Saving up for transition expenses: Difference between revisions
Grammar, punctuation and spell check
imported>NbwikiUploadBot m (→References: removing import tag) |
imported>Quinn (Grammar, punctuation and spell check) |
||
| Line 1: | Line 1: | ||
[[Saving up for transition expenses]] is one of the actions that a [[nonbinary]] person may take early during their [[transition]]. Depending on the individual's [[gender dysphoria]] and other feelings about their body and appearance, some nonbinary people seek a physical transition. | [[Saving up for transition expenses]] is one of the actions that a [[nonbinary]] person may take early during their [[transition]]. Depending on the individual's [[gender dysphoria]] and other feelings about their body and appearance, some nonbinary people seek a physical transition. A transition may be very expensive, particularly if it includes [[surgery]]. Worldwide, [[health insurance]] often doesn't cover surgeries that are just for [[transgender]] people. As a result, the person has to save up to pay for it out of pocket. This page is written to be helpful for such people, even if they are youth who haven't had much experience with or education about personal finance. | ||
==Personal finance basics== | ==Personal finance basics== | ||
| Line 6: | Line 6: | ||
===Attitude=== | ===Attitude=== | ||
You need money sense in order to survive. Understanding your finances needs to be something that you do for yourself | You need money sense in order to survive. Understanding your finances needs to be something that you do for yourself because nobody else cares as much about your financial well-being. Never take for granted that any other person or institution will take care of this for you. Taking responsibility for your own finances is part of being empowered, independent, and capable of dealing with your problems. Much of good money sense is founded upon having a healthy attitude about money, rather than being fearful or ignorant about it. | ||
A lot of people see money as a taboo topic, not appropriate for conversation over a meal. It is true that some parts of it are private matters, such as how much you paid for things, and especially how much money you make. Your friends aren't allowed to pressure you into talking about the specifics, because that's rude. It's okay to just say "That's private" and change the subject. However, you can talk | A lot of people see money as a taboo topic, not appropriate for conversation over a meal. It is true that some parts of it are private matters, such as how much you paid for things, and especially how much money you make. Your friends aren't allowed to pressure you into talking about the specifics, because that's rude. It's okay to just say "That's private" and change the subject. However, you can talk to others about other aspects of money, and it's important that you do, in order to learn about it and to help one another. Interview your friends and family about things like tips for saving money. Write it down. You might also arrange a club in which you and your friends meet once a month to each talk about your progress toward savings goals. Telling other people about your goal can help you stick to it. | ||
Some people see money as a taboo topic because of spiritual reasons. The Biblical saying that "the love of money is the root of all evil" (Timothy 6:10) means that if a person cares more about money than other things, their greed can lead them to do things that are heartless. Money itself is neither good nor bad, just a tool meant to be less cumbersome than a barter system. (Imagine having to trade your cow for some medicine.) If you're concerned that it could make you heartless, work on developing your moral compass along with your money sense. Think about your financial decisions in terms of ethical choices. Wise money sense can keep you on an ethical path by preventing the money mistakes that drive someone to do wicked things out of greed or desperation. | Some people see money as a taboo topic because of spiritual reasons. The Biblical saying that "the love of money is the root of all evil" (Timothy 6:10) means that if a person cares more about money than other things, their greed can lead them to do things that are heartless. Money itself is neither good nor bad, just a tool meant to be less cumbersome than a barter system. (Imagine having to trade your cow for some medicine.) If you're concerned that it could make you heartless, work on developing your moral compass along with your money sense. Think about your financial decisions in terms of ethical choices. Wise money sense can keep you on an ethical path by preventing the money mistakes that drive someone to do wicked things out of greed or desperation. | ||
It's possible for a person to have lots of money and expensive things, and still feel unhappy, sick, or lonely. In that sense, money doesn't buy happiness. Meanwhile, poverty is stressful because it makes it difficult to take any kind of action, so one feels helpless about every problem. Any of the bad things that can happen to a rich person are worse when they happen to a poor person | It's possible for a person to have lots of money and expensive things, and still feel unhappy, sick, or lonely. In that sense, money doesn't buy happiness. Meanwhile, poverty is stressful because it makes it difficult to take any kind of action, so one feels helpless about every problem. Any of the bad things that can happen to a rich person are worse when they happen to a poor person because poverty means having fewer resources to deal with problems. It's easier to be happy if you can afford your survival needs, pay off your debts to others, and save up for your big goals in life. | ||
Don't see your financial situation as hopeless, as there's no such thing, even when it's as bad as it can get. First, get out of denial, and face the problem in all its detail. Next, talk about it to people you trust instead of keeping it a secret. Find out what actions you can take to address your financial challenges, and start doing something about them, rather than giving up. | Don't see your financial situation as hopeless, as there's no such thing, even when it's as bad as it can get. First, get out of denial, and face the problem in all its detail. Next, talk about it to people you trust instead of keeping it a secret. Find out what actions you can take to address your financial challenges, and start doing something about them, rather than giving up. | ||
| Line 18: | Line 18: | ||
===Money mistakes=== | ===Money mistakes=== | ||
One of the worst mistakes you can make with your money is to be inattentive about it | One of the worst mistakes you can make with your money is to be inattentive about it or to be ignorant or in denial about it. Here are some of the different forms this inattentiveness can take: | ||
* Having little piles of spare change and gift cards in different places in your home. You don't know exactly how much, or where. Even if you did know, it's the worst way to store it. This makes it so you don't have a sense of control over your money. | * Having little piles of spare change and gift cards in different places in your home. You don't know exactly how much, or where. Even if you did know, it's the worst way to store it. This makes it so you don't have a sense of control over your money. | ||
* Using a credit card just because you don't know how much money you have left to spend. Or using cash, but finding out you spent it all without even realizing it. You don't know what's going on. | * Using a credit card just because you don't know how much money you have left to spend. Or using cash, but finding out you spent it all without even realizing it. You don't know what's going on. | ||
* When you get change from a cashier, you casually stuff it into the mysterious depth of your bag or pockets, without putting it away neatly. You often find your change after it had a trip in your washing machine. | * When you get change from a cashier, you casually stuff it into the mysterious depth of your bag or pockets, without putting it away neatly. You often find your change after it had a trip in your washing machine. | ||
* Relying on somebody else to completely control your money. This is the opposite of financial independence. It's unhealthy kind of dependence called "financial infancy." It can be part of an abusive relationship. The victim lacks the resources they would use to escape it, and the abuser holds total power over their decisions, telling them that they're not smart enough to live on their own. | * Relying on somebody else to completely control your money. This is the opposite of financial independence. It's an unhealthy kind of dependence called "financial infancy." It can be part of an abusive relationship. The victim lacks the resources they would use to escape it, and the abuser holds total power over their decisions, telling them that they're not smart enough to live on their own. | ||
* Relying on someone else to bail you out when you make money mistakes... and you keep on making those mistakes. It's good to have someone you can count on to help you in a crisis, but it's bad to treat that as plan A rather than plan B. | * Relying on someone else to bail you out when you make money mistakes... and you keep on making those mistakes. It's good to have someone you can count on to help you in a crisis, but it's bad to treat that as plan A rather than plan B. | ||
* You're only aware that you don't know anything about your financial situation, and this either makes you feel afraid and unsafe | * You're only aware that you don't know anything about your financial situation, and this either makes you feel afraid and unsafe or unreasonably comfortable and dreamy since you're dissociating yourself from it. | ||
* Feeling like your financial situation is hopeless, so you can't bear to look at it in detail. You think there's no use in taking action to make it better, so you do nothing. You intentionally try not to think about your money. | * Feeling like your financial situation is hopeless, so you can't bear to look at it in detail. You think there's no use in taking action to make it better, so you do nothing. You intentionally try not to think about your money. | ||
It's not just bad money sense to be inattentive like that, it can be dangerous. You need self-discipline and responsibility. Every day, you need to know exactly how much money you have, and where. You need to have a budget and plan for goals. You need to take control of it yourself. | It's not just bad money sense to be inattentive like that, it can be dangerous. You need self-discipline and responsibility. Every day, you need to know exactly how much money you have, and where. You need to have a budget and plan for goals. You need to take control of it yourself. | ||
| Line 33: | Line 33: | ||
It used to be that people with good money sense would carry a little blank book with them everywhere. Whenever they spent or received money, they'd write it down in the book. Then they could see how much they had, and see patterns in their spending habits. Some people still like to do this on paper, or manually in an Excel spreadsheet. However, you don't have to do this all by hand: you can make it much easier for yourself by having computers automatically keep track of the details for you. | It used to be that people with good money sense would carry a little blank book with them everywhere. Whenever they spent or received money, they'd write it down in the book. Then they could see how much they had, and see patterns in their spending habits. Some people still like to do this on paper, or manually in an Excel spreadsheet. However, you don't have to do this all by hand: you can make it much easier for yourself by having computers automatically keep track of the details for you. | ||
Create an account on Mint.com, and set it up so to automatically get (''aggregate'') information from your bank accounts. Mint is made by the same company as made the software that most online banking systems are based on. Mint's software is as secure as that of your bank. Mint makes it so you have just one place where you can see all your recent spending and earning activity. Mint creates charts of which areas you tend to spend in the most, shows bar graphs of how much you have left in your budget, and how close you are to reaching your saving goals. This all helps you develop your money sense. Set yourself a reminder to look at your Mint ''every day''. By looking at your Mint every day, you can also be quick to spot suspicious activity that could indicate identity theft | Create an account on Mint.com, and set it up so to automatically get (''aggregate'') information from your bank accounts. Mint is made by the same company as made the software that most online banking systems are based on. Mint's software is as secure as that of your bank. Mint makes it so you have just one place where you can see all your recent spending and earning activity. Mint creates charts of which areas you tend to spend in the most, shows bar graphs of how much you have left in your budget, and how close you are to reaching your saving goals. This all helps you develop your money sense. Set yourself a reminder to look at your Mint ''every day''. By looking at your Mint every day, you can also be quick to spot suspicious activity that could indicate identity theft and react to it in time to save yourself a lot of trouble. | ||
===Primary source of income=== | ===Primary source of income=== | ||
| Line 42: | Line 42: | ||
Develop a professional image. Create a formal, brief voice mail greeting. Your email username should be firstname.lastname, or as close to it as you can get, instead of an informal username. Don't bring your parents into contact with a potential employer, because you want to look independent. | Develop a professional image. Create a formal, brief voice mail greeting. Your email username should be firstname.lastname, or as close to it as you can get, instead of an informal username. Don't bring your parents into contact with a potential employer, because you want to look independent. | ||
You don't want to be unemployed for more than a few months. At that point, any job is better than no job, so it's best to settle for "survival work," such as in nearby retail | You don't want to be unemployed for more than a few months. At that point, any job is better than no job, so it's best to settle for "survival work," such as in nearby retail centres and businesses that are easy for you, even though they're not in your field or directed toward your career. These are minimum wage jobs that nobody mentions when they talk about what they want to be when they grow up. People don't stay in them for long, which means they often have job openings, and you can get hired quickly. You don't want to keep working there long, either. While you work there, spend your off hours still searching for a job, one that's better than this one. | ||
If you recently lost a job, expect to be unemployed for more than a few months, or if you have a disability or other circumstances that make it so you can't work, then you need to research benefits that your government gives to such people. If your country supplies it, this is usually a very small amount of income, and it may come with stipulations that limit your ability to save up money for a big expense, so a day job is preferable, if you're at all able to do one. In the USA, some relevant benefits include | If you recently lost a job, expect to be unemployed for more than a few months, or if you have a disability or other circumstances that make it so you can't work, then you need to research benefits that your government gives to such people. If your country supplies it, this is usually a very small amount of income, and it may come with stipulations that limit your ability to save up money for a big expense, so a day job is preferable, if you're at all able to do one. In the USA, some relevant benefits include unemployment income, Social Security Disability, food stamps, food banks, and household bill assistance. You can also research charities that might help people such as yourself. | ||
If you're a minor, then your country's child labor laws limit which kinds of jobs you're allowed to work, and at which age. To find out, ask your library for books on personal finance for children and teens. | If you're a minor, then your country's child labor laws limit which kinds of jobs you're allowed to work, and at which age. To find out, ask your library for books on personal finance for children and teens. | ||
| Line 52: | Line 52: | ||
====Small business==== | ====Small business==== | ||
It's good to start your own small business, such as selling your crafts on Etsy.com, or mowing | It's good to start your own small business, such as selling your crafts on Etsy.com, or mowing neighbours' lawns. This will start out making so little income that you need a day job in addition to it. That makes your small self-employed job a secondary source of income, called "moonlighting." Even if you're a teenager and you think your business is basically just a hobby, you should look up some advice for starting and running a small business. See how it applies to you. Figure out how to do it more professionally than you think is necessary. In the future, you might be grateful that you started it out like that since it means less frustration later. You may find out you need a license to do Do Business As (DBA), which is best to take care of at the beginning, rather than face penalties or a bill for back taxes. | ||
If you're going to make and sell something, how much money do you make on it per hour? Are you pricing it too low, so that you're basically working for free, or even selling it at a loss? Here's a formula to find out: | If you're going to make and sell something, how much money do you make on it per hour? Are you pricing it too low, so that you're basically working for free, or even selling it at a loss? Here's a formula to find out: | ||
| Line 60: | Line 60: | ||
Profit divided by hours of work = how much money you make per hour. | Profit divided by hours of work = how much money you make per hour. | ||
Google your area's minimum wage per hour. Also Google your area's living wage. This will give you some idea of how much your time and labor are worth. How does this wage compare with how you priced the thing you're selling? | Google your area's minimum wage per hour. Also, Google your area's living wage. This will give you some idea of how much your time and labor are worth. How does this wage compare with how you priced the thing you're selling? | ||
Some ideas for services and one-day events, many of which are things that youth can do: | Some ideas for services and one-day events, many of which are things that youth can do: | ||
| Line 69: | Line 69: | ||
* Clean houses. Charge per hour. | * Clean houses. Charge per hour. | ||
* Clean pet cages or aquariums | * Clean pet cages or aquariums | ||
* Collect and transport your | * Collect and transport your neighbourhood's waste to the recycling centre, if they don't have curbside collection | ||
* Community garden. Let other people plant their vegetables in your yard, for a subscription. | * Community garden. Let other people plant their vegetables in your yard, for a subscription. | ||
* Computer lessons. Whether it's just the basics of how to use a computer, or specific programs or coding languages that you know, you can find a customer who doesn't know how yet. | * Computer lessons. Whether it's just the basics of how to use a computer, or specific programs or coding languages that you know, you can find a customer who doesn't know how yet. | ||
* Cook meals for a | * Cook meals for a neighbour | ||
* Dancing lessons | * Dancing lessons | ||
* Fortune-telling. Read Tarot, playing cards, I Ching, astrological horoscopes, or another oracle you know how to use. | * Fortune-telling. Read Tarot, playing cards, I Ching, astrological horoscopes, or another oracle you know how to use. | ||
| Line 80: | Line 80: | ||
* Help people move home by packing boxes and moving furniture | * Help people move home by packing boxes and moving furniture | ||
* Hot or cold drinks, oatmeal cookies, or other snacks at an event | * Hot or cold drinks, oatmeal cookies, or other snacks at an event | ||
* House | * House Sitting | ||
* Laundry | * Laundry | ||
* Mow | * Mow Lawns | ||
* Music lessons (guitar, singing, piano, or whatever you know how to do) | * Music lessons (guitar, singing, piano, or whatever you know how to do) | ||
* Organize someone's garage | * Organize someone's garage | ||
| Line 89: | Line 89: | ||
* Paint fences, patios, etc. | * Paint fences, patios, etc. | ||
* Paint nails | * Paint nails | ||
* Personal trainer. Jog a mile a day with a | * Personal trainer. Jog a mile a day with a neighbour. | ||
* Pet grooming | * Pet grooming | ||
* Pet sitting | * Pet sitting | ||
| Line 96: | Line 96: | ||
* Pool maintenance | * Pool maintenance | ||
* Printing documents for college students | * Printing documents for college students | ||
* | * Proofreader, fact checker, and/or research assistant for students' papers. Charge per hour. | ||
* Put on a play, talent show, or music concert. Charge per ticket. | * Put on a play, talent show, or music concert. Charge per ticket. | ||
* Rake leaves | * Rake leaves | ||
| Line 114: | Line 114: | ||
* Wrap gifts | * Wrap gifts | ||
* Yardwork | * Yardwork | ||
A lot of the above services are valuable to certain kinds of customers, especially busy parents, elderly people, and people with disabilities. Ask your local senior | A lot of the above services are valuable to certain kinds of customers, especially busy parents, elderly people, and people with disabilities. Ask your local senior centre if you can put your flyer on their bulletin board. | ||
Some ideas for things to make to sell: | Some ideas for things to make to sell: | ||
| Line 133: | Line 133: | ||
===Frugality=== | ===Frugality=== | ||
In order to raise money, you want to increase your income | In order to raise money, you want to increase your income and lower your expenses. It's good money sense to spend less than you make. Frugality is the skill of spending less money. Frugality is partially about knowing how to do things more cheaply, and partially about changing your attitude about spending. | ||
You need the self-control to resist spending on impulse. Consider the saying, "The best way to double your money is to fold it over and put it back in your pocket." When you shop, only buy what's on your shopping list. If you have an impulse to buy something more, write it down on paper, and put the paper away for a week. See if you still want it so badly by then. If you do, put it on the next shopping list. | You need the self-control to resist spending on impulse. Consider the saying, "The best way to double your money is to fold it over and put it back in your pocket." When you shop, only buy what's on your shopping list. If you have an impulse to buy something more, write it down on paper, and put the paper away for a week. See if you still want it so badly by then. If you do, put it on the next shopping list. | ||
| Line 145: | Line 145: | ||
* If you have a pet, its food and vet. | * If you have a pet, its food and vet. | ||
* Essential furniture you need in order to function in your home, such as a bed, dining table, and lamp. | * Essential furniture you need in order to function in your home, such as a bed, dining table, and lamp. | ||
* For many people, a computer and cell phone are necessary in order to search for a job, do banking, and get by in | * For many people, a computer and cell phone are necessary in order to search for a job, do banking, and get by in neighbourhoods without public phones. | ||
* Clothes that you need for your environment or to fit the dress code at your school or workplace | * Clothes that you need for your environment or to fit the dress code at your school or workplace | ||
* Time with your friends and family | * Time with your friends and family | ||
Some examples of wants: | Some examples of wants: | ||
* Clothing and interior decor that | * Clothing and interior decor that is mostly for looks | ||
* Candy, ice cream, and eating out at a restaurant | * Candy, ice cream, and eating out at a restaurant | ||
* Amateur sport and hobby supplies and lessons, such as ice skates | * Amateur sport and hobby supplies and lessons, such as ice skates | ||
| Line 167: | Line 167: | ||
* Save USD$1400 a year by drinking tap water rather than bottled water.<ref>Kira Vermond. ''The Secret Life of Money.'' p. 79.</ref> | * Save USD$1400 a year by drinking tap water rather than bottled water.<ref>Kira Vermond. ''The Secret Life of Money.'' p. 79.</ref> | ||
* Save USD$200 a year by plugging all your electronics into a surge protector, which you can switch off when you're not using it.<ref>Leah Ingram. ''Suddenly Frugal.'' 2010.</ref> | * Save USD$200 a year by plugging all your electronics into a surge protector, which you can switch off when you're not using it.<ref>Leah Ingram. ''Suddenly Frugal.'' 2010.</ref> | ||
* If you feel like changing your interior decor, rearrange what you have, and take things out of storage or put them away, rather than buying new. If you definitely need new furniture or appliances, look on your local Freecycle or thrift store. If one of your | * If you feel like changing your interior decor, rearrange what you have, and take things out of storage or put them away, rather than buying new. If you definitely need new furniture or appliances, look on your local Freecycle or thrift store. If one of your neighbours is moving out, ask if they have furniture they'd like you to take. | ||
* Get clothes second-hand. Shop in thrift stores. Organize a clothes swap with your friends and | * Get clothes second-hand. Shop in thrift stores. Organize a clothes swap with your friends and neighbours. | ||
* Seek free open-source alternatives to software. | * Seek free open-source alternatives to software. | ||
* Buy used video games through Amazon.com, instead of full price. | * Buy used video games through Amazon.com, instead of full price. | ||
| Line 200: | Line 200: | ||
Even if you're a teenager, you shouldn't store all your money in the form of cash in your home, because it earns no interest there. If you put (''deposit'') your money in a bank, the bank will pay you each month for letting them use it. This money the bank pays you is called ''interest''. The amount of interest they pay you depends on how much money you put in. For most people, their interest income is very small, just a few dollars a month. Very, very wealthy people are able to live off their interest income alone, instead of working a job. Making interest income is called putting your money to work for you. | Even if you're a teenager, you shouldn't store all your money in the form of cash in your home, because it earns no interest there. If you put (''deposit'') your money in a bank, the bank will pay you each month for letting them use it. This money the bank pays you is called ''interest''. The amount of interest they pay you depends on how much money you put in. For most people, their interest income is very small, just a few dollars a month. Very, very wealthy people are able to live off their interest income alone, instead of working a job. Making interest income is called putting your money to work for you. | ||
There are different kinds of banks. Most banks are commercial banks, which charge you many fees for using their services | There are different kinds of banks. Most banks are commercial banks, which charge you many fees for using their services because they exist to make a profit for themselves. That's not the best kind of bank to use. It's much better to use a credit union, which don't charge as many fees, because as nonprofit organizations, their main goal is to help their members. Credit unions are owned by their members rather than by large companies. They usually offer the best interest rates, too. Ideally, you want a credit union that has a feature called online banking, which means you can look at your accounts and pay bills from home, right on their website. | ||
===Investing=== | ===Investing=== | ||
When you're saving up money, you give it to a bank, called ''investing.'' The bank pays you for the money you've lent them, and that payment is called ''interest.'' This makes it so that your money will grow, called ''appreciating.'' Some kinds of investments can grow a lot | When you're saving up money, you give it to a bank, called ''investing.'' The bank pays you for the money you've lent them, and that payment is called ''interest.'' This makes it so that your money will grow, called ''appreciating.'' Some kinds of investments can grow a lot because they can earn interest on their interest, called ''compound interest.'' Over enough time, even a small investment in the right place can grow to twice its original amount. | ||
There are lots of kinds of investments. Some kinds of investments hardly earn any interest at all, so your money doesn't grow much, but are no risk, meaning you definitely can't lose your money. Some kinds of these investments: | There are lots of kinds of investments. Some kinds of investments hardly earn any interest at all, so your money doesn't grow much, but are no risk, meaning you definitely can't lose your money. Some kinds of these investments: | ||
| Line 213: | Line 213: | ||
===Debt and credit=== | ===Debt and credit=== | ||
Some things are so expensive that a person can't save enough for it in time. That's when a person borrows money, using a credit card or loan. Borrowed money is called debt, and eventually you have to pay it back to the lender, little by little. The amount of loaned money you're allowed to get is called your credit limit. | Some things are so expensive that a person can't save enough for it in time. That's when a person borrows money, using a credit card or loan. Borrowed money is called debt, and eventually, you have to pay it back to the lender, little by little. The amount of loaned money you're allowed to get is called your credit limit. | ||
Your ''net worth'' is how much money you have. If you have more debt than income, you have negative net worth. You need to pay off your debts and reach positive net worth in order to be able to save up for a big expense like transition. | Your ''net worth'' is how much money you have. If you have more debt than income, you have a negative net worth. You need to pay off your debts and reach positive net worth in order to be able to save up for a big expense like transition. | ||
====Credit score==== | ====Credit score==== | ||