The Next Rich Girl

How Your Income Stacks Up

Prepare to be shocked.  New statistics from the IRS show exactly how your income stacks up against that of your fellow Americans... those who pay taxes anyway.

The data show that an income of $32,879 or more puts you in the top half of taxpayers. Earning a bit more than twice that much -- $66,532 -- earns you a spot among the top 25 percent of all earners. You crack the elite top 10 percent if you earn more than $113,018.

Crazy, no?  Am I the only one surprised that it only takes just under $33,000 per year to be in the top half of American earners?  Is this the American dream?

Even scarier: More than 40 million Americans are now living in poverty. 

It sort of puts everything in perspective for me (Yes, I am in the top half of taxpayers...).  I guess things can always be worse, financially. 

Will the Recession Make Men Step Up Around the House?

I've been thinking about this article in Newsweek this week that talks about how the recession may be helping families rebalance.  It argues that now that women account for 40% of the average household's income, men have to take up more of the slack around the house.  They need to do more cleaning, cook more meals, carry more of the parenting weight.  

And this is not just because women now spend more time outside the home, now women have to worry that any time taken off is a mark against her in the workplace.

Because women typically shoulder more of the weight of household management, they are perceived as more likely to allow their home life to interfere with work:

Maternal profiling is real. When a working father takes time off to watch a ballet recital, he's seen as noble. When a working mother rushes out of the office to care for a case of head lice, she's more likely to be labeled undependable. Mothers looking for work are less likely to be hired, are offered lower salaries, and are perceived to be less committed than fathers or women without children, according to a 2005 report by Shelley Correll, now an associate professor of sociology at Stanford University. And according to a 2007 survey by Elle/MSNBC.com, female bosses are twice as likely than their male counterparts to be seen as having family obligations interfere with work.

Another Reason Not to Pay Taxes...

Okay, I'm not really advocating that you stop paying taxes, but it's stories like this one that really make you wonder why exactly you're forking over 25%, 28%, 32% or what not of your paycheck to the government.

Over $98 billion (that's billion, with a B) in taxpayer dollars were wasted in fiscal year 2009 - $26 billion more than in 2008.  To put that in perspective, that's enough to give every taxpayer a cash payment of $705.  

Wow.

This makes me think of that scene in the movie Dave (where an actor, played by Kevin Kline unwittingly becomes president of the U.S. and sort of rocks at it) needs to balance the budget and does so by just going through it with a red pen.



Sounds like we need someone to do that now.

Check out the full article for a breakdown of all the reported waste.  And this is just the waste that was reported!  Imagine how much actual waste there probably is...

The Recession Sends Women Back to Work

"The recession and real-estate collapse have taken [the option to work away from home] away from women such as Ms. Grenz who could afford not to work during the boom. Thanks to steep layoffs and soaring unemployment among men, more women are returning to the work force."

Thanks to sharp layoffs in male dominated industries, women are poised to become the majority of workers for the first time. "As of September, women held 49.9% of the nation's jobs, excluding farm workers and the self-employed, a rise of 1.2 percentage points from their 48.7% share when the recession began in December 2007. In 1970, women held 35% of jobs."

I've talked about this impending phenomenon before.  I can't help but think that there are two forces at work here.  The first is that male dominated fields like construction where certainly hard hit by the bursting of the housing bubble, which isn't surprising.  The second is that employers have been able to get away with paying women less than men for so long that, in a bizarre way, it's actually begun to almost work in women's favor.  Almost.

When faced with the need to eliminate a salary from the payrolls, why wouldn't a boss keep a women who does the same job as her male counterpart for 20% less? It's almost a no-brainer.  

The real question will be what happens when companies start to hire again.  Will they pay new hires (male or female) the same that they are paying the women already on the payroll?  Or, will men be able to negotiate higher wages?  

Will women finally achieve pay parity only because everyone will start to earn $.72 on the dollar?  I'm not sure if this is what women were fighting for exactly...

Will Women Save the Economy?

Maybe.  According to the World Bank, the earning power of women around the world is expected to reach $18 trillion by 2014 - a $5 trillion rise from current levels.

Seems like great news right?  Unfortunately, companies seem unable to actually tap into this market.  According to a study from Boston Consulting Group, women feel under served at best by companies.  And many just feel ignored.

"The current way companies appeal to women is to take a male product and paint it pink," said Michael Silverstein, a partner at BCG.

No kidding.  Which of us isn't sick of this idea that women want their products to look like Barbie  vomited on it?

Where did this idea of "shrink it and pink it" (via Jezebel) even come from?

If "girl" stuff is pink, why isn't "boy" stuff blue?  It's one thing to paint a nursery blue for a little boy or pink for a little girl, but don't we all grow out of that after we're, I dunno... two years old?  

The Recession is Over!... So, Why Don't Things Feel Better?

Good news!  The recession is over!  A hearty "Huzzah!" all around!

Wait, aren't we all supposed to be magically better now?  Shouldn't everyone who's looking for work be employed by now?  Shouldn't those of us who were forced into furlough days and pay cuts be getting our money back?  Hell, shouldn't we all be at the mall spending our new money and reveling in a burst of consumer confidence?

Not quite.  Much like the recession wasn't officially declared until we had all felt it for over six months (a recession is loosely defined as two consecutive quarters of declining GDP), the recession is being declared over by economists who see signs of growth... even if that growth hasn't made it to everyone yet.

And, we might not feel better for a while.  Often, businesses over-react in hard times and cut more personnel than they really need to.  Then, they enjoy the lower costs for a while until their tiny staffs can absolutely no longer meet productivity goals.  Then, when the business is expanding, they tend to hire more personnel than they need... setting up the whole vicious cycle all over again. 

So, where are we now in that process?  Probably nearing the end of the first phase... dramatically cutting staff.  As a result, many economists think that unemployment will trump 10% and that hiring won't really begin until next year, at the earliest.

A little depressing. 

On the bright side, the Dow just topped 10,000 for the first time in over a year.  Too bad no one has any money to invest in the stock market.  But, don't you feel better knowing those high-rollers out there are making their money back?  =) 

Recession Hurting Commutes, Marriages

More casualties of the recession are piling up.  Most notably, our commutes are longer and our marriages are suffering. 

Pretty depressing.

Let's tackle the commute thing first.  According to census data, Americans now face an average commute of about 25.5 minutes, the first time it's increased since 2000.  It's no surprise really, with jobs scarce, we're all willing to drive a little farther for a paycheck.  Not only that, with high gas prices and dwindling incomes, more people are willing to carpool or take public transportation, even if it adds considerably to their commute times.

The percentage of people who drove alone to work dropped last year to 75.5 percent, the lowest in a decade, as commuters grew weary of paying close to $4 a gallon for gasoline and opted to carpool or take public transportation.

Even less surprising is the affect the recession is having on marriages, well, on the number of weddings happening anyway.  According to this article:

Nearly 1 in 3 Americans 15 and over, or 31.2 percent, reported they had never been married, the highest level in a decade. The share had previously hovered for years around 27 percent, before beginning to climb during the housing downturn in 2006.

The never-married included three-quarters of men in their 20s and two-thirds of women in that age range. Sociologists say younger people are taking longer to reach economic independence and consider marriage because they are struggling to find work or focusing on an advanced education.

It's funny when you compare these stats to the wedding fever that was taking the economy by storm at the height of the bubble economy.... you remember, the $100K receptions with 300 guests, gourmet meal, martini bar and a full orchestra?  You know, when America's brides were convinced that their entire marriage would be ruined if a dozen white doves weren't released at the end of the ceremony?  I got married during that time, believe me, I remember! 

My, how times change. 

How has your life changed since the recession started?

Next Rich Girl's Healthcare Rant

I usually don't use this site to talk politics, but as politics get more and more entwined with the financial markets (bailout anybody?) it gets harder and harder to do.  Especially when you consider that almost every topic that people are interested in impacts their bottom line (we're a simple society, when it comes down to it) and nearly every topic that impacts one's bottom line is also impacted by politics.  

So, here we are... delving into politics. More specifically, health care reform.

Few things are more frustrating than trying to get and pay for health care coverage. Those of us who are employed are at the mercy of whatever plan our employers offer, no matter how expensive or ill-suited to one's own circumstances (especially if you work for a small organization where rates are very heavily skewed by the ages and relative health of your co-workers).  Those of us who are self-employed are forced to make a very tough choice: pay hundreds (or even thousands) each month for cut-rate health care or pray that you never get sick.

Of course, it doesn't end there.  Once you have your "coverage" you still have to pay exorbitant fees each time you, say, get a pap smear or a physical - all stuff that seems like it should be routine until you find out that your gyn is a "specialist" and you need to pay a higher co-pay or you find out you're only covered for a physical every five years or something.  cha-ching.

And if you want to go to the dentist or get a pair of glasses, too bad.  That's a completely different form of insurance.  It's ridiculous.

Then, god forbid something really wrong happens, you get in a car accident or need an appendectomy or something.  You think, "well, thank god I have health insurance."  After all, that's what it's there for right?  Emergencies?  

"I Love You" ... That Will Be $267,000

I can't help but take a break from my Recession Lessons to share this little tidbit from The Observer:

Having polled 1,000 British people on the happiness inspired by "significant life events", researchers compared their findings to the contentment brought on by lottery wins, then calculated that hearing the words "I love you" brought precisely £163,424 worth of pleasure.

Wow.  My first thoughts are, concurrently, "that's a lot!" and "that's all?"  You know the recession's getting bad when people start putting a price tag on everything.

Maybe I should start a business where I offer to call you once a day and tell you I love you.  In fact, I'll do it for the bargain price of $10,000 -- I figure I should charge less considering I probably won't mean it. 

It makes me wonder.. how much for "let's just be friends"?

Related Links:

The Observer:  I Love You, So Give Me 163,424 and Then Eff Off, You...
Jezebel: Saying I Love You You Is Worth Approximately $267,000

Is the Recession Over? How Can We Tell?

Could that be the dim flickering of a light at the end of the tunnel?  It might not feel like it yet, but some analysts are saying that the end of the recession is here and we're on the slow path to recovery.

It's hard to know for sure.  In fact, much like how a recession can't be declared until it's been two quarters of negative GDP growth, the NBER won't declare the end of a recession until they know for sure... often nearly two years later! Not exactly a very comforting thought. 

But, the buzz around the end of the recession is happening and hopefully this is the first step to recovery.  After all, the economy won't really end until everyone is convinced that we've hit the bottom and people start spending money again.  Hopefully we'll all heed the buzz and send this recession packing!

How are you all feeling?  Do you think the economy has bottomed out?  Are you feeling more optimistic about your financial future?

From the Obvious File: The Recession is Depressing

In case it wasn't obvious, this here recession is a bit of a bummer.  To be more specific, according to a poll from the American Psychiatric Association, just over half of American women say the economy has had "a negative impact" on their mental health (and this number jumps to two-thirds of women in Clinton County, Ohio, a focus area in the survey). 

This is sort of old news of course (the U.K. is actually devoting public funds to help people whose mental health has been adversely affected by the economy - which begs the question, why not just devote that funding to job creation?  But, I digress...).  But, it does make me think about why we're all so depressed about the economy.  Obviously the stress about money is a huge part of it... worries about paying your bills; stress about keeping your family fed, clothed and housed. 

Recession Trickles Down to the Teenagers

Gasp!  Could it be?  Is the recession so entrenched in our society that even our nation's teenagers aren't mindlessly spending money anymore?

Looks like that could be the case, according to this article in the New York Times.

This spring, spending by teenagers, a closely studied but rarely understood segment of the population, is off by 14 percent, a direct reflection of the economy, according to a report this month by the investment bank Piper Jaffray. And that is having a profound effect on an already unraveling mall culture, where deep discounters and stores known for heavy promotions are suddenly the popular destinations and aspirational brands are struggling to fit in.

Recession Hitting Men Harder Than Women

Looks like male dominated professions (read: construction, finance, and manufacturing) are being hit harder in this recession than others.  And the effects are evident in the unemployment rate for men and women.

According to an article on MSN Money:

There's a gender gap in this recession, and this time men are on the losing side of it.

The unemployment rate for men is nearly 2 full percentage points higher, at 8.8%, than the rate for women. Before the recession, the jobless rate was virtually the same for both genders: 4.5% for men and 4.6% for women in November 2007.

Gum: The Latest Recession-Proof Product

A while back, I talked a bit about how candy sales are skyrocketing during the recession.  Now, it seems that there's a less fattening pick-me-up soothing all the recessionistas out there: gum. 

That's right.  Gum is cooler than ever. And as more and more people try to get in shape despite the bad economy, gum is the only low calorie indulgence we can all afford anymore. 

As a result, the gum industry is pulling out all the stops.  New flavors are hitting the shelves all the time and the average gum chewer is getting pickier than ever.

Happy Ending: Demand For Romance Novels Rises in the Recession

In a time where a happy ending seems elusive at best, what better way to cheer ourselves up than the sweet escape of a romance novel?  Sure, the plots are often predictable, but with so many of us unsure of how the current chapter in our lives are going to end, isn't predictability reassuring?  Isn't it nice to drift off to a world where the men are strong and protective, the bodices are ripe for the ripping and all problems can be solved by a night of passion?

Sounds pretty good to me.  I'm not a huge romance novel fan, but I am finding myself reading more nowadays.  There are few better ways to escape from the real world for a while than to be absorbed by a great book.

Taking IN the Trash: Should We All Become Freegans?

It was only a matter of time before the recession brought more attention to the freeganism trend. 

For those of you who are unfamiliar with the term, freegans (a hybrid of the words "free" and "vegan") eschew the materialism and commercialism of America, choosing instead to subsist off of other people's garbage.  If that sounds like it would be hard to do, you might want to think again.  According to the UN, we throw away enough food to feed every hungry person in Africa.  Sort of makes you think about how lucky we have it here, doesn't it? 

Candy Soothes the Recessionista's Soul

In these tough economic times, it looks like more and more of us are turning to chocolate and other candy to perk us up.  It makes sense.  We might all be cutting back, but it's not really realistic to expect everyone to completely forgo every single treat.  And that's where the candy comes in.  After all, what else can cheer you up for the price of a candy bar?  If you can think of anything, let me know!

Is the Recession Boosting Your Creativity?

I've been reading a lot lately about how craft and fabric stores are thriving in the recession and more people are pursuing creative pursuits like writing and it's made me wonder why exactly that is. 

This piece over in the Las Vegas Sun thinks the motivation is necessity:

For all the ways the recession has affected our lives, this one is downright nostalgic: The old-fashioned and somewhat forgotten skills of sewing and mending are making a comeback.

Buy a new jacket simply because the zipper is broken on the one from last year? Not in this economy. Donate a barely-worn little black dress just because the hemline is last season’s length? Don’t think so.

Is the "Recession 15" Real?

Oh no!  It's the dreaded "F" word rearing it's ugly head!

Apparently it's not enough that the recession is taking away our money, our job security and our daily latte habit, the latest frightening side effect of the recession: it could make you fat.

Yes, that's right.  It's called the "Recession 15," the extra 15 pounds you put on when the economy takes a nose dive (amazing how external factors never seem to cause us to lose 15 pounds, isn't it?).  In this emotionally difficult time, more and more of us are turning to fattening junk food than exercise to curb our stress.  No surprise, right?

Sometimes, I think we're all just looking for an excuse to eat poorly and to forgo exercise.  Right now, it's the economy ("I can't afford organic veggies," "I can't exercise without a fancy gym membership.").  When the economy is back on the upswing, the excuses will be about how we're all working too hard to take a break to exercise.  I totally empathize (believe me, I do my own fair share of making excuses), but at some point we all need to put the excuses aside and start thinking about our health.  Personally, I feel like the recession has already taken away so much of my peace of mind that I don't want to let it compromise my health too. 

For me, going back to the days of eating Cheetos for dinner (standard operating procedures for my college-aged self) would just be too demoralizing.  I could handle it when I was 18, but now I need the nourishment of a good (read: healthy) meal.  I think it just takes a little more planning now.  It's not always easy.  But, in the long run, I think it's worth it.

How about you?  Is the recession affecting your weight?  Are you finding it tougher to exercise?

For some inspiration, check out Eating Well: Recession Style

Quick Hit: Could Plastic Surgery Help You Get a Job in the Recession?

That's what some Brits are thinking, if this article in the Sun is any indication:

JOBLESS women are getting BOOB jobs so they can make a BIG impression at interviews.

Unemployed men are also splashing out on cosmetic treatments to give them an edge in the employment stakes, plastic surgeons say.

After all, in a tough economy, we could all use a little "boost" against the competition.

Um, isn't plastic surgery one of those "luxuries" we should all be cutting back on?  Seriously, if your boss hires you because he likes your boobs, that isn't a job you want... recession or not. 

Read more:
Jezebel: When the Going Gets Tough, The Tough Get Implants
LA Times: In a hairy job market, can transplants aid the balding?

Losing Sleep Over the Economy?

Yes, you probably are.  According to a recent poll, nearly a third of Americans are so stressed about the economy that they're having trouble sleeping.

Money woes far outweigh other problems, such as the wars in Iraq and Afghanistan, global warming, or the threat of a terrorist attack, according to the annual poll by the National Sleep Foundation.

It's no surprise to me.  After all, the economy is affecting all of us, on a daily basis.  Even if you haven't lost your job, economic stress is permeating the very air we all breathe lately.  You can't turn on the television or have a chat with a friend without hearing the rumblings... foreclosures are on the rise, stocks are in the basement and layoffs are affecting those close to us.

As for me, I've never been a great sleeper.  I'm the sort of person who struggles to stay asleep, who stirs with the tiniest noise, who knows that feeling of sitting in bed knowing that sleep is just out of reach... and this is when I'm not stressed!  Add in a dash of stress (like about, say, the economy?) and I start fighting nightmares and sometimes don't bother trying to go to sleep at all -- why set myself up for a losing proposition?

It's interesting because I'm really not worried about losing my job, at least not anytime in the next few months.  I'm lucky enough to be in an industry that wasn't hit as hard as some others, so I feel like I can count on my paycheck for at least a little longer.  I'm lucky and I know it.  So many of my friends and family aren't so lucky.  It seems like everyday that I hear about another person being laid off or having their hours cut back or being forced to take unpaid vacation.  And I am feeling the pinch of the recession on my bottom line, too.  Despite my relative job security, my husband (who typically earns more than I do) owns his own business and let's just say that not all of his clients are weathering the recession the way they'd like. It's not uncommon lately for checks to come late and for people to cancel projects.

So,we try to go through the motions during the day, to hope for the best and to put a happy face on the recession, hoping things will get better fast.  We know we don't have much control over the economy as a whole, all we can do is work hard, cut back and wait for the tide to turn.  But these things are easier to say during the day.  At night, the negative thoughts creep in.  With nothing left to think about, it's hard to distract ourselves from our dark thoughts when the lights go down. 

How do you distract yourself from these dark thoughts and get to sleep?  Share your thoughts in the comments!

Read more:
Blogher: One-Third of Us are Losing Sleep Over the Economy
AlterNet: Can't Sleep? It Might Be the Economy
FDA: Tossing and Turning No More: How to Get a Good Night's Sleep

Dating and the Recession

Has the recession hurt your social life? 

Well, sure, hasn't it hurt everyone's?  After all, with everyone feeling the pinch, aren't we all cutting back a little.  But, this article in the Washington Post takes the recession to the next level: the strained ability for men to wine and dine their ladies.  After all, all a woman cares about is whether or not her guy will buy her pretty baubles. (If you can't sense my sarcasm, you haven't been reading this blog for long enough.)

Dating in the time of the pink slip means feeling the squeeze of the drastically reduced paycheck, the sudden sting of the layoff. From investment bankers to real estate developers to construction workers, no job means no buying rounds of $15 martinis for a pretty woman and her girlfriends. No hosting parties in the bachelor loft. And often, no idea how to present one's new self on the dating market.

Wow.  Where do we draw the line between dating and purchasing? 

I get where the Post is going with this, plenty of people's social lives must have been hurt by the recent economic situation.  After all, you don't have to be as creative about dating when you have lots of money, you can just throw your cash around.  And this sort of thing can be impressive.  But, with limited funds, you can't hide behind luxury surroundings, fancy dinners and expensive wine, you sort of have to just be yourself.  If you are defined by your money, this can be scary.

But it's hard to feel bad for men who say things like, "I was so used to using my financial situation to leverage my dating."  Ew.

The women in this article aren't garnering much sympathy from me either, saying things like, "I guess I'm kind of traditional. So if a guy can't really take you out or doesn't have the money or the state of mind to take girls out, then it's not going to go anywhere."

These are the women who piss me off, if the last few decades have taught me anything, it's that if you want to be taken care of, you have to take care of yourself.  The days of landing a rich husband and being a socialite housewife are behind us.  If you want to be rich, you need to earn your own money. 

That's what this blog is all about: empowering women to learn more about finance, to take hold of whatever economic opportunities can be discovered in this horrible economic climate and run with them.

How has your social life changed in the recession?  Do you have any sympathy for these men who can no longer find dates because of their financial situation?

Read more:
Jezebel: Capital Crimes: Unemployed D.C. Douchebags are Depressed by Recession