by Karen Telleen-Lawton, Noozhawk Columnist (read the original in Noozhawk by clicking here)
In honor of the looming tax deadline, here’s a limerick from a humor blogger named Madeleine Begun Kane, called “Dear IRS”:
Dear folks at the fed IRS,
Your rules and your regs are a mess.
You’re unfair to the poor.
Middle class? Even more.
So beware, ‘cuz I know your address.
In a P.S. note to the FBI, the IRS and Homeland Security, Kane notes that she’s only kidding. (I believe her!)
Tax time may be a bigger resolution day than New Year’s, with promises running roughly along the lines of: “This year I resolve to put aside money every single month in my …” Roth IRA, company 401(k), savings account or whatever. But often we languish after a few paychecks, like a diet dangled precariously in front of an aromatic potluck spread.
Planning one’s finances causes many people angst, but there’s comfort in taking control of your financial life. The first step, whether you take it in your 20s or closer to retirement, is to live within your means.
This seems so obvious, but for many, it isn’t. When you engage in instant gratification, you end up using credit cards to blur the gap between income and expenses, hiding the truth even from yourself.
Start now to live on a budget that maintains your outflows at a smaller level than your inflows. Simply recording expenses can go a long way.
The earlier you learn to stick to a budget, the more you can slack off when you’re older. That’s partly because you will have saved more of a cushion, but it’s largely because you will have developed a healthy habit of consuming less.
I favor under-consumption as a way of life. That’s not to say I never indulge in the American lifestyle, but I like to consider “making do” a virtue even when I can “afford” an item.
This sometimes didn’t make me the most popular mom, but in the economic climate we’ve had since 2008, I think they finally appreciate the training. In fact, I may have gone too far — my son worked for minimum wage at a nonprofit for five years and still managed to save money. He Dumpster-dived with friends — only food still in its packaging, he told me, and close to its due date. Still, I don’t recommend this.
In Santa Barbara, there are endless frugal ways to eat, entertain or be entertained, such as having friends in for dinner instead of eating out, discount movies, hiking, or frequenting the beach or park.
You can take an Adult Ed class just for enjoyment. Adult Ed’s budget has suffered for years, but it’s still a great deal. Try taking take the bus or Amtrak to San Diego or the Bay Area — the views are marvelous, and it’s cheaper before even considering car wear and tear. For longer periods, consider Peace Corps, Earthwatch or teaching English abroad.
Elisabeth Donati is a financial literacy expert who founded an organization called “Camp Millionaire.” She analogizes eating and spending by asserting: “Thin people are people who are willing to be hungry”. If you are willing not to have everything you think you want right now, you have taken the first step toward being financially adept instead of anxious.
Karen Telleen-Lawton, Noozhawk Columnist
Karen Telleen-Lawton is an eco-writer, sharing information and insights about economics and ecology, finances and the environment. Having recently retired from financial planning and advising, she spends more time exploring the outdoors — and reading and writing about it. The opinions expressed are her own.