Tag: social issues

The Lifestyle Creep

This is a part of a newsletter from my wealth management company. I was hesitant about sharing this article because the way it is written implies it concerns only very well off people, so I felt like it will be perceived as “rich people problem.” Still, I believe that the issue is rather universal, and that any time someone experience a substantial increase in income, there is a possibility of the “lifestyle creep.” I think, that stories about people who won a lottery and soon found themselves broke, can be attributed to the same effect.

Here is how this article starts:

Lifestyle creep happens when your expenses increase alongside your income. As you earn more, it’s easy to spend more freely, perhaps without much thought. As income increases, it’s only natural to want to improve your lifestyle, and there’s nothing inherently wrong with that, either, up to a point. Without keeping tabs on the cumulative effect of daily financial decisions like business class upgrades or pricey dinners, it’s easy to lose track of how much you’re saving versus spending. After all, as the name suggests, lifestyle creep happens slowly.

For high earners, there’s enough cash coming in that makes it easy to cover just about any upgrade, so the cost can seem small when considering the big picture. But unless you’re tracking your saving and spending, you risk getting used to a lifestyle that you can’t support once you stop working. So the key to enjoying your success now — and maintaining that standard later — is ensuring your savings rate increases at least as much as your additional spending.

I do not want to cite practical calculation examples from this article, because most people do not have that kind of money, but the general idea is that when a person ‘s income increases substantially, they should use not more than half of this increase for “quality of life improvement” (actually, they recommend 30-40%), and the rest should go to increasing the retirement savings. Again, the principle behind it is that people expect to maintain the same lifestyle after retirement as they had before, so they should budget for that.

The final paragraph of the article reads:

You can only spend a dollar once. But there’s also no prize for being the richest person in the graveyard. Being intentional about how you spend and save your money can help you maximize both. So before upgrading to business class, run the numbers to see how all your incremental lifestyle improvements add up relative to your savings.

I think that balancing between these two (“enjoy the day” and “richest person in the graveyard”) is indeed difficult, and I do not think I always make right decisions. But I know since the time I was very poor (and it happened to me more than once during my lifetime) that budgeting is critical, and good budgeting can improve one’s life more than moderate pay increase. Of course, I am not talking about people leaving below the poverty level, and of course, I am not implying that everyone should be happy with what they have. It’s the season of giving, after all.

Well, I really hope I didn’t offend anybody, and I hope that I was able to express my thoughts.

-1

Yesterday, I finally stepped down from one of my activities: The Howard/Evanstone Community Board. I was very hesitant to join this Board from the start, and the reason I ended up joining was my desire to help my local community in addition to helping the world at large :). Also, I indicated from the very beginning that my commitment will be limited, and I will only participate in the strategic initiatives group.

However, during these last two years, I was still unable to get an answer regarding our budget and measuring the effect of any of the programs that we ran. And there was a huge push to participate in the direct fundraising efforts, which I refused from the start.

When I agreed to run for the LPI Board, I promised myself that in the unlikely event I am elected, I will drop one of my existing volunteering activities, and that was the one. I am actually proud that I did it – I do not take these things lightly. Also, I didn’t want to resign by email, so I came to the quarterly meeting and talked with the CEO and explained.

It seemed as though he had expected it, and he said he completely understood. I still felt bad, but it was the right thing to do.

SNAP Renewal

My mom knew that her SNAP was set to expire at the end of August, and she was nervous about what would happen with the rest of the money she had left there. I told her that SNAP will be renewed, but I knew it was not automatic (not like her Medicaid, which is almost automatic – I just had to confirm online that nothing changed).

As I already mentioned many times, the IDHS site is far from being intuitive, so I could not figure out how to reapply until I received a paper letter explaining that :). Fortunately, when I took my mom to apply for SNAP two years ago, she signed the papers allowing me to be her legal representative, so I receive copies of all communications. I submitted the application, and the system replied that since I indicated I can’t come to the office due to work constraints, they will schedule a phone interview. I worried that I would have to leave the office and sit with mom waiting for this call at the most inconvenient time, but when the letter with the interview date/time arrived, I realized that they don’t need my mom; they can talk with me directly, and that was a relief and a huge time saver.

It turned out that at some point during the submission process, I indicated a preference for oral communications in Russian (leaving paper communications in English). I think that was when I was unsure whether my mom would have to be present. I thought that it would mean they would bring an interpreter on the call, which would make things worse (that’s why I usually do not check this option). But this time, a miracle happened! The person who called me was an actual Russian speaking person; I guess at least partially because of a large number of Ukrainain refugees, this option has become available. And because of that, the renewal took just 5 minutes. She asked: so, you reported no income for your mom? I replied: yes, let me tell you the whole story. My mom used to receive her pension and use it here, but since the war started… I didn’t even have to say another word. She said: Ok, I am putting the notes here. She will receive a renewal in the mail in a couple of weeks. She even explained to me about the cash assistance (my mom can’t get it until we reapply for SSI, so her explanation saved me some time).

The fastest renewal ever!

What’s Happening At Home

I came back last night, and now I am heading to work. (And I will probably finish this post after my workday). For those wondering why I didn’t mention anything happening at home and whether I’ve shut myself off from all the news, I didn’t. I was closely following the news. I just do not see much point in expressing my outrage without being able to do anything constructive.
When I stopped by my neighbor’s to pick up my mail for the past two weeks, she told me that she opted not to listen to the news for these two weeks, because “she didn’t want to get upset.” That’s not for me either. I need to be informed, and I need to make informed decisions.

During the past two weeks, many not-for-profit organizations where I am a donor or a member sent emails to inform me about the staff cuts and/or program closures. One of the most upsetting was the closing of four clinics of Planned Parenthood in Illinois. These announcements make me think about whether I should re-distribute my donations, which I already planned for that year, but I haven’t made any significant changes yet.

Today was a quarterly meeting of the Howard-Evanston CC Community Board which I am a member, and the agenda looked different from what was emailed to us ten days ago. All of us were focused on the report about the readiness to resist the ICE raids and protect both program participants and staff. I was happy to learn that we have counsel available to interfere with ICE during the raids and a law firm that can provide free services when needed. However, no matter how many times during the meeting the HECC Director repeated that we need to focus on providing services to our clients, it was difficult to focus on the future and to look at it with certainty.

We will try our best, and it feels good to see how many people think that way!

TIME Magazine: History Lessons For Retirement

One of the things I plan to change is that I aim to retire at 65 with a part-time consulting. This article was interesting for me from a historical perspective: some details were new to me.

Continue reading “TIME Magazine: History Lessons For Retirement” →

How I Beat The System – Again!

Boris tells me that it’s my specialty to get through any bureaucratic or technological challenges, citing my battle with Finnair for my missing points, my battle with Lyric Opera for my money to be returned, and the most recent for the trademark agreement. Here is one more of my accomplishments that I am extremely proud of.

The Illinois Department Of Human Services (IDHS) has a very non-user-friendly website, so it was not unusual for me to call their customer service to validate my mom’s eligibility for benefits or whether they were ever renewed because it was impossible to understand from the website. Many people, especially those who had to communicate with this system more often than I used, told me the only way to resolve issues was to come in person. A couple of months ago, I decided to try to apply for additional benefits for Mom, but when I logged into the website, I found that they switched to the new logins (they are using ILogin, same as many other sites) and that I need to create ILoging and link it to the existing account.

I followed all the steps, and almost at the very end of the process, I accidentally copied a blank at the beginning of the password I prepared, and after that, nothing worked. I could not confirm the password, and I could not reset it. I tried to use the “reset your password” buttons, but I didn’t receive any links by email or text. Then, I found that there was no phone number to call for any login issues anymore because IDHS no longer maintains logins, and I needed to submit an issue online.

The online system, as you can imagine, requires ILogin to submit an issue :). It took me several attempts to get to the page where I could submit a ticket without a login, but then I got lost in the questions like “location of the service (work/home)”, “new/old hardware,” etc.
In the next several weeks, I tried to repeat the sequence of actions with similar results. Finally, I decided that I had to break through the system, and followed all these steps about “at work/at home/new/old hardware.” In the comments section, I described the issues in detail.

Hurray – I received a ticket number! Two days later, I saw a call from Springfield on my phone, and it was customer support calling. I repeated the whole story, and they said that they would reset the login and send me a link – “watch for the email.”

Three days later, I indeed received an email. I could follow the link and create a new password! And I am more proud of myself than ever! I am only wondering how they expect seniors to navigate this system! the existing account.

Hope Instead Of Cynicism

I really love this Time Magazine Essay: If Optimism Feels Ridiculous Now, Try Hope.

I love that it highlights the danger of cynicism, which I pointed out so many times recently, and I love that it explains the power of hope.

Although you can read the full text of the article below, as usual, I also wanted to highlight a very important paragraph:

Research clearly demonstrates that more than 80% of Americans—including Democrats and Republicans voters—would prefer greater peace between political parties; most respect democratic rule. Across surveys, a supermajority of the country support policies to protect poor people and the climate. But almost no one knows that.

Both Democrats and Republicans vastly overestimate how extreme, hateful, anti-democratic, and violent their opponents are. Media companies thrive on outrage, inundating us with extreme and inflammatory portrayals of the “other side.” When we uncritically consume these messages, we miss out on vast swaths of common ground that most Americans share.

That’s, by the way, what surveys were showing even before the elections, and that’s what votes were saying going to the polls. I am glad that I see more and more in-depth analysis of why Americans voted the way they voted. There is no time to cry. It’s time to get things done.

Continue reading “Hope Instead Of Cynicism” →

Thoughts

I heard a comment the other day that can be rephrased as a standard appeal to Puritan ethics: people do not want their money taken away and redistributed. This means that at least some well-off people believe that anybody who is in a bad financial situation got there because they didn’t work hard enough, tried hard enough, or whatever.

A day before I heard this comment, I talked to my friend, who is a retired special ed teacher. She worked all her life in a most noble profession. Still, she doesn’t have enough retirement income and has to work part-time, not because she wants to do something, but because without this extra income, it would be difficult for her to make ends meet. And that’s where I have a problem with the “it’s all their own fault” statement. There are many professions, many jobs like this. And we need to raise taxes to pay teaches salaries and pensions. And if we reduce public education to a level low enough that people who can afford a private education would opt for it, this will completely eliminate the concept of “equal opportunities” (yes, we already have districts with low education quality, but we should put an effort into resolving these problems, not exacerbating them).

I didn’t even start on another topic: even if somebody “didn’t work hard enough” or “didn’t save enough” is it morally acceptable to leave them without support when they need it?

And a final note, which should have probablybeen the first one. I hear people saying that they chose “the lesser of two evils.” What I do not understand it how these “evils” can be compared in terms “more” or “less.” They are very distinct, I would say, the opposite evils, meaning that you either find Trump’s policies evil or Kamala’s policies evil, that are not comparable in my opinion, which makes me think that people who choose “the lesser evil” do not really look in-depth on what they are choosing.

But I might be wrong as usual.

***

I am not going to vent about Tuesday. First, venting does not help, and second, as sad as it is, I can’t say it was unexpected. The mood in the office yesterday was gloomy, and the Finnish chocolate I brought came in handy. Yesterday was the day of our women’s circle meeting, and all of us came in like “meh,” but we decided to talk about positive things, and at the end, we all agreed that we would keep doing good and survive another four years.

As much as I always blame myself for all the bad things happening in the world, I do not blame myself that much for not doing canvassing. If there was anything I could do better, it was voicing my opinions, participating in meaningful discussions, and sharing information in all other possible ways. I am not even angry, not like in 2016, just focused on what I can do and what my priorities should be.

I think that the way Kamala Harris accepted her defeat and pledged to a peaceful transfer of power was the best thing she could do strengthen democracy and give an example of civilized behavior. Her speach was great, and I am so glad that she is not going to disappear from political stage.

Back to work. Back to life.

What I Was Saying…

From Chicago Sun-Times:

Mayor Brandon Johnson’s administration spent $814,000 on a giant fence as part of an effort to shut down one of the city’s largest and most visible homeless encampments ahead of the Democratic National Convention, City Hall records show.

The massive barrier was part of an “emergency” effort to permanently lock out unhoused people from the location near the United Center, where the convention was held, the records obtained by the Chicago Sun-Times show.

The Johnson administration had refused to say how much taxpayer money went toward blocking off the green strip of land between the 1100 block of South Desplaines Street and the Dan Ryan Expressway just north of Roosevelt Road, until after the nationally televised gathering was over. The Sun-Times has been asking for those records, which should be public under state law, since July, when that tent city was cleared of its residents, the tents and the items they left behind.