Autumn Contemplations, Financial Chaos, and Spring

The chaos in our financial markets seems to stand in contrast to the serenity of a beautiful fall day, with many-colored leaves on display and the gentlest of breezes giving them breath. 

But look closely…

I often find that my life tends to mirror and follow the season, both in exterior patterns and interior rhythms.  And perhaps the financial markets, which at a glance appear to be such a contrast to this autumn beauty, are doing the same.

Leaves die and fall to the ground in preparation of winter.  It is “Fall,” literally, the season of falling leaves.  The trees shed their leaves in preparation for winter.  They anticipate the coming season of longer nights, less sun, and cooler temperatures.  As fall becomes winter, visible growth comes to a stop, although the roots continue to burrow into the soil in preparation of spring.

I believe we are witnessing the “Fall” of the financial markets.  Literally.  (I don’t mean their demise or their destruction – I’m not that dramatic or pessimistic.)  It’s Autumn in the banking industries and the stock market.  The crazy growth of spring seems to be an illusion.  Inflated profits, inflated prices, inflated expectations…. 

And while much attention has been focused on the excesses of Wall Street, there has been plenty of over-reaching on Main Street too.  The average American saves 1% of their income, but spends up to $104% of their income.  How is that even possible!?  The average American is more in debt each year than the last.  I hear that Americans are more likely to declare bankruptcy than graduate from college, and now that we can’t refinance our homes due to ever-growing equity, we are up a creek without a paddle.

We want, we buy. 

“Buy now, pay later!”  “No interest for a year!”

Credit is not a bad thing.  Credit has it’s uses.

Emergencies. 

(A sale at Macy’s is NOT an emergency.) 

(And an emergency fund is even better.)

Cash back. 

Airmiles.

(I’ve taken a few free flights on Alaska thanks to my airmiles.  But if you don’t pay the card off monthly, you’re only being given flights in exchange taking a credit card at mafia rates.  Not such a deal.)

I think a winter might do us some good.  It’s doesn’t have the obvious appeal of summer, but winter can be a beautiful time of contemplation. 

Let’s strip things down.  Shed those leaves.  Cut things back, just for awhile.  Let’s learn the difference between wants and needs.

Let’s be clear that all the conveniences we didn’t even have 10 years ago are not “essentials,” and understand how all those little perks and conveniences that just cost a buck or two or five a day add up to a whole lotta financial stress.

Ahhh… you mean, the trees didn’t need the leaves after all!

I wonder what a third world observer would think of our homeless people with cell phones and cigarettes.  Priorities, people!  It’s easy to point the finger at the corruption on top, but perhaps our own priorities have gone just as askew. 

We buy cigerettes, coffee, and cell phones, but forget to pay rent.  (This is a little too close to home right now, I have two tenants who are in danger of being evicted for less than what they’ve spent on cigarettes in the last few months.) 

Or perhaps we buy lattes, martinis, and keep our ipods loaded with the latest songs, and forget to save for retirement.

Or we buy a new car and designer clothes every year, eat out at the hippest places, and forget to feed our souls.

As I’ve changed careers and my cashflow has adjusted temporarily downward, my own priorities have been called into question.  Do I really read those magazines?  Do I actually want cable tv?  What’s it really worth to me to have those gray hairs dyed professionally – or dyed at all?  What matters and what doesn’t?  What is the difference between a want, a need, and a true desire?

Ah, yes, a true desire!  I’m not advocating monastic asceticism.  I’m just urging us to be intentional with our spending.  Frugality has it’s benefits, but isn’t one of those benefits to enjoy something that we saved for? 

Absolutely.  In due time and right season. 

A friend of mine who shops at Value Village (and looks adorable in everything) just got back from Paris.

She scrimps.  She saves.  She eats noodles at home and never eats out.  (She used to spend beyond her means, and she didn’t like the results.)  Frugality is not a hardship for her, it’s just how she lives.

And for her big annual vacation, she was going to go backpacking.  Yes, backpacking.  The frugal girl’s dream vacation. 

But then a funny thing happened… at the last minute, her backpacking buddy cancelled, and another friend who wanted to go to Paris emerged ready and willing.

Paris!  She really wanted to go to Paris.  Paris sounded marvelous – a dream come true!  But could be allow herself to spend the money?  It would mean extra airfare.  A hotel instead of a tent.  Croissants instead of trail mix.  How… perfectly decadent!

She had enough money set aside, she had saved diligently.  After some soul-searching (and coming to terms with the difficulty she experienced in truly giving to herself and receiving those gifts), she came to the conclusion that sometimes frugality itself needs to “fall.”  For just a season.  At least long enough to enjoy a fabulous time in Paris! 

My friend has been living without the leaves for awhile now, according to her needs, without the frills and “wants” that some people take for granted.  And it has allowed something new to grow.  A debt-free life.  Her 401k.  The realization of a true desire. 

Although she travelled in late September, it was springtime in Paris. 

For many, the recent financial crisis is a timely wake-up call.  Living on credit and inflated profits doesn’t work for very long.  And right now, there might be some pain as the leaves fall.  We need to look out for each other right now.  Let’s make sure our needs get met.  (You know, cuddle up and keep warm.)

Fall is here, winter is around the corner.  It’s time to let go of those beautiful leaves and embrace a season that may feel a little stripped down, a little “frugal.”  It’s only a season.  It won’t last forever. 

And rest assured, for those who embrace these seasons and their lessons, spring is on the way.

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