Money: getting/spending/saving it

By Caitlin Kelly

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One of my pleasures is enjoying culture — and yes, it costs money!

A friend recently saw an ATM receipt that left her gobsmacked — $139,000 — in the hands of a young woman, maybe in her 20s.

My friend is a single mother who works in a creative field, frustrated that she has yet to hit the level of income she craves, deeply envious of the stranger with so much more than she.

I get it — when I found out that a friend of ours, someone our age, earns $500,000 a year, I was stunned.

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The level of poverty in the U.S. is deeply shocking — given the astonishing wealth here

My husband and I are both working full-time freelance, with a mortgage that won’t be finished for another five years unless, somehow, we make a lot more money and can pay it off sooner.

What’s currently killing our ability to save — or enjoy much beyond basics — is $1,800 month in health insurance costs; his, heavily subsidized by his former employer as a retiree while they soak me the full price.

Yes, there is cheaper insurance, but it all comes with huge deductibles and co-pays.

The getting and spending, (and saving and investing, ideally), of money is often a lifelong challenge for all but the very wealthy.

But it comes down to basic economics: if you’re always broke, you’re under-earning or living beyond your means.

If you’re mired in poverty — with little education and/or weak job skills, multiple dependents and/or health issues — it can feel, and be, almost impossible to climb out.

And I know far too many women, of any age, who remain somehow terrified of money — especially when asking for it or more of it, (i.e. negotiating an initial salary, asking for raises/bonuses/commissions/better freelance rates), and handling their finances confidently and intelligently.

As if, for some reason, we don’t deserve it.

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It does mean taking charge.

It does (gulp) carry consequences, no matter how much action (or inaction) you choose.

I once attended an information session at the U.S. firm where I keep my retirement money.

It was laughable.

As in laughably bad, full of jargon and weird, arcane advice possibly of value to people with millions to manage — or waste.

Not me!

Selfishly, as a journalist, I get paid to learn, and, in writing about personal finance for the Times and Reuters and others, have learned (and taught readers!) a lot about handling money.

I also read the financial pages of two newspapers daily and read several business magazines to keep abreast of what’s happening in the domestic and global economy.

If you don’t know the word fiduciary, learn it and make sure anyone going near your money professionally is one.

One of my favorite people, and bloggers, is writing candidly about getting smarter about money. I admire her for being forthright and questioning her decisions publicly.

People rarely do.

I urge anyone thinking about how to better handle their finances to read this fantastic book, (which I reviewed in The New York Times, and am now friends with its author), Pound Foolish. It’s not a how-to, but a smart and insightful overview of the personal finance world.

She also writes a smart and helpful advice column for Slate.

My other favorite money columnist is Michelle Singletary, with the Washington Post.

ALL IMAGES COPYRIGHT CAITLIN KELLY 2013.
Still there, since 1927, the Monte Vista Hotel in Flagstaff, Arizona — travel has always been a priority for me

Jose and I were were lucky to both have attended and graduated from college debt-free; he on full-ride scholarships, I attending Canada’s best university for $660 a year. (No, there’s no missing zero.) Neither of us attended (or needed) graduate or professional school.

Nor did we have children, saving us an estimated $200,000+ per child to raise.

Nor do we have dependent relatives.

My priorities have been travel and retirement.

But I admit it — it really did feel useless and annoying to keep putting money away year after year after year for what I hoped would one day help fund a retirement, denying myself so many purchases, (newer car, nicer clothes) and pleasures in order to do so — until that sum finally grew to six figures and I thought, with relief and pride: I did that!

And, yes, for many reasons, saving money is difficult for some people, and impossible for those who don’t earn enough to get past subsistence.

But it’s also urgent (and tedious!) to distinguish between wants and needs, between what everyone around you may boastfully own, often on credit, (new phone, new car, huge and lavish wedding, bigger house, etc.), and what fits your financial priorities.

Peer pressure to keep up — i.e. spending! — will kill you and your financial future.

It’s one reason I constantly urge women, especially, who earn less and live longer, to always, always ask for more — and to read this book that tells them how to do it.

Do you find handling money frightening or intimidating?

Any great tips to share?

Need an affordable EpiPen?

By Caitlin Kelly

BUSINESS OF FREELANCING

Here’s how to find one, my story yesterday from Forbes.

The backstory, for those of you who don’t use or need one, is the staggering price increase for the EpiPen, an injectable device that pumps epinephrine into your system to address anaphylactic shock, an allergic reaction to nuts, shellfish, fish or any number of substances.

If someone goes into that shock, they need the injection within 30 minutes or they can die.

In the U.S. — whose entire healthcare “system” is run to wring the maximum profit from our inevitable physical needs — there’s only one company making them right now, Mylan, whose female CEO, Heather Bresch, the daughter of a Senator, no less, might be the most loathed individual in the country right now.

Knowing she has the market cornered, (as other competitors left the field), she spiked the price of EpiPens to $600 — a huge jump, and one that makes a lifesaving device unaffordable to many people.

(The company, now under tremendous public fire, is offering a $300 coupon.)

Imagine needing, (as some people do), three sets for each child: school, home and your vehicle, a cool $1,800 to start.

Oh, and Bresch earns $19 million for her.…ethics.

 

I’ve been following this story, not because anyone I know uses an EpiPen but because I’m so sickened by corporate greed.

 

I also grew up, to the age of 30, in a nation with strict government oversight and regulation of drugs, medications and device prices — so no one gets gouged.

That’s Canada.

I decided to pursue this story on Friday morning, and started at 10:00 a.m.

I put out calls and urgent emails to sources in the U.S. and Canada, racing the clock to get the story reported and written quickly; as a “trending topic”, I needed to get it posted as soon as I could, yet make sure I was producing a smart, well-written and well-sourced piece.

Social media saved my bacon — a request to a writers’ group I belong to on Facebook prompted a fast reply from someone who knew a physicians (!) who personally relies on EpiPens and who emailed me back quickly and in detail.

Score!

Working behind the scenes with my editor who, as usual and of course, I haven’t met, we discussed how to best present the story, an angle I hadn’t read anywhere else — yet.

We posted the finished story, about 1,200 words, by 5pm. (Good thing I’ve worked as a daily newspaper reporter. That kind of speed is normal for me.)

 

If you have time to read it, please share it widely; Forbes is a pay per view model, and this story offers an important way for people who need affordable access to get it.

Those #firstsevenjobs — yours?

By Caitlin Kelly

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Off on the train, hi-ho…

 

A little late to this party, but those of you on Twitter might have seen this popular hashtag, where people share their first seven jobs.

It’s been really interesting to see all the odd and unlikely things people do to earn money…tank driver, fishmonger, clown, pipeline surveyor, funeral musician.

It was also interesting to see how many of the jobs were fairly low-level/low-wage until people hit a well-paid professional career, and it seemed like a longer, slower trajectory for the Americans who tweeted, maybe because so many go on to graduate school, maybe because some just didn’t need — or couldn’t get — a better position sooner.

 

Here are the first seven ways I tried to make money, (and you’ll quickly see a pattern!):

 

  • Made and sold home-made bead necklaces on a street corner in a chi-chi shopping area of Toronto. I was 12.
  • Made and sold home-made envelopes (magazine pages, with an address label). I was 15.
  • Lifeguard at various Toronto swimming pools, public and private. Ages 15 to 18.
  • Waitress (very briefly!)
  • Busgirl (even worse)
  • Sold my photos on the street. Age 19
  • Sold my articles to national magazines and newspaper. Age 19.

 

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One of my first national magazine stories…I entered an animal testing lab. Grim and gruesome. But it was part of my job as a reporter

 

I soon learned that:

 

  • I like to sell
  • I like to talking to strangers
  • I’m not scared of selling or of speaking to strangers
  • I like seeing how people respond to my creativity
  • I like it even more when they pay me for it!
  • Lifeguarding is really, really, really, boring — until or unless (which never happened) someone is in serious trouble
  • Waitressing and bussing tables demands huge physical stamina, patience and a shit-ton of emotional labor
  • I prefer being paid to challenge and question authority (journalism) than kow-towing to bosses and customers (service work)

 

The world of work can appear terrifying, impenetrable, overwhelming. No matter how hard you work or whatever degree(s) you earn or your stellar marks/GPA, you can still hit a wall, or many.

There are many people out there insisting you follow your passion, without regard to — you know, money.

Just because you like making cupcakes/walking your dog/playing the banjo doesn’t mean you can earn a decent living from it.

The challenge for everyone, from first job to last, is finding steady work we enjoy, (at least much of the time), and that uses our skills and emotional intelligence.

Working for income is such a potent blend of drive, determination, talent, sheer get-this-shit-done-now, emotional labor, (i.e. sucking up, being nice to people even when — especially when — you’re being badly paid and treated like crap, as in retail and foodservice), management draaaaaaamas, finding smart/kind (if you’re lucky) co-workers, bosses and clients…

A job can look perfect on paper and then you start and….ohhhhh, shit…It’s not.

Or, yay! It really is.

I’ve spent much of my career as a journalist working freelance, i.e. without any paid sick days or paid vacation, without a boss or co-workers or raises or promotions or bonuses or commission. Whatever I earn has to come through my efforts and skills, and, when it works, the generosity of my networks who refer me on to their contacts.

Some years have been terrific, others much less so.

I do enjoy working in/with/on a team, as one does in a newsroom or magazine. I enjoy, and I miss, the camaraderie and the mix of smarts and energy.

But I also treasure autonomy, being able to plan and manage my own time, (and time off — Americans with staff jobs are terrified to ask for or use their skimpy vacation days) –and to pick and choose work that makes sense to me, intellectually if not always financially.

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My second book, published in 2011

I’ve had three well-paid staff jobs at major daily newspapers, in Toronto at the Globe and Mail, (Canada’s best), the Montreal Gazette and the New York Daily News.

I loved the first, enjoyed aspects of the second and barely survived the third; daily American newspapers, now struggling mightily and shedding staff like autumn leaves, are highly specific cultures, some welcoming, some less so.

I’ve also worked as a senior editor and editor in chief of a few magazines, work I enjoyed less, as it was totally desk-bound.

 

What were some of your first jobs — and what did they teach you?

 

Does your job (have to) define you?

By Caitlin Kelly

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Here’s a powerful story about what it’s like to lose a job, and a career, that you love — and turn into someone who, like millions do in many places, just gets up every morning and does his best anyway:

First comes rage. The rage of impotence.

It’s not easy being nobody, especially when you used to be somebody. But times are tough; jobs are scarce. When you’re falling straight down the financial cliff face, you reach out to grab hold of anything available to stop your descent and there, just before you land in a homeless shelter or move in with your sister, is Uber….

I think of Uber as a modern-day version of the Works Progress Administration during the Depression. Thanks to Uber, I am not poor. I am just . . . nobody.

When I first started driving, I talked to every passenger. I engaged in conversation about the city, life and politics. I told them about my work as a reporter, and as a strip club manager. I felt the need to say, “I’m not really an Uber driver. I am someone too. Just like you!”

Nobody cared.

The writer, John Koopman, used to be a journalist at a major U.S. newspaper — a job, today, that has all the future growth potential of a Zeppelin operator.

More than 30,000 of us, (I was laid off from the New York Daily News in 2006), have in recent years lost well-paid staff jobs at places we liked, doing work we enjoyed with people we respected. Our industry is in chaos, and well-paid newspaper jobs are being replaced with fewer digital ones, often paying far less.

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Many career journalists also make a trade-off, settling for what’s called “psychic income.”

No,  not clairvoyance!

We accept a lower salary — much less than you might think — because we actually enjoy(ed) our daily work. It’s a great way for publishers to get highly educated staffers cheaply and, with few unions left to fight for better wages and conditions, ask them for the moon.

The problem with invisible income is, especially after years or decades of it, that it doesn’t add up to shit — no retirement, no paid-off-mortgage, no fuck-you fund for when (not if) you finally get fired or laid off. Very few people now have a defined-benefit pension, so all that “psychic income” didn’t fill a 401(k) either.

And (surprise!) many of the journalists, like me, who are losing their jobs — some paying $80,000-120,000 year or more — are in their 50s or beyond, and now deemed “too expensive” for anyone else to hire.

So, no new J-job for you, missy!

Back to college to start a shiny new career at 50 or 55 or 60? Not likely.

So, for Koopman, it’s Uber.

For me, it’s freelance, and nowhere near the full-time income I earned 11 years ago, despite all the usual accomplishments.

 

When you lose your job, and your title, and your Big Name Affiliation — no longer able to say “we” about your coworkers and employer — who the hell are you?

 

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My second book, published in 2011

In the fall of 2007, a year out of the News job, I was scared to death and couldn’t gin up enough freelance work.

I took a part-time job at $11/hour as a retail sales associate in an upscale suburban mall near our home. I worked for The North Face, an enormous company that has since bought Timberland.

We sold $600 ski jackets to hedge fund managers from Greenwich, Connecticut — and never got a penny in commission for the biggest of sales.

I stayed until December 18, 2009, by then grateful to be earning $450/month for blogging, twice my store wages, and finally able to flee.

My feet were killing me — and my soul was dying.

 

You can only be underestimated for so long.

 

I had been “someone”, (a writer, an author, i.e. a person whose work elicited envy), for decades, since college.

Now, like Koopman, I was deemed a peon, in humbled service to shoppers, many of  whom assumed I must be uneducated (untrue), stupid (ditto) and had never traveled further than the mall parking lot (38 countries, for work and pleasure, in better years.)

 

When I opened my mouth to help a customer in French or Spanish, they looked at me like the dog had started singing Aida.

 

Impossible!

This is where Koopman is now.

This is why Koopman — and it’s such deceptive insanity to define your worth by your job title — feels like he’s nothing and nobody.

He’s not.

But in a country relentlessly focused on income, status, work, more income…a low-wage, low-status job marks you as someone with a big fat L for loser on your forehead.

It’s ugly and it’s demeaning and it’s really demoralizing.

Jose and I have a glory wall, I’m both embarrassed and proud to admit. We were very lucky, because we both had well-paid staff jobs at major newspapers for years, he for 31 at the New York Times.

glorywall

 

The glory wall is the pile of laminated press credentials you get, and proudly collect, when you cover the biggest stories — political conventions and inaugurations, the Olympics (he did two, as a photographer), Presidents (he covered three).

I met Queen Elizabeth and covered a Papal visit as well.

Those glossy credentials publicly and visibly define you as someone with a good job and challenging, coveted assignments.

When you no longer have a lanyard or press pass or credential…you’re persona non grata. You can’t just cross police lines anymore, (as you can with an official city-issued press pass.) You’re not of the Times or with the News.

 

You’re…just you.

 

This has been a rough year, (and many other writers I know), so much so that I suffered persistent stomach pain for weeks and went for a check-up.

The pains have, fortunately, subsided, no doubt caused by work-related stress.

My doctor reminded me, kindly, what I already knew — you can’t assign your value, and your mental and physical health in this world to worldly success, a job, a title, a salary, an income.

But we do.

 

Why being “productive” is a waste of time

By Caitlin Kelly

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Attending the ballet and staring at the ceiling — OMG, wasting time!

If there is an obsession I really hate, it’s “being (more) productive”, i.e. making sure that every minute of our every day is spent doing something, preferably as quickly and efficiently as possible.

Do more!

No, do even more. Better!

I live near New York City, a place where if you’re not working reallyhardallthetime — gobbling lunch at your desk with no break in your day — you’re seen as some witless, gormless slacker.

It’s hardly a point of view confined to New York, but it does feel very American, with a deep-rooted and long-established cultural emphasis on making lots and lots and lots of money and never wasting time because…you could be making more money!

All of which strikes me as sad and weird.

This mania for measurement began, as some of you know, with Taylorism and Fordism, ways of manufacturing, (to profit corporate owners and their shareholders), more quickly and efficiently, named for the men who created these systems.

Here’s a great video from the website Aeon, on the topic.

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Time or money? Which do you value more? Must we always choose?

As the video wisely points out, you simply can’t quantify intellectual output the way you can time with a stopwatch how long it takes to install a windshield or weld a joint.

The other essential problem with focusing all our energy on being more productive is that we are not machines. We are not industrial creatures, made of metal and oil.

We need to rest, to think, to reflect, to stare at the sky.

Constantly pumping out goods or services guarantees burnout and resentment.

It’s like dancing with fog, really, if you try to make creative work more efficient.

How long does it take to produce an idea?

A good idea?

An idea that isn’t shot down?

An idea that actually earns a profit?

And must that profit be purely monetary to have value?

What if your idea, instead, saves a life or soothes a colicky baby or gladdens your neighbor’s heart?

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Here are a few things you can’t do more productively:

 

Kiss

 

Die

 

Be born

 

Pray

 

Create a work of art

 

Meditate

 

Comfort someone

 

Be generous

 

Breathe

 

Re-starting your life elsewhere — what it really means

Time to make some money with your writing?

As I watch the sea of migrants — refugees, more accurately — heading north from Syria and other nations into Europe, hoping to re-start their lives somewhere safe(r), I think about all they have had to leave behind — homes, furniture, assets, educations, family, friends.

Some have lost their husbands, wives and children, killed en route.

In the 1970s, 200,000 Chileans fled the regime of Augusto Pinochet, many headed to my country, Canada. There was then a flight from Santiago that, after 3 stops, landed in Toronto, where they would claim refugee status.

There were no razor-wire-topped fences hastily being built, as in Hungary now. But the refugees had to begin a long, slow process of finding advocates to legally represent them; as a college student studying Spanish, I did some volunteer interpreting.

I will never forget what I heard, even if I wish I could — horrific narratives of rape, imprisonment, torture. It was difficult work, for them (proud, traumatized men, many my father’s age, having to recount the worst moments of their life to a young and unfamiliar woman and other strangers) and for me (I had no idea the world could be so cruel. Their stories, decades later, live in my head.)

When you leave your country of origin, (which I did at 30, leaving Canada for the U.S., admittedly under no duress), you start anew. Your life, your accomplishments, your advanced degrees from places no one here has ever heard of or attended…sometimes vanish overnight.

No one knows your parents or went to the same schools or ate the same food. They didn’t watch the same television shows or read the same writers.

Not only do you now not know a soul, the people on whom you must now rely — landlords, banks, police, neighbors, teachers, medical staff, the legal system — are unfamiliar. You may shake at the very sight of a uniform or a gun.

And they use words and phrases they know well, and which may make no sense to you, either as language or as functional concepts.

A new language must be learned, the streets and transit systems of a new city or or town. A new national anthem and currency. You will miss subtle cultural cues everyone else understands, sometimes for decades to come.

A French laundromat washing machine...quite incomprehensible!
A French laundromat washing machine…quite incomprehensible!

If you’re fortunate enough to have classic capital — money, savings, assets you can liquidate like gold or jewels — you’ve got something to start with.

The most crucial, though, in my experience, is social capital — the vast network of people who know, like and trust you enough to refer you into their valued networks. You need a job, an income, a place to start again.

Too often, especially here in a dog-eat-dog place like New York, people lucky enough to find a lifeboat pull up their oars, so to speak. No, they will not help you or return your emails or phone calls or texts.

That takes time to accumulate and to acquire. Here, I see it used (and abused) most powerfully among those who attended the same colleges and universities, sometimes the elite prep schools that feed them. Alumni networks here seem of paramount importance compared to my prior experience in a nation with 10 percent of the U.S. population.

A Paris street -- quite different from anything in the U.S.
A Paris street — quite different from anything in the U.S.

We recently sat with a working-class friend who came to the U.S. from Eastern Europe at 24 with $200 in her pocket. “I had no idea what I was doing,” she said.

I arrived in New Hampshire, via Montreal, and would honestly now say that I didn’t either. Had I known how hard it would be to reinvent, I doubt I would have made the leap. And I was fortunate — young, healthy, educated, with work experience and savings.

I had visited the U.S. many times before I moved here and it’s not that big a shock — not like trading Syria for Sweden, for example.

But we’re here now, with friends and hair salons and dentists and a gym we like. Apartments with views that we treasure.

Imagine leaving this behind -- Nicaragua
Imagine leaving this behind — Nicaragua

And the hard-won knowledge that we did it.

From Wikipedia:

Human development theory describes human capital as being composed of distinct social, imitative and creative elements:

  • Social capital is the value of network trusting relationships between individuals in an economy.

  • Individual capital, which is inherent in persons, protected by societies, and trades labour for trust or money. Close parallel concepts are “talent“, “ingenuity“, “leadership“, “trained bodies”, or “innate skills” that cannot reliably be reproduced by using any combination of any of the others above. In traditional economic analysis individual capital is more usually called labor.

Have you left behind your country of origin for a new one?

How has it worked out for you?

What does work mean to you?

By Caitlin Kelly

These are the tools of an artist. That's work, too!
These are the tools of an artist. That’s work, too!

It’s Labor Day weekend — three days off for many workers in the U.S., where I live, in Canada and some other nations.

It’s always, for me anyway, a time to reflect on why we work and what we’re working for:

  • Daily expenses
  • Retirement savings
  • To fund higher education, for self and/or others
  • Short-term emergency savings
  • Medical insurance/expenses (Americans must buy health insurance like any other consumer product)
  • Major purchases — a vehicle, a home, a boat
  • Challenge
  • Camaraderie with peers and colleagues
  • The thrill of scientific or medical or intellectual discovery
  • Learning and mastering new skills
  • To support the financial needs of family and others
  • A place to feel welcomed, to belong
  • Building self-confidence
  • Ambition
  • Helping others — nursing, teaching, the ministry,  the law
Making films offers well-paid work to thousands in the industry, from grips and gaffers to CGI specialists
Making films offers well-paid work to thousands in the industry, from grips and gaffers to CGI specialists

I’m endlessly fascinated by work. Maybe because I grew up in a family where no one had “a job” — with a paid vacation or sick days or a pension or raises. My father was a film-maker, my mother a journalist and my stepmother wrote for television.

All the money earned in our home came from our individual, independent creative efforts.

No wonder I, too, work for myself as a full-time freelance writer, editor, writing teacher and writing coach.

Any story focused on business, labor practices, unions, wages, the Fight for $15 — to raise fast food wages to $15/hour here in the U.S. — gets my attention.

Corner stores are a part of the economy, too
Corner stores are a part of the economy, too

One of the books I admire is by MIT professor Zeynep Ton who studied five retailers who actually pay well and earn good profits, called The Good Jobs Strategy. Another, an early precursor of the current interest in more ethical garment production, is Where Am I Wearing by Kelsey Timmerman.

I’ve been working at home since losing my last staff job, at the New York Daily News, (then the nation’s 6th largest daily newspaper), in the summer of 2006. It was not a happy place to work, its unofficial motto, “Sink or Swim.” I don’t regret the loss of that job, although I miss making that income, much more difficult to attain through the intellectual piecework that is freelancing — you are only paid for what you produce, and often later than you need.

Since my high school days I’ve worked as:

  • a lifeguard
  • a waitress
  • a busboy
  • a newspaper reporter (three daily papers)
  • a magazine editor (four national magazines)
  • a writing teacher (four colleges)
  • a writing coach (multiple private clients)
  • a photographer (published in The New York Times and Washington Post)
  • an author (of two works of non-fiction)
  • a volunteer Spanish-language interpreter (working with Chilean refugees)
  • a cross-cultural consultant for Berlitz
  • a retail employee at $11/hour
I covered the unity march in Paris -- I love breaking news!
I covered the unity march in Paris — I love breaking news!

Of all of these jobs, I’ve by far most enjoyed my days as a daily newspaper reporter and really miss it.

At its best, there’s no better way to have fun and adventures and get paid for it. I met Queen Elizabeth aboard her yacht Britannia, flew to an Arctic village in December, climbed 100 feet up a Tall Ship mast, sailed aboard $6 million racing yachts, visited a Quebec hospice, broke major medical stories.

I’ve traveled, on stories, to Ohio and New Orleans and Texas, to Sicily and Copenhagen and London.

In March 2014, I went to work for a week in rural Nicaragua with WaterAid.

Our van, 95 degree heat, 12 hour days. It was a lot of fun, actually!
Our van, 95 degree heat, 12 hour days. It was a lot of fun, actually!

I love the intellectual stimulation of journalism — having to make sense of complex, unfamiliar material — like a recent piece on predictive analytics which I then need to write clearly and compellingly for others.

I love the variety of the people I meet and speak with, everyone from Olympic athletes to military veterans to a female Admiral to convicted felons. I can never afford not to be curious and open-minded.

I love writing books, diving deeply into complicated subjects that deserve, and rarely get, closer attention.

I love connecting with readers, one of whom recently called my book “Malled”, (a memoir of low-wage work),  a page-turner.

My second book, published in 2011
My second book, published in 2011

I’m fortunate. At my age, we’ve little debt, no children to support and have acquired good savings for our retirement. So my goals for work now are different from fresh grads desperate to find any job and pay down enormous student debts.

But it’s a very very tough time for many American workers; union membership is the lowest since the Depression, 11 percent of public workers, seven percent of private. Even with corporate profits at record highs, wages remain stagnant for many, and worse for the lowest-paid — while costs keep rising, on essentials like college tuition and health insurance, (also here deemed a consumer product.)

Americans still have no paid maternity leave and even companies that offer it know many workers are too scared to take unpaid leave — lest their care for their families make them look like slackers.

Insanity.

What sort of work do you do?

Do you enjoy it?

What would you change about it if you could?

Would you rather buy more stuff — or have more fun?

By Caitlin Kelly

This piece in The New York Times piqued my interest:

American consumers are putting what little extra money they do have to spend each month into eating out, upgrading their cars or fixing up their homes, as well as spending on sports gear, health and beauty. Spending at restaurants and bars has jumped more than 9 percent this year through July compared with the same period last year, and on autos by more than 7 percent, according to the agency.

Analysts say a wider shift is afoot in the mind of the American consumer, spurred by the popularity of a growing body of scientific studies that appear to show that experiences, not objects, bring the most happiness. The Internet is bursting with the “Buy Experiences, Not Things” type of stories that could give retailing executives nightmares.

Millennials — the 20- and 30-something consumers whom marketers covet — would rather spend their hard-won cash on out-of-town vacations, meals with friends, gym memberships and, of course, their smartphones, many surveys suggest.

More stuff!
More stuff!

I’ve been thinking about this a lot as we’re finally, gratefully, at a point in our lives we need very little additional stuff. We’ve renovated two rooms of our apartment and own an array of sports gear, art supplies, camera equipment, the things we use for pleasure and for work. (We do need to replace our old car.)

It’s a huge relief.

I’ve never been a mall rat, the sort of person whose favorite activity is shopping. I enjoy it and sometimes take an entire day to do it, but rarely come home with more than one or two things, and usually nothing huge or expensive.

Like everyone, I have specific weaknesses — anything seriously antique, jewelry and lovely things for setting a pretty table.

One of the most fun things you can possibly do -- dance at 7am! Daybreaker, in NYC
One of the most fun things you can possibly do — dance at 7am! Daybreaker, in NYC

We’ve also saved really hard for years for our retirement, so can now release a bit more of our income for pleasure; saving 15 per cent a year is no fun, but — yes, really — it adds up.

I’m more eager now to spend what extra money we earn on travel, dining out, enjoying the many plays, concerts, dance performances and conferences available to us in and near New York City. We do not have children or grandchildren, nor, as many of our younger friends do, huge student debts to discharge. Frankly, we feel like outliers — we are very far from 1%ers but we’re not panicked about money the way many people are; the average American has saved stunningly little for retirement.

A ticket to the theater is a joy --- and privilege
A ticket to the theater is a joy — and privilege

In the next few months, we’ll attend a weekend workshop (for business purposes); travel back to Canada (by car), attend a few shows and concerts. We hope to be back in Europe after Christmas for several weeks.

My Dad heads off soon for a month sailing with a friend in Greece; at 86, with a new hip, he’s lucky enough to have the good health, strength and finances to keep enjoying his life. In this regard, he’s very much a role model.

How many things do you want to own? How many experiences would you like to enjoy?

Unless you’re wealthy, every expenditure of money means making a choice — the time needed to invest in earning the taxable income to buy the stuff, store the stuff, clean and polish and upgrade the stuff — or an amazing afternoon/evening/week/month/year creating indelible memories.

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We spent a recent Sunday in Manhattan (a 40 minute trip into the city from our home) seeing a show, On The Town, on Broadway, and splurged on box seats, at $101 each. I felt like royalty — they offered amazing sightlines and no squished knees; we sat in comfortable elegant Louis XIV-style armchairs. Before the show, we stopped in at Sardi’s, the classic, old-school bar and restaurant, for a Bloody Mary and a snack.

What a lovely, lovely day, creating memories we’ll cherish for years to come.

I’ve never once regretted any of the money I’ve spent on travel or meals or a day of skiing or a game of golf. But I’ve deeply regretted the money I’ve wasted on a pair of too-high heels (worn once!), clothing that just looked like hell or a really boring book that was, after all, a best-seller.

Sunrise from our friend's bedroom window in Maine
Sunrise from our friend’s bedroom window in Maine

Nothing that arrives in a box or bag is ever as pleasurable and satisfying to me as walking down a Paris street or having tea with a friend in London or catching up face to face with my sister-in-law in Toronto over a very long lunch.

How about you?

What makes you happier — stuff or experiences?

Any good ones you can share?

Moving from staff to freelance? Ten crucial tips

By Caitlin Kelly

The New York Times newsroom
The New York Times newsroom

Are you (yet) a member of “The Precariat”?

It’s also known as The Gig Economy.

From the Alternet:

I caught up with Gerald Friedman, who teaches economics at the University of Massachusetts at Amherst and has written about the gig economy, to find out how this trend happened and what it means to workers and our increasingly unequal society.

Lynn Parramore: How did the shift away from full-time employment to the gig economy come about? What forces drove the change?

Gerald Friedman: Growing use of contingent workers (in “gigs”) came when capitalists sought to respond to gains by labor through the early 1970s, and in response to the victories capital won in the rise of the neoliberal era. Because contingent workers were usually not covered by union contracts or other legal safeguards, employers hired them to regain leverage over workers lost when unionized workers gained protection against unjust dismissal, and courts extended these protections to non-union workers under the “implicit contract” doctrine.

Similarly, the rising cost of benefits due to rising healthcare costs and government protection of retirement benefits (under the 1974 ERISA statute) raised the cost of full-time employment; employers sought to evade these costs by hiring more contingent workers…

GF: Talk of “microentrepreneurs” presents a favorable view of the rise of the gig economy, one consistent with liberal values of individualism and opportunity, even while ignoring the oppression and poverty-wages many find in the gig economy.

There are certainly some who enjoy the uncertainty of irregular employment. When unemployment rates fell to levels traditionally associated with full employment in the late-1990s, however, we saw how workers really feel about gig jobs: they rejected them and the contingent economy contracted.

Given a choice, workers choose careers and jobs, not freelance gigs.

By removing any social protection, the gig economy returns us to the most oppressive type of cut-throat and hierarchical capitalism, a social order where the power to hire and fire has been restored to employers, giving them once again unfettered control over the workplace.

I recently participated in an hour-long discussion of this, with Friedman as the opening expert, on WNPR; I speak in the final seven minutes and this is a link to that broadcast.

Rue Cler, Paris, where I spent 2 weeks. Vacation, for a freelance, is whenever and wherever you like
We stayed a block from the Rue Cler, Paris,  in December 2014. Vacation, for a freelance, is whenever and wherever you can afford to go. Some people choose to live overseas and work from there.

The American workforce is now one in which an estimated 40 percent of us work with zero safety net, beyond that which we create: (six months’ basic expenses saved, a separate emergency fund, a low-interest line of credit, disability and life insurance.)

Knowing how to survive thrive without a steady paycheck is a crucial new skill.

My husband recently left a secure, well-paid job at The New York Times.

Madness? Perhaps.

But, after 31 years there as a photographer and photo editor, having done almost everything one can do in a career,  (including helping them win a team Pulitzer Prize for their 9/11 coverage), and offered a healthy buyout package — which gave us the requisite six months’ of expenses cushion of savings –– he decided to leave a month or so ago.

While he seeks another full-time staff job — which he may not find — he’s discovering how pleasant life can be without a 2-hour train commute, (costing $300 a month), fighting his way crosstown through aggressive crowds and having to book vacation in the first week of January due to seniority issues.

It can be a huge adjustment, no matter how desired, to move from the relative security of a salary that arrives on schedule and is predictable in size and due date to the roller coaster life of the self-employed.

Jose has seen me work freelance since 2005 and knows I know those ropes.

Now he’s learning them as well.

I liked this piece about moving to freelance work from The Guardian — and her realization that giving away your time without financial compensation, even barter, however friendly and helpful — is something no full-time freelancer can afford.

Here’s a comprehensive and helpful guide from the Freelancer’s Union.

And five tips from Time magazine about readying yourself for that leap.

You can catch a midweek matinee!
You can catch a midweek matinee!

A few of the lessons I’m teaching him:

Don’t rush to say yes to every offer

Just because the client is prestigious and/or your bank balance is running low this month, don’t just leap at any offer you get. Is the client a good fit for your skills, experience, temperament? Have you done your due diligence on that client’s track record of payment and ethical behavior?

Don’t say no to what looks like a lousy offer; consider its every possible benefit

The hourly or day rate might be lower than ideal. It might be a low-prestige gig that pays well, or quickly, or both. The gig might introduce you to a new market and possibly expand your skill set, in effect paying you (even if not very well) to learn on the job.

Never agree to a gig without a clear, written agreement as to the scope of work

One major non-profit recently advertised for a photo editor freelance job, with a long list of responsibilities — with no clue how many hours a day or days a week or weeks per month they were offering. They just kept asking “What’s your day rate?” Nope. Avoid low-balling yourself before you know what they expect in return.

We started one of our days dancing from 7 to 9:00 a.m. All the office folk headed out early. Not us!
We started one of our days dancing from 7 to 9:00 a.m. All the office folk headed out early. Not us!

Never agree to a gig without a clear, written, signed agreement/contract

Things go south: your editor quits or gets fired; the budget is suddenly cut; your client hires a new assistant who hates everything you produce. You need protection. Spell out all your responsibilities, all their needs and the dates when you will be paid. It must be signed by both parties.

Everything is negotiable — including your decision to turn down a gig or leave one mid-stream

No one, ever, wants to walk away from a (well) paying client. Sometimes, though, it can be a wise choice to politely recuse yourself from a quicksand scenario where one client is sucking up all your time, energy and patience. Life is too short. (See: emergency fund.)

Negotiate! When someone offers you X fee, always ask for more. It’s been statistically proven that men almost always do, and often get it, while women just say “Thanks!” and get taken cheaply.

Your best sources of work are referrals from people who know, like and respect you and your work

It’s completely counter-intuitive that the fellow professionals with whom you’re now competing for freelance work can be, in fact, your best sources of good opportunities. In an office setting, you can face politics, nepotism, favoritism, seniority, sexism. For every ally and work-wife/husband, you might face a Game of Thrones-ish power struggle with someone.

Freelance life can offer plenty of stress, but if you have a strong, sturdy network of skilled, smart and ethical people who you help as often as possible! — you’ll never starve.

On assignment in rural Nicaragua...Gin up some paid adventures!
On assignment in rural Nicaragua…Gin up some paid adventures!

A ferocious work ethic — even if you wake up at noon and work in sweatpants — matters more than ever now

No missed deadlines! No slacking off!

You are selling your time, skills and experience. Never underestimate their value

Every freelance dollar you earn must now 100 percent fund your healthcare, retirement, sick days and paid vacations. You’re also on the hook for paying the full 15 percent of your income to fund Social Security, (employers usually pay 50 percent.) Boost your rates accordingly.

Stop...enjoy life's beauty. Put a fresh flower on your desk
Stop…enjoy life’s beauty. Put a fresh flower on your desk

You must take breaks, both in  your workday and your year

Without exercise, friends, face to face meetings and pleasure, you’ll quickly burn out. It’s isolating and lonely to work alone every day all day. It’s also tempting to work far too many hours instead of shutting off all electronics and access to email at a set hour so you can enjoy a full life, not just a new form of wage slavery.

Follow my friend Wendy’s three rules whenever possible as you choose (or refuse) a job:

Is it fun? Will I learn something new? Is it well-paid?

It should hit two of three.

Have you moved from a staff job to freelance life?

How’s it going?

What else would you advise a newbie to this way of working?