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Spirituality and Money: Turning, Reconnecting and Giving

This article was written by Flexo in Spirituality. 13 comments.

This article is written by Consumerism Commentary’s columnist, Ellen Cooper-Davis. Ellen’s column will look at the role of spirituality within the context of personal finance. For an introduction to this column, see Ellen’s first article, The Pastor and the Purse. Your feedback is welcome.

In the Jewish tradition, we are in the midst of the season known as the High Holy Days, in which people engage in deep introspection and self-reflection in preparation for Rosh Hashana, the Jewish New Year, and Yom Kippur, the day of atonement.

First, there is teshuvah, usually translated as repentance or turning. But Hebrew words are delightfully nuanced–this can be thought of as stopping in your tracks and turning around. Jewish tradition teaches that we need not be identified by our habits–they can be changed. I need not feel shame and guilt about a particular spending habit. I can choose to change it. I need not think of myself as “bad with money” because I have not yet learned to manage it well. I can choose to educate myself. The invitation in this turning is to reflect on where we have not lived up to being our best selves (is my spending in line with my values?), and make a commitment to more integrity.

Fall Foliage There is also tefilah, or prayer. In my own Unitarian Universalist tradition, not all people believe in God. So we understand prayer or meditation to be an intentional time of reconnection between the individual, and that which is greater than the self. That can be a Higher Power, God, the Universe, or humanity. When we reaffirm our fundamental connectedness, we can make choices reflective of the reality of how interconnected we all are. We might explore socially responsible investing, or fair trade products, or participate in microlending, or support local business first. When we remember our connectedness, we more easily shift from thinking of “me” to thinking of “we.”

Finally, there is tzedakah, or good deeds, most especially, charity. In economic times like this, we might feel the impulse to reduce our generosity and giving, to hoard, to give in to a mentality of scarcity. But if we are relatively comfortable in our lives, then giving to those who are truly struggling is even more necessary. There is a growing body of research that links financial generosity and giving to an increase in happiness in the giver’s life, as well. When we are kind to others, we also benefit.

You may not be Jewish, or even religious. In my tradition, we understand all the world’s faiths to contain wisdom that can help us be compassionate, wise, loving, moral people. As we enter autumn, a season of change, I invite you to reflect on your spending and saving habits. Where we see things we wish to change, we can know that we have the ability to move toward being the people we wish to be.

Where is your money life not as in line with your values as it could be? What change might you invite? How does your use of money reflect your sense of connection to that which is larger than the self? What stands between you and greater generosity?

Editor’s note: See the “About the Author” section below to learn more about the author, Ellen Cooper-Davis. Ellen’s column appears about monthly on Consumerism Commentary.

Anosmia

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Predatory Bank Fees Could Lead to the End of Banks

This article was written by Flexo in Banking. 5 comments.

About the author: Karney Hatch is a filmmaker whose new documentary, Overdrawn!, explores the predatory lending practices of major national banks with Ralph Nader, Joel Bakan, a loan shark, and many others.

In all the number crunching and legalese surrounding predatory fees of various sorts, it’s easy to forget the visceral reaction that they cause in people. Ask any “telephone banker” who works a call center for any of the big banks, and they’ll tell you the first reaction that these fees cause in customers: rage.

Or, sometimes, shame. Which is the way the banks want it. For the most part, only people with low balances in their accounts get overdrawn, and so one of the most common emotional reactions when the fees hit is shame, and people who are ashamed don’t tell their friends they got overdrawn, they don’t call their member of Congress and tell them something needs to be done, they don’t switch to a smaller local bank or a credit union -– they just pay the fees and go back to their lives. Until the next time they get overdrawn, and then the process repeats.

I have two things that I want to encourage people to do.

Don’t feel ashamed. Shame just makes us feel isolated and powerless. Rage is healthier and leads to actions, like those mentioned above.

I’d like to encourage people to consider an option that hasn’t quite hit the mainstream yet, at least here in the US: microlending. A relative of credit unions, sites like Lending Club and Kiva work by facilitating loans between individuals, but without any kind of bureaucracy that can lead even a well-meaning credit union in the wrong direction. No middle man, no managers, no shareholders watching the bottom line. Just people lending to people.

For now the micro- prefix fits, but there’s no reason that this framework can’t expand into home mortgages, business loans, and so on; in short, every form of lending that banks currently dominate and exploit. As Jessica Anderson, a banking consultant with over three decades in the industry, says in Overdrawn!, “Once that model gets the bugs worked out, then why do we need banks?” And how would that make me feel? Pretty damn good, I have to say.

If you enjoyed this article, please take a look at Overdrawn! The Documentary by Karney Hatch.

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Support Entrepreneurs in Developing Countries With Kiva

This article was written by Flexo in Credit. 4 comments.

Kiva is an international non-profit organization that facilitates “microlending” for the purpose of its mission, alleviating poverty across the world. The organization allows those who wish to contribute to lend money in small amounts to entrepreneurs in the developing world. Kiva’s website lets you browse entrepreneurs’ profiles to select the recipient of your micro-loan and allows you to make that loan. The terms of the loan are generally 6 to 12 months. Kiva claims that repayment rates are 99.7%, so there is very little risk of default.

Even with the potential for earning interest as a lender, I’d be careful about including microlending as an important part of an investment portfolio. It might be best to lend money only with amounts you don’t mind losing. Despite success stories — Endless Gibberish is “addicted” to Kiva and has lent over $20,000 — there is always a risk.

For anyone who finds Kiva to be a valuable resource, the Kiva BusinessCard, a credit card offered by Advanta, is an excellent choice. This is the only credit card I’ve encountered that is geared towards philanthropy. The Kiva BusinessCard matches your Kiva contribution (when placed on the credit card) dollar for dollar, up to $200 each month. Your contribution has twice the power. This match is considered a grant, however, and not part of your microloan. When the loan is repaid, you will only receive the amount of your contribution, not including the match. The matching portion will be paid back to Advanta.

Additionally, the card offers an 5% cash back rebate in the form of a statement credit for grants to Kiva, charitable donations, and some expense categories, up to $1,200 in charges to the card. Beyond that $1,200 limit, and in other expense categories, the program offers a cash back rebate of up to 1% on all other purchases. The total cash back you receive is unlimited. The cash back incentive for charitable donations is an excellent idea; to loan $100 to Kiva or donate $100 to your favorite non-profit, it will only cost you $95 (after you receive your credit).

That same $95 you spent on a $100 microloan provides the recipient with $200, thanks to Advanta’s matching grant.

Like other business credit cards, you don’t have to be a business in order to apply and be approved for this credit card.

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My Picks From the Top 100 Undiscovered Websites

This article was written by Flexo in Internet. 4 comments.

PC Magazine recently published a list of their editors’ picks for the top 100 “undiscovered” websites. The list spans a variety of categories from reference to music to health. Consumerism Commentary readers are probably familiar with a few of these sites, particularly those in the “money” category. Here are some of the highlights throughout.

Hard to Find 800 Numbers: Some companies do a decent job of hiding their toll-free customer service numbers in an attempt to use e-mail (and possibly avoid complaints). Others gladly provide a long distance phone number to save money. This site lets you browse for your favorite companies to find those hidden toll-free numbers.

Cork’d: This site is billed as the “simple way to review and share wine.” I can never keep track of the wine I drink, so every time I go out, I have to guess at what I might like. Now, if there were only a device that would allow me to check reviews while at the restaurant…

Menupages: Speaking of dining out, this undiscovered website indexes menus for over 6,000 New York restaurants. This is a great way to decide where to eat rather than using other options, including visiting the restaurants’ individual websites, which may or may not include their own menus.

Kiva: This microlending site has been mentioned quite a bit by other financial blogs. Kiva provides a mechanism to provide small loans to needy entrepreneurs all over the world, improving the lives and communities of people who will likely be very appreciative.

Rentometer: I discovered Rentometer in March and found it to be an interesting way to determine whether you’re getting a good deal on rent. At the time, my rent was on the low side for my area. I’d like to see how my new apartment compares, but the site is not responding at the moment.

Trulia: If you’re planning to make a real-estate-related move, Trulia should be one of the websites you check first. It has financial information as well as details about school districts and communities. Right on the front page, I can see that Trenton, New Jersey has made the top 5 in median listing price increases.

Topix: Here is a powerful news and blog aggregator that can organize listings by location or, as one would imagine, by topic. Some pages, like the one for Princeton, New Jersey are edited by humans, but when no human has been assigned, Topix’ intelligent robots take care of the job.

The Bargainist: For those who like to make their purchasing decision based on what’s on sale, The Bargainist provides a nearly-constant feed of coupons and deals. The only deal that stood out to me is the 40% of a CD at Borders. Even with that discount, you can find much better deals on music online.

Do My Stuff: Why do something yourself if you can pay someone else to do it for you? This site lets individuals and companies bid on your mundane and annoying tasks.

Yapta: After seeing this site featured, I joined Yapta immediately. I entered the confirmation code for my upcoming flight to California and will now allow Yapta to track my route’s prices. If the tickets become available for a lower amount of money between now and my flight, Yapta will inform me how to receive a refund for the difference. The likelihood of my holiday travel suddenly becoming available for less money is low; the flights are sold out now.

Remember the Milk: If you’re highly organized, unlike myself, you may enjoy making lists. You can tie your to-dos listed on Remember the Milk into your email or SMS (text messaging system) to allow you to be reminded of your tasks any where. Become a slave to a list — you know you want to.

Those are some of the “undiscovered” websites I found interesting or possibly useful for Consumerism Commentary readers. There are lots more — 89, to be precise — with commentary in the PC Magazine feature.

Top 100 Undiscovered Web Sites [PC Magazine]

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