsibly.org to see what you can do to be a more responsible shopper.

Finally, let's all live cheaply. What's wrong with frugality becoming a lifestyle instead of emergency habit? Proverbs 13: 7 says "One man pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth." I'd rather be the person pretending to be poor instead of actually being poor. Forgive me if that sounds callous, but it's true. There are very few people in this world who would chose to struggle financially.

Here are some cheap living ideas:

• Planting an herb, vegetable, and/or fruit garden in your backyard is one of the greenest things you can do that will pay for itself.
• Reuse or upcycle your stuff.
• Buy used stuff (especially cars-just do your research first).
• Be your own personal dishwasher.
• Line dry your clothing.
• Walk, run, or cycle in your neighborhood and buy some (used) weights to make your own at-home gym.
• Start a co-op for things you need: baby-sitting, meals, cleaning, etc. You'd be amazed what people will do to avoid paying for something they'd be doing for themselves anyway.
  

There are a ton of great options for being cheap and green.

Take the challenge: Find one thing you're willing to change in order to be more frugal and/or greener. Once that becomes a habit, find something else. Slow and steady makes for lasting change. Think about how your actions today impact tomorrow. That's change we can all believe in! ;)

-Domestic Goddess out.

Underwear for Christmas!

According to this article, WallyWorld is predicting we Americans will spend lots of money on toys for our kids but only buy each other underwear or some other "practical" item for Christmas. Wow. Apparently, this downturn in the economy has taught us to be practical only when it comes to inter-adult gift giving. Why should we use this difficult time to teach our kids to always be practical when it comes to gift giving-or to [buying] anything else, for that matter? Ugh.

Sure, I love getting gifts as much as any other Average Jane does. Who doesn't like unwrapping the surprise that may lay within? But in all honesty, once you watch Advent Conspiracy's video, you kind of have to reevaluate the whole idea of excessive giving at Christmas, regardless of your spiritual beliefs. Although Advent Conspiracy is a religious-based organization, it's easy to see the AC team is working to do great things for humanity in general.

If you're not the religious type, watch Annie Leonard's "The Story of Stuff" video. Reducing Christmas giving would have a huge impact on the state of the health of our Earth. Plus, once you realize how big companies are playing us for our money, you may not want to buy as much any more.

As for me, I'm not going to completely give up gifts. I'm resolving to be a responsible gift-giver this Christmas. Check out this great idea from BeatingDebt.org called "Debt Free Christmas." You have the opportunity to volunteer for the organization by committing to celebrating the season without incurring any debt and then doing one of the following: organizing a personal debt education rally; placing educational signs around your workplace, housing area, school, etc.; providing convincing reasons to stay away from debt (e.g., via a blog); or giving up some of your gifts for charity.

I've decided to commit to staying debt free this season, and I'm going to blog about staying away from debt and ask people to donate to charities instead of giving me gifts. You may be surprised, though. Even though I asked for donations in my name instead of gifts last year, I still got gifts. Lots of them. It was a little discouraging, but I did get two family members to donate instead of buy me stuff. As time passes, I'm sure people will get used to not giving me things. It'll just take some time to break certain people (like my parents) of the habit. :)

And if someone does decide they absolutely have to buy me something, I'm going to ask for new underwear. Goodness knows, we can always put a new pair of those to good use!

-Domestic Goddess out.

Yet Another Diet? Not Quite!

Some of the ladies in the baby-sitting co-op on our (military) installation’s gym have started a weight loss challenge. We’re still not sure what the grand prize will be or even what the time frame is, but we’re dedicated to working out and improving our eating habits so we can look better on the outside. All this just before the holiday seasons-great timing!

Our first meeting and weigh in was this morning. As I stepped onto the scale, I went to that happy place that detaches my brain from the number flashing back at me...and that’s when I realized: there are other areas of my life that need some serious tweaking.

Although our family is debt-free (THANK GOD!!!), we still do our very best to be responsible consumers and to shop responsibly. If I’m a responsible shopper, why am I using my debit card almost every day of the week? Even though I’m pretty strict about not shopping on Sunday (to promote a day of rest and to give companies less profit, which is the only reason they’re open on Sundays), every other day of the week produces a gross amount of receipts.

I (finally) took over as the primary Quicken data input person early last month. As a result, I became all too well aware of how often I pull out my debit card. I produce at least thirteen receipts on my own in just one week! Ack! And that’s despite knowing exactly what my budgetary constraints are!!!

So, I’m going on a new type of diet. I’m going to dedicate two days a week as “no spending days.” Sunday is already taken care of, so I have to plan carefully on what the other day should be. I’m thinking Thursday is the other. I’m also aiming to “only “have twelve receipts: two gas receipts, three grocery receipts (we spread it out over three stores to maximize the cheapness), one medical receipt, and six miscellaneous.So far this week (read: today, Monday), I’ve already produced five receipts: one gasoline, one medical, one out to eat, and one class-related (I’m taking a cake decorating class and had to get some supplies), and one auto (annual inspection) We’ll see how this goes!

I figure this: if I’m controlling the amount of times I go out to buy something, I’m doing lots of good. First, it helps me stay in our family’s budget. Second, it reduces the amount of driving I do, which leads to all sorts of good things: less wear and tear on the car, less gasoline used, less nasties emitted into the atmosphere, less road rage (almost always a by-product of driving in the Northern Virginia area), and more time to actually hang out with the kids or do homemaker stuff. Third, it forces me to really think about whether I need something. Stopping to think about a purchase is an excellent way of staying within my financial diet.

Therefore, this little experiment (I’ll try it for a month) should do my family, the environment, and me lots of good. I’ll do my best to remember to update! Please support me or challenge yourself to do something similar!

-Domestic Goddess out.

Banking Costs-What?!

I am having another of my insomniac-type nights. They typically happen once or twice a month. I use the wee waking hours to goof off a little: I catch a show online or on Netflix's instant play, I read a really good book, or I mess around online. Tonight, I've been messing around online, and you know what? I didn't really find a whole lot I liked when I typed "frugal lifestyle", "frugal blog", or "green living" into the GoodSearch (selected charity: BeatingDebt.org) toolbar.

Then I remembered I needed to update some beneficiary information in my bank account, so I logged in, adjusted the information, and voila! It was done. As I explored my bank's website, I got curious about other banks, so I started doing bank searches to do a little side-by-side comparison. WOW.

Banking with the nation's "name brand banks" is an expensive venture! I couldn't believe how many fees some of these banks charge. It's ridiculous, and yet, I see lots of people whip out these banks' credit cards when I'm out shopping for groceries. Seriously, if you want to ease up on your wallet, find a small, local bank or credit union that offers all the bells and whistles of a big bank (e.g., great online services) without all the fees (start-up fees, checking fees, online bill paying fees, ATM fees).

Be smart and be willing to search around a little. My bank offers very low-interest rates on its credit cards (we have a debit card but use it as credit so we can collect the cash-back rewards), and it refunds us up to ten ATM transactions per month. Talk about customer support! It also offers free (albeit boring and uncool) checks and the ability to deposit checks by scanning and with a smartphone app.

Do your homework-it usually pays off in the end. Use your savings (and some discipline) to finally top off your emergency fund or to pay off outstanding debt. Make good use of that money you were losing previously. For good ideas on how to use your money well, check out BeatingDebt.org's Run Route. You'll be glad to get on the road to financial wellness!

-Domestic Goddess out.

Play Dates Aren't Just for Kids Anymore!

What are people really looking for when they want to “go out” with friends? A great experience? Check. Good food? Check. Nice atmosphere? Check. But can’t we do without those things just as easily and still have a fabulous time together?

I’ve been researching “things to do” for our family of five (three kids aged 3 and under), and the more I look for places to go in Northern Virginia, the more I realize that what my kids really want to do it play with other kids. When I look for adult-only activities, I realize all I really want is to enjoy my friends and husband.

The cheapest “thing to do” is simply to invite people over. Sure, we have to go out and find friends first (we are recent transplants to the area) at the park, church, or my eldest’s preschool, but once we get past the “I’m just making sure you and your kids aren’t really annoying or psycho” stage, the easiest thing is just to go over to each other’s house. It’s great for me because I don’t have to worry about paying an entrance fee or for food and, domestic goddess that I am, it motivates me to actually deep-clean the house. It’s a win-win situation for everyone! Going over to friends’ houses or having them come over is probably a lot better for the environment, too. No need to pay for or use extra carbon-footprint increasing stuff like restaurant A/C and bathrooms. If you’re having take-out, the delivery guy won’t always drive a hybrid, but you can make your own meal/snack if you want to get greener.

This translates just as easily for us adults. I love celebrating birthdays. I love making a big to-do about things and making people the super-center of attention. Last week, for my husband’s birthday, I invited a couple of friends over. We ordered an awesome mix of Asian foods, and I made my husband’s favorite dessert. Between us all, we had four kids and no worries about a tantrum or potty/diaper incident in a restaurant. We were able to drink wine without getting evil glares from people without kids. It was great. The only part I pseudo-missed was getting dressed up, and that’s really over-rated when you’ve got a [cute] baby who should have been named Slimer.

Girls’ nights out at home just got popular, too. Check out http://www.thursdaynightdinner.org/. The ladies who came up with this site are all about getting together in the comfort of someone’s home. Book clubs are another popular at-home/have fun venture. Guys have been getting together for sports and cards forever, it seems, so maybe they can be credited with being the greener sex. Who cares? Just figure out something fun to do, invite some people over, and have at it!

Why go through all the trouble of buying a McMansion, or at least a home that you’re happy to live in if you’re not going to: a.) use it or b.) show it off. We’re surrounded by stuff that we don’t use or even really need for anything but decor. If you’ve got it, put it to some use! Let your friends see your eclectic collection of Star Wars stuff (junk, my family calls it, but I love it!) or your collection of crosses from around the globe. Pull out that espresso machine you swore would take Starbucks’ place three years ago and learn how to make capuccinos for a fraction of the cafe price. Throw a monthly crafting party so you can learn a new skill or get caught up on stuff you started before your kids were born (like my middle child’s baby book). Watch a great flick on your awesome, ginormous TV with its wall-shaking sound system with $4/box (not $4/bag) popcorn and not-allowed-in-the-theater wine. You liked it enough to spend your hard-earned money on it, so use it! (That being said, please don’t run off and buy something new to entertain your friends with-be creative and use something you already have, or ask someone if you guys can use their thing.)

As adults, we spend lots of money on toys we think will help us kick back or give us some self-perceived status. However, we rarely or never use them! Why the waste? We have lots of people who we consider friends but who we only see a few times outside of work/school/what have you. Get to know someone better! Reach out! In a land where very few of us live close to our blood relations, we have to seize every opportunity to make a “friend who loves at all times” (Prov 17:17). Take the challenge-find ways to play at home with people besides your family.

-Domestic Goddess out.

The Price of Being a Stay-at-Home Mom

I read this article, by Allison Linn, Life Inc. on MSNBC, today: The Price of Being a Stay-at-Home Mom. In it, Ms. Linn describes the financial differences between families with two working parents and those with only one working and one at home:

...That married couples with a working wife saw income grow by 1.12 percent per year above inflation, on average, between 1983 and 2008...families where the wife stayed home actually saw their annual incomes decrease by 0.22 percent each year on average, when including the impact of inflation.

Sure, it makes sense that people with two breadwinners make more money. Anyone who can do simple math could tell you that. But let's ask some more poignant questions:

1. The difference in annual incomes between duo-working parents and one is only 0.9%. Remember, that equals only $9 out of $1,000. What advantages are there to making 0.9% less than the "normal" American family when it comes to family-rearing?

2. What is the difference in the family debt-to-income and savings-to-income rations between the two family types?

First, the fellow stay-at-home moms who have left the work field to raise their children and tend their families are MUCH more content and fulfilled. I can say from personal experience that I certainly am as well. Being a stay-at-home mom isn't a walk in the park. It's downright hard sometimes. I hate cleaning and playing Martha Stewart. Sometimes, I'm just not creative enough for my little inquiring minds. I run out of energy and patience (usually in that order). But, at the end of the day, I know I'm doing what I've been called to do: step back away from the world for a (long) while and focus on the small unit that builds our society.

I take joy in being the first one to see my kids overcome a struggle and learn how to problem-solve. It gladdened my heart when my little girl waited patiently for a Secret Service agent to finish his impromptu talk while on the White House tour so she could tell him, "Jesus is alive. Jesus loves you. Thank you, sir." Knowing I contributed to her education and development makes me want to burst when she (and the other two) do or say things like that.

Second, most couples who have a stay-at-home parent usually do their financial homework before "taking the plunge." After factoring child care expenses into the family budget, it's usually cheaper for the family to have a parent at home. It certainly is for us. When I was working, daily child care for two kids ate up 25% of my income. I was fortunate to have a great-paying job, but there are so many people who don't. Since we knew we wanted me to stay at home after my commitment to the military was completed, we saved and practiced good, old-fashioned financial discipline so that we had paid off all our debts and had a decent savings account before I entered the stay-at-home mom ranks. Our planning and willingness to be disciplined allowed us to take the 0.22% decrease in our annual income without really missing anything we were accustomed to before, and I praise God He gave us the Bible to learn how to use our money properly.

One of my in-laws works a "basic" job and makes just above minimum wage. By the time she takes childcare out of her paycheck, she has just enough to pay for the health insurance offered by her company and have $50 left over. She works hard and spends about nine hours a day away from her kids so she can have $50 and a very basic, meager health insurance plan. It's devastating to her, but what can she do? She and her husband didn't plan before having kids, so they're stuck with the duo-working parents system.

Even people who didn't plan ahead do manage the stay-at-home stuff pretty well. Another family member had serious debts but preferred to have mom stay at home with the kids to save the family in child care costs. They did some frugal living by using coupons, shopping sales, accepting hand-me-downs, etc., and though they still have quite a lot of debt to pay off and not a whole lot in savings, they're "making it." Their debt ratio is lower now than when they were both working, and their savings ratio is higher.

I guess my point is: people who decide to have a stay-at-home parent find ways to make their finances work. There are tons of websites and blogs run by stay-at-homes to support and give tips. There are lots of Christian financial resources that help people learn how to view and use their money properly. Where there's a will, there's a way, but it's easier to get there when you have the proper tools.

Check out BeatingDebt.org for some great free/minimal cost financial resources to help you prove that the price of -0.22% annual income is well worth the loss.

-Domestic Goddess out.

Thoughts on Time...and God

Does anyone else feel like waiting on God to do "His thing" is like holding your breath underwater for a really long time? I am NOT a patient person, although I'm developing into one (slowly), thanks to my children. In my immediate family, my impatience is notorious to the degree that my dad would call me "Impatience Johnson." I always held to a lesson Grandma taught me: NEVER ask God to grant you patience because He will give you ample opportunities to learn it. Grandma always has been, above all things, practical and wise.

And yet as I've grown up, I've really begun to understand how time works. One second will always be just one second. One minute will always be sixty seconds, and so forth. Time is a constant. Sometimes, it's an asset, and sometimes, it's a liability.

Furthermore, I've come to a real epiphany on time: it does not work the same way for God as it does for us. Since He created it, He can bend its rules as He sees fit! Our job is simple: bring our needs to God, and He'll respond with His solution. In most of my circumstances, waiting for the solution has been much more difficult than realizing I had a need. Why? I want to do the work. I want to be the clever one who thought of a solution to her problem. Where's the glory due to God in that?

When we wait for God to act or answer our questions, sometimes it really does seem like forever. Realize this though: sometimes, He's just waiting for one of His other kids to be obedient and be the blessing we need them to be. We are just as responsible for the way we use our time as we are the way we use our bodies, money, belongings, etc. When we don't have an issue that needs heavenly intervention, we need to be most "in tune" with God to make sure we are doing everything we can to help others out. Just because we're doing well doesn't mean that our neighbors are!

I urge you (and myself) to be especially aware of all the opportunities we have to be a blessing. Sometimes, it just needs to be a smile and wave at the neighborhood kid who looks a little down after school. Other times, it'll be acting on a conviction that came as a result of prayer and communion with God.

The point is, we need to be using our time to enjoy God, as John Piper encourages us to, and to fulfill our commission of spreading the Gospel. This can be done through full-fledged, "legit" ministries, like being a full-time missionary, or by being a godly role model for our at-home family and church family. God calls us to serve exactly where we are. We don't have to be like Paul to be doing our godly job! Use your time well!

-Domestic Goddess out.