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Posts Tagged ‘income’

Five reasons to freelance — and five reasons not to!

In behavior, blogging, books, business, culture, domestic life, journalism, life, photography, work on June 7, 2014 at 5:46 pm

By Caitlin Kelly

I went freelance, for the third time, in 2006 after losing a staff job at the New York Daily News — but I also freelanced, by choice, full-time for four years right out of college, so it wasn’t a terrible shock to lose an office, colleagues and a paycheck.

I grew up in a family of freelance creatives, people who wrote for print and television and my father was a film director. No one had a steady paycheck or pension to look forward to and rely on. So it all felt normal to me.

You can attend a mid-week matinee!

You can attend a mid-week matinee!

Five reasons to go, or stay, freelance:

You’re very intrinsically motivated (i.e. you don’t need a whip over your head to get it done)

Autonomy ‘r us! Some people are just a whole lot happier not having a boss. And any organization, no matter how small, is going to impose policies and procedures, some of which are usually inane and some of which you might deeply disagree with.

All of which come with someone else’s paycheck.

You want more control of your work/life scheduling

Maybe you have children and/or pets and/or an ailing loved one who needs your attention as well. Maybe you prefer to work from 4pm to midnight or 2am to 8am…or whenever it suits you. Freelancing allows you tremendous freedom, within limits, to set your own hours and schedule.

I take a jazz dance class on Monday and/or Friday mornings, from 9:30 to 10:30 or 11:00 a.m — and no staff job I know of would allow for that. It’s fun and social and gives me tremendous pleasure and keeps me healthy. And I like knowing this is a bonus no job would offer.

I also take as much vacation, whenever possible; my husband, even after 30 years at the Times, must request his vacation time in early January and defer to those (!) with more seniority than he.

This was a workday for us in rural Nicaragua. Sweet!

This was a workday for us in rural Nicaragua. Sweet!

You can choose a wide variety of clients and projects

Staff jobs, de facto, have set roles and responsibilities they have hired you to perform. Freelancers can freely pick and choose our clients and types of work, from quick 300-word stories to 3,500 word features to 100,000 word books. We can fly to another country to do some reporting or spend a week at a conference meeting cool people who can help our careers.

If you’re getting bored or have a difficult client, switch it up!

Intellectual challenge is up to you

If your personal life is crazy and all you have energy for is lighter projects, that’s your call. That’s a huge benefit when our personal lives go haywire and we need to lighten our loads for a while. When you work for someone else, it’s all up to them. Plus, your professional opportunities for advancement and growth (and pay) are largely within their budget, schedule and control.

BUSINESS OF FREELANCING

Your income is your choice

Key! If you want to double or triple your income — or even just boost it by 22.3% — that’s also within your control, not something at the pleasure of your boss or company CEO.

Freelancers see a very direct and satisfying correlation between our energy, stamina, skill and experience, and the zeros on our tax returns — with no office politics and no bullshit excuses why you still, somehow, don’t deserve — or just won’t get — a raise, commission or bonus.

Five reasons to stay on someone’s payroll

You’ve got huge overhead you can’t quickly and easily reduce

If you’ve got multiple children expecting you to pay for their educations, freelancing is going to be tough. If you’re crushed by student debt yourself already and/or credit card debt (especially with a high APR), freelancing — i.e. not having a reliable income each month — can be really stressful, certainly as you are just getting started and cannot command the highest fees.

And many clients pay late (45 to 60 days after invoice) while some try to screw us out of our fees.

I know some people earning $100,000 to 130,000 a year freelancing, but they are not, certainly as writers in journalism today, in the majority.

You need someone telling you what to do, and when to do it, and how to do it right

If you’re the sort of person who craves routine and a structure and people making sure you have done the work correctly, freelancing may feel too loosey-goosey. Every single day’s productivity is completely your own responsibility, so if you’re someone who likes to watch daytime TV or Candy Crush, good luck with that.

Your ability to make enough income to gas the car, feed your family and take your dog to the vet are often the primary or exclusive measure of your success. Your primary goal is to find, nurture and keep ongoing and profitable relationships — not please your superiors and colleagues.

A lovely gift from my former assistant. Someone cared!

A lovely gift from my former assistant. Someone cared!

You really need the company (and input) of other people

Working alone at home is lonely and isolating. If you treasure your office pals and going out for margaritas with them, freelancing all day by yourself may drive you nuts. Yes, you can rent a co-working space, but you’re still there to work and paying for additional space, and not necessarily surrounded by like-minded folk.

Hustling scares you (to death)

Freelancers eat only what we kill. No, not literally! But we start many weeks, or years, with no clear, definite idea what our income is actually going to be. Sure, we set income goals — but clients die, turn into insatiable monsters we have to fire, publications suddenly close or trim their budgets and mayhem just happens sometimes.

Yet those monthly bills keep coming! If the idea of constantly seeking out, and nurturing, new client relationships fills you with dread, keep the day job.

You crave the validation of “I work at…”

A phrase that drives me crazy is “Who’re you with?” I’m with myself, actually.

The constant status-check of ascribing your value and prestige to your Big Name Employer seems, to me, sadly antiquated now that 30 percent of Americans work for themselves, or as temps or contract workers only.

But if you really like saying “I work for BNE”, then get and keep a job there.

The downside? If or when you’re laid off from a staff job, your identity — and your income, of course — may take a serious and unexpected whack.

How about you?

Which lifestyle suits you best?

Do you hate your work?

In behavior, business, life, Money, US, world on June 5, 2014 at 12:16 pm

By Caitlin Kelly

This was a workday for us in rural Nicaragua. Sweet!

This was a workday for us in rural Nicaragua. Sweet!

Here’s a truly depressing look at the American workplace:

 Curious to understand what most influences people’s engagement and productivity at work, we partnered with the Harvard Business Review last fall to conduct a survey of more than 12,000 mostly white-collar employees across a broad range of companies and industries. We also gave the survey to employees at two of The Energy Project’s clients — one a manufacturing company with 6,000 employees, the other a financial services company with 2,500 employees. The results were remarkably similar across all three populations.

Employees are vastly more satisfied and productive, it turns out, when four of their core needs are met: physical, through opportunities to regularly renew and recharge at work; emotional, by feeling valued and appreciated for their contributions; mental, when they have the opportunity to focus in an absorbed way on their most important tasks and define when and where they get their work done; and spiritual, by doing more of what they do best and enjoy most, and by feeling connected to a higher purpose at work.

My recent trip with WaterAid America to the poorest part of Nicaragua– all these photos– was an amazing re-set for me. Our multi-national, five-person team, only two of whom had met previously, worked 12-hour days in 95-degree heat, and even had to push the van every time to get it started.

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We also faced extraordinary poverty, interviewing people living on $1/day in the second-poorest nation in the Americas after Haiti. It could, I suppose, have felt depressing and enervating, but we were meeting amazing people doing valuable work.

It was by far my happiest paid week in a very, very long time.

What I saw and felt there also radically altered the way I now think about my career and how I hope, at least some of the time, to earn my living.

Because our work during that week — driving four hours a day into the bush to interview local women in Miskitu — hit all four of the core needs at once.

We were treated with kindness and respect, laughed loudly and often, and knew the work we were focused on was life-changing. How much better could it get?

A typical working lunch in Nicaragua

A typical working lunch in Nicaragua

People fantasize wildly about the life of a writer, how creative it must be, how satisfying.

I discussed this recently with a female friend, recently retired after a 30-year career as a writer at the Toronto Star.

“Do you think our work is creative?” I asked her.

“Not so much,” she said.

We’re expected to be highly productive. We get to meet and interview a wide variety of people, but creative? That’s not what journalists (sad to say) are paid for.

I stay freelance for many reasons, and the key one is autonomy and the chance to re-make my work into something that, whenever possible, hits all four core needs.

Jennifer and I at the beach; our translator, Dixie, takes a break

Jennifer and I at the beach; our translator, Dixie, takes a break

My field, journalism and publishing, has changed a great deal in recent years — pay rates have been reduced to 1970s-era levels,  which requires that I and many others now work much, much faster on many more projects at once to make a decent living.

I dislike having to race through most of my assignments to earn a profit — but quality costs time and money to produce and very few people are willing, now, to pay for that.

I never used to hate my work, and I find it very stressful when I do. But journalism is a field in which workers are rarely thanked or praised, in which sources can be elusive or demanding and in which we rarely seem to find time or money to focus on serious issues.

As they are for too many frustrated workers, the four core needs are often damn difficult to attain.

(Or is it “just work”? It’s not meant to be enjoyable)?

How about you?

Do you hate your work?

It may be creative, but, hell yes, it’s still work!

In art, beauty, behavior, books, business, culture, design, film, journalism, Money, music, photography, US, work on May 13, 2014 at 12:58 am

By Caitlin Kelly

Time to let go, at last

Did any of you catch this recent interesting piece in The New York Times?

The way we habitually think and talk about these matters betrays a deep and venerable ambivalence. On one hand, art is imagined to exist in a realm of value that lies beyond and beneath mere economic considerations. The old phrase “starving artist” gestures toward an image that is both romantic and pathetic, of a person too pure, and also just too impractical, to make it in the world. When that person ceases to starve, he or she can always be labeled a sellout. You’re not supposed to be in it for the money.

On the other hand, money is now an important measure — maybe the supreme measure — of artistic accomplishment. Box office grosses have long since become part of the everyday language of cinephilia, as moviegoers absorb the conventional wisdom, once confined mainly to accountants and trade papers, about which movies are breaking out, breaking even or falling short. Multimillion-dollar sales of paintings by hot new or revered old artists are front-page news. To be a mainstream rapper is to have sold a lot of recordings on which you boast about how much money you have made selling your recordings…

This is something I think about a lot.

My father, still alive at 85, was a respected maker of films and network television, as was my stepmother. My mother worked as a journalist.

It never occurred to me that “artist” and “starving” belonged in the same sentence. Nor should they!

This notion that being creative means penury or 1%-land is absurd. We don’t expect or require this of others — the middling executive, the stalled lawyer, the so-so administrator. The world is filled with people doing their best and never hitting the heights, nor surviving on ramen in a group squat.

More, from the Times’ piece:

Inexpensive goods carry hidden costs, and those costs are frequently borne by exploited, underpaid workers. This is true of our clothes and our food, and it is no less true of those products we turn to for meaning, pleasure and diversion. We will no doubt continue to indulge all kinds of romantic conceits about artists: myths about the singularity of genius or the equal distribution of talent; clichés about flaky, privileged weirdos; inspiring tales of dreamers who persevered. But we also need to remember, with all the political consequences that this understanding entails, that they are just doing their jobs.

I’ve been writing for a living — sometimes for a nice wage, sometimes for a much-less-amusing one — since I left university. But I’ve never cracked that sexy glass ceiling of the six-figure income.

malled cover LOW

Talent and hard work, prizes and fellowships — got ‘em. There are few direct correlations between the standard metrics and creative success, let alone buckets ‘o cash. Your ability to schmooze, to accept and perform work you find creatively grotesque, to suck up abusive client behaviors — these, too, factor considerably into who will (quickest) ascend the greasy pole of fame and fortune.

The creative life is one that many mythologize or fantasize about: waking up at noon to daub a canvas or noodle about with your screenplay. How lovely, how freeing to flee the grim confines of cube-world and the predations of The Man.

Snort!

Every time I put on a pair of shoes, or eat a meal, I touch the direct reflection of talent and hard work — it produced the income that keeps me housed, fed, clothed and will fund my retirement.

Making art — of any kind — in no way excuses the artist from the costly necessities of life, no matter how cool or offbeat our lives and work may appear to others choosing a different vocational path.

One of my favorite books is The Creative Habit, by American choreographer Twyla Tharp, who has made her career by — as she eloquently puts it — walking into an empty studio and making a dance.

In the end, there is no ideal condition for creativity. What works for one person is useless for another. The only criterion is this: Make it easy on yourself. Find a working environment where the prospect of wrestling with your muse doesn’t scare you, doesn’t shut you down. It should make you want to be there, and once you find it, stick with it. To get the creative habit, you need a working environment that’s habit-forming. All preferred working states, no matter how eccentric, have one thing in common: When you enter into them, they compel you to get started.”
Twyla Tharp, The Creative Habit: Learn It and Use It for Life

Creative work absolutely is work, even if/when it doesn’t earn enough to buy you a house or a shiny new car — or any car, ever — or the plaudits of The Right People.

And holding fast to principle — creating something you imagine to be of lasting cultural worth, not merely sating contemporary appetites or shoveling cash at your expenses — remains a difficult challenge for many artists faced with the same costs of heat, fuel, clothing, food and housing as the rest of the workforce.

Jose and I recently saw this terrific 1987 play, The Substance of Fire, about a New York City family-run publishing house and its internal battle over this issue.

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Here’s a post I wrote about this in 2011, which was chosen for Freshly Pressed.

I ask whether we should focus on being productive (look what I made!) or creative (which might be publicly inaudible and invisible for months or years, producing no income):

I’m not persuaded one can be both all the time.

We all need time to think, reflect, ponder, meander, take some detours, some of which — being immediately unproductive — lead into dead ends, some of which lead us off into totally new and hugely profitable (financially or creatively) directions.

Shutting down the production line for a while — silence! solitude! no immediate income! I’m wasting time! — can feel terrifying.

It’s absolutely necessary.

Do you work full-time in a creative field?

How’s it going?

How do you measure your success?

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Want a free speaker? Eleven reasons authors might say no

In behavior, blogging, books, business, culture, journalism, life, Media, Money, work on April 11, 2014 at 12:52 am

By Caitlin Kelly

Many of you dream of becoming a published author — and some of you already are.

It’s a very cool accomplishment and one to be proud of.

I’ve published two well-reviewed non-fiction books and I still love sharing them with audiences. I really enjoy public speaking and answering readers’ and would-be readers’ questions and hearing their comments.

malled cover HIGH

But, while it’s terrific to get out there and share your story, and that of your book, you’ll also get a pile ‘o invitations to speak for no money.

A new service (and I’m not A Big Enough Name for them to want me, sigh) is paying NYC-area authors $400 (and pocketing $350 of the $750 fee) for bringing authors to local book clubs.

Says Jean Hanff Korelitz:

“There were so many writers I know and admire who I also knew would appreciate any income at all,” she said in an email. “Most of us, whether or not we are ‘successful,’ really struggle financially in this city. Also, we’ve reached this point at which we’ve come to assume art should be free, and copyright is under assault, etc., and the bald fact is that the artist has to live, too. So I really liked the idea of creating (or at least extending) a new income source for writers.”

Here are some reasons I now say “No, thanks” to most of the people who want my unpaid time, some of which might apply to you as well:

Your audience isn’t going to welcome my ideas

I learned this early, the hard way — speaking unpaid, to boot. Someone I’d interviewed for my retail book, “Malled”, asked me to address his annual conference. He, the CEO of a wildly successful software firm, had about 75 people flying in to Las Vegas, expecting to hear updates on the labor management software they buy from him. They weren’t — even though the CEO cared as passionately as I — the least bit interested in how to better hire, manage and motivate retail associates, my central message. The room was distinctly frosty.

Yes, I got to stay at the Bellagio. But this proved to be a serious mismatch. Next time, I’ll take the psychic hit, but only softened by a four-figure check.

I’m not fond of flying, especially turbulence

Are you eager to jump on a plane heading anywhere, unless it’s a business or first-class ticket with a car and driver waiting at the other end? It rarely is for midlist authors.

I make no money selling books

Non-authors have no clue how the publishing world functions, and assume that every book we sell means money in our pockets. It doesn’t! If you have commercially published a book, you have been paid an advance. Only after you have paid off the advance, (and you’ll make maybe 10% of the cover price of each book you sell), will you ever see another penny. Most authors never do.

A “great lunch” is really not an appealing offer

Seriously. I know you mean to be kind, but I can buy my own food and eat it on my own schedule.

Some of us loathe and fear public speaking

I don’t, but many authors do. Ours is a solitary business, one spent alone at home huddled over a notebook or computer. We spend most of our time thinking, writing, revising. We chose this business because it suits our nature. So standing up in front of a room filled with strangers — whose comments and questions can be quite weird or rude — can be stressful. Why bother?

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Your audience is too small

Here’s the math. On a good day, I can sell my books to one-third of the room; i.e. if there are 30 people attending my presentation, 10 will usually buy my book, if 100, 30. Most audiences are small, fewer than 50 or 60 people.

The odds of someone in the room being willing and able to pay me to do the next gig? Slim to none. And I’ve still lost half my workday.

Your audience isn’t my audience

Even if you’ve gathered 100 or 200 or 300 people, are they the people most interested in my topic? If not, I’m an annoyance, and their lack of interest in my work — let alone a passion for the issues  I care deeply about — creates a headwind I have no stomach for. It’s emotionally draining for me and it’s no fun for them. If you’ve scheduled me with several other authors, as is often the case, their audience may be completely different from mine.

It costs me time and money to do this for you

You’ve asked me to donate at least three or four hours of my workday — probably driving 30 minutes each way, (plus the cost of gas), to sit for several hours through lunch and socializing, speak, answer questions and sell and sign books. That’s a day’s paid work wasted. I’ve actually had a major commercial organization in another country insist they couldn’t pay me a penny, even travel costs, to speak at their annual conference.

If you perceive so little value in my time and skills, I’m staying home, thanks.

Your competitors pay!

I drive five minutes to my local library — where my friends and neighbors show up  by the dozens — and still get paid $50. Local women’s clubs pay. I was paid $8,000 to speak at a conference in New Orleans in 2012. Yes, really.

If you have to, sell tickets at $10 each, but your payment shows respect for my time, skills and experience. Whatever you feel, we don’t necessarily consider it a privilege or honor to talk about our books to people who don’t value our time.

Why exactly do you, and your audience, expect free entertainment from us?

I don’t believe in your cause, the one you’re selling my brand to win attendance

I already donate my time and money to causes I personally believe in. Unless I’m passionate about yours, and eager to help you raise funds for it, I’ve already made my pro bono commitments.

malled china cover

I’m busy!

It’s that simple.

Are you saving enough?

In behavior, culture, domestic life, family, life, Money, parenting, US on March 10, 2014 at 2:21 am

By Caitlin Kelly

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A recent piece in The Wall Street Journal asserts that Americans spend way too much money:

You may overspend because you’re bored, you have no budget or you want to keep up with your neighbors.

Or you might be letting your emotions dictate your financial decisions.

Whatever the reason, you may be setting yourself up for a financial disaster.

But fear not: There are a few ways you can rein in your spending before it’s too late.

Tracking your cash flow and tapping into your feelings are two things financial advisers say you can do to curb your urge to spend.

“The spending choices you make now will greatly impact your quality of life later on,” says Patrick McDowell, a Miramar Beach, Fla., financial adviser.

Here’s an honest post by a new Broadside follower (welcome!), a college student, making minimum wage and struggling financially with college costs:

Although it can be annoying, I understand this is making me a better person.  It’s not just about the money all the time, it’s about a learning experience.

And here’s a dense and dry blog post, recently chosen for Freshly Pressed, about behavioral economics — written by a professor:

Certainly the evidence that people don’t typically behave rationally is quite compelling.  It’s easy to find examples of behavior which conflicts with economic theory.  The problem is that it’s not clear that these examples help us much. I’m pretty much obsessed by when, why, how and where we choose to spend our money. Or save it.

Given how little money most Americans save — here’s a blog post from The Economist about that — it’s a tough decision to postpone immediate pleasures (let alone the daily grind of needs), for groceries, housing and medical care in the future, possibly decades away. What if we never get there?

But what if we do live to be 80, 90 or beyond — and find ourselves broke and scared?

Here’s a frightening post from one of my favorite writers, Guardian journo Heidi Moore, about how older women — because we earn less and live longer — end up in poverty:

17.8 million women lived in poverty in 2012, 44% of whom lived in extreme poverty. Extreme poverty means “income at or below 50% of the federal poverty level”, which amounts to less than $5,500 a year…

What is surprising is that the slide into deep poverty is happening so soon, and in such massive numbers, among the elderly. It’s not clear what could have changed between 2011 and 2012 to cause it.

My mother went into a nursing home three years ago, paying — for a small room — $5,000 a month. Yes, really. That certainly made clear to me the very real cost of getting old, ill and needing costly care every single day. She saved, lifelong and ferociously, so she has the funds for it.

Most of us will not.

Our parents and grand-parents, and a few fortunate folk in specific industries, could look forward to a company pension; Jose will receive one from The New York Times, thank heaven. A few lucky people also get a company match to their 401(k) retirement savings from their employers.

But most of us are now expected and required to save and save and save and save, praying our investments retain and grow in value. I’ve been saving 15 percent of my income every year for a while; it’s finally adding up to a sum that makes me feel like the sacrifice is worth it.

It’s also simplistic to shame people who “spend too much” when millions have lost their jobs, often repeatedly, and have run through whatever savings they might once have had. Millions are also now earning far less than they once expected or hoped to.

Wages are stagnant or falling while the cost of living rises each year — and we’re still human beings who actually want to leave our homes and have some fun!

I splurge on four categories: 1) items or improvements for our home; 2) travel; 3) entertaining friends; 4) fresh flowers.

ALL IMAGES COPYRIGHT CAITLIN KELLY 2013.

How about you?

What do you splurge  on — and where do you keep your wallet closed?

Readers — a decade later. This is why we write

In art, blogging, books, culture, journalism, life, Money, work on March 8, 2014 at 12:05 am

By Caitlin Kelly

A check arrived this week that left me so excited I burst into tears.

It wasn’t the amount on the check — $491.00 Canadian — but its source, a Canadian gift to authors called the Public Lending Right Program. If your books qualify, (only those published within the last 20 years), you can register your work and receive, in effect, a royalty paid out once a year for the public’s use of your books through Canadian libraries.

malled cover HIGH

The enrolment period is open now, until May 1. Maybe your works qualify!

I was also thrilled to receive a payment that didn’t feel covered with blood and sweat, the way so much of my work now does.

The publishing/journalism business today too often feels less like a creative endeavor than a protracted and wearying battle — rates remain low, publishers pay late and editors refuse to negotiate contracts that claw back 3/4 of your fee if  they decide they just don’t like your final product, even after multiple revisions.

One Canadian friend, with four books in the system, says she used to make a pretty penny from the sale of her intellectual property. A book’s advance, ideally, is only the first of an ongoing revenue stream from your work; with Malled, I also earned income from a CBS television option and multiple, well-paid speaking engagements.

Like most mid-list authors, I’ll never “earn out”, repaying my advance and earning royalties, so every bit of ancillary revenue from each book is very welcome.

Twenty-eight countries have a similar program to Canada’s, with Denmark leading the way in 1941.

Not, sorry to say, the United States.

It’s a sad fact that writers here are not considered successful unless they sell tens of thousands of copies of their books, a bar that very, very few of us will ever be able to clear. Not because our books are boring or poorly-written or sloppy. They’re too niche. They’re too controversial. They’re too challenging.

Or, more and more these days, with the closing of so many bookstores and newspaper book review sections, readers simply never discovered they even exist, which makes endless self-promotion even more necessary than ever.

Here’s a new website to help readers discover year-old books  — called backlist books, in the industry — they might have missed.

And another, focused on business books.

There’s a fascinating resource called WorldCat.org — do you know it? If you’re an author, you can search it to see where your books have ended up; mine are in libraries as far away as New Zealand and Hong Kong.  A friend once sent me a photo of three copies of my first book, Blown Away, on the shelf in a Las Vegas library. I felt like waving.

Measuring your worth and success as a writer solely by your financial income is unwise. But if you measure your books’ value by the number of readers reaching for them, even a decade after publication — as people clearly did with this statement, for my first book, Blown Away: American Women and Guns — you can enjoy a different sort of satisfaction.

That first book came out in April 2004, still finding readers. Certainly, gun use and violence in the United States is an ongoing issue  — I knew that when I chose my subject.

My second book, Malled: My Unintentional Career in Retail came out April 2011 and in China last July. According to this PLR statement, it, too, is still being read; in this rough economy, many people have tumbled from well-paid jobs into low-wage, hourly labor.

Our books feel like dandelion seeds, something light and ethereal blown hopefully into the wind. Will they take root and bloom and spread, our ideas heard and discussed and maybe even remembered?

Beyond our sales figures, authors never really know who’s reading us.

Having proof of ongoing readership and influence?

Priceless.

How much money is enough?

In behavior, business, culture, life, men, Money, US, work on January 21, 2014 at 12:39 am

By Caitlin Kelly

Interesting, if scary, essay in The New York Times recently, by a former Wall Streeter — who once sneered at his $3.6 million bonus as insufficient:

After graduation, I got a job at Bank of America, by the grace of a managing director willing to take a chance on a kid who had called him every day for three weeks…At the end of my first year I was thrilled to receive a $40,000 bonus. For the first time in my life, I didn’t have to check my balance before I withdrew money. But a week later, a trader who was only four years my senior got hired away by C.S.F.B. for $900,000. After my initial envious shock — his haul was 22 times the size of my bonus — I grew excited at how much money was available.

Over the next few years I worked like a maniac and began to move up the Wall Street ladder. I became a bond and credit default swap trader, one of the more lucrative roles in the business. Just four years after I started at Bank of America, Citibank offered me a “1.75 by 2” which means $1.75 million per year for two years, and I used it to get a promotion. I started dating a pretty blonde and rented a loft apartment on Bond Street for $6,000 a month.

I felt so important…The satisfaction wasn’t just about the money. It was about the power…

Still, I was nagged by envy. On a trading desk everyone sits together, from interns to managing directors. When the guy next to you makes $10 million, $1 million or $2 million doesn’t look so sweet.

If you live — as we do — in an area filled with seriously wealthy people, some of whom attend the same church as we do, or sit beside us on the same commuter train, it’s disorienting to realize what “enough” looks like to those of us whose annual incomes are a puny fraction of theirs.

My first husband, a physician, earns in one month what I make in a not-great year writing.

A new film, The Wolf of Wall Street, is a true-life story of a former trader whose life defined greed. Cate Blanchett should get an Oscar nomination for her role in Blue Jasmine, Woody Allen’s latest film, about a New York woman who tumbles from tremendous wealth into poverty.

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And here’s a stunning bit of new data, from Oxfam -- 85 people own nearly half the world’s wealth.

Here’s a sobering list of how much money you’ll need for retirement — if you need or want $4,000 a month, your stash needs to be $666,000. Very few people can ever manage to save that much, especially when battered by multiple recessions and a weak economy.

People who live nowhere near NYC have no idea how insanely expensive it is or why we put up with it — for some of us, it’s where we need to be professionally; my husband spends more than $5,000 a year just to get to his office, between train, cab and subway. There’s no practical way to cut that fixed cost, a stupid number to many of you, I know.

But moving an hour or two further away from the city to save on housing costs also means an even longer commute, (which costs more), and sharply diminishes the time and energy to spend on its cultural, social and professional opportunities — fine for some, not for others.

Let alone the time one has to see one’s family, relax or have a life; one of my favorite books is the classic, Your Money or Your Life, which makes clear that’s the tradeoff many of us make, with only 24 hours in every day.

One writer I know profitably pounds the drum of endless productivity — a very American obsession — with books like 168 Hours.

What the point of making huge bank if you’re working all the time and/or too exhausted to enjoy your personal interests, (or even have any!), let alone nurture intimate relationships with anything beyond your computer screen or phone?

Credit Suisse recently made headlines by suggesting its junior bankers take Saturdays off.

I come from a family with money, some inherited, some earned, but will never enjoy a lavish life like theirs, which is sometimes a little depressing after watching them spend freely on jewels, furs, limousines, property, cars, travel and antiques. You develop a taste for the best, with extremely limited ability to buy it yourself.

So what’s really “enough”?

For us, at the moment, it’s having decent retirement savings and adding to them every year, no matter how much immediate fun it costs us.

It’s my husband’s job that he still enjoys and which, thank God, offers a pension.

Above all, it’s good health — without which billions in the bank means damn little.

How much money is enough for you these days?

When — if ever — do we just stop shopping?

In behavior, business, culture, domestic life, family, life, Money, urban life, US on December 19, 2013 at 12:18 am

By Caitlin Kelly

Every day, my email in-box (guilty!) fills up with notifications of sales from flash-sites like Gilt and One King’s Lane and Ideeli or from retailers I’ve purchased from before.

I delete almost every single one.

Every weekend, (yes, we still read some of our newspapers in print), a thick, glossy pile of flyers tumbles in a nasty tree-wasting avalanche from within the folds of the Times, each imploring us to spendspendspendbuybuybuybuybuybuy!

Consumer Spending

Consumer Spending (Photo credit: 401(K) 2013)

Between the easy availabilty of on-line shopping — a boon to the home-bound or retail-underserved — and a consumer-driven culture urging us to buy everything we see, right now, it’s an ongoing challenge not to spend money. Not to buy even more stuff.

The U.S. economy, a statistic that always somewhat horrifies me in its implications of rampant consumption, is based 70 percent on consumer spending — gas, food, diapers, gum, Manolos, trucks, Ipads, whatever.

So if we actually stop shopping, or slow down our spending on consumer goods, the economy slows. If you live in the U.S., and have any disposable income (such a bizarre phrase!) it can feel like some civic or patriotic duty to go spend some more money.

When I worked retail for 2.5 years in an upscale suburban New York mall, I saw the insanity — truly — of holiday shopping firsthand. People staggered into our store already so loaded with bags they looked like pontoons. They pawed through the racks, threw our stock onto the floor and shouted with anger when we didn’t have exactly what we needed when they needed it.

Ugly!

And yet very few Americans, even those with decades of earned income, have saved enough money to ever stop working.

In October 2013, USA Today reported:

A new report paints a rather grim assessment of how prepared we are for retirement. “The Retirement Savings Crisis: Is it Worse Than We Think?” from the Washington, D.C.-based National Institute on Retirement Security, says the typical American family has only “a few thousand dollars” saved for retirement.

“We have millions of Americans who have nothing saved for retirement,” says Diane Oakley, executive director of the NIRS. “We have 38 million working-age households who do not have any retirement assets.”

For people 10 years away from retirement, the median savings is $12,000. “Of the people between 55 and 64, one third haven’t saved anything for retirement,” Oakley says.

I read those statistics and wonder what is going to become of them; not everyone has children able or willing to rescue them.

Fortunately, (partly because we never assumed the costs of raising children), we’re way ahead of that $12,000 figure. We drive a 13-year-old vehicle and live in a one-bedroom apartment and I set aside the maximum for my IRA, even when I’d really prefer to spend that money on a long and fantastic overseas vacation, or some gorgeous new clothes or to take in all the shows, plays and concerts that Manhattan offers us.

Having significant savings is, for me, a much deeper comfort than anything I could buy.

Here, from Harvard Business School, why buying an experience (if you must buy anything at all) wins:

Conventional wisdom says that money can’t buy happiness. Behavioral science begs to differ. In fact, research shows that money can make us happier—but only if we spend it in particular ways.

In their book Happy Money: The Science of Smarter Spending, authors Elizabeth Dunn and Michael Norton draw on years of quantitative and qualitative research to explain how we can turn cash into contentment.

The key lies in adhering to five key principles: Buy Experiences (research shows that material purchases are less satisfying than vacations or concerts); Make it a Treat (limiting access to our favorite things will make us keep appreciating them); Buy Time (focusing on time over money yields wiser purchases); Pay Now, Consume Later (delayed consumption leads to increased enjoyment); and Invest in Others (spending money on other people makes us happier than spending it on ourselves).

I try to adhere to all five of these principles:

Paris - Île St. Louis: Berthillon

Paris – Île St. Louis: Berthillon (Photo credit: wallyg)

– I can still taste the salted caramel ice cream we savored at Berthillon on the Ile St Louis in Paris five years ago.

English: Ile St-Louis - Paris Français : Ile S...

English: Ile St-Louis – Paris Français : Ile Saint-Louis – Paris IV (Photo credit: Wikipedia)

– I’ve chosen to work fewer hours, (which restricts my ability to shop, given that I save 15 percent of my pre-tax income every year as well), to better enjoy my free time and have experiences I value more than buying more things — to take a long walk mid-day or have coffee with a friend or read a book instead of flogging myself into another 10 or 15 hours’ paid work. I ended up in the hospital in 2007 for three days with pneumonia after chasing money too hard, too fast. Never again.

– I tend to hoard gift cards for as long as a year before finally using them, as I did recently with a Christmas 2012 gift card from my husband, (it bought two great pairs of shoes on sale.)

– I splurge on small surprises for Jose whenever I can, whether a book or a pair of colorful socks or a dinner out.

In a season where so many of us are rushing about madly shopshopshopping, it’s easy to forget that a more valuable gift can be as small and essential as a hug, a night or two of babysitting for a weary friend, making a meal for an elderly or ill neighbor.

It doesn’t have to come in a shiny Apple-designed, (cheap Chinese labor made), plastic shell or turquoise Tiffany box, no matter what their ads insist.

 Are you sick and tired of shopping?

Creative success — grinding it out one play at a time

In art, beauty, behavior, books, business, culture, design, journalism, life, work on December 7, 2013 at 2:16 pm

By Caitlin Kelly

Here’s a wise post about how to sustain a creative or artistic career.

Greta Gerwig

Greta Gerwig (Photo credit: Wikipedia)

This is from American writer, actor and director Greta Gerwig, whose most recent film “Frances Ha” I loved and blogged about:

I have gotten into baseball recently, and whenever I have trouble writing, I think about the pace of baseball. It’s slow. You strike out a lot, even if you’re great. It’s mostly individual, but when you have to work together, it must be perfect. My desktop picture is of the Red Sox during the World Series. They aren’t winning; they’re just grinding out another play. This, for me, is very helpful to have in my mind while writing.

I play softball, and it’s taught me a lot, as sports will do, about how I handle or manage my emotions and failure, on or off the field.

Many new writers, quivering (Rocky Horror Picture show-style) with anticipation, are quite firmly persuaded that they are going to be become rich, famous, adored by millions. This lies in distinctly naive/annoying contrast to the lived experience of thousands of talented, accomplished, award-winning writers who have never had, and never will have, a best-seller or a movie made of their work.

Working artists get up every day and step up to the plate, as it were, and swing. We might hit a single, or a double. On a very good day, we’ll hit a triple.

A home run? If we focused on achieving that, and only that, we’d probably stay in bed in the fetal position.

Writer's Block 1

Writer’s Block 1 (Photo credit: NathanGunter)

The creative life looks so alluring — wake up at noon, sip an espresso, read, do your artistic thing for a few hours. You know, be creative.

A recent NYT obituary of publisher Andre Schiffrin was blunt about the cost of his principles:

…one of America’s most influential men of letters. As editor in chief and managing director of Pantheon Books, a Random House imprint where making money was never the main point, he published novels and books of cultural, social and political significance by an international array of mostly highbrow, left-leaning authors.

Taking risks, running losses, resisting financial pressures and compromises, Mr. Schiffrin championed the work of Jean-Paul Sartre, Günter Grass, Studs Terkel, Michel Foucault, Simone de Beauvoir, Noam Chomsky, Julio Cortázar, Marguerite Duras, Roy Medvedev, Gunnar Myrdal, George Kennan, Anita Brookner, R. D. Laing and many others.

But in 1990, after 28 years at Pantheon, Mr. Schiffrin was fired by Alberto Vitale, the chief executive of Random House, in a dispute over chronic losses and Mr. Schiffrin’s refusal to accept cutbacks and other changes. His departure made headlines, prompted resignations by colleagues, led to a protest march joined by world-renowned authors, and reverberated across the publishing industry in articles and debates.

Many in publishing spoke against the dismissal, calling it an assault on American culture by Random House’s billionaire owner, S. I. Newhouse Jr., who was accused of blocking a channel for contrary voices in favor of lucrative self-help books and ghostwritten memoirs for the sake of the bottom line.

The truth?

You have to want creative success (let alone a livable income), quite badly, as this recent New York Times piece reminds us:

The point of work should not be just to provide the material goods we need to survive.Since work typically takes the largest part of our time, it should also be an important part of what gives our life meaning. Our economic system works well for those who find meaning in economic competition and the
material rewards it brings…But for those with humanistic and artistic life interests, our economic
system has almost nothing to offer…

The situation is even worse for those who want to produce the literary, musical and artistic works that sustain our humanistic culture. Even highly gifted and relatively successful writers, artists and musicians generally are not able earn a living from their talents. The very few who become superstars are very well rewarded. But almost all the others — poets, novelists, actors, singers, artists — must either have a partnerwhose income supports them or a “day job” to pay the bills. Even writers who are regularly published by major houses or win major prizes cannot always live on their earnings.

Even New York magazine, which birthed the careers of some stellar writers and editors since it began publishing in 1968, just announced they’re cutting back from a weekly publishing schedule to bi-weekly.

David Remnick, editor of the New Yorker

David Remnick, editor of the New Yorker

I spent 8.5 hours yesterday at a conference held in the august halls of Columbia Journalism School, traditionally one of the country’s most prestigious gateways into the writer’s life.

The entire day was devoted to the future of digital longform journalism – how to create, produce and promote work on the web.

Payment for writers — or persistent, bald-faced lack of it — was the huge elephant in the room. No one dared challenge the confident 20 and 30-somethings up on the stage, with their ponytails and costly new shoes, about their insistence they need great writing to actually fill up their sites.

While offering little or no money to writers.

20131206081013

I found this sad, infuriating and highly instructive. I spoke to a few young journalists in the hall — who shared stories of a life without health insurance, flitting desperately from one freelance, part-time or contract job to the next, their hunger for some handhold palpable and often financially unresolvable.

Ironically, the only people who didn’t reek of desperation were those still writing freelance for old-legacy print media (as I do) or those with coveted, rare full-time jobs inside someone’s corporate newsroom where — as one legendary editor suggested from the stage — “find the formula and mimic it. That’s half the battle.”

If you hunger for creative success — what are you willing to give up to get it?

THIS WEEK’S WEBINAR — THE LAST OF THE SUPER-SUCCESSFUL FALL SERIES — IS “YOU, INC: THE BUSINESS OF FREELANCING”; 4:00 p.m. EST DEC. 14. (THE SERIES REPEATS IN FEBRUARY.)

I HOPE YOU’LL JOIN US!

DETAILS AND SIGN-UP HERE.

Crash, burn, recover

In behavior, blogging, books, business, journalism, life, work on November 9, 2013 at 2:03 pm

By Caitlin Kelly

When was the last time you failed?

The sort of shit-storm tempting you back into bed for a week, whimpering?

Crash

Crash (Photo credit: Wikipedia)

Some recent challenges include:

– An editor killed my story — which cost me $2,200 in budgeted-for and relied-upon income.

One of the dirty secrets of journalism is that, no matter your skills level, some of your stories get “killed” — i.e. they are commissioned, a contract signed, a fee and deadline agreed upon and the editor can simply flap his or her hand and decide “it doesn’t work.” You don’t get to stiff the airline of its fee if the plane is dirty, crowded or late. You don’t get to pay your plumber, dentist or barber a fraction of their fee because…you feel like it. It’s almost always a surprise and it’s expensive and very few of us can just re-fill a four or five-figure income hole in a flash.

– My book proposal didn’t sell

My agent was upbeat and excited. They always are, at the start. But after the rejections piled up, it became clear to both of us this was a no-go. Editors who loved it, and there were a few, couldn’t sell it to the rest of their staff. I spent a year gathering the information and sources for it, and months writing and polishing it. Tant pis, mes chers, tant pis.

– Another editor decided to turn a 2,000-word story with five sources into…captions

That’s a really crappy first in my career. They’re going to pay the original fee, but there’s another piece to that story — having to explain to my patient and helpful sources I interviewed back in August that all the time they spent being interviewed by me is basically wasted. I was so gobsmacked I didn’t argue the point with the editor. Preserving that relationship has meant sucking up a lot of frustration.

– We got whacked with a surprise income tax bill, a big one

We married in September 2011 and my new husband changed the witholding of his income. To…not enough. Holy shit. Add that pile of debt to the kitchen over-run.

– Journalism’s fees remain stubbornly low, stagnant or falling

Everywhere in journalism today, writing has really become just one more commodity, like gas or orange juice. Cheapest wins. I have to fight harder with every single editor on every assignment for a decent contract and higher fees. I hate feeling embattled. It doesn’t build great client relationships, but feeling taken advantage of doesn’t work either. My costs are rising almost every month, but my income will only rise as much as I position myself and argue effectively for my value.

On the plus side of the ledger:

– My individual coaching and webinars have found favor

This is a new venture and one I’m enjoying. When I lost that $2,200 overnight, I vowed to make it up through my own efforts. The hell with snotty editors. I’ve almost done so, thanks to the enthusiasm of students in Chicago, Connecticut, Brooklyn, upstate New York, New Zealand, Australia, Virginia and San Francisco. Thank you! I’ve missed teaching and the pleasure of helping others. One student told me she was having “aha!” moments. I hope you’ll sign up, too!

-- I made a contact with a Very Big Magazine’s top editor, one I’ve wanted to write for for a decade

Some magazines feel like Everest, even to someone with a lot of great experience. They’re career-changers. They pay a lot of money. At a recent lunch with someone I met at a party, I discovered she’s related to a top editor there and I was bold enough to ask for an introduction and she made it.

– Reaching out to new clients in PR has shown me there’s some significant enthusiasm out there for my skills

Of the first three local agencies I contacted, two showed immediate interest.

– I’m trying out new ideas and new markets

Next week, I’m meeting with a younger writer who’s broken into corporate writing and making boatloads of cash from it. It’s an interesting lesson in networking with people much younger, as we’re all working in slightly different says, some more lucrative and less visible, some more prestigious but poorly-paid.

– My agent likes my new book idea

Book ideas are difficult. You have to be able to create a narrative arc with 80,000+ words and be able to persuade a publisher to pony up an advance you can actually live on. But from the embers of the still-cooling rejected proposal came this more focused, more positive iteration of one of the ideas in it. Now I have to go…sigh…write another proposal.

People love to think that writing is a cool, fun easy way to make money. You stay home in your PJs, crank out some copy, then head off to Bali for a few months.

I wish!

The reality is a constant hustle and scramble: for new clients, new markets, negotiating better pay and treatment, finding and wrangling sources for your stories…

Crashing is nasty, (and inevitable.)

But there’s no time to sit and snuffle.

Bills, baby, bills!

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