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Frugal Living Tips: Oprah’s magazine is not one of my favorite things

May 1, 2017 by Frugal Prof

Frugal living tips: O magazine is not one of my favorite things.

Financial Freedom

I don’t tell people how to live or spend their money. I have chosen to scale back, do a budget analysis, and find frugal living tips in order to retire early.

In the process of making theses changes, I have become much more aware of our consumer culture. More on consumer culture.

That is why I was so disappointed when I picked up Oprah’s magazine. And let me say, I am a fan of her positive attitude. I like her show, Super Soul Sundays as well as Oprah’s Masterclass. But, her magazine is not going to make my list of favorite things.

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O magazine: I’ve enjoyed reading the magazine in the past and have gotten interesting book ideas and read some interesting articles. However, since I’ve started on this debt reduction journey, I’ve become much more aware of consumerism in the culture. And honestly, Oprah’s Magazine was a bit disappointing on that front.

Consumer culture:

What struck me is how much the magazine glorified spending. But I’m talking about the content of the magazine. The content of the magazine was all about spending as a way to self-improvement. And that’s not a message I subscribe to. I believe your best life is life after debt.

Products as content: One page in the magazine reviewed makeup and had 63 products on it. Yes, I counted. Again, this is not an ad I’m describing. This is a page in a magazine that people pay for. You’re paying Oprah to promote her favorite things to you. And the articles written by guest authors weren’t actually articles. They were “my favorite things” type of descriptions of their favorite products, including this $45 Vanilla Cake.

I just stopped reading the magazine. I’m not a big cake person. But, $45 seems like a ridiculous amount to spend on a vanilla cake. I’m not talking about a wedding cake or birthday cake for your kids. I don’t know who the target market for this magazine is, but the last thing Americans need is $45 vanilla cake. Seriously.

Spending as the answer to all of our problems:

Oprah is a mainstream personality and I was more than disappointed by her tone deafness. Americans have $2T worth of debt. (see above) Many people struggle with student debt and credit card debt. And many (like the good people who read this blog) are working to pay down debt and lead happier lives by being more thoughtful in their spending.

Debt free is my favorite thing:

This notion that once I can afford Oprah’s favorite things, my life be better. My life is better. I paid off $17K in debt this year and paid off my car. There’s nothing better than that. Debt free is my favorite thing right now.

What do you think? Please share your comments.

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Emergency Fund: An Umbrella for your Life

February 26, 2017 by Frugal Prof

The emergency fund is the first step in any debt free journey.

Emergency Fund Definition: An emergency fund is an account used to set aside funds needed in the event of a personal financial dilemma, such as the loss of a job, a debilitating illness, or a major expense.

*Disclosure: My aim is to recommend products that will truly benefit you. I believe in transparency and want to disclose that I’ve included certain products and links to those products on this page that I will earn an affiliate commission for any purchases you make.

According to financial host Dave Ramsey, the first emergency fund is a $1,000 that should be set aside for unexpected emergencies.

A larger emergency fund is when one becomes debt free except for your home. This should cover 3-6 months of expenses. So, for many people this could be between $12,000-$24,000, depending on your income.

An emergency fund prevents you from becoming desperate when an unexpected emergency happens. And they will. Getting a credit card advance or a payday loan are terrible alternatives.

How big should your emergency fund be?

The more stable your income and household are, the less you need in your emergency fund.

If you’re part of a two-income household or you’ve had a steady job for several years, then a three-month emergency fund is probably just fine.

But if you’re a one-income family, you’re self-employed, or you earn straight commission, then a six-month emergency fund is probably a better idea for you since a job loss could make you unable to pay the bills.

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Where should I keep my emergency savings?

Your emergency fund should be liquid, meaning you need to keep it in a place where you can get to it easily and quickly. (See my post on banks that still offer free accounts.)

The best option is a simple checking account or money market account that comes with a debit card or check-writing privileges. That way, you can pay that doctor or mechanic quickly and with no headaches.

But . . . make sure you’re not keeping your emergency fund in a place that’s too easy to access. You don’t want to be tempted to dip into it!

What’s an emergency?

When a sudden expense pops up, it can feel like an emergency—but that might not be true.

Here are three questions to ask yourself to determine if you need to tap into your emergency savings:

1. Is it unexpected?
2. Is it necessary?
3. Is it urgent?

How to Quickly Build an Emergency Fund

One of the easiest ways to beef up your emergency fund is to sell some stuff! Go take a look in your garage or dig through your closet—is there anything you could part with? Selling some items that are collecting dust can add up to major cash in your emergency savings. And every little bit helps! You’d be surprised at how quickly $5 here or $10 there can add up.

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It’s important to note that investments do not count towards an emergency fund. Your retirement or 401 (k) does not count. These accounts are not liquid or easily accessible (there are serious tax consequences for 401 (k) withdrawals.)

People who don’t have an emergency fund wind up being forced to take out a pay day loan or get a cash advance on a credit card. Getting access to emergency loans or emergency cash is not what I want for you.

I don’t want this to happen to any of my readers. The interest rate on a payday loan and credit card cash advance are incredibly high and will delay your ability to become debt free and invest.

An emergency fund is vital. It’s vital because emergencies happen.

People get sick, lose a job, car accidents happen, tornadoes, hurricanes, riots, fires, earthquakes all happen as well. As an adult, we prepare just in case something like this happens to us. Because they will.

I am in my late 40’s:
I have lost a job,
had a health scare,
lived in a city that experienced a major riot (Los Angeles 1995),
and in a city that experienced a major hurricane and flood (New York 2012).

Life happens. These were all near misses that should have been wake up calls for me.

Don’t wait. At the very least, start saving for your $1,000 emergency fund today!

Having an emergency fund is an umbrella for your life. Be prepared.

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