What the meltdown means to me, a single mom renter
Filed under: Budgets, Home, Shopping, Simplification, Recession
I am the ant.When the elephants battle, it's my kind who ultimately get stomped on.
After obsessively reading about the outcome of the last decade of unchecked greed, I realized that this obscene Wall Street gaffe doesn't affect my situation in the slightest. Yet.
Because I don't have a mortgage that I HELOC'd to high heaven. I don't have a portfolio heavy with financials. I don't work for an investment bank. I don't live on my dividends. I don't own a business that needs to borrow to make payroll, and I don't have any payments on a 2007 Ford Excursion that I now can't unload as gasoline prices reach ever upward.
In other words, I'm already under the radar. Move on, please. Nothing to see here.I'm just a worker bee. I write my articles, do my gigs, and pay my rent and bills. There is absolutely no reason for me to take out a loan for anything, hence no reason I'll be needing credit any time soon. The car, a 2004 Toyota, is paid for. No plans to go back to school for another degree. At least a decade before I'll need to figure out a way to pay for my oldest daughter's college (and we're strongly considering my colleague Zac Bissonnette's suggestion of transferring to a four-year state school after two years of community college). No business plans in the works that need financing. And although home prices have indeed come down, they're still obscene here in Southern California. I can still rent twice the house for half the price of owning. No temptation there.
So far then, it's all quiet on the Western Front. But if this is indeed the financial version of World War III, my fortunes could change quickly, and for the worse.
I work for a number of media companies. And if (or when) the credit crisis hits them, then I may be in for a rough time. If the magazines I write for have to fold, a large chunk of my income goes with it. If the companies I blog and edit for decide to cut back their freelance content budget...I'm screwed. If publishers fold because no one is buying books anymore...gulp. There's no second income to fall back on. No rich parents. It's me and my wits.
Good thing I type 90 words a minute. I might one day have to test my mom's theory, back when she made me take typing in high school. "No matter how bad things get, they always need typists."
And then there's my landlord. I don't know the particulars of her investment portfolio, but I pray she's not down too much, lest she raise my rent beyond what I can afford. Well, at least my credit score is nearly perfect.
So while I'm waiting for the residual fallout from my financial betters, I'm taking precautions. I have very little debt, comparatively speaking, but what I have I'm aggressively paying down. I'm looking at my monthly budget to see what more I can pare down. I'm shopping at the cheaper markets and asking myself with every purchase whether I really, truly need the item in my hand. And I'm frittering away cash for that rainy day that surely is down the road.
Some doom and gloomers on the internets would suggest I start hoarding food and buy a gun as well. I don't think it's going to come to that. But even if it does, I plan on staying hunkered down, like I am already, hoping to fly underneath the radar and avoid the worst. If nothing else, I already know how to stretch a bag of rice and a bag of lentils for a good couple of weeks.
Reader Comments (Page 1 of 2)
10-07-2008 @ 7:21AM
diTesco said...
I am impressed to the fact that there is still someone out there that , thanks god, do not need - yet - the money from the blood sucking banks and the likes. However, this is a perfect example, why despite the apparent tranquility, rough days ahead may still be coming. I for one, am the unlucky ones who is caught somewhere on the middle of all this and surely do not wish this for any fellowmen. I am in no position to give you advice, but stay put my friend, hopefully things will turn around. The good thing about what you do is that there is always something to write about and someone that wants to be written about:)
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10-09-2008 @ 10:56AM
Chris said...
I am a single woman,worked hard all my life to buy my home this late in my life i have no credit card debt and don't spent money like a fool.I don't depend on banks or government to take care of anything, they are just a necessary evil,my provider is one that holds all the money banks and credit cards,he has always provided AND protected me in my life. when god is all i have i will know he is all i ever needed,some people would laugh,thank the lord that this world is not all there is,i am not a dooms day reporter but just pick up your bible and the whole story is in there,it talks about the falling economy, the crooked politicians, you see we Americans have been blessed by god but we have turned our backs on him allowing money and things to become more important than morals,family and our fellowman, just get in your CAR AND DRIVE IT WONT TAKE VERY LONG TO SEE HOW RUDE PEOPLE HAVE BECOME. I DO MY BEST NOT TO GET CAUGHT UP IN THIS WORLD,I DON'T KNOW ABOUT ANYONE ELSE BUT MY GOD SUPPLIES ALL OF MY NEED ALWAYS AND IS TOO GOOD TO BE UNKIND.
10-07-2008 @ 10:54PM
AmberR said...
Ms. Tilsner,
Your mother was wrong. "No matter how bad things get, they will always need typists". I have found out that this is no longer true. I am a "former" word processor who got layed off due to my company sending clerical work overseas. I have since been informed that wordprocessing/typist jobs are quickly becoming a thing of the past. The clerical jobs that remain are swamped with applicants, and I can't get near them. My advice? Don't count on your 95 wpm if things go wrong.
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10-08-2008 @ 3:07PM
kathryn levenson said...
I am another in-betweener. I am 50, divorced, rent, have two school age children part time. I saved hard for retirement and college, have no debt, and an excellent credit score. My savings portfolio was mostly in growth mutual funds and is now down about 25%. I just re-did the budget. I have been unemployed since February except for a few $10/hr part time jobs. Now I tore up my ACL and am mostly confined to the apartment with surgery on the way. Thank goodness I kept COBRA from my last job. On my unemployment and a little bit of extra income, I can pay my rent and most of my utilities each month. I have cut from the budget: clothes, dry cleaning, personal care, eating out, gifts, charitable giving, auto repairs, 1/2 the auto fuel I was using. Just for health insurance for me and my 2 kids I will dip into my remaining savings over $1100 per month, plus about $300 for car insurance. I buy my groceries mostly at Safeway and .try only to buy things that are on sale or 2 for 1. I keep hoping the stock market will eventually rebound. My grandmother hung onto her stocks through the Great Depression and retired with a nice nest egg and a house. I have less time than her for the rebound, but I keep hoping the situation will correct. What else can we do?
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10-09-2008 @ 6:53AM
m.s.king said...
I might be one of those "doom and gloomers", but buy the gun while you still can.
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10-09-2008 @ 9:07AM
Tae LaBanc said...
I'm a single mother who lives from pay to pay. I don't have anything with the banks so I'm not going to lose anything. But why do I have to pay for these CEO's mistakes? They have an income of 81 million dollars and still can't manage money. Try have a yearly one income of 14,000. I'm tired of the government not listening to the "rest of the American people." Their decisions are based on greed not for the good of the country.
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10-09-2008 @ 8:59AM
Steven said...
My wife and I paid off alot of our debt this year. We invested money in US EE / I Bonds in 1994 thru 2000 that could pay off the rest of our mortgage if needed. If the US goes belly up then the whole game is finish, so we are not worry about our house payments.
We invested in the early 90's in all bluechip stocks that paid dividends and have increase their dividends for decades. So we get paid to wait out the stock market storm. Our simple stock investment plan is this:
If stock A paids dividend at same rate and increases dividend everyyear .... we stay in reguardless of the stock price! If not we sell stock A. No need to watch the stock TV news with this approach.
We build up cash in several banks in case one fails and bought US Bonds in a US Treasury account for
future protection. We are now working on paying our last creditcard debt and small home equityloan.
Our big fears are these:
HEALTH INSURANCE and JOBS....
To us .... No one is going to look after our money more than us!
I do not trust Mutual funds or 401K , IRA plans for that reason. We want complete control to buy and sell the investments we decided on.
Not all in our financial lives is great, we are fighting the ecomony as well. But We are trying to stay afoat in these trouble times with budget cutbacks and a plan of action.
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10-09-2008 @ 9:29AM
JH said...
I am a single mom, buying a home (5 years left on morgage). I work 55-60 hours a week between two jobs and still have an income below $25,000 a year. I have a daughter that will graduate this year and hoping for college next year. I get $184 a month in child support that will stop in June. The cost of everything (electric, gas, food, etc.) is increasing daily. Any advise for me?
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10-28-2008 @ 6:16PM
fred lobbezoo said...
hi..!!!
i just want to say your a very good person. very smart and very stable. this is what your child needs. strong mom. as you are doing, "contentment is not fullfilment of what you wish for, but an appreciation of what you have". this is being content. you know you will do just fine. 90 words a minute..wow...i do ok with 40 words. a little slower but we get there. friend fred
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10-09-2008 @ 9:57AM
JollyRogers said...
There are several assistance programs for single moms. The real people who should be worried are those who have no marketable job skills and no dependants at home.
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10-10-2008 @ 7:46PM
Tina said...
Single Mom here. Unless you are poverty level (
10-09-2008 @ 11:00AM
Cathy said...
What a perfect analogy. We are the ants ducking for cover while the elephants over us rage. Unfortunately their "droppings" will eventually hit us all because we have to help "bail them out". Love those guys at AIG who went on a nice vacation after the government (we!) bailed them out. SOB's....hope they all rot in hell. We have also cut back on lots of items. I planted a garden this year (first try) and have to say that while not everything grew, we had plenty of tomatoes, cukes, gr peppers and beans to last us through the summer and into the fall. God was also looking out for us, as the barren (or so we thought) apple tree we've had for three years finally produced apples and it was a bumper crop.
We will be like you and fly under the radar for as long as possible. My parents both lived through the Great Depression and passed on lots of advice before they died. I reuse plastic bags, leftover get reheated and served again until they are all gone, I home bake cookies, use coupons and shop sales. I also ask myself when buying an "extra" - "Do I really need this?" If there is any hesitation, I don't buy it. We're Americans and we'll make it through......
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10-09-2008 @ 11:19AM
Kevin said...
You're a writer? I should think that a professional writer would know that the term "frittering away" means spending foolishly or unwisely, quite the opposite of saving money for a rainy day!
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10-09-2008 @ 12:36PM
Gwen said...
Wow, you're right. Fritter means waste away bit by bit. Good catch. She is still a very good writer. Just a small mistake with choice of word.
10-09-2008 @ 1:10PM
Helene said...
Kevin, thanks for your awesome input. Your a great example of why this world is failing R A P I D L Y !
Keep up the good work- It snowballs(is snowballs two words?).
Hel !
10-09-2008 @ 3:01PM
Edward said...
Good post, although the analogy is a little dramatic. If we are the ants, then we out number the elephants, and should make sure we use that influence to let politicians know what we think, what we need, what we demand to right this mess. To all who are scared; don't be. Keep saving, look for bargains in every day items, drive a little less, turn off a light when you leave the room, set your thermostat a little higher (or lower), eat at home more often, go to the dollar theatre, etc. These small things can have a huge impact overall on your ability to live on less, then allows you to reduce debt and/or increase savings. We will make it through this, and, like those who have dealt with it in the past, hopefully learn something from this.
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10-09-2008 @ 11:44AM
Sue said...
Single parents are such whiners.
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10-09-2008 @ 3:58PM
Teresa said...
Wow! What is your problem with single parents? We do have it tough. I never get a break. My ex lives 3000 miles away and I get to be mom and dad, always. At least some moms get a break every other weekend. Oh, and I have been living on work comp for the past two years. Can you believe I still own a house in Southern California? and my mortgage is current. I must be doing something right. These people that live beyond their means and then complain because they are in foreclosure are whiners and are not deserving of any help. I have managed because I go without and I make sacrifices. They should all be held accountable for their debts. Every single one of them.
10-10-2008 @ 10:15PM
Summer said...
They're whiners because of people like you. Our economy is in a freaking crisis, and you're complaining because you finally know how the woman (and few men) feel that have been doings this for YEARS.
Seriously, grow up. And support your fellow neighbor - whether or not you like them, because quite honestly, it's got to get a lot worse before it gets better....and that, for one, makes me get to know my neighbors to know I have someone that I can depend on and vice versa.
Stop your judgmental ways. I am a single mother making 60,000 a year. So you saying "single parents are such whiners" it's completely stereotypical of me and any other parent that doesn't fit your molded criteria.
Any questions?
Oh wait - I'm probably too intelligent for your judgmental mind, so chances are you didn't understand a thing I said during this. Oh again, sorry! I'm being judgmental and stereotypical of you! How does that feel? Exactly.
Wake up people. We have to help EACH OTHER, because our government sure as hell isn't.
10-09-2008 @ 8:06PM
Piglett said...
To all you single moms, I have been in your place and when you get discouraged try and do the polyanna thing, glass half full etc. As a police officer with two children, making $200 below poverty level in the 70's, cash only because women couldnt get credit and because of forced retirement contributions, we were not allowed help from Feds. But! I always went to work and saw seniors who worked all their lives, trying to live on less. Young people and families with no work ethic or responsible adult to set an example or care for their kids. So when I got discouraged and mad at government or just tired of struggle, my mantra was to "count my blessings" whether it was health, work ethic (lots of part time jobs to supplement), or just the ability to believe in my single moms teaching, also from the depression. You go girls and live for today, remember if your kids don't get government help for college, as my did not, the best lesson they will learn is working and earning their way through.
P.S. Jolly Roger is right too, those who are really in trouble are those to old to work now and who are dependent upon this stock market, and/or have to go out and compete with young college grads and physically fit middle agers for jobs. Remember our parents didnt have any of the social programs we now have, during the depression. Ironic that the suicides we were told about during the depression, were the wealthy. This week the suicides I read about are the elderly and the middle income. For all the hate speech about Haliburton, government, and corporations, I find it sad that so much "trust" was put into banks, credit card companies and the stock market, and yes millions "trust" the social progams of government while condeming the hand that feeds them (government) like the teachers unions and university professors, to name a few. Good luck
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