Cornered Office
with Mir Kamin
I'm a freelance writer and mother of two working from home, which theoretically means I can set my own schedule so as to best accommodate my family. In reality, "flexible hours" often equals "working too much." Yes, I'm my own boss; no, that doesn't mean life is easy. It's hard to leave the office when you live there. But I love what I do and feel very lucky. And not just because I get paid to work in my pajamas.
To learn more about Mir, check out her profile on Work It, Mom! or visit her blog at http://www.wouldashoulda.com/
My economy is fine, but can I afford to act like it?
Categories: Deep thoughts, Now I'm free(lancing)
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Our country is in a desperate financial crisis, and last week I was interviewed for an article about how people are coping and talking to their children about what’s happening with the economy. At one point I was asked, “So are things much more difficult for you, financially, right now?
I felt a twinge of guilt as I explained that no, actually, I’m fine. My family is fine.
Some of this is due to my incurable tightwad tendencies in even the best of times, yes, but most of it is due to sheer dumb luck. Freelancing is one of those industries that booms in times of financial instability, because we’re a lot cheaper than payroll staff. So while many people I know are entering dire financial straits, right now, my business is booming. (And my husband is a state employee, so while cutbacks are becoming the norm for him, he’s not in any layoff danger.)
Sure, we’re not going to talk about the state of my IRA—the same IRA I was so proud to be making my maximum contribution to, just a few months ago. Ahem. So what if I won’t be able to retire until I’m 90? I’m sure the market will bounce back. Eventually.
But in everyday life… we’re very fortunate. Heck, it took over a year to sell my house up north, and I’m grateful every single day that we closed that out before the mortgage crisis. I cannot even imagine how long we might’ve been saddled with that particular albatross if the timing had been different. But we were lucky.
Groceries are costing us more than ever before. Gas is twice as expensive as it was last year. But we’re okay.
My husband and I have somewhat differing viewpoints on how to proceed, financially, right now. My natural inclination—especially in times like these—is to stuff as much money as possible into the proverbial mattress. I am in protective mode, never stopping to appreciate our good fortune, not really; rather, I feel my mission while times are good is to lay down a suitable cushion so that if/when the tide turns, we’re still okay.
In contrast, my husband sees the current situation as a bit of a possible boon to us in some things we’d been discussing. For example, we’ve been talking about building another garage ever since we bought this house. I won’t bore you with the whys and wherefores, but suffice it to say that it’s something we’ve been planning on for a long time. My feeling is that in a bleak financial period such as this, the last thing we should be doing is adding on to our house. My husband’s feeling is that we can potentially get it done for a lot less because there are plenty of contractors needing work, and we’ve had the money set aside for this, so why not?
Perhaps I’m becoming more assimilated into southern culture than I realized. Part of my reluctance is financial (”Must bank this money just in case of disaster!”), but if I’m being honest I have to admit that most of it is situational. I think I just feel like it’d be in really poor taste to start a renovation project when so many people we know are struggling just to pay the mortgage.
And I just sleep better at night with that money under my bed.
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…but you’d be giving work to someone and his/her crew to enable them to pay their own mortgages.
Melissa D | September 30th, 2008 at 9:16 am
Geez, Melissa, is my husband paying you?
Mir | September 30th, 2008 at 9:17 am
Melissa is right — the biggest danger in a downturn such as this is that people/banks/financial institutions will panic and stop spending/lending money. When that happens, statis sets in and the economy grinds to a halt. Liquidity is key, whether in the form of corporate investment, mergers and acquisitions, or consumer spending.
RuthWells | September 30th, 2008 at 9:48 am
This is an honest post, and I was glad to read it. First, I’m glad you and your family are okay and that your business is doing well. Second, I’ve been having some of the same twinges. My husband and I feel fortunate that his job is stable. The previous commenters make a good point. We’re stashing money away because we still have a child in college, though his loans are still coming through (knock on wood).
Sharon | September 30th, 2008 at 9:56 am
This is one of life’s continuing conondrums.
Balance, Tulip, balance.
For the most part, you’ve made good decisions and we all know no one is always right, all the time…almost.
dad | September 30th, 2008 at 10:45 am
Yes, please spend as usual if you are usually prudent and can afford it. Otherwise more people will be out of work and the results will be exponential.
I feel that most Americans are actually OK right now. We are only hearing about the bad stuff, but percentage-wise, the serious effects are on only a small minority of middle- and working-class folks. As for rich folks whose stocks are bouncing around - I’m not losing too much sleep on their behalf.
But if someone asks in a public setting, it might go over better if you answer something like “we are being a little more careful.”
SKL | September 30th, 2008 at 1:55 pm
haha SLK! you made me laugh. i agree, most of the ‘pain’ is felt by those who have most of their money tied up in the market. i have seen it mostly with my older relatives who have retired and are living off the interest of their investments. they are not really all that happy at the moment but they, too, are getting by.
It’s almost like we are living in different worlds - the one on the news and the one in everyday normal life. small changes, yes, but major life changing affects? nope, not hear either!!
I am with your hubby on this one - build the garage! i am trying to convince my hubby we need to renovate the kitchen
Kate | September 30th, 2008 at 2:38 pm
I am so glad to see this post. I have been wondering what do to myself. On one hand, I am young enough to be ok in the 401K field, with the hopes that the market will bounce back. BUT, on the everyday activities, nothing has changed. I always wonder what to do and how/when. Right now, I wonder if we should save money, upgrade our basement, buy gold, etc etc… I think the best answer is to do a little of each, everything in balance and moderation,
Lisa | September 30th, 2008 at 2:48 pm
I’d like to say I’m with those who say they’re with me … because, you know, I really want the new garage so the lovely Mir doesn’t have to walk outside in the heat to her car …
So, I will.
Yes, there’s some risk involved, but if we can save 10, 20 or 30% off the work, is that worth it? Do those who have have an obligation to help those who don’t have?
And aren’t we always supposed to be looking for bargains? B-)
-otto
Otto | September 30th, 2008 at 7:42 pm
I think we are all going to feel the ‘pain’. However, might as well not act like it or worry about it since ultimately this is where we NEED government to fix it, because it isn’t something the individual can fix (other than spending money, but obv if no job, no money).
My pain I am anticipating is: I have nothing in the stock market, but interest rates are rising so if I want to buy a house I won’t get as good a rate as I once could have, despite a good job and down payment. As companies and banks cost of borrowing increases, they need to increase the prices of the products to protect their margins, so the purchasing power of the average joe’s dollars plummets. And I have nowhere near the ability to assess if the bailout solves any of this, only that the bailout will likely increase the US’ need to borrow from China and Japan so the dollar will keep suffering in value no? So then it will cost WalMart and Target more to import all the junk we buy so the cost of that stuff will go up so again average Joe’s dollar is worth less, still.
Sorry to be depressing. It’s just how I feel. I would probably build the garage if I were you, continue to be financially prudent and grateful and humble around others as you seem to be.
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I think it can be inspiring that there are still people doing well amid all the news reports. There definitely is a financial crisis, but hearing about it constantly in the media is making many people more scared than they need to be. While the economy truly isn’t great right now, that doesn’t mean that jobs don’t exist. They’re just not as easy to come by as they have been in the past. The market is cyclical, and things will improve. It’s just hard to remember that sometimes!
Charlotte Weeks | October 3rd, 2008 at 3:19 pm
Wow, I have seen you around so much, but this is actually the first time I read your post and now I am hooked.
I agree with your husband. I am actually doing some basement renovations right now and buying a car in November, when the 2009 model comes out so I could get the 2008 model for cheap.
I don’t feel guilty about it. Within the past three years when everyone was buying houses and spending a ton to renovate them, I’ve been saving. I am glad I did because now I can get the contractors for cheap as they are desperate. I can get the car for cheap too, because the dealers are desperate as well.
When the majority spends, you save.
When the majority saves, you spend. That’s just seems to make sense to me right now.
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