8 Lessons about money I learned from my family

When I was growing up, we had stuffed lions from Harris Bank. We had enough Hubert Harris lions to make a whole zoo.  The lions made sense to me, because I thought of the bank as a warm and fuzzy place.

Really, to understand what I’m talking about, I need to tell you about money in my family. And what I learned about money from living the life of a rich kid

1. Big money comes from areas of big chaos.
The money started coming to my family when my great-grandpa got a law degree in the 1920s in Chicago. He didn’t have any clients, so he hung out at the jail, looking for people who needed a lawyer. It turned out that the only people who landed in jail who could reliably pay for a lawyer’s help were prostitutes.

My great-grandpa did a good job representing them, and consequently, he met Al Capone, who was the money behind the prostitutes. Soon my great-grandpa became Al Capone’s lawyer. Read more

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7 Big relocation mistakes

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Last fall I took my kids to Hermosa Beach. It was a big moment for me because the whole time I was playing professional volleyball, in my 20s, I dreamed I would have a family and live in Hermosa.

It’s a great beach town with top-notch volleyball. There’s proximity to good career opportunities in the LA area, and a culture of kids growing up with sand in their hair.

The day we arrived I realized that it might be really hard to leave. I worried that maybe I’d never go back to the farm. And the more the kids loved the water, the more closely I looked at For Rent signs. I thought maybe I could split my time between the beach and the farm.

But then something happened. We didn’t miss only The Farmer (who doesn’t like to leave the Farm). We missed the animals, and the feeling of being in a cozy warm house surrounded by snow.

Which made me realize that when we think about relocation, we think about the wrong stuff. Read more

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How school affects future earnings

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The best way to understand earning power—no matter what your age—is to understand the factors that go into it. For example, most people who have careers that are plateauing usually have a learning problem that manifests itself as an earning problem.

And for parents, schooling discussions are really earning discussions. Because you can say that kids with a love of learning are lifelong learners (essential for workplace success today), but truly, who wants an unemployed Ph.D candidate? You don’t want a lawyer who can’t get a job because of poor social skills, you don’t want a kid with perfect SAT scores who marries for money because supporting oneself seems too hard. Every parent wants to raise a kid who is capable of supporting himself and capable of finding engaging work for a stable life.

Here’s how schooling affects earning power. Read more

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When it’s OK to take a pay cut

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The farmer is separating his farm from his parents’ farm. To say this has been a summer full of drama would be a total understatement. I would say that the drama has gone from his larger family, to our little family, and now, to the economics of the farm.

This is probably where the drama should be: The Farmer is essentially starting a new business. I have always thought he would do a great job on his own and it’s been fun to watch him.

He is experimenting, trying to figure out what he wants. This summer, for example, he let the pigs graze in our field of sweet corn after the season was done.

Read more

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Career ruin: homeschooling

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When people tell me they want to stay home with their kids and they can’t afford it, I want to yell at them about how when I was trying to write freelance and take care of the kids I had a babysitter refuse to come to the house because we had no food in the house. We had no food in the house because we had no money. I bought food on a day-to-day basis. That was me, affording to stay home with my kids and not work.

I must also admit that I ended up in a mental ward. Maybe from postpartum depression, but probably from the stress of being the sole breadwinner and a stay-at-home mom.

I am having flashbacks. Because I’m homeschooling now — both boys. I never really believed I’d do this. When I launched my homeschooling blog I actually thought I was just exploring a trend. I thought I’d just write a little about how it’s clear to me that there is about to be a homeschooling revolution.

But that’s not what happened. Read more

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Unhappiness is good for you

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It’s hard to confess to you that I’m happy on the farm. The Farmer and I are getting along well, and all that research about how if parents are in a happy marriage the kids are happier — well, that seems to be true for us.

So I spend my days writing career advice and reading about goats and figuring out how to make enough unleavened desserts to keep the Farmer from hating Passover. When I need a break from thinking, I plant my vegetables in perfectly straight rows and hope for no more snow.

The thing is, though, that it is not my nature to be sunny and bright.

Now there’s a study to support my instincts toward stress and anxiety. According to Leslie Martin, author of the new book, The Longevity Project, stress and anxiety that arise from working hard at something that is engaging and exciting to you is actually a more healthy way to live than in a regular state of cheerfulness. Read more

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How to decrease your spending

I just got waxed. Everything off. Here’s a picture of Stephanie in action:

getting a brazillian

I love Stephanie because she is fun to talk to if I feel like talking and she leaves me alone if I feel like sending emails on my iPhone while she waxes. Or taking pictures.

I love the feeling of being neat and tidy after waxing. Because I feel like if my body is neat and tidy then my life is neat and tidy. Which is, of course, not true. I’m not sure anyone’s life is neat and tidy. But I like the idea that I can buy the illusion that I have things pulled together.

The problem is that waxing is expensive, and it’s a recurring expense. And I’m working on keeping my expenses very low so that I can start another company. Because a startup is really difficult to keep funded, and if you are supporting a family on a startup salary, it’s very scary.

But I keep feeling I’ve already cut as much as spending as I can. Does everyone feel that way?

But look, I moved from NYC to a farm. There are no stores here so I have to go to eBay at 2am for something to qualify as an impulse buy. There are no avenues for splurging on spoiled children beyond buying an extra dog or donkey. But still I find avenues to extravagances that I hate giving up. Read more

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Beware of Leo Babauta’s minimalist lifestyle

I was talking with Leo Babauta a few weeks ago. The topic of the conversation was his new book, focus. But of course I am not good at focus. So here is a picture of a book I just bought that is not Leo’s book, but I really like it: The Selby is in Your Place. It’s full of photos of people who turned their apartments into art. Totally eccentric, often over-furnished, but always totally interesting.

I would not have bought the book if it didn’t match my house so well. More on that later.

I told Leo I thought it was BS that he is Mr. Minimalism and he moved to San Francisco. I told him that the biggest cultural shift for me from New York City to the farm is the surprise shift to extreme minimalism. So I am sure that his move to San Francisco means he is tossing in the minimalism towel. Read more

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Salaries top out at age 40

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Whatever you earn at age 40 is likely to be the top of your earning potential. This is one of a gazillion things I’ve learned from talking with Al Lee, the director of quantitative analysis at PayScale.

Al’s data, which is based on the careers of college graduates, is basically that the salary curve for most people in their 20s is very steep. Then it starts to flatten in the 30s, and then you get into the land of the 3% raise. In real dollars, those 3% raises are not actually raises, they are just keeping up with inflation.

The information is grim. But here are some things you can do with it:

1. Go where the men are. To be precise, pay tops out at age 38 for women ($61K) and age 45 for men ($95K). But the difference, according to PayScale data, is not due to unequal pay for equal work. Rather, the difference is that women choose lower paying careers, and women are more likely to take time out of the workforce for kids. So the first thing you can do to prevent your salary from flat-lining is choose a career that men dominate. But it’s not just about industry—it is also about influence. Stick to line-management positions rather than support roles. For example, skip human resources and go to supply chain management. Read more

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Volkswagen Super Bowl ad is an anthem to Gen X

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Now that I live on a farm, which, by the way, has been inescapable for three days because of snow, I keep up with the world by watching trending topics on Twitter.

Right now, a trending topic is “Volkswagen commercial” which is about their new Super Bowl commercial. Volkswagen has conveniently released the commercial early so we don't have to spend this Sunday watching men giving each other concussions to see it.

Here's the commercial:

This makes me happy to be part of Generation X. First of all, this is the small window of time when Generation X will have the largest buying power in the consumer market. We are at our highest earning power, which, admittedly, is not impressive, but earnings are all relative, and people are discriminating against the Baby Boomers because of their age, so it's our heyday.

It's also our heyday because Gen X values are front and center. And we're about family. We don't earn as much as Baby Boomers did because we work such fewer hours. We've downsized our careers to take care of our kids. We've taken back the dignity of working part-time. We've deconstructed stay-at-home parenting as a respectful career alternative. Read more

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