Why we’re all so weird about money

By Caitlin Kelly

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Few issues are as fraught with emotion as how we get, spend, save or give away our money.

If you don’t have enough to survive, every day becomes an emotionally and physically exhausting battle.

And when you live in a country devoted to bare-knuckled capitalism like the United States, if you don’t have enough, the social safety net is weak and thin.

The federal minimum wage is still an absurd $7.25 an hour — I’ve never paid any of my part-time assistants less than $12 an hour, even 15 years ago.

American unions now have the lowest membership in a century, even as one third of American workers lurch into what’s now widely and risibly called the “gig economy”, a jaunty and inaccurate euphemism for fiscal insecurity.

This week Richard Thaler just won the Nobel Prize for Economics.

From The New York Times:

 

Professor Thaler’s academic work can be summarized as a long series of demonstrations that standard economic theories do not describe actual human behavior.

For example, he showed that people do not regard all money as created equal. When gas prices decline, standard economic theory predicts that people will use the savings for whatever they need most, which is probably not additional gasoline. In reality, people still spend much of the money on gas. They buy premium gas even if it is bad for their car. In other words: They treat a certain slice of their budget as gas money.

He also showed that people place a higher value on their own possessions. In a famous experiment, he and two co-authors distributed coffee mugs to half of the students in a classroom, and then opened a market in mugs. Students randomly given a mug regarded it as twice as valuable as did the students who were not given a mug.

This “endowment effect” has since been demonstrated in a wide range of situations. It helps to explain why real markets do not work as well as chalkboard models.

Money is so often a proxy for other, often deeper, darker issues: power, control, status, humiliation, (why Hollywood power broker Harvey Weinstein could be a sexual predator and so many people who relied on his goodwill to help them get or stay rich remained silent for so long.)

I’ve been fairly obsessed with money for a long time.

It’s caused no end of drama within my family and I’ve been handling my finances alone since I was 19 and moved out of my father’s home to live alone in a large city and pay for university from my earnings as a writer and photographer, with a small monthly income from a grandmother.

It taught me very early to know my worth and to bargain hard for it. I still remember the joy of earning 18 percent on a Canada Savings Bond, whose value quickly doubled.

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One place I do spend money freely — travel

 

I also remember vividly being so strapped then that it took me months to save the $30 I needed to buy tights and slippers so I could attend a free ballet class.

My living expenses were phone/rent/tuition/books/clothes/groceries/answering machine.

No car. No TV. No cable.

My family has plenty of dough, but made clear to me to never ask for a penny of it, nor ever expect to run home for help. I inherited some money from my grandmother in my mid-20s, which helped me to to buy an apartment, a security for which I’m very grateful as I’ve bounced in and out of the job market, survived three recessions and work as a full-time freelance journalist — an industry now in complete chaos.

I break into a sweat when spending money on more than the basics; (except for making our home lovely and travel.)

My cellphone and computer are probably four or five years old, (no big deal.)

But our Subaru has 180,000 miles on it, is 16 years old and cost us $1,800 in repairs in recent months — so we’re finally about to lease a gorgeous luxury vehicle.

The thought of committing to anything beyond our monthly health insurance and mortgage payments is scary even though we have the cash, (money we’ve saved for years), and emergency savings, so this is not — as Thaler would nod knowingly — 100 percent rational thinking.

 

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Airfares? I’ll splurge on those…

 

Some of the financial challenges I see so many women struggling with:

1) being scared to ask for more (i.e. raises, bonuses, negotiating a higher salary or fees)

2) giving money and gifts to children and grand-children to their own financial detriment

3) under-earning because of sexism, racism or other institutional barriers

4) under-earning while taking time away from paid work to care for children and/or others

5) failing to understand the devastating financial impact of divorce and planning for that. I had a prenuptial agreement in my first marriage and could have ended up in very dire straits without it.

 

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Does handling and managing your money cause you anxiety?


 

No, being exhausted all the time is actually not a worthy goal

By Caitlin Kelly

When do you just...sit?
When do you just…sit?

A powerful piece from the Washington Post about why being “productive” is such a punitive way to measure our human value:

I see it a lot when I interview people and talk about vacation. They talk about how they are wound up and checking emails and sitting on the beach with their laptops. And their fear is: If I really stopped and let myself relax, I would crater. Because the truth is I’m exhausted, I’m disconnected from my partner, I don’t feel super connected to my kids right now.

It’s like those moving walkways at the airport — you’ve got to really pay attention when you get off them, because it’s disorienting. And when you’re standing still, you become very acutely aware of how you feel and what’s going on in your surroundings. A lot of our lives are getting away from us while we’re on that walkway.

There are several cultural expectations in the U.S., even after living here for decades after leaving Canada, I’ll never agree with or adhere to.

One is the notion, an outgrowth of a nation with shockingly little government regulation or oversight of the workplace, no paid maternal leave, no mandated vacation days, that work is the single most important way for all of us to spend all of our time.

Every day, in every way, we are exhorted to workworkworkworkworkwork fasterfastefasterfaster and the hell with a personal life that includes family, friends, self-care, volunteer work, meditation, travel.

Looking at art restores and refreshes me. It isn't $$$-making but it soothes my soul
Looking at art restores and refreshes me. It isn’t $$$-making but it soothes my soul

Why, all that time you want to spend binge-watching Netflix or patting your puppy or making pancakes with your kids? That doesn’t boost the GDP! How dare you?

How about…rest?

Of course, a thin and fragile social safety net — hello, cause and effect! — makes working your ass off a necessity for all but the wealthy. The single largest cause of personal bankruptcy in the U.S. is medical bills; we now pay (yes, really) $1,500 a month for our health insurance, meaning we have to earn at least $18,000 after-tax dollars before any other cost.

For two full-time freelancers in a struggling industry, that’s enough to make me go back to bed.

Who owns your time?
Who owns your time?

One reason I’ve stayed freelance is the ability to control the use of my time, when and where and how often and for how long I work. I started work the other day at 8:10 a.m. (early for me) and had already written and filed a story by 10:30 a.m. I took the afternoon off to enjoy a day in Manhattan.

Some people need to work 1o or more hours a day — they have multiple children to support and/or a non-working spouse and/or earn low wages and/or live in a high-cost area. But beyond basic economic need, tethering your life to the profit-making demands of others rarely produces much joy for those of us expected to answer them.

Americans love to mock Europeans – those five weeks of vacation! That free health care! Those subsidized university educations! – as though the endless toil and debt required to earn the money to pay for all of that were somehow so much more virtuous.

When it’s really just exhausting.

Having lived in Canada, France, Mexico and England gave me a perspective many Americans lack.

Time off recharges and restores us to full mental, physical and emotional health.

You can work hard — and play hard.

It’s possible to be a deeply valuable human being without adding any economic value.

Working freelance means we’re choosing a life with less financial security but all the pressures faced while collecting a salary.

BUSINESS OF FREELANCING

The major difference is our ability to say no.

To not leap to answer an email at 11:00 pm or 1:00 a.m. or on a Sunday morning when we’re getting ready to attend church.

Yes, it might cost us some lost income.

But it gives us a life we deeply value.

Do you feel — or succumb to — this kind of pressure to be productive?

 

 

 

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?

Five reasons to freelance — and five reasons not to!

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?

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!

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.

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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?

LAST CHANCE FOR WEBINARS!

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Conducting a Kick-Ass Interview (what’s the one question you must ask?)

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Want a free speaker? Eleven reasons authors might say no

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.

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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.

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I’m busy!

It’s that simple.

Are you saving enough?

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

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.

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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?

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?