Ask Donna from MSN a question (Women of Personal Finance Spotlight)

[Donna Freedman]

How much of your work is given over to explaining the current national and international financial meltdowns, and how much to here-and-now advice and inspiration for the non-high rollers among us?

[Myscha Theriault]

Off topic from your question, but I've always wanted to ask: Donna, do you have any favorite items that you feel promote greater savings? For example, are their certain types of food categories at the grocery store, particular pieces of gear and equipment to make logistics easier while trying to work and save at the same time?

I'm actually working on a piece right now and considering opening it up to the other bloggers in the bloggers corner here relating to "must haves" in the savings department. One area I find particularly challenging is staying on a savings routine when I am out and about on the road. We have a few pieces of gear that we feel makes it easier to get more done and as a result have more time to save. The more I have to leave the house for real estate shopping, errand running, etc, the more I get thrown for a loop with my savings routine around the house. Am I the only one? Donna? Anybody?

[Julie Rains]

Hi Donna, Thanks for visiting Wise Bread and talking with everyone on the forums. WB bloggers have been writing quite a bit about the financial news though I really haven't except for some articles on mortgages / home values. I am still trying to figure out why this problem is so deeply embedded in our financial system though I am coming to realize that when financial services companies said they didn't know the extent of the problem several months ago, they meant, we're not telling you how bad they are in hopes of a turnaround.

Most people I know are saying "yikes" what happened to my retirement portfolio but thinking that this too will pass (in some form or another) and that there are in fact more important things than money.

Perhaps our readers and forum visitors can tell us how this is affecting them. But I can tell that grocery store prices are affecting everyone.

Myscha, I think anytime your routine is disrupted, you end up spending more money -- at least that's been my experience. Being in a new town and not having a permanent address surely makes things more difficult. I loved your post on traveling and look forward to learning more about ways to save money when things are going crazy.

[Linsey Knerl]

Donna,

So glad you are visiting us! I have really come to love the Smart Spending Blog (and it's not just because you kindly feature so much of our work over there.) I think it's a great way to get a unique and helpful financial perspective out to a larger group than what may be offered strictly on the MSN Money's traditional pages.

I had a question about blogging, if that's OK. Have you seen a difference in the quality of "Frugal tips" submitted by everyday people as compared to those who are "financial experts?" Specifically, do the experts and economists on TV offer more, if any, of a practical application towards "saving" money than those who share our expertise in the blogosphere? I have found that some of my best money-saving tips (those that truly influence my budget) have come from tips I pick up in places like the posts of the Smart Spending blog, letters to editors in my favorite homesteading magazines, and my Dollar Stretcher newsletter. I'm not sure of the financial background of many of these people, but I can only assume that are not degreed professionals, just regular folks trying to make it in this world.

You seem to have a good grasp of the financial blogosphere.... Any thoughts?

Thanks, and so delighted you came to share with us!

Linsey Knerl

[Donna Freedman]

Myscha,
I'm not sure what you mean about "gear." I'm pretty low-tech. I manage an apartment building and thus have a cell phone so that tenants can reach me wherever I am. It's pretty bare-bones, though; no texting, no camera, no pasta machine. (Just threw that last one in to see if you were paying attention.)
I don't have a BlackBerry, or a laptop, or a DVD player or even a television.
As for saving when I'm out and about, you're right that being away from home/routines is enough to make anyone bust the budget. I always have some kind of snack in my bag, usually granola bars or dried fruit or a Ziploc bag of cashews (Trader Joe's broken cashews rock!) and chocolate (working my way through the second of two bags of dark chocolate M&Ms I got for free by combining coupons with sale price). If I don't have a water bottle, I try to look for fountains instead of buying a drink. Sounds petty to some, but it has often kept me from needing to buy a meal if I'm delayed somewhere; figure a $6 to $7 savings each time.
Boy, I have a feeling I haven't answered your question. Please advise!

[Donna Freedman]

Linsey: I'm afraid I'll be a complete dud responding to your question. Because I don't have a television, I don't know what "experts and economists on TV" are saying!
What I do know is that everyday people contribute a lot of great information to the Smart Spending blog and also the Smart Spending message board. Sometimes it's frugal hacks and sometimes it's canny financial advice -- everyday people can and do educate themselves about investing, etc.
I'd say that any information you can get from any source is grist for the mill. You still have to do the work of analyzing it and figuring out what works for you in real time.
Put another way: You can read all the T. Berry Brazelton books you want, and ask your pediatrician for advice, but there's tremendous wisdom to be gained from everyday people, i.e., other parents.

[Donna Freedman]

Julie: Regarding the "what happened to my portfolio?!?" comment -- do you know many people whose investments have gone south? If so, what are they doing about it? Are they standing pat or moving money around?
I'm lucky that the 401(k) from my previous career as a newspaper reporter hasn't lost anything. All those years ago, I chose the slow, less-risky forms of investments. Sometimes it feels OK to be boring. These days it certainly feels more solvent.
The grocery store woes are something with which just about everyone can identify. Sometimes people will post comments at Smart Spending about why it's smarter just to "get a second job" or "focus on making more money" rather than to adopt frugal food techniques. Or, for that matter, any kind of frugal techniques.
I must admit that I find that attitude somewhat glib. It isn't always possible to get a second job; heck, some people don't even have a first job! "Earning more" isn't always an option if you live in an area without high-paying jobs, if you've decided to be home with your kids, if you have health issues or other personal variables. And frankly, some people don't want to work more -- they'd rather learn to manage their income and make smarter money choices so they don't have to work 60 hours a week.
Does anyone else get this kind of comments on her blog? How do you respond?

[Julie Rains]

Re: fall in investment portfolio -- it seems like the times that I have heard this, it was all about a 401k plan. I have had those but all have been rolled over to IRAs. I think many people are used to the fluctuations to an extent but, like me, most were hopeful for a continued, steady rise, which usually doesn't happen in real life. I would say that most people with equity holdings have seen a (temporary) decline; actually that doesn't bother me quite as much as if my values were down and the market was up (unless I made great gains when the market was down). I am still learning...however, I am definitely going to have more in cash next time...either to spend if I am retired for good or to buy low and get ready to sell high.

Re: working more than one job. Sometimes I wonder if this is a generational thing -- if someone worked 2 jobs when I was a kid, people whispered about it and called it moonlighting (kind of like they whispered about people who had second mortgages in the time before HELOCs). One thing that has changed though is the Internet -- making it easier to sell items, get a job without having to leave the house, etc. However, I do know someone (I'm guessing he's in his 50s) who has a real job and 2 part-time jobs in retail at places he really enjoys; I don't know how he manages. Now that I think of it I do know someone who works in a light admin role during the day (and gets benefits) but has a psychology practice in the evening; and another who works a couple of customer service jobs to make the house payment, and presumably save money. So there are ways of making the multiple jobs work but I am not so diligent (and have children at home) and would rather focus on the frugality side. Some people do both (2-3 jobs plus the frugality).

[Donna Freedman]

Moonlighting was popular in my family. For example, my grandfather was a carpenter but during the summer he'd drive a truck full of of a local farmer's gladiolas to the New York City flower market. My dad started college at age 30 and ran a paper route all through those years, and at one point took on the once-a-month gig of organizing and recording all the township's traffic tickets. Other relatives and acquaintances did things like sell Tupperware or Avon, trap muskrats, put little produce stands outside their homes, watch the children of factory workers, bring blueberries or strawberries to work to sell, mow lawns, clean houses, iron for pay or bake cakes for a restaurant.
I moonlight, too. In addition to writing Smart Spending, I manage the apartment building in which I live. That's a job that waxes and wanes. Right now it's waxing big-time because there have been two vacancies very close together; I've been taking a lot of calls and also need to be available to show it. Lately there's also been a rash of attention-demanders: several lockouts, a couple of jammed garbage disposals, the need to let in appliance delivery guys, a bunch of packages being delivered to tenants who weren't home, a cat that got out...But sometimes I'll go for a few weeks without having to do much of anything.
I take babysitting jobs for several families whose kids I really like. I consider it to be "timeshare grandchildren." Being around small children is tiring but also invigorating. Their, uh, unique view of the world is really good for me. Once or twice I've done pet-sitting, but not lately.
Occasionally I sell things on Craigslist, usually things I get free after rebate. Right now I'm trying to market some of the stuff I got as part of the divorce settlement: paintings, prints and sports memorabilia.
And in my spare time? I study irregular Spanish verbs.

[Julie Rains]

Wow--it sounds like your family was/is extremely industrious. I was a bit of an entrepreneur as a kid, going door to door offering to do special projects; one of my friends and I made candles and sold them. I don't remember adults doing that but they may have also.

Right now, I suppose I moonlight also -- I have a day job (self-employed resume writer) and blog for Wise Bread or I could say that I am a writer period. For me, the Internet enables more than one stream of income and taps into my talents (which sadly are not growing things and fixing things, though I am working on that). Oftentimes, I can see a direct trade-off between having to work (and finish an assignment/project) and having to spend, usually on meals.