EoR No. 18: Managing money — in this economy?!
Plus, cheap goods as the American Dream, what FIRE got wrong, third-order thinking, evaluating common money rules and more
Top of mind
My money date this week got me really thinking about how I’m using my money. My new job (read the post for details!) gives me a tiny bit of extra breathing room, so I can think again about using my money to build and not only to survive. I haven’t had space for that in a few years.
I’m also completely aware that our volatile economy — under our volatile national leader — could steal this newfound comfort from me at any time. I hold no illusions of stability under this regime. I and many people I know entered into this last gasp of the Trump era knowing our job would be to simply survive, and we’re at peace with that.
So I’m thinking about my money in a way I probably never have before. I’m still carefully considering my spending and, once again, my savings — but not with the scarcity fear I’ve been fostering since November. Instead, I feel like I have the privilege to be very intentional with my money, and I feel a profound responsibility to live up to that. It’s a weird time to manage money!
News and upcoming events:
I’m presenting a virtual session for the Alvin Sherman Library at Nova Southwestern University on May 17! Join us for free to learn about how to start freelancing.
🥑 ICYMI at Healthy Rich this week
🔗 Things to catch
I was flattered to join personal finance OG Jean Chatzky for the HerMoney podcast to talk about an intuitive approach to building a healthier relationship with money.
Our American forebears traded our social safety net for the conspicuous consumption of capitalism. Not a good trade, but cheap consumption is, now, in our DNA. Trump’s tariffs threaten that foundational American identity, writes Amanda Mull for Bloomberg.
Love that
is examining what FIRE got wrong about personal finance (and, I’ll concede, I like her points about what the movement got right, too).- describes systems-level thinking in a way that makes sense for everyday life, not just the big capital-S Systems.
“A state of deprivation is a fundamental condition of the working class under capitalism.” —
on why it costs so much to exist.
💬 Let’s discuss
What are you doing lately to weather the state of our economy?
Are you taking steps to reduce your spending or monthly financial commitments? Have you bought new insurance plans (or dropped them)? Refinanced debt? Cancelled subscriptions or services? Adjusted your investments to “buy the dip,” reduce risk or pull out altogether? Deprioritized goals like debt payoff or savings to keep up with day-to-day costs? Let us know in the comments!
(I’m also working on a freelance piece about these moves, and I’d love to include your experiences! I’ll reach out for permission before I quote you. If you’d rather not share in a comment, reply to this email to share your experience. Thank you!)
Hi Dana. I turned 59 1/2 in February. At the end of the month, I applied to withdraw money from one of my 403B retirement accounts to pay off all the credit card/unsecured debt we had. It took a week or so to get to a notary for my husband's signature on the paperwork but we managed to withdraw the money before the major tariff announcements and the big fluctuations in the stock and bond markets. This effectively eliminated the high interest we were paying on our balances providing a much better return on that money than we will realize this year (or the coming years with so much volatility). I may end up delaying my retirement because of that volatility.... but I did decide to increase the amount I am putting away before tax (up to 30% of my gross pay right now).
It is much easier to meet our expenses in the event my husband has temporary layoff as well (he is in the building trades).
We also have been taking advantage of a monthly food coop buying program that is available locally where for $20.50 we are able to purchase a "package" that includes 4-5 protein sources, 3-4 vegetable/fruits, and some grain/carbs (rice, mac& cheese for example). It is called "Foodsense" and administered in the central NY region through our Foodbank. There are no income requirements and SNAP can be used. I just order it online and pick it up at one of the distribution sites which happens to be less than 5 miles away from our home. It is a good supplement. Participation in coops like this enhance the reach and the variety of what can be offered to everyone in the community.
The other action I am taking is developing a gardening hobby. I previously kept containers with herbs on my deck. I am branching out. There is a local resource recovery station that offers low price compost and mulch (it's like $10 for all you can load). So I am learning to be a lazy gardener. I have started seeds. There is a wealth of free education on Youtube and the library.