The Next Rich Girl

How to Survive an Epic Commute

With the latest news that the recession has caused the average American's commute to get longer and that more and more people are taking public transportation, I thought it was time to share some tips for surviving an epic commute.

You see, I used to have the commute to end all commutes.  I traveled from downtown Baltimore to Dupont Circle in Washington DC, entirely via public transportation for a total of three years at my last job.  It involved hopping on a bus to the train station, taking the MARC commuter train to DC, then taking the DC Metro five stops to Dupont Circle.  Door to door, the journey took about an hour and a half... each way.  And that's only if everything was running according to schedule.  You can imagine how often a commute like that went like clockwork... not very.

But I survived.  Actually, I didn't always mind terribly.  It was nice to be able to duck out of a meeting a few minutes early with my "train" excuse (mind you, I worked at a very laid back office with very flexible hours - not everyone has that luxury).  And, it was nice to have a little time to myself - to decompress before getting home.  Plus, there's something to be said about physically moving so far away from work at the end of the day.. it's easier to let work problems drift away from your head when there's that physical element involved.

That said, there were plenty of times I'd be walking out of the office at 5 and be depressed by the notion that I wouldn't be home until 6:30 at the earliest.

Here are a few tips for surviving an epic commute:

A Year Later - Emerging From the Financial Meltdown

The news today is plastered with headlines like "The Lehman Legacy: One Year Later" or "Lehman Post Mortem."  That's right, one year ago today, we all faced economic meltdown.  Lehman Brothers, one of the cornerstones of Wall Street collapsed and pundits across the country ran through the streets screaming "the sky is falling!"

It was financial armageddon.  It seemed like there was no way the financial markets would survive and it seemed like surely, things would never be the same again.

But, one year later, the stock market has rallied considerably since bottoming out in March and business is much more "as usual" than I think any of us thought it would be.

Why?  Well, first of all, I think we all underestimate how much America is a country of survivors.  Our ancestors (or our parents or selves, if you're new to America) most likely fought desperately to get to this land of opportunity.  Whether they were escaping creditors, fascist regimes, religious tyranny or just looking for a place to try to get ahead, America seemed to be the answer. 

America is the sort of place where some people actually vote for lower taxes for the rich, not because they are rich, but because they know that they might one day be rich.

America is the sort of place where we're all told that we can do anything we want and be successful - but only if you work your ass off. 

So, what do we do when the financial crisis threatens everything we have?  What do we do when we lose our jobs?  What do we do when we're forced to take pay cuts or furlough days? 

We find a way to survive.  Sure, it isn't easy.  In fact, it's damn hard.  We got used to a lot of really easy money and were addicted to spending that easy money.  But, when it came down to it, we found a way to survive. 

Its the American way. 

Now, that we've "emerged" from recession (of course the jury's out on that one, but Bernanke says the recession is over so let's go with that), what changes?

Honestly?  Nothing.  We're still that nation of survivors and we've just learned a valuable lesson. 

For a lot of us (specifically the millions of people who are still looking for work), the recession isn't close to over yet.  For others (the millions of people who kept their jobs), the only part of the recession we felt was more sales at the mall and a general uneasiness about the economy (lucky jerks!). 

But, no matter what group you're in, I think the recession gave you a bit of a reality check.  If you're like me and in your late 20s, it's probably the first recession you've felt as a member of the workforce.  It was scary and not something I want to feel again. 

Hopefully, what we'll all take from this is the knowledge that 1.) we can survive the greatest economic downturn since the Great Depression and 2.) we can make sure that next time we're more prepared.  Emergency fund, anyone?

Here Comes the Fall...

It's the day after Labor Day.  The day school starts for some many kids across the country.  The day everyone in the office is back from their vacation and everyone gets down to work again.  The air has a little crispness to it.  Summer is unofficially over and it's time to get back to reality.

This is always the time of year that I think about change.  Maybe there's still a part of all of us that remembers going back to school in the fall and what it meant: new friends, new classes, new opportunities... a chance to reinvent yourself.

So, that's what I'm thinking about as I write today... I'm thinking about changes.  Is the world changing?  Are things getting better?

We've all somehow survived (barely, for some of us) the recession that's been bogging down the U.S. economy for the last year, plus.  And, as I feel the season change, I have to wonder, is the economy finally changing too?  Are we seeing the light at the end of the tunnel? 

I'm not sure.  On the one hand, the stock market has been up for the last six months.  But, on the other hand, I still know so many people who are either out of work or looking for an upgrade from a company that has beat them down (furloughs, pay cuts, etc.).  Is this fragile sense of optimism I feel in the air just everyone trying to feel better about themselves as they adjust to the reality of an economy that's still shedding jobs?

I don't know that either.  But, what I do know is that things will get better.  We are all learning from the last year.  And, the most important thing we've learned is that we will survive.  No matter how back it gets, no matter what the economy brings, human nature is one of resilience.  And, once we've gotten through this, we'll realize that we're all better for it.

What have you learned from the recession?  Is the end in sight?

Recession be Damned...

Way back when I started this blog, I really felt like I was one my way to being financially secure.  The economy was doing great, I had a good job that gave me lots of vacation, my husband's business was doing great, we were aggressively saving money and investing. 

Then, the recession hit us in a bad way.  My husband's clients weren't into actually paying their invoices anymore.  My company was murmuring about paycuts and layoffs. We had to spend most of our savings to say afloat.  It was like falling back to earth.  I suddenly realized that not everything can be planned - sometimes life throws you for a loop and you can either cry about it or take it by the balls and squeeze. 

Lessons Learned

As I look back over my series of Recession Lessons, it makes me wonder... why did I ever think that the heydey of the bubble economy could last forever?  And I wasn't even really profiting from it as much as those Wall Street guys who collected all those seven figure bonuses!

The next time it seems like everyone around us is getting rich and anyone can make money magically appear from nowhere, let's all remember the last year.  Sound good?

In the meantime, as we all regroup and try to figure out if the recession is ending or if we're still in for a little more, let's look back at all our Recession Lessons:

1. Learning Responsibility
2. The Emergency Fund
3. Returning to My Not-So-Rich Roots
4. Polishing That Resume
5. The Art of Staying In
6. Public Transportation Ain't So Bad
7. The Art of Negotiation

What about you?  What have you learned?

Recession Lesson: The Art of Negotiation

In the heydey of the pre-recession years, hardly any of us bothered to worry about things like comparison shopping, negotiation, or finding a deal.  Sure, if we happened upon a deal, we'd get excited... maybe buy a few extra.  But, for the most part, none of us worried about saving an extra fity cents here and there.

Why bother?  It wouldn't make a difference in the long run, we thought.  It wasn't worth the hassle.

But now, of course, we know that those little savings here and there add up... especially when you're worried about losing your job, or you just got a pay cut or whatever.

Finally, the customers are in the driver's seat again... and we should all take advantage.

A year or two ago, companies took advantage of the fact that most of us wouldn't balk if our cable or phone bill went up a few dollars a month.  Sure, we might be a little annoyed when we open up that bill.. we might even tell ourselves that we'd call the next day to complain.  But most of us wouldn't actually bother.

But, now that people are canceling their service those same companies that banked on our indifference are desperate to keep us.  And we should all take advantage.  Are you annoyed at your climbing cable bill?  Call and threaten to switch to a competitor.. they'll likely cut you a deal.  Same with internet service and cell phones.  Think about what you really think these services are worth.  If you're overpaying, it's time to do something about it.

And, if they don't budge on the price, you have a decision to make:  is it worth it to keep a service you think is overpriced?  Do you want to give your money to a company that won't negotiate with you to a price you think is fair? 

Think about it.  I bet you'll save yourself some money... and feel a little better about how your money is being spent.

*** Thanks to everyone who's stopping by from Festival of Frugality #92.  I hope you can stay for a while!

Recession Lessons: Public Transportation Ain't So Bad

Erratic gas prices made a lot of us think twice about planning road trips or hopping in the car to grab a loaf of bread from the store. But, for me, I never really worried about the cost of driving until very recently.

You see, I have the luxury of having a very cheap car (a '97 Tercel I inherited from my parents).  It gets great gas mileage, it's super cheap to insure and it's incredibly reliable.  Add in the fact that I live in a big city, so I don't actually need to drive it too much (it makes much more sense to walk to the market for random odds and ends than to deal with the hassle of parking it at a meter for 15 minutes).

But, I still considered it a necessity.  I used it every weekend for my big grocery run.  It's the easiest way to get to many of my friends and family who live in the Washington - New York corridor.  And, I'll admit it, even though my work is very public transportation accessible, it was just so quick and easy to drive it the eight minutes to work.

Recession Lessons: The Art of Staying In

Continuing my series on what I've learned during the recession, today we'll explore the art of staying in. 

I wouldn't say that I exactly went out every night back in the bubble economy heyday, but as a couple that really enjoys great food, fine wine and scenic ambiance, when my husband and I would go out, we really went out! Nice restaurants, cocktails at upscale bars, you name it.  A night out was sometimes in the neighborhood of hundreds of dollars... just for the two of us!

After the economy took a turn, those nights out were quickly eradicated from our life.  Staying in has the only thing on our agenda for most of the last year.

But, that doesn't mean you can't have fun.  You just have to remember how to enjoy the simpler things in life.  In fact, we've had a really great time.

Here's some of what I've learned:

Recession Lessons: Polishing That Resume

This has been an important lesson for me: Always keep your resume polished and ready to send out.  Even if you think you have your dream job.  Even if you don't think you're in any danger of being laid off.  It's worth it to have your resume in pristine condition at all times... good or bad. 

Partially this is because you should always be looking.  Long gone are the days when people got hired right out of college and stayed with that company until they retired.  Nowadays, it's amazing when someone stays at the same place for five years!  And companies know this and practically expect their employees to jump ship every few years (although there are a few places that have realized that retaining employees pays off in the long run).  Even if you love your job, keeping an eye on the job market lets you know what's out there, helps you figure out what you're worth and keeps you abreast of new opportunities that you might not have even realized are out there!

The other half of the equation is that when the market takes a nosedive (or even if it's just your company that faces tough times) you need to be in the best position possible to find new work.  Trust me, if you get laid off you'll feel an incredible sense of relief that you don't have to start at zero with your resume.  And it's even better if you've already been looking and applying for jobs before you get the axe.  Times are tough right now and it's taking people a long time to find new work... the earlier you start, the better off you'll be.

I experienced this all first hand this past year.  The organization I've worked for for the past three years seemed like it was going to not only weather the economic storm, but it would come out on top.  The word "recession" was foreign to all of us, in fact, our president was actually expanding the organization... hiring new people and taking on new projects.  I felt so lucky to be part of an organization that wasn't facing the same woes that the rest of the world seemed to be... especially since my husband's company wasn't so lucky. 

Recession Lessons: Returning to My Not-So-Rich Roots

I didn't grow up poor exactly, but I certainly wasn't rich either.  My family was firmly lower-middle class... although some years were much better than others.  As a result, I learned from a young age the value of a dollar and how to score a great deal.  Let's just say I was an expert coupon clipper at age 7 and could quickly calculate how much something cost if it was on sale for 20% off by age 8.  

But, how quickly we do forget.  During what we'll probably one day refer to as the "Roaring 'Aughts," we all forgot any budgeting lessons we were once taught, didn't we?  I won't say I went nuts, but I will admit that as the money started rolling in, I didn't think twice about dropping a couple hundred bucks on a night on the town.  I planned semi-regular spa days at Red Door to reward my hard work and I didn't have to keep a rolling total in my head when I went shopping to make sure I stayed under budget.  Something shifted in my head as I pushed the tougher times out of my head and reveled in the here and now (or the there and then, I guess).

Recession Lessons: The Emergency Fund

If you've heard it once, you've heard it a million times... we all need to set aside at least three months salary in case of emergencies.  But, at the height of the financial boom, it seemed downright silly to keep money in a money market or savings account when practically every stock on the exchange was going through the roof.  And besides, we thought, it's much better to put that money into a house since those were guaranteed to increase in value... right?  Right?

Oops.  That's right.  Emergencies do happen.  And a lot of us were left holding the bag when the stock and housing bubbles popped one after another.  Couldn't you just hear the voice of your father in your head telling you to put aside 10% of every paycheck aside for a rainy day (or whatever your parental axiom of choice was)? 

I was always a big proponent of the emergency fund.  But, I never seemed to be able to get it up to three months' salary.  There was always some emergency expense.  The car broke down or a family member needed a loan or whatever.  Throw in planning a wedding and the emergency fund became something we'd start contributing to after the wedding madness was over.  I somehow managed to keep the savings hovering around a month's salary and felt pretty damn proud of myself.

A Recession Lesson: Learning Responsibility

I've been doing some thinking about the past year and how the recession has changed both my life and the lives of many of my friends and family.  As we realize that we may be in for this for a while longer (even though it's already been a year!), I think it's important to think about what the last year has brought, what it's taught us all about money and how we think about our expenses and income.

In a way, before the recession I think a lot of us had gotten used to not really thinking about money at all.  Investments seemed to go straight up, houses always gained value, everyone was obsessed with spending as much as they could, in the most ostentatious way possible (bottle service, anyone?).  I don't like to admit it, but I was in a bubble of my own (even though I was, luckily, much more cautious than most people were).  I was hoarding my money to save for a house -- but all that money went into the stock market since I, like everyone else, was convinced that it had nowhere to go but up.  I was making a decent income and my husband's business was flourishing... we felt like the young jet-setters that I'd always secretly been envious of.

Of course, when the economy tanked, it hit us hard.  My stock portfolio took a dive, my husband's clients started falling behind, I started worrying about layoffs... the same story as the rest of the world.  In a way, I didn't want to admit it.  I was so sure that the economy would turn around -- and so enamored with this vision I had of myself as a successful go-getter -- that I almost didn't want to admit that the situation wasn't going to fix itself and I was going to have to learn an important lesson... the hard way.