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In this week’s Ten Money Questions, we speak with Skye Kilaen, who blogs at Lizard Kingdom, Heroine Content and the soon-to-launch All Access Blogging. At last year’s BlogHer conference, Skye taught us how to make simple changes to our blogs so that everyone could read them. Until then, I had never thought about accessibility in these terms and she raised awareness through her passionate presentation. It’s with the same enthusiasm that Skye gets personal in this interview about money, mates, and motherhood. I enjoyed her thoughts. I’m sure you will too!
1. You used student loans to help pay for college but chose the pay-as-you-go plan with graduate school. How can students reconcile the opportunity an education provides with the investment, typically meaning debt, which is required?
The key is to be realistic about how much debt your future income can support without boxing you in. When I was borrowing money for undergrad and my first year of grad school, I had no clue what the total meant. $40K? What’s that? If I had estimated the monthly payments, and then done a little research about what my expected take-home would be as a social worker (clue: not much), I would have cut myself off from loans much earlier. Or I could have decided it was worth it to borrow and then work two jobs later. Either way, making a plan ahead of time is more comfortable than getting your first student loan bill and thinking “Quick, what can I sell on Ebay?â€
2. What is your most significant memory about money?
Buying a new bed after my divorce. I had been sleeping on the floor on a comforter for several months because I had no savings when I moved out. I had my parents to fall back on in emergencies, thankfully, but I didn’t want to count on them for basics like food and shelter. I had to figure out how to take care of myself. When I got organized enough to buy a bed (with cash, not credit) and I knew I could still buy groceries and pay rent, I realized I could probably manage my life just fine.
3. What is your worst habit around finances?
Buying clothes that aren’t 100% right for me. Then my clothing budget is used up, and I still have nothing to wear, so I keep spending more money. I daydream about having BlogHer CE Susan Wagner as a personal shopping consultant.
4. I love the tiara in your BlogHer head shot. As princess of your kingdom, do you always pay yourself first?
And here I was thinking of replacing the tiara photo with something more professional!
I’m lucky in my current job, because state government employees have to pay ourselves first - they take 3% of our checks and put it in our state retirement account! So that requires no willpower. But I also include my IRA contributions in my annual budget, and last time I got a raise I started putting some of my paycheck in my 401(k) as well.
It can be really painful to start putting that money away. You’re used to a certain size check and then it goes down... depressing. What’s really depressing, though, is talking to retired folks who are trying to make ends meet on Social Security, or with food stamps. I’d rather skip some recreational spending now and buy a used car instead of a new one if it means I’ll still be able to buy groceries when I’m 70.
5. You recently bought your first home. All the experts say that owning real estate is the cornerstone of wealth. Do you agree? What advice can you give to young adults trying to save for their first home?
Credit rating is more important than cash on hand. Protect it with all of your might. Also, find a mortgage broker who will get you out of paying mortgage insurance. What a scam that is.
6. Do you think motherhood could restrict your finances and curb professional opportunities? How will having a “dependent†alter your life?
I wish I knew. I don’t know whether I’ll want to stay at home or whether after two weeks at home, I’ll be dying to get back to work. I’m lucky to have a choice; most women don’t. I’m definitely not comfortable with the idea of making absolutely no money for several years, even though we’ve planned it so that we can survive on Cody’s income alone. I’ve been working and taking responsibility for myself for so